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10 November 2021
New York Donut Shop Operators Convicted of Tax EvasionRead the Press Release
A federal jury in Utica, New York, convicted a New York couple and their son today for conspiring to defraud the United States and for tax evasion.
According to evidence presented at trial and court documents, John Zourdos, his wife Helen Zourdos, and their son Dimitrios Zourdos, all of Rome, New York, operated three Dippin Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, the defendants concealed more than $2.8 million in cash sales from the IRS, and evaded more than $650,000 in individual taxes, by depositing cash directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant and causing their accountant to file false individual and corporate tax returns with the IRS. The defendants also used unreported cash sales to fund a lavish lifestyle that included, among other things, the purchase of multiple luxury vehicles. Evidence at trial further showed that the defendants paid some employees “off the books” cash wages for overtime hours. They paid other employees entirely “off the books” in cash for all hours worked.
John, Helen and Dimitrios Zourdos were each convicted of one count conspiracy to defraud the United States, seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate tax returns. Sentencing hearings for all three defendants will be scheduled at a later date. All face a maximum penalty of five years in prison on each count of conspiracy and tax evasion, and three years in prison on each count of assisting the filing of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman of the Northern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief John N. Kane of the Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York are prosecuting the case.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Sarah S. Vance sentenced ROY LEE SR., age 58, of New Orleans, Louisiana, to 96 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, LEE SR. conspired to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin.
United States District Court Judge Sarah S. Vance sentenced LEE SR. to 96 months custody in the Bureau of Prisons, to be followed by five (5) years of supervised release. LEE SR. was also ordered to pay a $100 mandatory special assessment fee.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
Myrtle Beach Man Sentenced to 8 Years in Federal Prison on Fentanyl ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Shamar Jabarns McCollum, 24, of Myrtle Beach, was sentenced to 8 years in federal prison after pleading guilty to possession of fentanyl with the intent to distribute.
Evidence presented to the court showed that on July 1, 2020, officers from the Myrtle Beach Police Department Street Crimes Unit and Patrol located McCollum in Myrtle Beach and placed McCollum under arrest for an outstanding warrant. During a search of McCollum incident to arrest, officers located a digital scale and two wax slips containing heroin and fentanyl.
Chief United States District Judge R. Bryan Harwell sentenced McCollum to 96 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department Street Crimes Unit and Patrol.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Member of Boston Latin Kings Chapter Sentenced for Racketeering and Drug ConspiraciesRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering and drug charges.
Steven Familia-Valdez, a/k/a “King Haze,” 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one year in prison and three years of supervised release. The government recommended a sentence of two years in prison. On June 23, 2021, Familia-Valdez pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and cocaine base and to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings’ goals and directives in the state. Familia-Valdez admitted to conspiring with other gang members to further the operations of the Latin Kings, attending meetings of the Latin Kings and discussing crimes of violence and witness retaliation with his fellow gang members.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Familia-Valdez is the 39th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard of Mendell’s Organized Crime and Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
McKeesport Felon Allegedly Possessed a GunRead the Press Release
PITTSBURGH, PA. One resident of McKeesport, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Yadell Eric Jones, age 49, as the sole defendant.
According to the Indictment, Jones is alleged to have possessed a firearm as a convicted felon on or about October 26, 2021. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Mayor of Stonecrest and bookkeeper arraigned on federal charges relating to theft of COVID-19 relief fundsRead the Press Release
ATLANTA - Jason Lary, the Mayor of Stonecrest, Georgia, has been arraigned on federal charges of wire fraud, conspiracy, and federal program theft. The charges relate to a scheme to allegedly steal federal relief funds granted to Stonecrest to address the economic fallout of the COVID-19 pandemic. Lania Boone, a bookkeeper for the entity hired by Stonecrest to disburse the relief funds, has also been arraigned on a federal charge of conspiring with Lary to steal relief funds.
“Lary allegedly abused the power and trust conferred on him as Mayor of Stonecrest to steal hundreds of thousands of dollars intended for COVID-19 relief,” said Acting U.S. Attorney Kurt R. Erskine. “Instead of providing aid to Stonecrest’s deserving citizens, Lary allegedly diverted funds for his own use, including to pay off his taxes and the mortgage on his lakefront home.”
“It is very troubling when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community during a global pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The allegations against Lary and Boone indicate an abuse of a position of trust and blatant disrespect for the law, which will not be tolerated by the FBI.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. In July 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest.
Stonecrest was required to spend the relief funds in accordance with the CARES Act. In general, according to the Department of the Treasury, relief funds could “only be used to cover costs that – [were] necessary expenditures incurred due to the public health emergency . . . . and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020.” Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures.
In September 2020, Jason Lary, the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. The resolution also adopted a funding plan for most of Stonecrest’s relief funds. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (“Small Business Program”).
Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. Instead, the city contracted with Municipal Resource Partners Corporation, Inc. (“MRPC”) to provide accounting services and to disburse the relief funds as directed by Stonecrest. Before the contract was signed, Lary allegedly worked behind the scenes to assist MRPC, including by recruiting its CEO, opening its bank accounts, and ensuring that Lania Boone would be hired as MRPC’s bookkeeper.
In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. The application included the question, “are you willing to allocate 25% of your grant to marketing your business?” Hundreds of businesses applied for relief funds, but most of the applicants were rejected. From about November 2020, until in or about February 2021, Lania Boone signed dozens of checks on behalf of MRPC, directing millions of dollars of relief funds to individuals, businesses, churches, and non-profit organizations. Lary allegedly helped decide where the relief funds were directed.
Lary allegedly abused his position to devise and execute a scheme to steal relief funds after they were distributed by MRPC. First, Lary allegedly told churches that received relief funds under the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary.
For example, Lary presented a check for $150,000 in relief funds to “Church 1,” on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (“REMC”). Lary allegedly did not tell Church 1 at this time that he actually controlled REMC. Lary allegedly falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19. In reality, Lary allegedly used the money for his own purposes, including to pay off his outstanding federal, state and local tax liabilities.
As another example, Lary presented a check for $50,000 to “Church 2.” Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. Lary allegedly spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.
In addition, Lary and others acting on his behalf allegedly solicited relief funds from businesses that received grants under the Small Business Program. Lary and others allegedly falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising. But Lary and others asked that these “contributions” be given not to Stonecrest, but to entities called Visit Us, Inc., and Battleground Media, LLC. Lary allegedly did not tell the businesses that he controlled these entities.
In total, businesses were allegedly defrauded out of hundreds of thousands of dollars of relief funds. The relief funds deposited into the Visit Us and Battleground Media accounts were allegedly used by Lary to benefit himself and others. For example, Lary allegedly used relief funds held by Visit Us to pay for an associate’s political advertising.
Finally, Lary allegedly conspired with Lania Boone, MRPC’s bookkeeper, to steal relief funds before they were disbursed by MRPC. In January 2021, Boone allegedly used her access to one of MRPC’s bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company. Lary and Boone allegedly knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. Around the same time, Lary allegedly directed approximately $7,600 in stolen relief funds to be paid by Visit Us for Boone’s son’s college tuition and rent.
Jason Lary, 59, of Stonecrest, Georgia, and Lania Boone, 60, of Decatur, Georgia, were each arraigned on a criminal information on November 10, 2021 before U.S. Magistrate Judge Regina D. Cannon. Members of the public are reminded that each criminal information only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Trevor C. Wilmot is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Mauston Man Sentenced to 70 Months for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jerry Scheerer, 38, Mauston, Wisconsin, today pleaded guilty to distributing methamphetamine and was sentenced by Chief U.S. District Judge James D. Peterson to 70 months in federal prison. This prison term will be followed by 4 years of supervised release.
On November 3, 2020, law enforcement agents arranged for a confidential informant to purchase methamphetamine from Scheerer in Mauston. After the confidential informant purchased just over 25 grams of methamphetamine from Scheerer, Scheerer asked the confidential informant if they would like to buy a “dirty” gun. The confidential informant agreed and purchased a Ruger revolver from Scheerer later on that same day. The legal owner of the Ruger reported it stolen to Mauston police on October 27, 2020.
At the time of this offense Scheerer was under Wisconsin state probation in Juneau County Case No. 19CF2 as a result of a conviction for possessing methamphetamine with intent to deliver. The sentence imposed by Chief Judge Peterson will run concurrently to the 6-year sentence Scheerer is serving because of the revocation of his probation in that case.
The charges against Scheerer were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Mauston Police Department, Sauk County Sheriff’s Office, Juneau County Sheriff’s Office, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Maryville Man Sentenced to 45 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
KNOXVILLE, Tenn. – The Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced Tywan Montrease Sykes, 46, of Louisville, Tennessee, a previously registered sex offender, to serve 45 years in federal prison on child exploitation charges. A federal jury convicted Sykes’s in March 2021 of charges of production of child pornography, enticement of a minor for illegal sex, committing those offenses while being required to register as a sex offender, and possession of child pornography. Sykes had been previously convicted of statutory rape in 1998 and aggravated statutory rape in 2012.
Following his release from prison, the United States Probation Office will supervise the defendant for 30 years and he will be required to register as a sex offender in any state in which he resides, works, or attends school.
“This case demonstrates our commitment to protecting our children through the prosecution of recidivist child predators to the fullest extent of the law,” said Acting United States Attorney Francis M. Hamilton, III.
“The lengthy sentence in this case shows the significant punishment child predators face for their incomprehensible actions,” said Homeland Security Investigations (HSI) Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI will continue to work with our law enforcement partners to remove these offenders from our communities and protect their vulnerable young victims.”
According to the evidence presented at trial, the investigation began after Facebook notified the National Center for Missing and Exploited Children (NCMEC) that Sykes was soliciting a 15-year-old girl for sex and child pornography with messages he sent to the girl through Facebook. NCMEC notified the Knoxville Police Department’s Internet Crimes Against Children unit (KPD-ICAC), which immediately contacted the local Department of Children’s Services office to help identify the girl and ensure her safety. KPD-ICAC arrested the defendant within 48 hours after the minor was interviewed. Federal search warrants were used to obtain the defendant’s and the victim’s Facebook communications and to search the defendant’s phone, which revealed substantial evidence that was used at trial to convict Sykes.
The case was investigated by KPD-ICAC in partnership with HSI. The case was prosecuted by Assistant United States Attorneys Matthew T. Morris and Gretchen Mohr.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Maryland Man Sentenced to 151 Months in Prison for Kidnapping, Assault, and Other CrimesRead the Press Release
WASHINGTON – A Maryland man has been sentenced to 151 months in prison for carjacking and kidnapping a grandmother and her 13-year-old granddaughter at gunpoint in Prince George’s County, Maryland, and driving them into Southeast Washington, where he then assaulted and threatened others, including a police officer.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Jamal Gilmore, 34, of Mount Rainier, Md., pleaded guilty in July 2021, in the U.S. District Court for the District of Columbia, to federal charges of kidnapping and possession of a firearm and ammunition by a felon, as well as District of Columbia charges of assault with a deadly weapon and assault on a police officer while armed. He was sentenced on Nov. 8, 2021, by the Honorable Royce C. Lamberth. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, the chain of events began at about 8 p.m. on Saturday, May 2, 2020. The woman and her granddaughter were utilizing a rental moving truck on Southview Drive in Oxon Hill, Md. The woman was in the driver’s seat and the teenager in the front passenger seat. Gilmore approached the passenger side of the vehicle, brandished a semi-automatic handgun, got into the vehicle, and demanded the woman drive or he would kill her. He took her cellphone and ordered her to drive to a police station. However, she made a wrong turn and entered a parking lot in the rear of a building in the 2200 block of Southern Avenue SE. The parking lot led into a dead end, and Gilmore left the vehicle with the woman’s cellphone and the gun that he was carrying.
At this point, Gilmore jumped a fence and ran into an apartment complex on 22nd Street SE. He attempted to gain access to one of the ground-floor apartments, where three people were inside—including a 10-year-old child. He demanded someone open the door. When no one complied, he fired a gunshot through the front window of the apartment. No one was injured by the shooting. Two of the apartment’s occupants fled out the back window, and one was injured while fleeing.
Gilmore then went back outside and flagged down a police officer, banging on the rear driver’s side window of the officer’s patrol car with the handgun he was carrying. He then fled into the hallway of another nearby apartment building as other MPD officers responded to the scene. As officers arrived, he made his way to the landing between the first and second floor. He used the firearm to break the glass window on the landing, jumped out the window, and fell to the ground – still with the firearm in his hand. Gilmore was arrested on the scene and has been detained ever since.
This investigation was conducted by the FBI Washington Field Office’s Violent Crime Task Force, in partnership with MPD and the Prince George's County Police. The task force focuses on identifying, investigating, and bringing prosecutable cases against violent offenders in the Washington, D.C. region.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Contee commended the work of those who investigated the case from the FBI’s Washington Field Office and Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. Finally, they commended the efforts of Victim/Witness Advocate Yvonne Bryant, Paralegal Specialist Catherine O’Neal, and Assistant U.S. Attorney Rachel A. Fletcher, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
Marshall County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Edward Lee Nelson, of Moundsville, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Nelson, 29, pleaded guilty today to one count of “Unlawful Possession of Ammunition.” Nelson, a person prohibited from having firearms because of a prior conviction, admitted to having 20 cartridges of ammunition in November 2020 in Marshall County.
Nelson faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearm & Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrance Cecil Clark, of Fairmont, West Virginia, was sentenced today to 41 months of incarceration for a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Clark, 28, pled guilty in March 2021 to one count of “Unlawful Possession of Firearm.” Clark, a person prohibited from having a firearm because of prior convictions, admitted to having 9mm pistol in May 2020 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Management Consulting Firm Partner Charged in Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging PUNEET DIKSHIT, a partner in a global management consulting firm (the “Consulting Firm”), with securities fraud in connection with a scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”). The defendant was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Kevin N. Fox.
U.S. Attorney Damian Williams said: “As alleged, Puneet Dikshit, a consulting firm partner, exploited his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options. This breach of duties to his firm and its investment bank client – and violation of the law – allegedly reaped the defendant nearly half a million dollars in illegal profits. Now Puneet Dikshit has been charged with serious felonies for his alleged conduct.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Dikshit exploited his access to material nonpublic information regarding the acquisition of Green Sky to profit from trades he made in options markets. Actions like those we allege serve to undermine the public’s confidence in the integrity of financial markets, and, as we have demonstrated time and again, the FBI and our partners are committed to ensuring a level playing field for all investors. Mr. Dikshit now faces significant federal charges, which should serve as a warning to others considering similar conduct.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes. GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.
Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky. DIKSHIT was one of the Consulting Firm partners leading these engagements. In that role, he had access to material, nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options.
DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky. At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase. However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021. After the deal was announced, DIKSHIT sold these calls and realized profits of approximately $450,000.
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DIKSHIT, 40, of New York, New York, is charged with two counts of securities fraud, each of which has a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action, for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Joshua A. Naftalis and Matthew Podolsky are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Man from Albuquerque sentenced to 24 years in federal prison for multiple armed robberiesRead the Press Release
ALBUQERQUE, N.M. – Lalonzo Simmons, 46, of Albuquerque, was sentenced in federal court on Nov. 4 to 24 years in prison for interference with interstate commerce by robbery and violence, possessing and discharging a firearm in furtherance of a crime and being a felon in possession of a firearm and ammunition.
Simmons pleaded guilty Dec. 26, 2019. According to the plea agreement and other court records, on March 19, 2018, Simmons and his accomplice, Shakeam Kinney, 32, entered an Albuquerque business through the back of the store armed with firearms when they encountered two employees. Kinney demanded the phone of one of the employees, and when the employee initially did not give Kinney the phone Kinney discharged his weapon. Shortly after, Kinney and Simmons fled the store after taking money from the register.
On April 3, 2018, Simmons and Kinney robbed an Albuquerque marijuana dispensary at gunpoint and fled the store with stolen money and large amounts of marijuana. On May 1, 2018, Simmons and Kinney, robbed another Albuquerque dispensary at gunpoint. Kinney entered the business and discharged his weapon into the ceiling, demanding money and merchandise and threatening an employee. Kinney and Simmons fled the store with stolen money and marijuana. Soon after, Simmons was arrested by law enforcement at his residence.
On June 15, Kinney was sentenced to 22 years and five months in prison for interference with interstate commerce by robbery and violence, possessing and discharging a firearm in furtherance of a crime and being a felon in possession of firearm and ammunition.
Upon his release from prison, Simmons will be subject to five years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated the case. Special Assistant U.S. Attorney Timothy D. Trembley prosecuted the case.
Man Sentenced for Armed Robbery and CarjackingRead the Press Release
ALEXANDRIA, Va. – A Washington, DC, man was sentenced today to 357 months in prison for his role in an armed robbery and carjacking that led to a high-speed police chase and resulted in injuries to two police officers.
According to court documents, on August 28, 2019, Antwain Proctor, 36, together with Jovan Doir Johnson, obtained a stolen vehicle at gunpoint in Arlington, taking the driver with them for part of the drive. Proctor and Johnson then drove to a 7-Eleven in Lorton and robbed it at gunpoint, leaving the clerk with a visible injury. Both men then fled the 7-Eleven traveling north on Interstate 95 before taking Interstate 495 toward the Wilson Bridge, where several Virginia State Police cruisers attempted to stop the individuals in the stolen vehicle as it approached the bridge. When one cruiser attempted to stop the stolen vehicle, the vehicle drove into the rear corner of the cruiser, forcing it into the concrete median barrier at a high rate of speed. The first cruiser’s air bag deployed and the trooper was taken to the hospital with injuries as a result of the impact. A second cruiser subsequently advanced and pushed the stolen vehicle into the concrete median just before it reached the bridge. The resulting impact also caused the second cruiser’s driver-side airbag to deploy. The trooper driving that second cruiser was also subsequently taken to the hospital. The Fairfax County Police Helicopter assisted in the stop.
On December 2, 2020, Jovan Doir Johnson was sentenced to 357 months of imprisonment.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Andy Penn, Arlington County Chief of Police; Kevin Davis, Fairfax County Chief of Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorneys Ron Walutes and Bibeane Metsch prosecuted the case.
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.
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. 1:19-cr-351.
Luzerne County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 9, 2021, James Artis-Bryan, age 41, of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury on two separate drug trafficking charges.
According to Acting United States Attorney Bruce D. Brandler, one indictment alleges that in early 2020, Artis-Bryan conspired with other individuals to distribute and possess with intent to distribute over 500 grams of methamphetamine. A second indictment alleges that on August 9, 2021, Artis-Bryan possessed with the intent to distribute fentanyl and possessed a firearm in furtherance of his drug trafficking activities.
The cases were investigated by Homeland Security Investigations, the Pennsylvania Office of Attorney General, and the United States Postal Inspection Service. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Louise Larivee Pleads Guilty to Non-Profit EmbezzlementRead the Press Release
The Acting United States Attorney for the District of Vermont announced that Louise Larivee, 63, of Swanton, pleaded guilty today in United States District Court to a federal fraud charge. The guilty plea came on the third day of a jury trial in Rutland. Chief U.S. District Judge Geoffrey Crawford continued Larivee’s release on conditions pending sentencing, which will be scheduled for the spring.
On June 13, 2019, a federal grand jury in Burlington returned a two-count indictment charging Larivee with conspiracy and federal program embezzlement. Candy Thomas, 64, also of Swanton, a separately charged co-conspirator, had previously pled guilty to the federal program embezzlement charge. According to the evidence presented during the trial and other court documents, between 2013 and 2017, Larivee was employed by the Abenaki Self Help Association, Inc. in Swanton as the director of a federal grant program administered by the U.S. Department of Labor. ASHAI functioned as a service arm of the Abenaki Nation, promoting economic and social development through programatic efforts in education, employment and economic development. Each year, ASHAI received tens of thousands of dollars in grant money from the Department of Labor. During that same period, Candy Thomas worked at ASHAI as an office worker and bookkeeper. Thomas had check signing authority on ASHAI’s bank accounts.
According to the indictment and testimony at Larivee’s trial, between 2013 and 2017, Larivee and Thomas conspired to embezzle, and did embezzle, more than $100,000 from ASHAI. Thomas aided the commission of this theft by issuing checks and giving cash to Larivee, at Larivee’s request, in amounts that significantly exceeded Larivee’s authorized compensation. Larivee also received travel reimbursement checks based upon fraudulently inflated mileage claims. Thomas helped cover up this fraud by sending tax forms to the Internal Revenue Service that concealed the true amount of ASHAI funds that were being paid over to Larivee.
Thomas, who testified at Larivee’s trial, is scheduled to be sentenced next month.
Both Larivee and Thomas face up to ten years of imprisonment and a fine of up to $250,000. Their actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the U.S. Department of Labor’s Office of Inspector General.
Larivee is represented by David Kirby. Candy Thomas is represented by Assistant Federal Public Defender Steve Barth. The prosecutors are Assistant U.S. Attorneys Gregory Waples and Spencer Willig.
Local pipe companies face penalties for not cooperating with federal investigationRead the Press Release
HOUSTON – A civil action has been filed against MC Tubular Products and Metal One America for failing to comply with a federal summons, announced Acting U.S. Attorney Jennifer B. Lowery.
MC Tubular Products is a supplier of industrial pipe products used in the oil and gas industry. The company is a subsidiary of Metal One Holdings America, which sources materials, handles logistics and provides import/export management, trade finance, credit and risk management.
MC Tubular Products allegedly made misrepresentations to avoid paying more than $10 million in antidumping duties on metal pipe imported from Japan. As part of the investigation, they were issued a summons compelling the companies to produce documents which are expected to show whether either acted improperly, according to the filing in federal court today.
However, the allegations indicate they did not comply and failed to produce the required documents by the deadline.
Homeland Security Investigations and Customs and Border Protection are conducting the investigation.
Assistant U.S. Attorney Rick Kincheloe is handling the matter in coordination with the Civil Division’s National Courts Section.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Lemoore Union Treasurer Convicted of Embezzlement and Aggravated Identity TheftRead the Press Release
Fresno, Calif. — After a 2–day trial, a federal jury found Kevin Neal Crownover, 49, resident of Lemoore, California, guilty today of one count of embezzlement and theft of union assets and one count of aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Dale A. Drozd.
According to evidence presented at trial, Crownover was treasurer of International Association of Machinists (IAM) Local Lodge 2947 at Lemoore Naval Air Station from June 2015 through October 2016. During that time, Crownover made unauthorized cash withdrawals and wrote unauthorized checks to himself, which he then endorsed into his own personal bank account. Crownover used a forged signature on the checks. The total loss was over $50,000.
This case was the product of an investigation by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorneys Laura D. Withers and Vincente A. Tennerelli are prosecuting the case.
Crownover is scheduled to be sentenced by Judge Drozd on February 14, 2022. Crownover faces a maximum statutory penalty of 5 years in prison and a $250,000 fine for embezzlement, with a mandatory 2-year consecutive term for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Las Vegas Couple Sentenced for Stealing over $300,000 by Assuming Deceased Federal Employee's IdentityRead the Press Release
LAS VEGAS – A Las Vegas husband and wife were each sentenced today to 21 months in prison for assuming a deceased person’s identity and stealing more than $300,000 in retirement payments intended for that person.
According to court documents, the U.S. Office of Personnel Management deposited annuity payments into a former federal employee’s bank account because it was not notified of the person’s death. From about November 12, 2005 to November 1, 2017, Rodolfo Segovia (53) and Jennifer Segovia (48) assumed the deceased person’s identity and stole at least $308,391.72 by redirecting the annuity payments into their own accounts.
Each defendant pleaded guilty to one count of theft of government money or property. In addition to the term of imprisonment, U.S. District Judge James C. Mahan sentenced each defendant to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at the U.S. Office of Personnel Management, Office of the Inspector General made the announcement.
This case was investigated by the U.S. Office of Personnel Management, Office of the Inspector General. Assistant U.S. Attorney Simon Kung prosecuted the case.
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Kuna Man Sentenced to 7 Years for Possession of Child PornographyRead the Press Release
BOISE – A Kuna man was sentenced to seven years in federal prison for possession of child pornography.
According to court records, in January 2020, the Idaho Internet Crimes Against Children (ICAC) Task Force began investigating several CyberTips from Microsoft. A CyberTip is a report submitted to the National Center for Missing and Exploited Children (NCMEC). NCMEC gathers leads and tips regarding suspected online crimes against children and forwards them to the appropriate law enforcement agencies. According to the CyberTips, on March 2 and March 3, 2019, child pornography was uploaded to a Microsoft One Drive account. The IP address used to upload the files of child pornography to the account was tied to the residence of Donald Jordan, 54, of Kuna.
ICAC obtained a federal search warrant for the contents of the Microsoft One Drive account and located items establishing Jordan was the owner of the account, along with hundreds of files of child pornography, including files depicting prepubescent children, infants, and toddlers engaged in sexual acts. On September 22, 2020, ICAC executed a federal search warrant at Jordan’s residence in Kuna to search for evidence of the possession of child pornography. ICAC seized several electronic devices belonging to Jordan and located numerous files of child pornography on the devices. Jordan admitted to viewing child pornography and to distributing files of child pornography to other individuals in exchange for other pornographic files.
Senior U.S. District Judge B. Lynn Winmill also ordered Jordan to forfeit the electronic devices that were used to commit the offense and to pay $3,000 in restitution to a victim in the images he possessed. As a result of the conviction, Jordan will be required to register as a sex offender.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho ICAC Task Force and the Ada County Sheriff's Office, which led to charges. “To create a CyberTip with the National Center for Missing and Exploited Children (NCMEC), go to www.missingkids.com, and click ‘MAKE A CYBERTIPLINE REPORT.’ Include all pertinent details regarding the situation (e.g., usernames, dates, screenshots, etc.). Help us rescue a child,” Gonzalez said.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Kokomo Resident Sentenced for Animal CrushingRead the Press Release
INDIANAPOLIS – A Kokomo, Indiana woman was sentenced to 30 months in prison for animal crushing, which is a violation of the Preventing Animal Cruelty and Torture Act under Title 18, United States Code, Section 48(a).
Beginning at least on or about May 2020, and continuing until at least July 2020, Krystal Cherika Scott, 20, began posting images and videos over various social media platforms that depicted Scott torturing and graphically killing cats and dogs by hanging, skinning and other means. Scott’s conduct attracted the attention of several private citizens who began using publicly available information to attempt to identify the perpetrator.
In June 2020, the Boise, Idaho Police Department received information from some of those concerned citizens, immediately opened an investigation, and referred the matter to the Federal Bureau of Investigation. The FBI, in conjunction with the Boise Police Department and the Ada County Idaho Sheriff’s Office, later determined that Scott was responsible for torturing and killing the animals and posting the videos. Scott was ultimately arrested, charged, and found guilty of violating the Preventing Animal Cruelty and Torture Act of 2019.
Acting U.S. Attorney John E. Childress and FBI Indianapolis Special Agent in Charge Paul Keenan made the announcement.
This case was the result of an investigation by the Federal Bureau of Investigation, the Boise Police Department, the Ada County Sheriff’s Office, and the Kokomo Police Department.
According to Assistant United States Attorney Tiffany J. Preston, who prosecuted the case, said Scott will also serve 5 years of supervised release following her prison term.
Justice Department Sues Uber for Overcharging People with DisabilitiesRead the Press Release
The Justice Department today filed a lawsuit against Uber Technologies Inc. (Uber) for charging “wait time” fees to passengers who, because of disability, need more time to enter a car. Uber’s policies and practices of charging wait time fees based on disability have harmed many passengers and potential passengers with disabilities throughout the country. The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Uber violated Title III of the Americans with Disabilities Act (ADA), which prohibits discrimination by private transportation companies like Uber.
In April 2016, Uber began charging passengers wait time fees in a number of cities, eventually expanding the policy nationwide. Wait time fees start two minutes after the Uber car arrives at the pickup location and are charged until the car begins its trip.
The department’s complaint alleges that Uber violates the ADA by failing to reasonably modify its wait time fee policy for passengers who, because of disability, need more than two minutes to get in an Uber car. Passengers with disabilities may need additional time to enter a car for various reasons. A passenger may, for example, use a wheelchair or walker that needs to be broken down and stored in the car. Or a passenger who is blind may need additional time to safely walk from the pickup location to the car itself. The department’s lawsuit alleges that, even when Uber is aware that a passenger’s need for additional time is clearly disability-based, Uber starts charging a wait time fee at the two-minute mark.
The lawsuit seeks relief from the court, including ordering Uber to stop discriminating against individuals with disabilities. Additionally, the department asks the court to order Uber to modify its wait time fee policy to comply with the ADA; train its staff and drivers on the ADA; pay money damages to people subjected to the illegal wait time fees; and pay a civil penalty to vindicate the public’s interest in eliminating disability discrimination.
“People with disabilities deserve equal access to all areas of community life, including the private transportation services provided by companies like Uber,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This lawsuit seeks to bring Uber into compliance with the mandate of the Americans with Disabilities Act while sending a powerful message that Uber cannot penalize passengers with disabilities simply because they need more time to get into a car. Uber and other companies that provide transportation services must ensure equal access for all people, including those with disabilities.”
“Uber’s wait time fees take a significant toll on people with disabilities,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Passengers with disabilities who need additional boarding time are entitled to access ridesharing services without discrimination. This lawsuit seeks to assist people with disabilities to live their lives with independence and dignity, as the ADA guarantees.”
If you believe you have been a victim of disability discrimination by Uber because you, or someone you were traveling with, were charged wait time fees, please contact 833-591-0425 (toll-free), 202-305-6786, or send an email to [email protected]. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. The complaint can be viewed here.
Justice Department Sues Uber for Overcharging People with DisabilitiesRead the Press Release
SAN FRANCISCO — The Justice Department today filed a lawsuit against Uber Technologies Inc. (Uber) for charging “wait time” fees to passengers who, because of disability, need more time to enter a car. Uber’s policies and practices of charging wait time fees based on disability have harmed many passengers and potential passengers with disabilities throughout the country. The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Uber violated Title III of the Americans with Disabilities Act (ADA), which prohibits discrimination by private transportation companies like Uber.
In April 2016, Uber began charging passengers wait time fees in a number of cities, eventually expanding the policy nationwide. Wait time fees start two minutes after the Uber car arrives at the pickup location and are charged until the car begins its trip.
The department’s complaint alleges that Uber violates the ADA by failing to reasonably modify its wait time fee policy for passengers who, because of disability, need more than two minutes to get in an Uber car. Passengers with disabilities may need additional time to enter a car for various reasons. A passenger may, for example, use a wheelchair or walker that needs to be broken down and stored in the car. Or a passenger who is blind may need additional time to safely walk from the pickup location to the car itself. The department’s lawsuit alleges that, even when Uber is aware that a passenger’s need for additional time is clearly disability-based, Uber starts charging a wait time fee at the two-minute mark.
The lawsuit seeks relief from the court, including ordering Uber to stop discriminating against individuals with disabilities. Additionally, the department asks the court to order Uber to modify its wait time fee policy to comply with the ADA; train its staff and drivers on the ADA; pay money damages to people subjected to the illegal wait time fees; and pay a civil penalty to vindicate the public’s interest in eliminating disability discrimination.
“Uber’s wait time fees take a significant toll on people with disabilities,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Passengers with disabilities who need additional boarding time are entitled to access ridesharing services without discrimination. This lawsuit seeks to assist people with disabilities to live their lives with independence and dignity, as the ADA guarantees.”
“People with disabilities deserve equal access to all areas of community life, including the private transportation services provided by companies like Uber,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This lawsuit seeks to bring Uber into compliance with the mandate of the Americans with Disabilities Act while sending a powerful message that Uber cannot penalize passengers with disabilities simply because they need more time to get into a car. Uber and other companies that provide transportation services must ensure equal access for all people, including those with disabilities.”
If you believe you have been a victim of disability discrimination by Uber because you, or someone you were traveling with, were charged wait time fees, please contact 833-591-0425 (toll-free), 202-305-6786, or send an email to [email protected]. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. The complaint can be viewed on PACER and by visiting the U.S. Attorney’s Office for the Northern District of California website at www.usdoj.gov/usao/can.
Justice Department Requires Divestitures in Lactalis’s Acquisition of Kraft Heinz’s Natural Cheese Business in the United StatesRead the Press Release
The Department of Justice announced today that it will require B.S.A. S.A. (Lactalis) and The Kraft Heinz Company (Kraft Heinz) to divest Kraft Heinz’s Athenos and Polly-O businesses in order to proceed with Lactalis’s proposed acquisition of Kraft Heinz’s natural cheese business in the United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“The Antitrust Division is committed to enforcing the antitrust laws in markets that impact Americans’ day-to-day lives,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “This transaction, as originally proposed, would have led to higher-priced and lower-quality feta and ricotta, two popular cheeses that American consumers regularly purchase to feed their families. Today’s settlement will maintain the competition in the sale of feta and ricotta cheeses that would have been lost if the transaction were permitted to go forward without the required divestitures.”
Lactalis’s U.S. subsidiary, Lactalis American Group Inc., and Kraft Heinz are the two largest suppliers of feta cheese — sold under their respective Président and Athenos brands — to grocery stores and other retailers in the United States. They are also the two largest suppliers of ricotta cheese — sold under their respective Galbani and Polly-O brands — to grocery stores and other retailers in the New York City metropolitan area and four metropolitan areas in Florida: Miami/Ft. Lauderdale, Tampa/St. Petersburg, Orlando and Jacksonville.
Under the terms of the proposed settlement, the parties must divest Kraft Heinz’s Athenos business — including the worldwide rights to the Athenos brand, under which Kraft Heinz sells feta and other products — to Emmi Roth USA Inc. (Emmi Roth) or an alternative acquirer approved by the United States. Emmi Roth is an established cheese supplier based in Fitchburg, Wisconsin. With the divestiture of Kraft Heinz’s Athenos business, Emmi Roth, or an alternative qualified acquirer, will be able to expand its feta cheese sales to grocery stores and other retailers across the United States.
The proposed settlement also requires the parties to divest Kraft Heinz’s Polly-O business — including the worldwide rights to the Polly-O brand, under which Kraft Heinz sells ricotta and other cheeses — to BelGioioso Cheese Inc. (BelGioioso) or an alternative acquirer approved by the United States. BelGioioso is an established cheese supplier based in Green Bay, Wisconsin. With the divestiture of Kraft Heinz’s Polly-O business, BelGioioso, or an alternative qualified acquirer, will be able to expand its ricotta cheese sales to grocery stores and other retailers in New York and Florida.
The divestitures are structured to include the entirety of the Athenos and Polly-O businesses, so as to avoid customer confusion that could have resulted had the brands been used by both Lactalis and the divestiture buyers. The divestitures, including the worldwide rights to the entire Athenos and Polly-O portfolios, also place the divestiture buyers in the position to market and promote all the cheeses sold under these brands, as Kraft Heinz does today.
Lactalis is headquartered in Laval, France. Its subsidiary, Lactalis American Group Inc., generated natural cheese sales — primarily under the Galbani and Président brands — of more than $429 million at retail outlets in the United States in 2020.
Kraft Heinz is a Delaware corporation co-headquartered in Pittsburgh, Pennsylvania, and Chicago, Illinois. Retail sales of Kraft Heinz’s natural cheeses in the United States exceeded $2.2 billion in 2020. Kraft Heinz sells natural cheese in the United States primarily under the Kraft, Cracker Barrel, Athenos and Polly-O brand names.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric D. Welsh, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Jury Convicts Two Mexican Nationals for $2.1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Two Mexican nationals have been convicted by a federal trial jury for their roles in a $2.1 million conspiracy to distribute over 100 kilograms of methamphetamine in the Kansas City metropolitan area and in northwest Missouri.
Juan Guzman, also known as “Flaco,” 40, of Kansas City, Missouri, and Maria De La Cruz Nava, 25, of Kansas City, Kansas, were found guilty on Tuesday, Nov. 9, of participating in a conspiracy to distribute methamphetamine and in a money-laundering conspiracy over a nearly four-year period from Jan. 1, 2015, to Nov. 14, 2018. In addition to the conspiracies, Guzman and Nava were found guilty of possessing firearms in furtherance of drug trafficking. Guzman was also found guilty of illegally reentering the United States after having been deported.
Guzman was the supplier for the drug-trafficking conspiracy, selling multiple kilograms of methamphetamine on a regular basis, sometimes daily, to multiple co-conspirators who then distributed methamphetamine to others. Guzman also involved others in storing methamphetamine. The jury found Nava assisted Guzman in his drug trafficking and money laundering activities.
Guzman, Nava, and several others were arrested at Guzman’s residence on Oct. 18, 2018. At the time of their arrest, officers seized two rifles, five handguns (one with an extended drum magazine), ammunition, 688 grams of methamphetamine, cash, and drug paraphernalia – including drug ledgers and drug packaging – from Guzman’s residence.
The federal indictment also requires the defendants to forfeit to the government $2.1 million, representing the proceeds of the drug-trafficking conspiracy (based on a sale price of $600 per ounce and distribution of more than 3,500 ounces – nearly 100 kilograms – of methamphetamine).
Five defendants have pleaded guilty in this case: Chanthacone Senthavy, 47, a citizen of Laos residing in Independence, Mo., Luis Carlos Ramos Caraveo, 26, a citizen of Mexico residing in Kansas City, Mo., Christopher Shawn Sharp, 43, and John Paul Gnat, 31, both of St. Joseph, Mo., and Jacob Dale Walsh, 35, of Denton, Kan.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for less than two hours before returning guilty verdicts on both defendants on all counts to U.S. District Judge Brian C. Wimes, ending a trial that began Friday, Nov. 5.
Under federal statutes, Guzman and Nava are subject to mandatory minimum sentences of 15 years in federal prison and maximum penalties of life in federal prison, all without parole. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the Court based on the statutory sentences, the advisory sentencing guidelines, and other statutory sentencing factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant United States Attorneys Bruce Rhoades and Robert M. Smith. It was investigated by the Missouri State Highway Patrol, the Buchanan County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force, Midwest HIDTA, the Independence, Mo., Police Department, Homeland Security Investigations, the Jackson County Drug Task Force, the Drug Enforcement Administration, and the FBI.
Iowa Man Sentenced to 15 Years for Drug and Firearm OffensesRead the Press Release
Acting United States Attorney Jan Sharp announced that Jonathan Pilgreen, 30, of Griswold, Iowa, was sentenced today in federal court in Omaha, Nebraska, for conspiring to distribute methamphetamine and for using a firearm during a drug trafficking crime. United States District Court Judge Brian C. Buescher sentenced Pilgreen to ten years of imprisonment on the drug conspiracy charge and a consecutive five-year sentence for the gun charge. There is no parole in the federal system. After serving his fifteen years, Pilgreen will begin a five-year term of supervised release.
On November 11, 2020, Omaha Police officers responded to an overdose at an Omaha hotel. Pilgreen had overdosed on a couch with drugs and a disassembled rifle nearby. A search warrant for the room recovered more than 400 grams of actual methamphetamine. A rifle was found under the bed and another rifle on a table. Officers also found pills of Xanax and fentanyl.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Omaha Police Department.
Inmates prosecuted for separate assaults on prison correctional officersRead the Press Release
BRUNSWICK, GA: Three inmates are under prosecution in separate cases in the Southern District for assaults on federal correctional officers, while a correctional officer has been sentenced for bringing contraband into a facility.
Juan Alvardo-Baltazar, 27, an inmate at McRae Correctional Facility in McRae, Ga.; Luis Cedillo-Narvaez, 53, also an inmate at McRae; and Melvin Johnson, 36, an inmate at Federal Correctional Institution in Jesup, Ga., all have been charged with Assault on a Certain Officer or Employee, and Johnson also is charged with Possession of Contraband In Prison, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The assault charge carries a possible statutory penalty of up to eight years in prison, while the contraband charge carries a statutory penalty of up to one year in prison. There is no parole in the federal system.
“Correctional officers have a challenging job under the best circumstances, much of which involves protecting the safety of inmates under their supervision,” said Acting U.S. Attorney Estes. “We will consistently work to hold accountable inmates who would violate the law by attacking prison guards.”
Details of the charges against the defendants include:
- Alvardo-Baltazar, a citizen of Mexico illegally present in the United States, was sentenced to 12 additional months in prison after pleading guilty to assaulting an assistant shift supervisor July 5, 2021, at McRae, a privately operated prison in Telfair County. Prior to his additional sentence, Alvardo-Baltazar was serving a 48-month sentence at McRae for Possession with Intent to Distribute 500 Grams or More of Methamphetamine.
- Cedillo-Narvaez, a citizen of Mexico illegally present in the United States, is charged with assaulting the chief of Unit Management at McRae on Dec. 7, 2020 and is considered innocent unless and until proven guilty. Cedillo-Narvaez is serving a 180-month sentence for Conspiracy to Commit Hostage Taking.
- Johnson was indicted during the November term of the U.S. District Court Grand Jury in the Southern District, and is considered innocent unless and until proven guilty. He is accused of striking a unit officer during a search of his cell, during which officers found a contraband cell phone. Johnson is serving a 180-month sentence for Conspiracy to Distribute One Kilogram or More of Heroin.
In addition, former McRae correctional officer Brianna Williams, 23, of Eastman, Ga., was sentenced to six months in prison followed by one year of supervised release and fined $1,000 after pleading guilty to Providing Contraband in Prison. She was charged in November 2020 after attempting to smuggle cell phone batteries into the facility.
“The FBI has zero tolerance for anyone who uses violence against law enforcement officers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will always go the extra mile to hold criminals accountable for their actions and will not hesitate to prosecute and tack on additional time to those criminals who continue to break the law.”
The cases are investigated by the U.S. Bureau of Prisons Special Investigative Services and the FBI, and prosecuted for the United States by Assistant U.S. Attorney Joshua S. Bearden.
Inmate admits to assault charge, sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jamarcus Darnell Torrey, an inmate at Federal Corrections Institution Hazelton in Preston County, has admitted to an assault charge and was sentenced to 48 additional months of incarceration, United States Attorney William J. Ihlenfeld, II announced.
Torrey, 31, pleaded guilty today to one count of “Assault of a Correctional Officer Resulting in Bodily Injury.” Torrey admitted to injuring a correctional officer in October 2019 in Preston County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Husband and Wife Team, and Their Inmate Accomplice, Charged with Fraudulently Obtaining Pandemic Unemployment Assistance Funds and Economic Injury Disaster LoansRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Brandon Segers, 33, and Dionne Segers, 32, both of Philadelphia, PA, and their inmate accomplice, Michael Matthews, 42, of Richmond, VA, and currently incarcerated at FCI Cumberland in Maryland, were charged with fraudulently applying for and obtaining emergency unemployment benefits related to the COVID-19 pandemic. Specifically, the defendants allegedly submitted false applications claiming that prison inmates lost employment as a result of the pandemic, and submitted false weekly certifications that inmates were available to work full-time despite their incarceration.
The defendants are charged by Indictment with one count of conspiracy to commit wire fraud, seven counts of wire fraud, one count of conspiracy to defraud the United States, and four counts of theft of government program funds. All the defendants were either arrested and taken into custody this morning, or were already in custody.
In addition to the unemployment fraud, defendant Dionne Segers is charged with submitting a fraudulent application and obtaining emergency COVID-19 funds under the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The EIDL program was implemented to offer low interest-rate loans to businesses hurt by the COVID-19 pandemic. As alleged in the Indictment, Dionne Segers submitted an application to the SBA for a fictious business and received an immediate $10,000 emergency grant. Segers did not spend the money on any business expenses but rather on luxury goods and other personal items.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received.
As part of the conspiracy alleged in the Indictment, applications were filed on behalf of inmates who did not lose their job due to COVID. Matthews allegedly transmitted the necessary inmate information for the filing of PUA applications to Brandon Segers, a former federal inmate who was previously incarcerated with Matthews, via phone and email. Brandon and Dionne Segers would then file the fraudulent applications in the name of Matthews and other inmates Matthews provided. Brandon and Dionne Segers would also file the weekly certifications that the inmates were available to work full-time when they were not. Brandon and Dionne Segers allegedly compensated Matthews for providing the inmate information by depositing money into his federal prison commissary account.
According to the Indictment, Brandon Segers also filed fraudulent applications and weekly certifications in Pennsylvania and Massachusetts under his name for a time period in which he was incarcerated. Additionally, Dionne Segers is alleged to have filed a fraudulent application and weekly certification in Pennsylvania under her name for a time period during which she was employed and receiving employment income. During this period, Dionne Segers was receiving regular payroll income as well as unemployment benefits.
Outside of the small amount of money the Segers used to compensate Matthews, they spent the proceeds of the offense in part on large cash withdrawals, luxury goods, and vacations. As a result of the conspiracy, the defendants caused a loss of at least $180,000.
“Pandemic Unemployment Assistance and small business loan funds are intended to help working Americans and small business owners continue to pay their bills and make ends meet, even when revenues have dropped dramatically due to the pandemic,” said Acting U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, the Segers and Matthews fraudulently obtained thousands of dollars in funds that could have helped struggling businesses and individuals.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations”, stated Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“Pandemic relief funds are limited and intended to save legitimate struggling businesses from failing and are not meant to be used for paying off personal indulgences,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminal Investigation. “Further, the purpose of the Pandemic Unemployment Assistance program was to provide benefits to those who actually lost their jobs due to the COVID-19 pandemic. IRS-CI will continue to aggressively investigate those who schemed to defraud this program that was intended to help struggling individuals and businesses.”
This case was investigated by the United States Department of Labor – Office of Inspector General, and the Internal Revenue Service – Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Timothy Lanni.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Houlton Man Sentenced on Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Houlton man was sentenced in federal court today for conspiring to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Dylan Begin, 27, to 40 months in prison and three years of supervised release. Begin pleaded guilty in January 2021.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Begin and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations, and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Grand Jury indicts St. Louis man and others in international drug ringRead the Press Release
ST. LOUIS – A federal grand jury indicted Derek Rockette for charges that include conspiracy to distribute and to possess with the intent to distribute cocaine and fentanyl. The indictment also alleges in a money laundering conspiracy charge that Rockette, Norma Corina Armenta-Lizarraga, Jian Zhong Fang, Yuede Zheng and Wai Ming Mak, did knowingly combine, conspire, and agree with each other and with other persons known and unknown to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, which involved the proceeds of a specified unlawful activity, that is conspiracy to distribute controlled substances.
Beginning at a time unknown but including 2016 to on or about the date of the indictment, in the Eastern District of Missouri, Rockette was involved in the distribution of controlled substances including cocaine and fentanyl. Rockette owed a substantial drug debt to the source of supply in Mexico for controlled substances which had been fronted to him. This debt would vary as payments were made and new drug shipments were sent to Rockette. It is alleged in the indictment that several methods of money laundering were used by those in the conspiracy.
One such method was the use of ATMs throughout the St. Louis area to make deposits of cash drug payments. Over eight and one half million dollars ($8,500,000) was deposited in ATMs in approximately 14 states into one of two accounts between June 4, 2018 and September 12, 2019. The money was then transferred to banks in Mexico.
Also, the indictment alleges that, Rockette did knowingly and intentionally distribute 400 grams or more of fentanyl and did knowingly and intentionally possess with the intent to distribute cocaine. The indictment further alleges that Rockette knowingly possessed a firearm, previously been convicted of crimes that prohibited possession of said firearm.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the St. Louis OCDETF Gateway Strike Force is to identify, disrupt and dismantle 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.
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 Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI).
Grand Jury indicts St. Louis father and son along with others in fentanyl and cocaine conspiracyRead the Press Release
ST. LOUIS – A federal grand jury indicted Gregory Dixson, Jr., Gregory Dixson III, Miguel Angel Gonzalez, Carlos Gonzalez, Quintin D. Adkins and Ruben Sanchez Blanco to knowingly combine, conspire, agree, and confederate together with each other and with other persons known and unknown to distribute and to possess with the intent to distribute cocaine and fentanyl.
The indictment alleges that beginning at a time unknown but including 2015 to on or about the date of this indictment, in the Eastern District of Missouri, and elsewhere, Gregory Dixson, Jr., Gregory Dixson III, Miguel Angel Gonzalez, Carlos Gonzalez and Quintin D. Adkins conspired to distribute five (5) kilograms or more of cocaine.
Additionally, Gregory Dixson, Jr. and Ruben Sanchez Blanco are accused in the conspiracy of distribution of four (400) grams or more of fentanyl.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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 Drug Enforcement Administration and the Federal Bureau of Investigation.
Georgia man sentenced to 14 years for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Gregory Chappell, of Cartersville, Georgia, was sentenced today to 168 months for drug distribution and firearms charges, United States Attorney William J. Ihlenfeld, II announced.
Chappell, age 35, pleaded guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” and one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime” in February 2019.
Three other co-conspirators in this case have either pled guilty or been sentenced for their roles in a drug distribution operation from Georgia to West Virginia.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Three Rivers Drug & Violent Crimes Task Force; the West Virginia State Police; The Bartow County, Georgia, Sheriff’s Office; the FBI in Rome, Georgia; and the Georgia Bureau of Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
Find the related cases here:
https://www.justice.gov/usao-ndwv/pr/georgia-man-sentenced-four-life-sentences-plus-10-years-drug-distribution-resulting
https://www.justice.gov/usao-ndwv/pr/georgia-man-found-guilty-drug-distribution-resulting-death-0
Georgia company and owner sentenced for role in scheme to evade U.S. national security trade sanctionsRead the Press Release
SAVANNAH, GA: A Georgia company and its owner have been sentenced in federal court for their roles in an international scheme to evade United States national security laws.
Dali Bagrou, 60, of Alpharetta, Ga., was sentenced to 51 months in prison followed by three years of supervised release after pleading guilty in U.S. District Court to Conspiracy, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Bagrou’s company, World Mining and Oil Supply (WMO) of Dacula, Ga., was sentenced to five years’ probation after pleading guilty to Violation of the Export Control Reform Act. In addition, as part of Bagrou’s plea, he agreed to forfeit his home purchased with illicit proceeds; the Atlanta-area residence is valued at approximately $800,000.
“Dali Bagrou’s sentence wraps up an investigation and prosecution that prevented bad actors from circumventing our nation’s trade security,” said Acting U.S. Attorney Estes. “These conspirators are now being held accountable.”
As described in court documents and testimony in USA v. World Mining and Oil Supply et. al., the conspiracy began when an unnamed Russian government-controlled business began working in 2016 with Oleg Vladislavovich Nikitin, 54, of St. Petersburg, Russia, the general director of KS Engineering (KSE), a St. Petersburg-based energy company, to purchase a power turbine from a U.S.-based manufacturer for approximately $17.3 million. The Russian company intended to use the turbine on a Russian Arctic deep-water drilling platform, expressly prohibited by the U.S. Department of Commerce unless a license is first obtained.
Nikitin and another KSE employee, Anton Cheremukhin, conspired with Gabrielle Villone, 64, of Torino, Italy; Villone’s company, GVA; and Villone’s business partner Bruno Caparini, to obtain the turbine on their behalf. Villone, Caprini and GVA then engaged Bagrou and WMO to procure the turbine from a U.S.-based manufacturer and to have the turbine shipped overseas. The parties conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated the turbine would be used by a U.S. company in and around Atlanta.
Nikitin, Villone, and Bagrou all were arrested in Savannah, Ga., in 2019 while attempting to complete the illegal transaction. Nikitin was sentenced to 28 months in prison after pleading guilty to Conspiracy to Violate the International Emergency Economic Powers Act, the Export Control Reform Act and the Export Administration Regulations, while Villone was sentenced to 28 months in prison after pleading guilty to Conspiracy. Cheremukhin and Caparini are still being sought.
“Dali Bagrou knowingly conspired to illegally provide the Russian government with U.S. origin industrial equipment in violation of Russia Sectoral Sanctions,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS) Office of Export Enforcement, which oversees BIS investigations in the Southeast. “BIS and our partner agencies are committed to stopping those that seek to circumvent U.S. export control laws. This significant sentence not only holds Bagrou accountable for his illicit efforts but acts as a deterrent to those who would violate U.S. exports laws and act contrary to the national security and foreign policy interests of the United States.”
“Bagrou and his partners were involved in a shameless scheme to undermine United States sanctions and now he will pay the price for his actions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners will always work tirelessly to prevent criminals from circumventing our laws and putting our goods in the hands of actors that are a direct threat to our national security.”
“This sentencing is the result of the tireless efforts of DCIS and our partner agencies in combating the evasion of trade restrictions by prohibited nations,” said Special Agent in Charge, Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “If left unchecked, the illegal transfer of technology from the U.S. could be a significant threat to our country and our warfighters.”
The Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, as well as the Defense Criminal Investigative Service and the Federal Bureau of Investigation are investigating the case with assistance from U.S. Customs and Border Protection and the Georgia Department of Natural Resources. Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee prosecuted the case, with assistance from Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Recovery Unit.
Former West Chester University Student Sentenced to Six Years for Child Pornography OffenseRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Meacham, 26, of West Chester, PA, was sentenced to six years in prison and five years of supervised release by United States District Court Judge Cynthia M. Rufe for requesting and receiving images depicting the sexual abuse of young children.
In December 2019, the defendant pleaded guilty to a federal Indictment charging him with two counts of receipt of child pornography. The investigation began in February 2018 when the FBI identified another sex offender, Justyn Perez-Colon, who was advertising to trade child pornography and abuse stories online. After the arrest of Perez-Colon, the defendant was identified as a child sex offender who had exchanged online messages with Perez-Colon. For five days in early 2018, the defendant used Kik messenger to chat with Perez-Colon about child pornography, discussing the sexual abuse of children – specifically, Perez-Colon’s sexual abuse and exploitation of two toddler victims. The defendant also requested, received, and accepted images depicting the sexual abuse and exploitation of toddlers and prepubescent children. The victims depicted in those images included a child under the age of two identified by the FBI in the Perez-Colon investigation. At the time of the charged offenses, the defendant was a student at West Chester University.
Separately, Perez-Colon was prosecuted and pleaded guilty to charges of production, distribution, attempted distribution, and possession of child pornography. Perez-Colon was sentenced to 55 years in prison in September 2021.
“Child pornography and exploitation offenses are among the most horrific crimes prosecuted by this Office,” said Acting U.S. Attorney Williams. “By seeking out these shocking depictions, Meacham only added to the demand for these types of images to be produced and for more children to be victimized. Our Office and our law enforcement partners are committed to holding people like this defendant accountable for these crimes.”
This case was brought as a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brittany Jones.
Former U.S. Army Employee Sentenced for Kickback Scheme to Steer U.S. Government ContractsRead the Press Release
A former civilian employee of the U.S. Army’s Directorate of Public Works was sentenced today to two years in prison for a kickback scheme to steer government contracts for work at Camp Arifjan, a U.S. Army base in Kuwait.
Ephraim Garcia, 64, pleaded guilty to conspiracy to offer a kickback and to offering a kickback in the District of Columbia on July 21. According to court documents, Garcia admitted that he conspired with Gandhiraj Sankaralingam, aka Gandhi Raj, the former general manager and co-owner of Kuwait-based contracting company Gulf Link Venture Co. W.L.L. (Gulf Link), to steer government contracts to Gulf Link. In his position with the U.S. Army, Garcia was involved in the solicitation, award, and management of certain government contracts related to facilities support at Camp Arifjan.
In 2015, at an Olive Garden restaurant located in Mahboula, Kuwait, Garcia and Sankaralingam approached an employee of the prime contractor responsible for base support services. During that meeting, they offered to pay the prime-contractor employee in exchange for his assistance in steering subcontracts worth over $3 million to Gulf Link. Rather than agree to the scheme, the prime-contractor employee reported the kickback offer to authorities. On Aug. 19, 2020, Sankaralingam was charged in a superseding indictment with conspiracy to offer a kickback and with paying illegal gratuities to Garcia. Sankaralingam remains a fugitive.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Director Marion F. Robey of the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit; and Assistant Inspector General for Investigations Paul Sternal of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) made the announcement.
The U.S. Army Criminal Investigation Command and DCIS are investigating the case.
Acting Assistant Chief Christopher Jackson and Trial Attorney Matthew Sullivan of the Criminal Division’s Fraud Section are prosecuting the case.
The charges in the indictment against Sankaralingam are merely allegations, and he is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Muncie Mayor Convicted and Sentenced on Corruption ChargesRead the Press Release
INDIANAPOLIS – A former mayor of Muncie, Indiana, who was indicted in November 2019, was sentenced to 1 year in prison for accepting $5,000 in cash in exchange for steering city construction work to a contractor. This conviction and sentence are part of a lengthy investigation by the United States Attorney’s Office and the Federal Bureau of Investigation into corruption in Muncie associated with public works projects.
Dennis Tyler, 78, served as mayor from 2011 to 2019, during which he oversaw various public works projects. In December of 2015, Tyler took $5,000 in cash from a local excavation contractor in exchange for awarding public works projects to that contractor, passing up lower bids or more qualified contractors. Tyler received the money in a parking lot from former Muncie Superintendent of Sewer Maintenance and Engineering, Tracy Barton, who delivered the cash on behalf of the contractor. Barton has also been charged in this investigation.
In total, the City of Muncie and the Muncie Sanitary District awarded the excavation contractor hundreds of thousands of dollars in contracts for city work in connection with kickbacks paid to Tyler and Barton, including work associated with the Nebo Commons commercial development and the construction of a large sporting goods store.
Also, according to court documents, Tyler received a personal benefit from a different city contractor in early 2015. The contractor performed tree removal work at Tyler’s personal property worth approximately $1,800, with the expectation that doing so would keep the contractor on a list of eligible bidders for city work.
Finally, according to court documents, Tyler used his position to try to conceal efforts by others to defraud the City of Muncie. Specifically, a separate contractor had submitted, and was paid on, invoices for work that had never been performed. To provide cover for the contractor after the FBI initiated an investigation, Tyler asked two city employees to state they had requested quotes from that contractor, which was untrue. Ultimately, the employees refused.
Eight other individuals have been charged in connection with the FBI’s investigation of corruption in the City of Muncie:
- Tracy Barton, 51, Selma, Indiana, was indicted in September 2018 for conspiracy to commit wire fraud, falsification of documents in a federal investigation, and witness tampering. His case is pending.
- Jeff Burke, 55, Muncie, Indiana, was indicted in September 2018 for bank fraud, false statements to agents of the federal Bureau of Investigation, and obstruction of grand jury proceedings. His case is pending.
- Rodney Barber, 53, Muncie, Indiana, was indicted May 2019 for conspiracy to commit wire fraud, wire fraud, and false statements. His case is pending.
- Phil Nichols, 75, Muncie, Indiana, was indicted in March 2020 for conspiracy to commit wire fraud, wire fraud, and witness tampering. His case is pending.
- Debra Nicole Grigsby, 47, Muncie, Indiana, was indicted in March 2020 for conspiracy to commit wire fraud, and wire fraud. Her case is pending.
- Jess Neal, 54, Yorktown, Indiana, was indicted in March 2020 for conspiracy to commit wire fraud, and wire fraud. His case is pending
- Tony Franklin, 62, Yorktown, Indiana, was indicted in March 2020 for 2 counts of conspiracy to commit wire fraud, 2 counts of wire fraud, and 2 counts of false statements. His case is pending.
- Craig Nichols, 42, Selma, Indiana, was indicted in February 2017 for 16 counts of wire fraud, theft of government funds, and 16 counts of money laundering. He was sentenced in January 2019 to 2 years in prison, serve 3 years of supervised release after his imprisonment, and ordered to pay $217,892 in restitution.
“Mr. Tyler’s greed caught up with him and he will now be held accountable,” said Acting U.S. Attorney John E. Childress. “The citizens of Muncie and the hard-working city employees deserved better out of their mayor, and hopefully this sentence will help restore some public trust and confidence in the government that serves them.”
“This sentence shows that public corruption will not be tolerated. Mr. Tyler was entrusted by the community to represent their interests but instead chose to betray that trust through his abuse of public office for his personal gain,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Public corruption is a top criminal investigative priority for the FBI, and we encourage the public to continue to come forward and report abuses of public office.”
This case was the result of an investigation by the Federal Bureau of Investigation.
According to Assistant United States Attorney Tiffany J. Preston, who prosecuted the case, said Tyler will also serve 3 years of supervised release following his prison term and must also pay $15,250 in restitution.
Former Jacksonville Resident Pleads Guilty to Wire Fraud for Travel ScamRead the Press Release
Jacksonville, Florida – Juan Carlos Arteaga (58, Conroe, TX) today pleaded guilty to one count of wire fraud. He faces a maximum penalty of 20 years in federal prison. Arteaga has agreed to pay at least $779,687 in restitution to the victims of his offenses. A sentencing date has not yet been set.
According to the plea agreement, from at least March 2018 through at least January 2019, Arteaga, a former resident of Jacksonville, held himself out as someone who could provide customers with heavily discounted travel arrangements for both domestic and international travel. He acted as a travel agent for clients throughout Florida and the United States. Despite operating as a de facto travel agent, Arteaga was not a licensed travel agent.
Arteaga solicited friends, business contacts, acquaintances, and referrals from those individuals to purchase sham travel arrangements from him, including but not limited to domestic and international airfare, hotel rooms, and tickets to amusement parks. Arteaga used some of the funds he obtained from victims to purchase travel arrangements for others, which delayed discovery of the scheme since it appeared that the money victims paid was being used to purchase the travel they had requested. Arteaga also used some of the proceeds from the scheme for his personal enrichment, including his mortgage payment, short term loans, credit card and cable bills, grocery purchases, nursing home expenses, and withdrawing large amounts of cash.
Two of the victims of Arteaga’s scheme were P.C. and A.C., who were longtime friends of Arteaga. In 2018, P.C. and A.C. began talking to Arteaga about a trip around the world through Road Scholar, Explore the World by Private Jet. P.C. and A.C. had successfully booked other travel arrangements in the past with Arteaga and had vacationed with Arteaga and his wife numerous times. Arteaga said that the Road Scholar trip would cost approximately $100,000, but if P.C. and A.C. paid him by the next day, Arteaga could get them the trip for $60,000. Arteaga instructed A.C. and P.C. to pay him $20,000, broken into five check payments, and to wire the $40,000 balance to him. A.C. and P.C. wired $40,000 to Arateaga.
In August 2018, P.C. heard from some friends that their trips with Arateaga had not been booked. A.C. then called Road Scholar and learned that their trip had not been booked. Road Scholar also advised they did not any provide discounts, including to travel agents. After discovering the trip was a sham, A.C. and P.C. confronted Arteaga who said that he had not yet booked their trip because he was concerned about P.C.’s health. However, neither P.C. nor A.C. had raised P.C.’s health as a reason for delaying the Road Scholar trip and they were not interested in postponing the trip.
As with other victims in his scheme, Arteaga did not use any of the funds he had received from A.C. and P.C. toward any trip with Road Scholar. Instead, he used the money to make travel arrangements for other victims and for himself, as well as to repay other travel victims.
This case was investigated by the Florida Department of Agriculture and Consumer Services and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
Former Jackson Township Official Charged with Embezzling $170,000Read the Press Release
PITTSBURGH, PA – A resident of Largo, Florida, has been indicted by a federal grand jury in Pittsburgh, PA on charges of mail fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The six-count Indictment named Linda Baun, 72, as the sole defendant.
According to the Indictment, Baun was the Secretary and Treasurer for Jackson Township, which is located in Mercer County, Pennsylvania. From approximately September 2011 until approximately December 2019, Baun embezzled approximately $170,000.00 from the township. Baun embezzled the funds by making unauthorized ATM withdrawals from the township’s general fund and by making online purchases, including several on Amazon.com, using the township’s general fund. Baun attempted to conceal her thefts by making false entries into the township’s QuickBooks accounting software.
For each count, the law provides for a maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former GE Engineer Sentenced to 24 Months for Conspiring to Steal Trade SecretsRead the Press Release
ALBANY, NEW YORK – Jean Patrice Delia, age 46, of Montreal, Canada, was sentenced today to 24 months in prison for conspiring to steal trade secrets from the General Electric Company (GE).
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea entered on December 10, 2019, Delia admitted that he conspired with his business partner and co-defendant, Miguel Sernas, to compete against GE using trade secrets Delia stole from GE while employed by GE in Schenectady, New York. Delia admitted that he and Sernas, operating as ThermoGen Power Services, used the stolen trade secrets, as well as stolen marketing data, pricing information, and other confidential GE documents, to compete against GE around the world.
Delia, who was employed by GE as an engineer from 2001 through 2012, admitted to conspiring with Sernas from 2008 through 2019.
United States District Judge Mae A. D’Agostino also ordered Delia to pay $1.4 million in restitution. Judge D’Agostino also ordered Delia to jail, denying his request for a date on which to self-report to prison.
Sernas, a citizen and resident of Mexico, was sentenced on December 10, 2019 to time served (approximately 12 months in jail) and ordered to pay $1.4 million in restitution.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Michael Barnett.
Former Counselor at Clear Day Treatment Center charged with Fraud and Identity TheftRead the Press Release
PITTSBURGH - A resident of West Mifflin, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud and aggravated identity theft, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Indictment named Nina Marie Barkley, age 34, as the sole defendant.
According to the Indictment, Barkley was employed as a counselor at Clear Day Treatment Center. “KP” was a patient at Clear Day Treatment Center and was counseled by Barkley. As part of the patient intake process “KP” was required to provide Clear Day Treatment Center with personal identification information such as a Social Security number, date of birth, and home residence. Barkley had access to “KP”’s personal identification information and without permission or authorization used “KP”’s personal identification information to obtain loans from various financial institutions.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $2,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorneys Karen Gal-Or and Michael L. Ivory are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pennsylvania State Police and West Mifflin Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Corrections Officer Sentenced to Prison for Role in Bribery Conspiracy Involving Contraband Cellphones Smuggled into the Indiana County JailRead the Press Release
PITTSBURGH, PA - A former resident of McDonough, Georgia, was sentenced in federal court on charges of conspiracy and bribery by a public official, Acting United States Attorney Stephen R. Kaufman announced today.
Alex Lewis, 26, a former corrections officer at the Indiana County Jail (ICJ), was sentenced to 24 months of imprisonment followed by 18 months of supervised release.
During his plea hearing on July 15, 2021, Lewis admitted that between June and August 2019, he accepted multiple bribes from Rashon Richardson, a federal detainee housed at ICJ pursuant to a contract with the United States Marshals Service. As part of the conspiracy, Lewis admitted that Richardson used an intermediary outside ICJ to meet with him and pay bribes in the form of cash and, on one occasion, via a $400 payment to Lewis’s Cash App account. In return for the bribe payments, Lewis admitted smuggling multiple contraband cellphones into ICJ for use by Richardson and other federal detainees housed at the facility.
During Lewis’s sentencing, United States District Judge Cathy Bissoon rejected Lewis’s request for a probationary sentence and instead imposed a sentence consistent with the United States Sentencing Guidelines. In reaching her decision, Judge Bissoon stated, “If the people we place in trusted positions cannot be trusted, the entire system breaks down.”
Richardson has pleaded not guilty, and his case remains pending before Judge Bissoon. A defendant is presumed innocent unless and until proven guilty.Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the conviction in this case. The Pennsylvania State Police and Indiana County Jail also provided valuable assistance during the course of the investigation.
Former Catholic Priest Pleads Guilty to Making False Statements in Connection with an Investigation into Church Sex AbuseRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Brennan, 83, of Perryville, MD, pleaded guilty before United States District Court Judge Anita B. Brody to lying to investigators about not knowing a former parishioner and victim of sexual abuse.
In September 2019, the defendant was charged by Indictment with four counts of making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. The charges stem from an interview conducted in April 2019, during which Brennan was questioned by the FBI and made a number of false statements. Brennan had served in the Archdiocese of Philadelphia from 1993 to 2004 as a priest at Resurrection of Our Lord parish (“Resurrection”). In September 2013, the Philadelphia District Attorney’s Office filed criminal charges against him, alleging that he had sexually abused a minor, Sean McIlmail, during Brennan’s time at Resurrection. Soon thereafter, in October 2013, Sean McIlmail died of a drug overdose and the criminal charges against Brennan were dismissed.
In November 2013, the McIlmail family filed a civil lawsuit against the Archdiocese of Philadelphia and Brennan. The lawsuit was settled for an undisclosed amount in May 2018. During the April 2019 interview with the FBI, Brennan made several false statements, including that prior to the filing of the 2013 criminal case and civil lawsuit against him, he did not know Sean McIlmail, his father, mother or brother.
“Making false statements to the FBI is a serious crime that threatens the integrity of our justice system, and we will hold offenders accountable no matter who they are,” said Acting U.S. Attorney Williams.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania Attorney General’s Office, the Philadelphia District Attorney’s Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Former Brunswick Resident Pleads Guilty to Transferring Obscene Matter to Minor and Obstructing JusticeRead the Press Release
PORTLAND, Maine: A former Brunswick resident, most recently living in Pennsylvania, pleaded guilty today in federal court to transferring obscene matter to a minor and obstructing justice, U.S. Attorney Darcie N. McElwee announced.
According to court records, in July 2018, Shawn Cook, 42, sent an obscene image to a 15-year-old boy. Cook also offered to send the boy a video of himself having sexual intercourse with his girlfriend. Cook knew at the time he sent the image that the boy was under the age of 16. The boy’s mother found the image on her son’s phone and contacted law enforcement.
Also according to court records, in March of this year, Cook learned that his girlfriend had been contacted by an FBI agent about testifying before a federal grand jury regarding Cook’s actions. Cook contacted the mother of the boy to whom he had sent the obscene image, and asked her to “just tell them you lied.” He also told her to tell the boy “to keep his mouth shut.”
Cook faces up to 10 years in prison and a $250,000 fine on each charge. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bath Police Department and the FBI investigated the case.
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Florida Man Pleads Guilty to Unlawfully Distributing Opioids at His Pain Management ClinicRead the Press Release
Miami, Florida – A Florida man pleaded guilty yesterday to unlawfully distributing opioids at his pain management clinic in Miami, Florida.
According to court documents, Habib Geagea Palacios, 40, of Miami, owned a cash-only pain management clinic in Miami, Florida named General Care Center, Inc. At General Care Center, Palacios paid doctors to prescribe opioids to nearly all patients who visited the clinic, resulting in the illegal distribution of more than two million tablets of Oxycodone 30 mg and generating more than $3 million in cash that was deposited into various bank accounts associated with the clinic and Palacios. Five doctors who worked at General Care Center have already pleaded guilty in connection with their unlawful prescribing practices at the clinic.
Palacios pleaded guilty to one count of conspiracy to distribute a controlled substance and one count of distributing a controlled substance. He is scheduled to be sentenced on January 26, 2022 at 11:00 a.m. and faces a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Deanne L. Reuter of the DEA Miami Field Division; and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.
HHS-OIG, FBI, DEA, and USSS are investigating the case.
Assistant U.S. Attorney Kevin J. Larsen of the Southern District of Florida and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section are prosecuting the case.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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.
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Florence Man Sentenced to More than Four Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Brandon Paul Wallace, 33, of Florence, was sentenced to more than four years in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon.
Evidence presented to the court showed that on June 19, 2018, agents from the South Carolina Law Enforcement Division as well as an officer from the Florence Police Department arrested Wallace on an outstanding arrest warrant at a residence in Marion. Following Wallace’s arrest, law enforcement searched the area where Wallace was arrested and located two loaded firearms. Federal law prohibits Wallace from possessing firearms and ammunition because of his prior felony convictions for voluntary manslaughter, possession of a stolen vehicle, and assault and battery of a high and aggravated nature.
United States District Judge Donald C. Coggins, Jr. sentenced Wallace to 52 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Florence Police Department, and South Carolina Law Enforcement Division (SLED).
The case was prosecuted as part of the 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.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Financial Secretary-Treasurer of UAW Local 412 Charged with Embezzling over $2 Million in Union FundsRead the Press Release
DETROIT - Timothy Edmunds, the Financial Secretary-Treasurer of Local 412 of the United Auto Workers union, has been charged in a Criminal Complaint with embezzling over $2 million in union funds announced Acting U.S. Attorney Saima S. Mohsin.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Timothy Edmunds, 53, of South Lyon, Michigan, is charged in the Criminal Complaint, that was unsealed today, with embezzling union funds, money laundering, failing to maintain union records, and filing false reports with the Department of Labor between 2015 and 2021.
According to court records, between 2011 and 2021, Edmunds has served as the Financial Secretary-Treasurer of union Local 412 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). UAW Local 412 is headquartered in Warren, Michigan, and it represents approximately 2,600 members employed by the automaker FCA US LLC, which is owned by Stellantis N.V. The local union’s members include many of those employed at the following Stellantis facilities located within in the Detroit area: Sterling Stamping Plant, Mack Engine Plant, Warren Truck Assembly Plant, Warren Stamping Plant, and Jefferson Assembly Plant.
As an elected officer of UAW Local 412, Edmunds was responsible to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the funds in accordance with the UAW constitution and Local 412 bylaws. Instead, Edmunds systematically drained the Local 412 accounts of about $2 million by (1) using Local 412 debit cards for over $142,000 in personal purchases, (2) cashing Local 412 checks worth $170,000 into accounts he personally controlled, and (3) transferring $1.5 million from bone fide Local 412 accounts into accounts that he personally controlled. Once Edmunds converted the funds to his own personal use, he used the money to gamble, purchase luxury clothing, high-end automobiles, and firearms. To conceal his theft from other UAW officers and the Local 412 members, Edmunds created false bank statements and caused false LM reports to be filed with the U.S. DOL. Edmunds supplied the fake bank statements to international UAW auditors in an effort to conceal his embezzlement. Auditors from the UAW international union, who recently conducted an audit of Local 412, provided federal agents with information detailing the diversion of approximately $2 million in Local 412 funds by Edmunds.
Evidence indicates that Edmunds has used portions of the proceeds of his embezzlement to gamble extensively, to purchase firearms, and to purchase various high-end vehicles. For example, between 2018 and 2020, Edmunds used the UAW Local 412 debit card to make over $30,000 in unauthorized withdrawals at the Greektown Casino. While gambling at the Greektown Casino, records indicate that Edmunds had cash buy-ins of over $1 million, and he put over $16 million in play while betting while being rated at the casino. Between 2020 and the present, Edmunds registered at least 10 firearms, which ranged in price between $500 and $2,000 per firearm. In February 2016, Edmunds purchased a 2016 Jeep Grand Cherokee SRT for $74,365. In July 2020, Edmunds purchased a 2020 Jeep Grand Cherokee Trackhawk, for $96,419. Subsequently, in July 2021, Edmunds purchased a 2021 Dodge Durango for $76,491. Edmunds also leased two 2021 Jeep Grand Cherokee Limited in December 2020.
Based on the charge of embezzling union funds, Edmunds faces a maximum of five years in prison and a fine of up to $10,000. Based on the charge of money laundering, Edmunds faces a maximum of twenty years in prison and a fine of up to $500,000. On the charges of filing false reports with the Department of Labor, failing to maintain union records, and making false entries in union records, Edmunds faces a maximum of one year in prison and fine of $10,000.
A Criminal Complaint is only a charge and is not evidence of guilt.
Edmunds is the seventeenth defendant charged in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former UAW President Gary Jones (28 months in prison); former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 moths), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), former UAW Vice President Joseph Ashton (30 months), former UAW President Dennis Williams (21 months) and former UAW Region 5 Director UAW Board member Vance Pearson (12 months in prison). The company, FCA US LLC, now known as Stellantis, pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and was ordered to pay a fine of $30 million and be subject to an outside Monitor for three years. Former senior UAW official Jeffrey “Paycheck” Pietrzyk passed away before being sentenced.
In December 2020, the United States filed a civil lawsuit against the International UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives. Subsequently, the United States and the International UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court. The Court has appointed attorney Neil Barofsky to serve as the Independent Monitor of the UAW for the next six years. The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW. In addition, the Monitor is conducting a referendum of all UAW members to determine if the membership wants to adopt a direct election, also known as “one member, one vote,” method of electing the members of the UAW’s International Executive Board.
Acting U.S. Attorney Mohsin commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The members of the UAW deserve a union free of corrupt and crooked leadership,” said Acting United States Attorney Saima Mohsin. “We will continue to root out and prosecute those corrupt leaders who seek to use UAW funds as their own personal piggybank.”
"An important mission of the Office of Inspector General is to investigate allegations of fraud involving labor unions. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Mr. Edmunds held a position of trust within the UAW and his alleged theft of nearly $2 million from UAW accounts is a betrayal to every UAW worker,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “The FBI and its law enforcement partners will use all available resources to hold criminals accountable and seek justice for those victimized.”
“This complaint leaves no question as to the Department of Labor’s commitment to seek justice for unions and their members when union officers or employees put their personal financial gain ahead of the best interests of the union and the members they represent,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Today’s complaint alleges an outrageous abuse of power and misuse of Mr. Edmunds’s position of trust. Mr. Edmunds allegedly embezzled over $2 million from the members of UAW Local 412, took extreme measures to conceal his actions from the union, and used embezzled funds to live a lavish lifestyle. While almost all union officials and employees pursue the best interests of the union and the members they represent, a very small amount do not. When a union official or employee endangers the financial integrity of their union, OLMS will seek justice for the union and its members.”
“Today’s allegation is yet another example of corrupt leadership and abuse of fiduciary duties of a trusted UAW official,” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office. “IRS – Criminal Investigation is committed to investigating corrupt union officials who steal from their membership to enrich themselves.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Steven Cares.
Federal Jury Convicts Venice Man for Making Threatening Calls to Members of CongressRead the Press Release
Tampa, Florida – A federal jury has found Frank Anthony Pezzuto (73, Venice) guilty of transmitting in interstate commerce three separate threatening communications to injure certain members of Congress. Pezzuto faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
Pezzuto had been indicted on September 22, 2020.
According to evidence presented at trial, Pezzuto made three threatening phone calls from his home in Venice, Florida to certain congressional offices in Washington, D.C. The first call took place on January 25, 2020, when Pezzuto left a voicemail at Congressman E.S.’s office in which he said that he was coming to kill E.S. Pezzuto subsequently left a voicemail at Congressman A.S.’s office on January 30, 2020, stating that he was a worker for MS-13 and that MS-13 was coming to cut off A.S.’s head. Then, on February 3, 2020, Pezzuto called Congresswoman I.O.’s office and stated to the person who answered the phone: “tell her I’m going to kill her today.”
Each time Pezzuto made these threatening calls, he used his cellphone but concealed his phone number. United States Capitol Police were able to identify Pezzuto as the caller and confirm that the calls had been routed through a cell tower near Pezzuto’s home in Florida.
This case was investigated by United States Capitol Police. It is being prosecuted by Assistant United States Attorneys Patrick Scruggs and Risha Asokan.
Elkhorn City Attorney Sentenced to 41 Months for Bank Fraud and Filing False Tax ReturnsRead the Press Release
PIKEVILLE, Ky.— An Elkhorn City, Ky., attorney, Timothy Belcher, 56, was sentenced on Tuesday, to 41 months in federal prison and ordered to pay $817,000 in restitution, by U.S. District Judge Robert Wier, for bank fraud and false statements on a tax return.
According to Belcher’s plea agreement, he was a licensed attorney practicing in Pike County, who agreed to represent a client and her minor daughter in a wrongful death lawsuit. In 2004, a settlement was reached in the lawsuit, where half of the settlement would be distributed to the victim and the other half would be distributed among the three children. The funds were placed into an escrow account for the children.
Belcher admitted that, from July 2012 to December 2018, he transferred money from that escrow account to his law practice and used those funds for his personal and business expenses. Also, in his plea agreement, Belcher admitted that he knowingly failed to report the money he embezzled from the settlement account on his taxes.
Belcher pleaded guilty in July 2021.
Under federal law, Belcher must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The United States was represented by Assistant U.S. Attorney Andrea Mattingly Williams.
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Dothan Man Sentenced to More Than 15 Years in Prison for Federal Gun and Drug CrimesRead the Press Release
Montgomery, Alabama – On November 9, 2021, Jimmy Lamar Berry, 36, from Dothan, Alabama, was sentenced to 188 months in prison, to be followed by 3 years of supervised release, announced Acting United States Attorney Sandra J. Stewart. There is no parole in the federal system.
According to the factual basis contained in the plea agreement and other court records, on August 28, 2017, the Dothan Police Department executed a search warrant on Berry’s residence. During the search, cocaine and a digital scale were found in the kitchen, along with a handgun. Officers also located various amounts of marijuana, cocaine, and other controlled substances in one of the cars in the back yard of Berry’s house.
Later, on July 11, 2019, the Dothan Police Department and the United States Marshals Service executed an arrest warrant for Berry relating to a federal indictment that stemmed, in part, from evidence discovered during the August 2017 search. While making the arrest, officers smelled the odor of marijuana inside Berry’s residence. Law enforcement then obtained a search warrant and found more cocaine and marijuana, a digital scale with cocaine residue on it, and another firearm. Based on evidence found during this search, additional charges were brought in a superseding federal indictment in September of 2019. Berry pleaded guilty on July 1, 2021 to three counts of possession of a controlled substance with intent to distribute and one count of being a felon in possession of a firearm.
Based on Berry’s criminal history, the district court judge determined that he qualified as a career offender under the federal sentencing guidelines and was subject to sentencing enhancements under the Armed Career Criminal Act of 1984. These rulings increased the guidelines range for Berry and resulted in a significant sentence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Dothan Police Department, and the United States Marshals Service, with assistance from the Drug Enforcement Administration (DEA), the Alabama Department of Forensic Sciences, and the Montgomery County Sheriff’s Office. Assistant United States Attorney Justin Jones prosecuted the case.