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22 October 2021
Woman Found Guilty for Her Role in Dothan Truck Bombing Targeting A Former BoyfriendRead the Press Release
Montgomery, Ala. – On Thursday, October 21, 2021, Ashley Nicole Haydt, 36, from Taylor, Alabama, was convicted by a federal jury for her role in a Dothan truck bombing that targeted a former boyfriend and father to one of her children, announced Acting U.S. Attorney Sandra J. Stewart.
According to court records and evidence presented at trial, in 2017, Haydt worked at Wiregrass Rehabilitation Center in Dothan with Sylvio Joseph King. Testimony presented at trial showed that the two became friends and that Haydt began to tell King about her troubled relationship with her long-time boyfriend and father of her unborn child. Haydt was upset that her boyfriend would not agree to marry her and that he ultimately ended their relationship. In June 2017, the child was born and, soon after, the ex-boyfriend filed for custody. The jury saw numerous texts from Haydt to King during this time where she villainized her ex-boyfriend. She repeatedly expressed concern over losing custody of her infant child and how her life would be better if the ex-boyfriend were out of the picture. Those texts continued for several weeks until, at the suggestion of Haydt, they began using an alternate app to communicate called Snapchat. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before they become inaccessible to their recipients.
Based on the ongoing encouragement from Haydt to eliminate her ex, King began to purchase materials needed to construct a pipe bomb. Haydt provided King with her ex-boyfriend’s address and in the early morning hours of October 23, 2017, King placed the explosive device in the ex’s work truck that was parked at his home. King detonated the bomb while the victim was driving to work and shrapnel from the device was blasted into the victim’s back and hip area. Thanks to the actions of a passing motorist and first responders, the victim survived. After the explosion, King sent Haydt a message that read, “boom, I felt that from 120 feet away.”
Law enforcement quickly became suspicious of Haydt’s involvement in the crime. Haydt gave numerous conflicting statements during multiple interviews and when agents checked her cell phone, they discovered she had deleted text messages she exchanged with King the day of the bombing and before. She had also deleted the Snapchat app. However, significant evidence of their prior communications remained on King’s phone and he also testified during the trial confirming Haydt’s involvement. After a four-day trial, the jury found Haydt guilty of conspiracy, malicious use of an explosive, and concealing the commission of a felony. King had previously pleaded guilty to conspiracy and malicious use of an explosive device in October of last year. A sentencing hearing will be scheduled in the next few months for each of them. At that hearing, they will be facing a minimum of 7 years, and a maximum of 40 years, in prison.
Acting U.S. Attorney Stewart would like to thank the following agencies for their diligent work on this case: The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Houston County Sheriff’s Office, the Dothan Police Department, and the Alabama Law Enforcement Agency (ALEA). The Federal Bureau of Investigation (FBI) and the Alabama Fire Marshal’s Office also assisted. Assistant United States Attorneys Brandon Bates and Chelsea Phillips prosecuted the case.
Watertown Man Sentenced to 155 Months for Drug and Firearms ConvictionsRead the Press Release
SYRACUSE, NEW YORK - Daniel J. Borg, age 43, of Watertown, New York, was sentenced today to serve 155 months (12 years and 11 months) in federal prison for his convictions for possession of controlled substances (heroin/fentanyl and eutylone) with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, possession of a sawed-off shotgun, and possession of a firearm by a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Jefferson County District Attorney Kristyna Mills.
As part of his previous guilty plea, Daniel J. Borg admitted that on January 21, 2021 he was in possession of 305 grams of eutylone as well as 30 separate bags of a heroin/fentanyl mixture in an Audi automobile that he parked at a self-storage area in Watertown where he leased a unit. Detectives from the Metro-Jefferson Drug Task Force (Met-Jeff) surveilled Borg as he was about to enter his locked storage unit. After taking Borg into custody and recovering the drugs from the Audi, Met-Jeff Detectives obtained Borg’s consent to search his locked storage unit. Inside the storage unit Met-Jeff Detectives located a safe containing 500 separate small plastic bags, each holding a small quantity of a heroin/fentanyl mixture. Also recovered from the storage unit was a sawed-off .410-gauge shotgun illegally possessed by Borg, who was previously convicted of five (5) prior felony offenses.
In imposing sentence today, Senior District Judge Frederick J. Scullin, Jr. ordered Borg to serve 95 months for his possession with intent to distribute controlled substances, and a consecutive sentence of 60 months for his possession of the sawed-off shotgun in furtherance of a drug trafficking crime, with concurrent sentences for possession of the firearm as a convicted felon and possession of an unregistered short-barreled shotgun.
This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Metro-Jefferson Drug Task Force, consisting of Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, Investigators from the Jefferson County District Attorney’s Office, Agents of the United States Border Patrol, and Special Agents from the United States Department of Homeland Security-Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Richard Southwick.
Utica Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
SYRACUSE, NEW YORK – Anulfo Fernandez, age 42, of Utica, New York, pled guilty today to possessing and intending to distribute heroin in the Utica area in 2019, announced United States Attorney Carla B. Freedman and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Fernandez admitted that in 2019, he repeatedly sold heroin, and that those sales totaled more than one kilogram. Fernandez further admitted that he stored and packaged his drugs at a vacant apartment in Utica, and that on December 11, 2019, he had nearly 400 grams of heroin at that location, which he intended to sell. Sentencing is scheduled for March 1, 2022 in Syracuse. At sentencing, Fernandez faces a prison term of at least 5 and up to 40 years, a fine of up to $5 million, and a term of supervised release following incarceration of between 4 years and life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, the New York State Police, the Oneida County Sheriff’s Office and the Utica Police Department, and is being prosecuted by Assistants U.S. Attorney Nicolas Commandeur and Matthew McCrobie.
Upshur County Man Sentenced to 14 Years in Federal Prison for Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – An Upshur County man was sentenced today to 168 months in federal prison for a sex crime against a minor.
George Albert Romer, Jr., 63, of Buckhannon, was convicted of attempted sex trafficking of a minor following a jury trial in June 2021. The evidence at trial revealed that on October 31, 2019, Romer began communicating via a dating application with a person he understood to a 15-year-old girl in Lewisburg, West Virginia. During the messages, Romer offered to pay the girl $100 to engage in sexual intercourse. On November 1, 2019, Romer drove from Buckhannon to Lewisburg and rented a hotel room in order to meet the minor. He was placed under arrest shortly thereafter.
Following his release from prison, Romer will be placed on supervised release for 15 years and will be required to register as a sex offender.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the FBI Child Exploitation and Human Trafficking Task Force. Assistant United States Attorneys Jennifer Rada Herrald and Courtney Cremeans handled the prosecution.
United States District Judge Frank W. Volk imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00293.
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U.S. Attorney’s Office Announces Partnership with Justice Department’s New Initiative to Combat RedliningRead the Press Release
GREENSBORO, N.C. - The U.S. Attorney’s Office for the Middle District of North Carolina announces its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Even now, more than fifty years since the passage of the Fair Housing Act, our local communities continue to experience the effects of discriminatory housing policies and unequal access to credit and investment,” said Acting U.S. Attorney Hairston. “Our office is proud to partner with the Civil Rights Division to combat housing discrimination, and to ensure that financial institutions that operate in our District comply with their obligations under federal law.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
- Use U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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U.S. Attorney’s Office Announces Election Hotline to Protect Voting RightsRead the Press Release
NEWARK, N.J. – In advance of New Jersey’s November 2, 2021 general election, Acting U.S. Attorney Rachael A. Honig announced today that the public may call the U.S. Attorney’s Office Election Hotline at 888-636-6596 to report threats against voters, threats against election workers, or any other activities that would interfere with a citizen’s right to vote. Early voting begins in New Jersey on Saturday, October 23, 2021 and continues through Sunday, October 31, 2021. The Election Hotline will be active from October 22, 2021 through November 3, 2021.
Federal law protects the rights of voters to vote without discrimination and free from acts designed to harass or intimidate them. Federal law also permits voters to have an accessible polling place and to mark their own ballot, or to be assisted by a person of their choice for reasons of disability, illiteracy, or limited English proficiency. As the Department of Justice reiterated when it launched the Task Force to Combat Threats against Election Workers, federal law also prohibits threats against election workers, administrators, officials, and others associated with the electoral process. The Department and its federal law enforcement partners will work with state and local officials to respond to complaints and to ensure that every voter is able to cast a ballot.
Acting U.S. Attorney Honig said, “We are committed to ensuring free and fair elections in New Jersey by protecting the right of every voter to access polling places and cast a ballot and the right of every election worker to work without harassment, threats, or intimidation. We encourage the public to reach out to our Office to report any threats, discrimination, or other concerns.”
In the case of a crime of violence or intimidation, please call 911 immediately. The public may report potential violations of federal voting rights laws at any time by calling the Civil Rights Hotline, 855- 281-3339, or by submitting an online complaint here.U.S. Attorney announces partnership with DOJ’s Combatting Redlining InitiativeRead the Press Release
COLUMBUS, Ohio – The U.S. Attorney’s Office for the Southern District of Ohio announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Redlining is not only harmful in our communities of color, but it is also illegal,” said Acting United States Attorney Vipal J. Patel. “I want to assure those living in the Southern District of Ohio that we will investigate and hold accountable those who are redlining our communities.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live.
The initiative will:
- Use U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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Two Former Medical Practice Employees Sentenced for Conspiring to Distribute AdderallRead the Press Release
BOSTON – Two former employees of a medical practice with locations in Framingham and Whitinsville were sentenced in federal court in Worcester in connection with a federal drug conspiracy involving Adderall.
Rene Ruliera, 54, of Southborough, was sentenced yesterday by U.S. District Court Judge Timothy S. Hillman to two years in prison and three years of supervised release. In August 2019, Ruliera pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and four counts of distributing and possessing with intent to distribute Adderall.
Meghan Giacomuzzi, 39, of Whitinsville, was sentenced today by Judge Hillman to one year and one day in prison and three years of supervised release. In February 2019, Giacomuzzi pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and six counts of distributing and dispensing Adderall.
Between March 2016 and February 2018, Ruliera and Giacomuzzi conspired with Leslie Caraceni M.D, to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.
Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between Caraceni, Ruliera and Giacomuzzi documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence and the profits resulting from their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts based on Caraceni’s prescriptions.
On Jan. 15, 2021, Caraceni was sentenced by Judge Hillman to seven years in prison and three years of supervised release after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Jane Moran made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted both cases.
Twin Carroll County Sex Offenders Each Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Matthew Curtis and Tyler Curtis, ages 24, both of Hampstead, Maryland, each to 10 years in federal prison, followed by 18 years and 17 years of supervised release, respectively, for possession of child pornography. Judge Hollander ordered that, upon their release from prison, the defendants must continue to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
The twin brothers were previously convicted of child pornography-related charges in 2017 within the Circuit Court of Carroll County. Specifically, Tyler Curtis was previously convicted of the promotion and distribution of child pornography and was subsequently required to register as a sex offender. Matthew Curtis was convicted of possession of child pornography and was sentenced to one year and six months in prison and three years’ probation. He then was required to register as a sex offender.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees, and Frederick County Sheriff Charles A. “Chuck” Jenkins.
“Thankfully, the Curtis brothers will spend the next decade in federal prison for their extensive and disturbing conduct.” stated United States Attorney for the District of Maryland, Erek L. Barron. “This office will continue to aggressively protect our children and relentlessly prosecute those who perpetuate child exploitation.”
According to their plea agreements, from 2019 to 2020, Tyler and Matthew Curtis downloaded, possessed, and distributed child pornography while on state probation for their previous convictions for child pornography related charges. Furthermore, Matthew Curtis used an internet-based messaging application to repeatedly share depictions of prepubescent minors engaging in sexually explicit conduct with other users of the application.
On March 5, 2020, the cloud-based service submitted a CyberTip to the National Center for Missing and Exploited Children. Specifically, the service reported that a user account had uploaded 22 files of suspected child pornography. Images included the sexual abuse of prepubescent children. The IP address used to login to the cloud-based application was assigned to the defendants’ Hampstead residence and the email address was an address used by Matthew Curtis.
The investigation revealed that within messaging chatrooms, Matthew Curtis frequently posed as the mother of an infant or toddler and discussed the sexual abuse of his purported children. Matthew Curtis also distributed images documenting the sexual abuse of what he claimed were his children. Matthew Curtis and other online users frequently discussed their sexual abuse of children and their desire to abuse Curtis’s purported children.
As stated in their plea agreements, on May 28, 2020, law enforcement executed a search warrant at the Curtis’s residence and seized electronic devices, including two of Matthew Curtis’s cell phones. A forensic review of Matthew’s cell phones revealed a total of 429 images and 129 videos of child pornography. Some of the images and videos depicted prepubescent minors and sado-masochistic conduct.
During an interview with law enforcement, Tyler Curtis falsely informed investigators that he had not viewed child pornography since his 2017 conviction and that he did not have a cell phone in his possession. As a result of the search warrant, law enforcement seized a cell phone that was hidden in the bottom of Tyler Curtis’s bedroom dresser.
A forensic review of Tyler Curtis’s hidden cell phone revealed artifacts associated with at least 13 different email addresses. Investigators also discovered 115 images and 137 videos of child pornography on Curtis’s cell phone. The sexually abusive material contained sado-masochistic content as well as images of prepubescent females engaged in sexual acts with adult men, including at least two videos that depicted the sexual abuse of an infant or toddler. A forensic review of Tyler Curtis’s file storage and hosting service account revealed that he uploaded 185 images and 10 videos of child pornography to the service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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The U.S. Attorney’s Office for the District of New Jersey Announces Its Partnership in the Justice Department’s Combatting Redlining InitiativeRead the Press Release
NEWARK –The U.S. Attorney’s Office for the District of New Jersey announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Redlining is a form of discrimination that has devastating consequences for communities of color.” said Acting U.S. Attorney Rachael A. Honig. “By systemically and unlawfully denying credit to those in minority neighborhoods, a bank that redlines causes those neighborhoods to deteriorate by unfairly denying residents opportunities to become a homeowner. This office has vigorously enforced the Fair Housing Act and Equal Credit Opportunity Act to combat the practice of redlining. In 2015, together with the Justice Department’s Civil Rights Division and the Consumer Financial Protection Bureau, we filed suit to obtain a consent order requiring Hudson City Savings Bank to end its pattern or practice of redlining predominantly Black and Hispanic neighborhoods. The consent order, which represented the Justice Department’s largest residential mortgage redlining settlement in its history, required the bank to make systemic changes to its practices and pay $25 million in loan subsidies to individuals in the redlined neighborhoods. We are pleased that, earlier this year, the bank satisfied its obligations under the schedule set forth in the consent order. This office enthusiastically joins in the Justice Department’s Combatting Redlining Initiative and will continue its work to end redlining in the District of New Jersey.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The U.S. Attorney’s Office for the District of New Jersey’s Civil Rights Unit will continue its active partnership with the Civil Rights Division as it joins in this initiative. The initiative will: • Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
• Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
• Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
• Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Complaints of discrimination may also be made by contacting the United States Attorney’s Office for the District of New Jersey at (855) 281-3339 or by filing a complaint online.
Texas Pain Management Physicians Agree to Pay $3.9 Million to Resolve Allegations Relating to Unnecessary Urine Drug TestingRead the Press Release
Two Texas physicians, Robert Wills and Brannon Frank, have agreed to pay $3.9 million to resolve allegations that they violated the False Claims Act by knowingly billing Medicare, Medicaid and TRICARE for medically unnecessary urine drug testing.
The settlements with Wills and Frank resolve allegations that the physicians, formerly co-owners of now-defunct Austin Pain Associates located in Austin, Texas, knowingly caused the submission of false claims to federal healthcare programs by ordering excessive and unnecessary urine drug testing for patients without any individualized assessment of clinical need. Starting in 2011, all urine drug tests ordered by Austin Pain Associates’ physicians, including Wills and Frank, were performed at Austin Pain Associates’ in-house laboratory. The United States alleged that Wills and Frank drafted the testing protocols that resulted in unnecessary tests, were aware that the in-house laboratory was conducting an excessive number of tests on urine samples, and that Austin Pain Associates could not remain profitable without the income generated from unnecessary testing. Pursuant to their respective settlement agreements, Wills has agreed to pay $2,100,000 to settle these allegations and Frank has agreed to pay $1,800,000.
“The provision of medical services should be based on a patient’s medical needs, not on a physician’s desire to increase profits,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to taking appropriate action to safeguard the integrity of federal healthcare programs and the welfare of their beneficiaries.”
“Physicians who bill taxpayer-funded health programs for expensive and medically unnecessary drug tests increase the cost of healthcare for all of us,” said U.S. Attorney Ashely C. Hoff for the Western District of Texas. “We will continue to vigorously investigate and prosecute allegations of false claims submitted to Medicare, Medicaid, TRICARE and any other government health program.”
“Physicians who perform medically unnecessary and excessive tests exploit patients and taxpayer-funded healthcare programs,” said Special Agent in Charge Miranda Bennett for the Department of Health and Human Services Office of Inspector General (HHS OIG). “With our law enforcement partners, we will continue to hold accountable individuals who engage in false claims practices.”
"Today's outcome demonstrates the commitment of the Department of Defense Office of the Inspector General, Defense Criminal Investigative Service (DCIS), in coordination with our law enforcement partners to diligently investigate allegations of fraud committed against TRICARE," said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. "We will continue to hold accountable individuals who obtain taxpayer funds through false and fraudulent means."
Medicaid is funded jointly by the states and the federal government. The State of Texas paid for a portion of the Medicaid claims at issue and will receive a total of approximately $260,000 from the settlements with Wills and Frank.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jennifer Nuessner and Robert Hoffman, former employees of Austin Pain Associates. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the resolutions with Frank and Wills, the two whistleblowers will receive a total of approximately $618,000 from the federal share of the settlements. The qui tam case is captioned United States ex rel. Nuessner, et al. v. Austin Pain Associates, LLC, et al., 5:16-CV-1125-FB (W.D. Tex.).
The resolutions obtained in this matter were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Texas, HHS OIG and the Defense Criminal Investigative Service.
The matter was handled by Trial Attorney Jonathan Thrope of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Thomas Parnham for the Western District of Texas.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Tallahassee Man Sentenced to 24 Years in Prison for Sexual Exploitation of Children and Child Pornography OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Aquiles Alexander Delaosa, 37, of Tallahassee, Florida, has been sentenced to 288 months in federal prison after pleading guilty to sexual exploitation of children, distribution of child pornography, receipt of child pornography, and transferring obscene material to a person under 16. The sentence, which was handed down following the defendant’s guilty plea in June, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“There is no greater charge than the protection of our children,” stated Acting U.S. Attorney Coody. “This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
For over eight years – between July 26, 2012, and January 27, 2021 – Delaosa knowingly and intentionally used, induced, and enticed a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. During this time, he also received and distributed material containing child pornography. Delaosa also transferred, by means of interstate commerce, obscene matter to an individual who had not attained the age of 16 years.
“Protecting our innocent children is one of the most important missions we have,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Thanks to HSI special agents and the Leon County Sheriff’s Office, this predator is being held accountable for his crimes. The Defendant’s 24-year prison sentence will be followed by supervised release for the rest of his life.”
Delaosa’s prison sentence will be followed by a lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions. Additionally, Delaosa was also ordered to pay a $100,000 fine, a $35,000 assessment pursuant to the Vicky and Andy Child Pornography Victim Assistance Act of 2018 (“AVAA”), and restitution to the victims.
This case resulted from a joint investigation by the Leon County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tallahassee Man Sentenced to 180 Months Federal Prison for Enticing A Minor to Engage in ProstitutionRead the Press Release
TALLAHASSEE, FLORIDA – Michael Jarcord, 52, of Tallahassee, Florida, was sentenced to 180 months federal prison for coercing or enticing a minor to engage in prostitution. The sentence was announced today by Jason Coody, Acting United States Attorney for the Northern District of Florida.
Jarcord’s sentence was the result of a federal jury returning a guilty verdict on June 29, 2021, finding Jarcord guilty on the sole count of coercing or enticing a minor to engage in prostitution.
“This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them,” said Acting U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“We are grateful to see justice prevail for the victim in this case,” said Tallahassee Police Chief Lawrence Revell. Jarcord’s sentencing is a testament to the judicial systems’ tireless efforts to hold accountable those who break the law and reiterate to the community that human trafficking will not be tolerated.”
“Another child predator is now behind bars thanks to the law enforcement partnership between HSI and the Tallahassee Police Department,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Jarcord’s prison sentence will be followed by 10 years of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
The conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of the State Attorney, Second Judicial Circuit to combat human trafficking in the Tallahassee area. Assistant United States Attorney Michelle Spaven prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Statement of U.S. Attorney Damian Williams on Guilty Verdicts Against Lev Parnas and Andrey KukushkinRead the Press Release
“A unanimous federal jury has found that Lev Parnas and Andrey Kukushkin conspired to manipulate the United States political system for their own financial gain. In order to gain influence with American politicians and candidates, they illegally funneled foreign money into the 2018 midterm elections with an eye toward making huge profits in the cannabis business. Campaign finance laws are designed to protect the integrity of our free and fair elections – unencumbered by foreign interests or influence – and safeguarding those laws is essential to preserving the freedoms that Americans hold sacred. I commend the career prosecutors of this Office’s Public Corruption Unit whose outstanding work has helped bring to justice those who sought to illicitly influence our government.”
Springfield Man Sentenced to Ten Years in Prison for Attempted Enticement of a MinorRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Rafael Mercado Berrios, 42, of the 700 block of South Durkin Drive, was sentenced to ten years in prison, to be followed by ten years of supervised release, on October 20, 2021, for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
Mercado Berrios was convicted in June 2021 following a jury trial in which the United States presented evidence establishing that Mercado Berrios had used a mobile application to arrange to meet a person he believed to be a 15-year-old minor for sexual activity.
At Mercado Berrios’s sentencing hearing, U.S. District Court Judge Sue E. Myerscough found that he had also attempted to obstruct justice by requesting that a former girlfriend delete information from his computer and directing her not to speak to law enforcement agencies, as well as telling her what to say if she did choose to speak.
The statutory penalty for attempted enticement of a minor is ten years to life imprisonment. The statutory penalty for use of interstate facilities to attempt to transmit information about a minor is not more than five years imprisonment. Each count also carries a fine of up to $250,000.
The prosecution was the result of an investigation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police. Assistant U.S. Attorneys Tanner K. Jacobs and Gregory K. Harris represented the government in the prosecution.
The case against Mercado Berrios was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
South Florida Residents Convicted of Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
Miami, Florida – A federal jury convicted a pair of Florida residents yesterday for their roles in an illegal exports scheme. According to court documents and evidence presented at trial, Peter Sotis, 57, of Delray Beach, and Emilie Voissem, 45, of Sunrise, participated in a scheme to cause the illegal export of rebreather diving equipment to Libya in August 2016.
Rebreathers enable a diver to operate undetected for long periods of time underwater by producing little to no bubbles and by efficiently re-circulating the diver’s own breath after replacing its carbon dioxide with oxygen. Because of these enhanced capabilities, rebreathers have a dual use, with both civilian and military applications, and are specifically included on the Commerce Control List, which is the list of dual use items that are export controlled and licensed by the U.S. Department of Commerce, Bureau of Industry and Security (DOC-BIS). Such restricted items require a DOC-BIS license if the rebreathers are to be exported to any countries with national security concerns, such as Libya.
The defendants were warned that it was illegal to export the items to Libya without a DOC-BIS license and they willfully attempted to export those items after receiving an instruction from a Department of Commerce special agent that such items were detained and not to be exported while a license determination was pending. The exhibits and testimony at trial showed that the defendants lied to and misled Ramas LLC, a shipping company in Virginia, about what the DOC-BIS agent had told them and about whether the rebreathers had a military use. Testimony at trial also showed that Sotis threatened a government witness not to cooperate with the federal investigation.
Sotis and Voissem were both convicted of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), attempted violation of the IEEPA and smuggling. Voissem was found not guilty of making false statements to a federal agency.
They are scheduled to be sentenced on Jan. 6, 2022 and face a maximum penalty of 20 years in prison and a $1 million fine for attempting to violate the IEEPA, a maximum of 5 years and a $250,000 fine for the IEEPA conspiracy, and a maximum of 10 years and a $250,000 fine for smuggling. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division; Special Agent in Charge Ariel Joshua Leinwand of the DOC-BIS, Office of Export Enforcement, Miami Field Office; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office made the announcement.
DOC-BIS Miami and HSI Miami investigated the case. U.S. Customs and Border Protection Miami and FBI Miami assisted.
Assistant U.S. Attorneys Michael Thakur and Andy Camacho of the Southern District of Florida and Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 19-cr-20693.
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South Florida Residents Convicted of Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
A federal jury convicted a pair of Florida residents yesterday for their roles in an illegal exports scheme. According to court documents and evidence presented at trial, Peter Sotis, 57, of Delray Beach, and Emilie Voissem, 45, of Sunrise, participated in a scheme to cause the illegal export of rebreather diving equipment to Libya in August 2016.
Rebreathers enable a diver to operate undetected for long periods of time underwater by producing little to no bubbles and by efficiently re-circulating the diver’s own breath after replacing its carbon dioxide with oxygen. Because of these enhanced capabilities, rebreathers have a dual use, with both civilian and military applications, and are specifically included on the Commerce Control List, which is the list of dual use items that are export controlled and licensed by the U.S. Department of Commerce, Bureau of Industry and Security (DOC-BIS). Such restricted items require a DOC-BIS license if the rebreathers are to be exported to any countries with national security concerns, such as Libya.
The defendants were warned that it was illegal to export the items to Libya without a license and they willfully attempted to export those items after receiving an instruction from a Department of Commerce special agent that such items were detained and not to be exported while a license determination was pending. The exhibits and testimony at trial showed that the defendants lied to and misled Ramas LLC, a shipping company in Virginia, about what the agent had told them and about whether the rebreathers had a military use. Testimony at trial also showed that Sotis threatened a government witness not to cooperate with the federal investigation.
Sotis and Voissem were both convicted of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), attempted violation of the IEEPA and smuggling. Voissem was found not guilty of making false statements to a federal agency. They are scheduled to be sentenced on Jan. 6, 2022 and face a maximum penalty of 20 years in prison and a $1 million fine for attempting to violate the IEEPA, a maximum of 5 years and a $250,000 fine for the IEEPA conspiracy, and a maximum of 10 years and a $250,000 fine for smuggling. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division; Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Special Agent in Charge Ariel Joshua Leinwand, Department of Commerce, BIS, Office of Export Enforcement Miami Field Office, which oversees investigations in the southeast; and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office made the announcement.
The DOC-BIS and ICE-HSI investigated the case.
Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Michael Thakur and Andy Camacho of the Southern District of Florida are prosecuting the case.
Saint Charles Parish Area Drug Traffickers Plead Guilty to Federal ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on October 19, 2021, DUVELL LONDON, JR., 41, of St. Rose, La., and JEREMY LEVANDA, age 40, of Destrehan, La., pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl, powder cocaine, and crack cocaine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846. LONDON further pled guilty to 4 counts of distribution of controlled substances, 3 counts of possession with intent to distribute controlled substances, and 4 counts of use of a telephone in furtherance of a drug trafficking crime. LEVANDA further pled guilty to one count of possession with intent to distribute controlled substances, and one count of use of a telephone in furtherance of a drug trafficking crime.
According to court documents, LONDON, LEVANDA, and others, distributed significant quantities of fentanyl, powder cocaine, and crack cocaine in St Charles Parish and surrounding areas during the summer of 2020.
LONDON faces a mandatory minimum term of imprisonment of 5 years up to a maximum of 40 years of imprisonment, a fine of up to $5,000,000.00, at least 4 years of supervised release following any term of imprisonment, and $1,200 in mandatory special assessment fees. LEVANDA faces up to a maximum of 20 years of imprisonment, a fine of up to $1,000,000.00, and at least 3 years of supervised release following any term of imprisonment, and a $300 mandatory special assessment fee. U.S. District Judge Wendy Vitter set sentencing for January 11, 2022.
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.
U.S. Attorney Evans praised the work of the U.S. Drug Enforcement Administration, St. Charles Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, Jefferson Parish Sheriff’s Office, Terrebonne Parish Sheriff’s Office, and St. James Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorneys Nolan Paige and Paige O’Hale.
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Richmond Man Pleads Guilty in Internet Sales Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to wire fraud in connection with a scheme involving the sale of fictitious online businesses.
According to court documents, between 2018 and 2019, Harlan Barry Cox, 24, promoted the sale of internet-based businesses, including multiple companies that purported to specialize in the sale of drones, by listing those businesses on online marketplaces. When soliciting the sales of the purported businesses, Cox, using aliases, misrepresented information about the businesses, including that the businesses had generated millions of dollars in revenue. Cox also fabricated statements from banks and payment processors to support his false claims of substantial revenue.
Interested buyers of the misrepresented businesses subsequently wired substantial down payments to accounts controlled by Cox. Cox used the money for personal expenses and the upkeep of his lifestyle, including the purchase of a luxury Mercedes SUV and various trips to Miami, New York City, and Los Angeles. Ultimately, Cox defrauded five victims of at least $706,000.
Cox is scheduled to be sentenced on March 1, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Avi Panth and Michael C. Moore are prosecuting the case. Former Assistant U.S. Attorney Kevin S. Elliker assisted with the prosecution.
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. 3:21-cr-078.
Repeat sex offender sentenced to 20 years in prison for attempting to coerce minors to engage in online sexual conductRead the Press Release
DAYTON, Ohio – Sean T. Porter, 56, of Moraine, Ohio, was sentenced in U.S. District Court to 240 months in prison and a lifetime of supervised release for attempting to solicit nude photos from teenage girls while registered as a sex offender.
According to court documents, from October 2020 through January 2021, Porter created seven accounts with the profile names “Sean” and “Mike” on a dating app. In that time, Porter communicated with approximately 52 individuals who identified themselves as minors as young as 11 years old and sent pornographic images of himself to at least 26 suspected minors. He also solicited sexual content from the minors. One of the minors Porter communicated with was an FBI undercover officer who was using two personas of minor females.
Porter made a number of requests for the undercover officer to send nude images. Porter also sent images of himself in an exposed state. On Valentine’s Day 2021, Porter sent a video of himself engaging in sexual conduct to the agent purporting to be a teenager.
Porter committed these acts while on federal supervision after serving 10 years in federal prison for his last offense.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant Deputy Criminal Chief Laura I. Clemmens and Assistant United States Attorney Rob Painter are representing the United States in this case.
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Red Lake Man Pleads Guilty to Sexual Abuse of a ChildRead the Press Release
ST. PAUL, Minn. – A Red Lake man pleaded guilty to sexually abusing a child over the course of several years, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, between August 2014 and August 2020, Kory Paul Lussier, 25, knowingly and repeatedly engaged in sexual contact with a minor female who was between seven and thirteen years old at the time.
Lussier pleaded guilty yesterday before Senior U.S. District Judge Paul A. Magnuson to one count of abusive sexual contact with a child. A sentencing date has not been set.
This case is the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Alexander D. Chiquoine is prosecuting the case.
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Real Estate Developer Pleads Guilty to Bribery Conspiracy Involving City of Taylor OfficialsRead the Press Release
DETROIT – Real Estate Developer Shady Awad, 41, of Allen Park, pleaded guilty today to conspiring with Richard Sollars, Mayor of the City of Taylor and Jeffrey Baum, City of Taylor Community Development Manager and former Treasurer for the Committee to Elect Richard (“RICK”) Sollars by giving Sollars cash, household appliances, free renovations to his home and lake house, and other items of value in connection with the City of Taylor’s Right of First Refusal (“ROFR”) Program, which is a program designed to allow Taylor to acquire tax-foreclosed properties from Wayne County for redevelopment, Acting United States Attorney Saima S. Mohsin announced today.
According to court records, between 2016 and 2018, Shady Awad paid for improvements and renovations to Sollars’ home and lake house totaling over $50,000; provided his credit card information to another developer interested in acquiring tax-foreclosed properties under the City’s ROFR program and allowed that developer to charge over $19,000 to his credit cards, which the developer converted to cash and gave to Sollars; and, gave Sollars at least $4,000 in cash while Sollars gambled in Las Vegas, all in exchange for Sollars’ assistance in obtaining tax- foreclosed properties under the City’s ROFR program. Among other items of value, Shady Awad paid for the installation of hardwood flooring, garage doors, front doors as well as kitchen appliances, a Hall Tree bench and washer and dryer at Sollars’ home. In addition, Shady Awad also paid for the installation of hardwood flooring and deck and railings refinishing at Sollars’ lake house. Between 2015 and 2018, Awad was awarded the vast majority of Taylor’s tax-foreclosed properties in the City’s ROFR program.
The bribery conspiracy count to which Awad pleaded guilty carries a maximum sentence of 5 years of imprisonment. Under the United States Sentencing Guidelines, it is likely that Awad will face a guideline sentencing range of between 37 and 46 months of imprisonment, and a maximum fine of up to $250,000. A sentencing date has been set for March 1, 2022.
Mohsin was joined in the announcement by Timothy Waters, Special Agent In Charge of the Michigan Field Office of the Federal Bureau of Investigation.
“Not only do we seek to hold public officials accountable when they violate the law, we also hold those accountable who benefit from such illegal activity,” said Acting US Attorney Mohsin. “Today’s plea is a step towards ensuring that the citizens of Taylor receive the honest government services they are entitled to.”
“Mr. Awad’s investigation is proof of the FBI’s resolve to root out fraud and corruption in all forms,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “It is our continuing core mission to work with our federal, state, and local law enforcement partners to protect the integrity of city governments and to take strong action against those who seek to personally benefit by corrupting the fair administration of government programs."
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Dawn N. Ison.
Postal Manager Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – A U.S. Postal employee pleaded guilty today in connection with stealing mail believed to contain controlled substances.
Shawn M. Herron, 44, of Whitman, pleaded guilty to one count of conspiracy to possess cocaine with intent to distribute and one count of theft of mail by a postal employee. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Feb. 17, 2022. Herron was indicted in August 2020.
Since September 2005, Herron has been employed with the Postal Service where he has served as Supervisor of Customer Service at the Canton Post Office and more recently as Manager of Customer Services at the Fall River Post Office (FPO).
Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents. Specifically, Herron profiled priority parcels from Puerto Rico and West Coast states as well as parcels flagged by law enforcement as potentially containing illegal narcotics and then removed them from the mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the FPO. After their arrival Herron located the parcels and brought them to his personal office space, where he stole the narcotics for distribution.
The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $500,000. The charge of theft of mail provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, and Charles Dell-Anno, of Mendell’s Major Crimes Unit, are prosecuting the case.
Plaquemine Woman Indicted for Mail Fraud and Wire FraudRead the Press Release
A federal grand jury recently returned a three-count indictment charging Lestreonia Renee Rodrigue, age 26, of Plaquemine, Louisiana, with mail fraud and wire fraud. Rodrigue appeared for her arraignment today and pled not guilty to the pending charges.
According to the indictment, between July 2020 and June 2021, Rodrigue submitted claims for unemployment benefits in her name and in the names of other individuals in multiple states, including California, among others. Rodrigue also submitted claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses.
Further, Rodrigue obtained names, birth dates, and Social Security numbers of others, and submitted fraudulent claims for unemployment benefits in their names, with and without their knowledge or consent. Rodrigue used social media to obtain as many people’s identifying information as possible to file as many unemployment claims as possible. Upon submitting the claims and receiving the funds, she either gave a cut of the funds to the people or kept all the funds for herself. Through her scheme, Rodrigue obtained hundreds of thousands of dollars in prepaid debit cards in the mail.
In March 2021, Rodrigue also devised a scheme to defraud the Small Business Administration by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, on or about March 6, 2021, she submitted false and misleading PPP applications in the business name of “Lestreonia Rodrigue” seeking PPP funds. Rodrigue submitted a forged bank statement, false tax documents, and made misrepresentations in her PPP applications.
Throughout the course of the fraudulent schemes, Rodrigue caused $20,833.00 to be deposited into her bank account, to which she was not entitled. Additionally, Rodrigue caused over $500,000 in prepaid debit cards to be mailed to her addresses, to which she and others were not entitled.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Labor and is being prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Elizabeth White who also serves as Deputy Criminal Chief.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Phoenix Man Sentenced to over 4 Years for Abusive Sexual ContactRead the Press Release
PHOENIX, Ariz. – Yesterday, Virgil Fabian Brown, Jr., 44, of Phoenix, Arizona, was sentenced by U.S. District Judge Michael T. Liburdi to 54 months in prison, followed by ten years of supervised release. Brown previously pleaded guilty to two counts of Abusive Sexual Contact.
On November 3, 2018, Brown touched the adult victim’s breast and genitalia while she was unconscious. His 54-month sentence includes two and a half years for Abusive Sexual Contact and a consecutive two years of confinement for Abusive Sexual Contact Without Permission. Brown is also required to register as a sexual offender for life. Brown is an enrolled member of the Gila River Indian Community,
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-01419-PHX-MTL
RELEASE NUMBER: 2021- 075_Brown# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Phoenix Man Sentenced to 4 Years for AssaultRead the Press Release
PHOENIX, Ariz. – On Wednesday, Augustine Apkaw, 34, of Phoenix, Arizona, was sentenced by U.S. District Judge Susan M. Brnovich to four years in prison, followed by three years of supervised release. Apkaw previously pleaded guilty to Assault Resulting in Serious Bodily Injury.
On September 16, 2020, Apkaw hit his victim in the face with a baseball bat, causing her to suffer a broken jaw and tooth. Apkaw is an enrolled member of the Gila River Indian Community.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00198-PHX-SMB
RELEASE NUMBER: 2021- 073_Apkaw# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Peoria Man Sentenced to over 12 Months in Prison for Involvement in Looting a Gun Store and Providing False Statements to the ATFRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Jeron C. McNeal, 29, of the 200 block of Northeast Rock Island Avenue, was sentenced to a year and a day in federal prison and three years of supervised release on October 20, 2021, for his involvement in the burglary of a federally licensed firearms dealer and for giving false statements to federal law enforcement officers. U.S. District Court Judge Joe Billy McDade also ordered McNeal to pay $1,000 in restitution. McNeal will remain on bond and report to the Bureau of Prisons on February 1, 2022.
At the sentencing hearing, the government presented evidence that on June 1, 2020, McNeal was the driver of an SUV whose occupants were participants in looting incidents around the city of Peoria. At approximately 2:00 a.m., McNeal, along with a caravan of approximately 30 cars, stopped in front of Pinnacle Gun & Ammo, a federal firearm licensee located at 701 Main Street. Two minors exited McNeal’s SUV and entered a smashed front window of Pinnacle along with approximately seven other unidentified individuals. McNeal’s sister, Chayla R. McNeal, stood at the SUV and recorded the incident with her phone. Each of the two minors with McNeal stole firearms from the store and ran back to McNeal’s SUV, which was waiting outside. When police gave chase, McNeal fled with the male minor and several guns. The female minor was unable to retreat to McNeal’s SUV in time and was apprehended by police. When she was captured, the minor female was in possession of three stolen guns. In total, twenty-nine firearms were stolen during the looting of Pinnacle.
The government presented additional evidence that on June 1, 2020, federal agents located and interviewed McNeal. He admitted to driving the black Cadillac SUV, which he owned, that was parked in front of Pinnacle at the time of the burglary. He also admitted to driving around the city from business to business that night and that he was present when looting occurred. However, McNeal provided false statements to agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives in that he falsely claimed that (1) he only stopped in front of Pinnacle because he got stuck in traffic; (2) he didn’t know anyone got out of his SUV during the burglary; and (3) he made false statements about who was in the SUV when he went to Pinnacle.
At McNeal’s sentencing hearing, Judge McDade commented that McNeal did not have an extensive criminal record and may not have grasped the enormity of what he was doing, having failed to appreciate that he would go to prison if he was caught. Noting the serious nature of the crime, Judge McDade stated that putting stolen firearms in the hands of people who cannot lawfully possess them is contributing to violence in the streets. To date, five of the twenty-nine guns have been recovered.
McNeal was arrested on September 18, 2020, and pleaded guilty before Judge McDade on June 2, 2021.
The offense of stealing from a licensed firearms dealer carries a statutory penalty of up to ten years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment. For the offense of false statements, the statutory penalty is up to five years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment.
Chayla R. McNeal has also pleaded guilty to burglary of a federally licensed firearms dealer and false statements to a federal law enforcement officer. Her sentencing hearing is scheduled for November 5, 2021, in federal court in Peoria.
The Peoria Police Department and U.S. Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
Parmelee Man Indicted for Sexual AbuseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse.
Justis Running Bear, age 23, was indicted on October 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 22, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 9, 2018, and March 28, 2021, in Mission, South Dakota, Running Bear knowingly engaged in a sexual act with the victim and that the victim was incapable of declining participation in the sexual act.
The charges are merely accusations and Running Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Running Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
O’fallon, Il Bookkeeper Sentenced to Four Years in Prison for Defrauding Client Out of More Than $1,000,000Read the Press Release
O’Fallon, Ill. – An O’Fallon, Illinois, bookkeeper was sentenced to 4 years in prison for defrauding one of her clients out of more than $1,000,000. The sentencing hearing was conducted on Thursday, October 21, 2021, in U.S. District Court in Benton, Illinois.
“While our work on violent crimes often garners larger headlines, the public should be remined that financial crimes remain a clear federal priority,” said Steven D. Weinhoeft, United States
Attorney for the Southern District of Illinois. He continued, “Financial criminals like Dvorak cause great harm and must be held accountable.”“For years, Dvorak bilked her employer’s accounts, choosing greed over trust,” said FBI Special
Agent in Charge David Nanz. “No matter how simple or sophisticated the fraud scheme, the FBI won’t hesitate to bring all available resources to bear to hold criminals accountable and seek justice for victims.”Kathleen M. Dvorak, 61, conducted a large, multi-year fraud scheme, against one of her clients.
From 2012 through 2019, Dvorak defrauded the victim out more than $1,000,000. Evidence presented in court established that Dvorak took this money from her client in two primary ways: (1) by writing large checks, payable to herself, that were drawn on the victim’s bank account; and
(2) by taking large amounts of cash back for herself when she deposited checks payable to the victim into his bank accounts. Dvorak concealed her fraud from the victim by making false entries into his Quickbooks accounting program.In addition to the four-year prison sentence, the court also ordered Dvorak to pay $1,495,072.74 to her victim. The court further sentenced Dvorak to serve three years of supervised release following her release from prison. As a condition of her supervised release, the court ordered Dvorak to participa e in treatment for gambling addiction and to not participate in any further gambling activities.
The case was investigated by the Federal Bureau of Investigation, Springfield Division, Fairview
Heights Resident Agency.
Assistant U.S. Attorney Scott Verseman prosecuted the case.Online Pastor and Former Real Estate Agent Among Those Sentenced to Prison for Bank Fraud in Ongoing Identity Fraud ProsecutionRead the Press Release
RALEIGH, N.C. – Numerous defendants were sentenced in connection with charges contained in a 50-count, 2nd Superseding Indictment alleging various forms of Bank Fraud, Wire Fraud, Conspiracy, and Perjury.
The indictment charges that defendant Michael Griffin (“MGriffin”), operating from his business location in Raleigh and home in Knightdale, accepted fees from clients for alleged credit repair services. The indictment alleges that, in reality, Griffin was creating fictitious credit profiles and fraudulently altering client credit data through the use of fictitious police reports.
The indictment further charges that various defendants, many of whom were family, conspired with MGriffin to defraud Synchrony Bank, a Lowe’s credit card provider, by opening credit accounts in the name of fraudulent identities, cashing out the accounts through prepaid card purchases, and then defaulting on the credit accounts. The indictment also charges various defendants with similar frauds against other banks, including Capital One and Discover.
Regina Griffin (MGriffin’s sister), 49, of Raleigh, North Carolina, and former real estate agent; pled guilty to Count 29 of the 2nd Superseding Indictment, which charged False Statement to Influence a Bank on a Loan, in violation of Title 18, United States Code, Section 1014. The offense occurred between February 11, 2019 and March 19, 2019, and involved Alcova Mortgage, LLC. On Wednesday, October 20, 2021, the Court sentenced Regina Griffin to 14 months in prison, followed by 3 years of supervised release. She was also ordered to make restitution of $70,606.72.
Sharon Annita Edmond (MGriffin’s sister), 57, of Raleigh, North Carolina, and an online pastor; pled guilty to Count 25 of the 2nd Superseding Indictment, which charged Wire Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1343 and 2. The offense occurred on or about April 16, 2018 and involved Strategic Funding Partners, doing business as Merchant Cash Group. On Wednesday, October 20, 2021, the Court sentenced Sharon Edmond to 12 months in prison, followed by 3 years of supervised release. She was also ordered to make restitution of $36,204.00.
Creshun Alexandria Griffin (MGriffin’s daughter), 27, of Knightdale, North Carolina; pled guilty to Count 16 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between August 11, 2017 and December 31, 2018 and involved Capital One Bank. On Wednesday, October 20, 2021, the Court sentenced Creshun Griffin to 30 day in custody, followed by 2 years of supervised release, and 200 hours of community service. She was also ordered to make restitution of $8,406.51.
Katina Griffin Perry (MGriffin’s sister), 48, of Raleigh, North Carolina; pled guilty to Count 27 of the 2nd Superseding Indictment, which charged Wire Fraud, in violation of Title 18, United States Code, Section 1343. The offense occurred between August 21, 2017 and September 19, 2017 and involved Kia Motor Finance. On Wednesday, October 20, 2021, the Court sentenced Katina Perry to 2 years of probation and 50 hours of community service.
Harvey Griffin (MGriffin’s brother) 47, of Raleigh, North Carolina; pled guilty to Count 11 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October of 2017 and January of 2018 and involved Synchrony Bank. On Wednesday, October 20, 2021, the Court sentenced Harvey Griffin to Time Served, plus 3 years of supervised release. He was also ordered to make restitution of $7,609.75.
Angela Griffin (MGriffin’s wife), 53, of Knightdale, North Carolina; pled guilty to Count 13 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between November 21, 2017 and December 21, 2017 and involved Synchrony Bank. Today, the Court sentenced Angela Griffin to 12 months confinement and five years of supervised release. She was also ordered to make restitution of $9,614.31.
Melvin Griffin (MGriffin’s brother), 45, of Knightdale, North Carolina; pled guilty to Count 18 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October 5, 2017 and August 31, 2018 and involved Discover Bank. Today, the Court sentenced Melvin Griffin to six months confinement plus three years of supervised release. He was also ordered to make restitution of $42,861.98.
Jasmine Mariah Davis, 29, of Lakeland, Florida; pled guilty to Count 11 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October of 2017 and February of 2018 and involved Synchrony Bank. Today, the Court sentenced Jasmine Davis to three months confinement plus three years of supervised release. She was also ordered to make restitution of $69,502.71.
Tyrone Edmonds, 47 of Weldon, North Carolina, pled guilty on February 8, 2021 to Count 6, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between July of 2017 and August of 2021, and involved Synchrony Bank. Today, the Court sentenced Tyrone Edmonds to time served and three years of supervised release. He was also ordered to make restitution of $12,407.86.
In January of this year, Shawn Allen Farmer, 52, of Cary, North Carolina, also named in the Second Superseding Indictment, pled guilty to Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2, and Making False Claims, in violation of Title 18, United States Code, Section 287. In May of 2021 the Court sentenced Shawn Farmer to 15 months in prison and ordered to pay $42,783 in restitution.
Additional defendants Michael Griffin and Jasper Deonta Goodman have also pled guilty but have not yet been sentenced. The maximum punishment for committing Bank Fraud and Conspiracy to Commit Bank Fraud, violations of Title 18, United States Code, Sections 1344 and 1349, is not more than 30 years in prison. The maximum punishment for Wire Fraud, a violation of Title 18, United States Code, Section 1343, is not more than 20 years imprisonment. The maximum punishment for Making a False Statement to a Bank on a Loan is not more than 30 years in prison.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the United States Marshals Service and the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore represents the United States.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Omaha Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Jose Ivan Marino-Meza, 25, of Omaha, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 11 years and three months in federal prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine actual (pure) between March and October of 2020. Marino-Meza was also ordered to forfeit any interest he had in $38,840.00 in United States currency. Following his prison term, Marino-Meza will serve five years on supervised release. However, he is likely to be deported to Mexico at the end of his prison term. There is no parole in the federal system.
In March and April of 2020, a confidential informant working with the Lincoln/Lancaster County Narcotics Task Force and an undercover officer made four purchases of methamphetamine totaling at least two pounds from Lucio Cruz-Guerrero. Marino-Meza accompanied Cruz on some of these purchases. In July of 2020, an undercover officer bought approximately one ounce of methamphetamine from Marino-Meza who drove to the buy location in a car belonging to Cruz. In August of 2020, the undercover officer made two additional purchases of methamphetamine from Cruz totaling approximately ¾ pound. In October of 2020, search warrants were executed at Cruz’s Lincoln residence, Marino’s Omaha residence, and two storage units used by Cruz. A total of approximately 33 pounds of methamphetamine and $38,840 in cash were found during these searches. Testing at the Nebraska State Patrol Crime Lab showed the methamphetamine purchased and found during the searches contained a total of more than six kilograms of methamphetamine actual (pure).
Cruz-Guerrero was sentenced in July of 2021 to 168 months in prison on the conspiracy charge and was ordered to forfeit any interest in the seized $38,840.00 in U.S. currency.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force and the Drug Enforcement Administration (DEA).
Ohio man appears on drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Reuben Jahmell Dauntez Donald, of Akron, Ohio, appeared in federal court today on a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Donald, 35, was charged in a criminal complaint with one count of “Distribution of Methamphetamine.” Donald is accused of having nearly 150 grams of methamphetamine on Wheeling Island on October 20, 2021. According to the affidavit, the Ohio Valley Drug Task Force conducted a controlled buy of methamphetamine from Donald. The purchased methamphetamine weighed approximately 149.56 grams, with a street value of nearly $15,000.
Donald is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated. The Wheeling Police Department, the West Virginia State Police, and the Marshall County Drug Task Force, a HIDTA-funded initiative, assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Northborough Man Arrested for Wire Fraud and Money Laundering After Embezzling from Non-ProfitRead the Press Release
BOSTON – A Northborough man was arrested today for allegedly embezzling approximately $370,000 from a non-profit organization in Sturbridge.
Kyriakos Kapiris, a/k/a Rick Kapiris, 35, was indicted on two counts of wire fraud and one count of money laundering. Kapiris was released on conditions following an initial appearance this afternoon before U.S. District Court Magistrate Judge David H. Hennessy.
According to charging documents, from April 2015 to May 2020, Kapiris worked as the Information Technology (IT) manager at the non-profit organization. As part of his responsibilities, the organization provided Kapiris access to two company credit cards to purchase IT equipment and services as needed. Beginning in 2016, Kapiris used the two company credit cards to purportedly purchase IT equipment from two vendor accounts on Square and one account on Amazon. In reality, it is alleged that Kapiris created the three vendor accounts to embezzle the funds and fabricated sales invoices for purportedly purchased equipment to conceal the scheme. Kapiris allegedly used the names of legitimate Massachusetts companies for the two Square accounts and created the Amazon account in the name of a fictitious company, “NetworkingPlus.”
It is alleged that Kapiris linked the three vendor accounts to several of his own personal accounts at Bank of America into which he transferred the fraudulent proceeds. Kapiris then used the stolen funds for personal expenses including a $19,250 payment to a contractor that Kapiris hired to build a new residence in Northborough.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistance was provided by the Sturbridge and Northborough Police Departments. Assistant U.S. Attorney Lucy Sun of Mendell’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Norfolk Man Sentenced for Fentanyl Distribution and Bribery of a Federal AgentRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 262 months in prison for conspiracy to distribute 400 grams or more of fentanyl and bribery of a public official.
According to court documents, Donatarius Leshay Boone, 31, received numerous packages through the U.S. Postal Service containing pressed fentanyl pills over the course of approximately sixteen months. Once received, Boone wholesale distributed the pills to at least three other individuals for further sale and distribution. Although these pills contained fentanyl, they were pressed to look like real prescription opioid medication.
Between February and March 2021, law enforcement identified two packages, each containing approximately 2,000 fentanyl pills, bound for the Eastern District of Virginia. They further determined that one package was bound for a business located in Windsor and the other to a rented postal box at a UPS Store located in Suffolk. On March 15, Boone arrived to pick up the second package and, when confronted by law enforcement, he attempted to flee on foot. Upon apprehension, Boone admitted he was the intended recipient of both packages. He further admitted he had been responsible for the importation of approximately 10,000 pills per month. A subsequent search of Boone’s residence resulted in the recovery of a firearm, additional quantities of cocaine and fentanyl, scales, and commonly used adulterants.
Shortly after his interaction with law enforcement, Boone attempted to bribe a federal agent to form a “partnership.” Boone told the agent in a recorded phone call that, in exchange for $20,000, he expected the agent to protect him from criminal charges and assist him in maintaining his lines of drug supply and distribution. The agent immediately reported the conversation to his supervisors. On April 29, 2021, Boone was arrested after arranging a meeting with the agent. After his arrest, agents searched his car and found the $20,000 he promised.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Al Chandler, Interim Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The U.S. Immigration and Customs Enforcement Office of Professional Responsibility provided significant assistance in this case.
Special Assistant U.S. Attorney Kristin Bird prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-44.
Navillus Construction Executives Convicted of Embezzling from Union Benefits FundsRead the Press Release
Earlier today, in federal court in Brooklyn, a jury returned guilty verdicts against Donal O’Sullivan, the founder, owner and President of Navillus Tile, Inc. d/b/a/ Navillus Contracting (“Navillus”), one of New York City’s largest construction firms, Padraig Naughton, Navillus’s Financial Controller, and Helen O’Sullivan, a Payroll Administrator, on all 11 counts charging wire fraud, mail fraud, embezzlement from employee benefits funds, submission of false remittance reports to union benefits funds, and conspiracy to commit those crimes. The verdicts followed a three-week trial before United States District Judge Pamela K. Chen. When sentenced, each of the defendants faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“As found by the jury, the defendants deliberately devised a fraudulent scheme to avoid making required contributions to union benefits funds on behalf of Navillus’s workers, in order to deprive the workers of benefits they had earned and deserved,” stated United States Attorney Peace. “This Office and its law enforcement partners will continue to investigate and prosecute these types of blatant frauds that are harmful to workers.”
Mr. Peace expressed his thanks to the agents and investigators of the Federal Bureau of Investigation, New York Field Office; United States Department of Labor, Office of Inspector General; the United States Department of Labor, Employee Benefits Security Administration; the Port Authority of New York and New Jersey, Office of Inspector General; and Homeland Security Investigations for their outstanding work on the case.
Navillus was a signatory to multiple collective bargaining agreements that required the company to make contributions to union benefits funds, such as health, pension and vacation funds, for all “covered work” performed by its workers at construction sites. Between 2011 and 2017, the defendants engaged in a scheme to avoid making these required contributions by placing some of Navillus’s workers on the payroll of another company (the “Consulting Company”). The Consulting Company then issued weekly paychecks to those Navillus workers for work they did on Navillus construction jobs. To conceal the scheme from benefits fund auditors, the defendants caused the Consulting Company to issue fraudulent invoices to disguise the fact that the funds Navillus had issued to the Consulting Firm were made to reimburse the Consulting Company for the wages the Consulting Company had paid to Navillus workers.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Meredith Arfa, and Special Assistant United States Attorney Virginia Nguyen are in charge of the prosecution.
The Defendants:
DONAL O’SULLIVAN
Age: 60
Queens, New YorkPADRAIG NAUGHTON
Age: 49
New York, New YorkHelen o’sullivan
Age: 61
Queens, New YorkE.D.N.Y. Docket No. 20-CR-272 (PKC)
Miami Man Pleads Guilty to Participating in Access Device Fraud and Money Laundering Conspiracies for his Roles in Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Hugo Hernandez, age 34, of Miami Lakes, Florida, pled guilty today to a superseding indictment charging him with being part of access device fraud and money laundering conspiracies for his roles in a nationwide gas station skimming scheme that involved stealing banking and personal information of residents in and around the Northern District of New York, as well as multiple other parts of the country, who used the “pay at the pump” feature to make gasoline purchases.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Inspector in Charge Ketty Larco-Ward, Boston Division, United States Postal Inspection Service (USPIS).
As part of his guilty plea, Hernandez admitted that between December 2015 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fake credit and debit cards. The fake cards were used to obtain money orders, gift cards, cash, and other things of value.
Hernandez also admitted to being part of a conspiracy to launder funds obtained through the access device fraud conspiracy, and, in facilitating that conspiracy, causing at least 162 money orders, worth $173,257, to be deposited into a bank account he controlled. As part of his plea agreement, Hernandez agreed to be subject to a forfeiture money judgment in the amount of $173,257.
A sentencing hearing is set to take place on March 1, 2022, before Senior United States District Judge Gary L. Sharpe. Hernandez faces up to 20 years in prison; a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater; and up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami, Pittsburgh, and San Juan, the USPIS Miami Division, the United States Secret Service Miami Field Office, as well as the New York State Department of Agriculture, Division of Weights and Measures. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Man Convicted of Arson of Alexandria Businesses Sentenced in Federal CourtRead the Press Release
ALEXANDRIA, La. – Jasmine Roberson, 31, of Baton Rouge, Louisiana, has been sentenced by United States District Judge Dee D. Drell to 60 months in prison, followed by 3 years of supervised release, on arson charges.
According to information presented in court, on April 20, 2019, firefighters with the Alexandria Fire Department responded to reported fires at a strip mall on Elliott Street in Alexandria, Louisiana. When they arrived at the location, they observed flames in a store-front window and saw a hole in the window. The flames had subdued in that area, but as they moved through the business, they located flames through an open doorway and extinguished the fire. Evidence at the scene led firefighters to suspect arson.
On May 3, 2019, firefighters were called once again to reported fires at the same strip mall on Elliott Street in Alexandria. When they arrived, they found that another business had its front window broken and soot was visible on the ceiling above the window. Firefighters found an unbroken glass bottle that was used to fashion a Molotov cocktail that was filled with gasoline and a rag stuffed in the charred bottle.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into both fires and discovered that they were related. After conducting interviews of witnesses, ATF agents learned that the owner of the store that suffered damage from the second fire was in a romantic relationship with an inmate at Hunt Correctional Center. The victim indicated that the boyfriend/inmate had given her money to help start her business but when he learned that her business was not doing well financially, he told her he was going to burn it down.
Further investigation revealed that the boyfriend/inmate contacted Jasmine Roberson and a co-conspirator to set the fires so he could collect insurance money on the failing business. The first fire on April 20, 2019 was started on the wrong business so Roberson went back on May 3, 2019 and attempted to set fire to the correct business location.
A DNA analysis was performed on the glass bottle found at the scene and Roberson was identified as a potential match for DNA found on the bottle used at the fire. Roberson admitted to agents that he attempted to set fire to both businesses.
The ATF and Alexandria Fire Department investigated the case. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
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Lincoln Couple Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Raymond Michael Maestas, 28, and his wife, Jaesa Suzanne Vaughn, 28, both of Lincoln, Nebraska, were sentenced today by United States District Judge John M. Gerrard to federal prison for possession with intent to distribute 500 grams or more of methamphetamine mixture.
Maestas was sentenced to 15 years for possession with intent to distribute 500 grams or more of methamphetamine mixture with a prior conviction for serious violent felony, (robbery). He also received a sentence of five years for using, carrying, and possessing a firearm in furtherance of a drug-trafficking crime. The sentence on the gun charge must be served consecutive to (after) the sentence on the drug charge. Following his prison term, Maestas will serve ten years on supervised release.
Vaughn was sentenced to 10 years for possession with intent to distribute 500 grams or more of methamphetamine mixture. She will serve five years on supervised release after completing her prison term. There is no parole in the federal system.
On February 28, 2021, a pickup driven by Maestas, in which Vaughn was the passenger, was stopped in Lancaster County for speeding. A Lancaster Sheriff’s Office canine indicated the odor of narcotics on the passenger side door. The pickup was searched. A box was found inside a battery cover where the pickup’s battery would normally be located. This box contained two locked safes containing three packages of methamphetamine weighing a total of approximately 1 ½ pounds, 13 Fentanyl pills and a vacuum-sealed Jimenez .380 handgun. The actual battery for the pickup was found hooked up near the passenger-side window. A Hi-Point .45 caliber handgun was found under the center console inside the passenger compartment. A vacuum sealer was also found in the pickup. Maestas claimed everything belonged to him and said Vaughn had nothing to do with it. Vaughn said the vacuum sealer belonged to her and claimed it was used to seal food. On the same date, a search warrant was executed at Maestas’s and Vaughn’s Lincoln residence. During that search, scales and packaging materials along with suspected drug sales records were found.
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.
Maestas’s and Vaughn’s cases were investigated by the Lincoln/Lancaster County Narcotics Task Force.
Laurel Man Sentenced to More Than 16 Years in Federal Prison for Charge of Receipt of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Barry Thomas Goldsborough, age 53, of Laurel, Maryland to 195 months in federal prison, followed by a lifetime of supervised release, for receipt of child pornography and for violating his federal supervised release. Goldsborough was on supervised release for two previous federal sex offense convictions for attempting to entice a minor to engage in sexual activity and for possession of child pornography.
As part of his sentence, Goldsborough acknowledged that he will be required to continue to register as a sex offender in the places where he resides, is an employee, and is a student, pursuant to the Sex Offender Registration and Notification Act (SORNA), and the laws of his state of residence. Goldsborough will also be required to pay $9,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Chief Malik Aziz of the Prince George’s County Police Department.
According his plea agreement, in April 2019, an internet search engine and internet portal sent a CyberTipline Report to the National Center for Missing and Exploited Children (NCMEC) that reported an email account associated with Goldsborough had uploaded 181 files of suspected child pornography to his user account. Law enforcement subsequently reviewed the 181 files and determined that approximately 70 of the 181 files were considered child pornography.
On November 19, 2019, law enforcement executed a search warrant at Goldsborough’s Laurel, Maryland residence and seized several electronic devices. A review of one of the devices revealed one image of child pornography. Law enforcement subsequently obtained a search warrant for Goldsborough’s email address, which revealed that Goldsborough sent and received multiple images of child pornography. For example, on January 27, 2018, Goldsborough received an image of child pornography from another email address. Goldsborough responded to the sender, indicating that he liked young girls between eight and 14 years old. Goldsborough also claimed to have had sex with an 11-year-old girl.
As a result of an executed search warrant of Goldsborough’s Internet storage account, law enforcement located approximately 26 videos documenting the sexual abuse of children.
Goldsborough has two prior federal sex offense convictions involving minor children. Specifically, a prior conviction for attempted enticement of a minor to engage in illegal sexual activity in the United States District Court for the Middle District of Tennessee and a prior conviction for possession of child pornography in the United States District Court for the District of Maryland. Goldsborough was serving a 72-month term of federal supervised release from those two prior federal convictions at the time he committed the instant offense. Prior to those convictions, Goldsborough was convicted in the District Court for Baltimore County in 2005 for Possession of Child Pornography and sentenced to a sentence of one year, suspended, with two years of supervised probation. Goldsborough was also convicted in the District Court for Howard County in 2015 with Failing to Register as a Sex Offender and sentenced to a two-day period of incarceration.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
For information about the Maryland U.S. Attorney’s Office’s priorities regarding Project Safe Childhood, visit https://www.justice.gov/usao-md/project-safe-childhood. For more USAO-MD information about internet safety for children, visit https://www.justice.gov/usao-md/community-outreach.
United States Attorney Erek L. Barron commended HSI, Maryland State Police Internet Crimes Against Children Task Force, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, who prosecuted the federal case.
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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
The Justice Department announced the launch of the department’s new Combatting Redlining Initiative today. Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country. We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The Initiative will:
- Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Trustmark National Bank Settlement
In addition to today’s Initiative announcement, the Justice Department, the U.S. Attorney’s Office for the Western District of Tennessee, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced an agreement to resolve allegations that Trustmark National Bank engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee.
The parties’ proposed consent order was filed today in conjunction with a complaint in the U.S. District Court for the Western District of Tennessee. The complaint alleges that Trustmark National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending services. The complaint also alleges that Trustmark National Bank violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law.
Specifically, the complaint alleges that, from 2014 to 2018, Trustmark engaged in unlawful redlining in Memphis by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in, or seeking credit for properties in, those neighborhoods. The complaint also alleges that Trustmark’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, that Trustmark’s outreach and marketing avoided those neighborhoods, and that Trustmark’s internal fair-lending policies and procedures were inadequate to ensure that the bank provided equal access to credit to communities of color.
The department opened its investigation after one of Trustmark’s regulators, the OCC, referred the matter. Trustmark has fully cooperated in this investigation and amicably resolved the allegations.
“Trustmark purposely excluded and discriminated against Black and Hispanic communities,” said Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB). “The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms.”
“Home ownership is the foundation of economic success for most American families,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Fair lending practices required by federal law — and the enforcement of those laws — ensure a better future for all Americans. Our office believes that enforcement actions of this type are essential to fair lending system that benefits everyone, and we will continue to prioritize these cases.”
“The OCC has had a long history of strong partnership with the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division, referring potential fair lending violations and sharing our extensive examiner, economist and legal findings, as we did in the Trustmark matter,” said Acting Comptroller of the Currency Michael J. Hsu. “Today’s announcement is important because it signifies the unified and unmitigated focus that each of our agencies has placed on the enforcement of the Fair Housing Act and the Equal Credit Opportunity Act. Our collective efforts are critical to addressing the discriminatory lending practices that create and reinforce racial inequity in the financial system.”
Under the proposed consent order:
- Trustmark will invest $3.85 million in a loan subsidy fund to increase credit opportunities for current and future residents of predominantly Black and Hispanic neighborhoods in the Memphis area; dedicate at least four mortgage loan officers or community lending specialists to these neighborhoods; and open a loan production office in a majority-Black and Hispanic neighborhood in Memphis.
- Trustmark will devote $400,000 to developing community partnerships to provide services to residents of majority-Black and Hispanic neighborhoods in Memphis that increase access to residential mortgage credit.
- Trustmark will devote at least $200,000 per year to advertising, outreach, consumer financial education and credit repair initiatives in and around Memphis.
- Trustmark will pay a total civil money penalty of $5 million to the OCC and CFPB.
- Trustmark already has established a Fair Lending Oversight Committee and designated a Community Lending Manager who will oversee these efforts and work in close consultation with the bank’s leadership.
In August 2021, the department announced a redlining settlement with Cadence Bank. Under the settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of majority-Black and Hispanic neighborhoods in Houston.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Justice Department Announces New Initiative to Combat RedliningRead the Press Release
Memphis, TN – Today the Department of Justice, the U.S. Attorney’s Office for the Western District of Tennessee, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced an agreement to resolve allegations that Trustmark National Bank engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee. "Redlining" is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities.
"Enforcement of fair lending laws is a priority for the Civil Rights Division. Our fair lending laws enable us to hold banks and lenders accountable when they fail to serve communities of color in our country. Having fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth," said Assistant Attorney General Kristen Clarke of the Civil Rights Division. "This settlement makes clear our commitment to ensuring equal access to lending opportunities for all communities, regardless of race or national origin."
"Home ownership," said Joseph C. Murphy, Jr., Acting United States Attorney for the Western District of Tennessee, "is the foundation of economic success for most American families. Fair lending practices required by federal law - and the enforcement of those laws - ensure a better future for all Americans. Our office believes that enforcement actions of this type are essential to fair lending system that benefits everyone, and we will continue to prioritize these cases."
The parties’ proposed consent order was filed today in conjunction with a complaint in the U.S. District Court for the Western District of Tennessee. The complaint alleges that Trustmark National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services. The complaint also alleges that Trustmark National Bank violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law.
Specifically, the complaint alleges that, from 2014 to 2018, Trustmark engaged in unlawful redlining in Memphis by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in, or seeking credit for properties in, those neighborhoods. The complaint also alleges that Trustmark’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, that Trustmark’s outreach and marketing avoided those neighborhoods, and that Trustmark’s internal fair-lending policies and procedures were inadequate to ensure that the bank provided equal access to credit to communities of color.
The department opened its investigation after one of Trustmark’s regulators, the OCC, referred the matter. Trustmark has fully cooperated in this investigation and amicably resolved the allegations.
"Trustmark purposely excluded and discriminated against Black and Hispanic communities," said Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB). "The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms."
"The OCC has had a long history of strong partnership with the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division, referring potential fair lending violations and sharing our extensive examiner, economist and legal findings, as we did in the Trustmark matter," said Acting Comptroller of the Currency Michael J. Hsu. "Today’s announcement is important because it signifies the unified and unmitigated focus that each of our agencies has placed on the enforcement of the Fair Housing Act and the Equal Credit Opportunity Act. Our collective efforts are critical to addressing the discriminatory lending practices that create and reinforce racial inequity in the financial system."
Under the proposed consent order:
• Trustmark will invest $3.85 million in a loan subsidy fund to increase credit opportunities for current and future residents of predominantly Black and Hispanic neighborhoods in the Memphis area; dedicate at least four mortgage loan officers or community lending specialists to these neighborhoods; and open a loan production office in a majority-Black and Hispanic neighborhood in Memphis.
• Trustmark will devote $400,000 to developing community partnerships to provide services to residents of majority-Black and Hispanic neighborhoods in Memphis that increase access to residential mortgage credit.
• Trustmark will devote at least $200,000 per year to advertising, outreach, consumer financial education, and credit repair initiatives in and around Memphis.
• Trustmark will pay a total civil money penalty of $5 million to the OCC and CFPB.
• Trustmark already has established a Fair Lending Oversight Committee and designated a Community Lending Manager who will oversee these efforts and work in close consultation with the Bank’s leadership.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
NASHVILLE – The U.S. Attorney’s Office for the Middle District of Tennessee announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“When Redlining is employed by lending institutions, communities of color are prevented from recognizing the American dream of home ownership and become stagnated in their present socio-economic status,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. We are pleased to partner with the Civil Rights Division to address this illegal practice and will pursue the appropriate remedy when such practices are identified.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
- Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
Tampa, Florida – Today, the Justice Department announced the launch of the department’s new Combatting Redlining Initiative. Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities. Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”
“Discriminatory practices such as Redlining rend the fabric of our society by destroying one of our nation’s foundational principles – equal opportunity for all,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. The deliberate denial of economic and housing opportunities to individuals based upon race, ethnicity, or nationality is strictly prohibited under the law. The U.S. Attorney’s Office works and will continue to work diligently, with its partners, to enforce our nation’s Fair Housing laws and to prosecute those who engage in criminal discriminatory practices.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The Initiative will:
- Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Jacksonville Man Sentenced to Federal Prison for Submitting False Claims for Fema Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Deontres Javan Taylor (27, Jacksonville) to 24 months in federal prison for disaster assistance fraud involving Federal Emergency Management Agency (FEMA) benefits. As part of the sentence, the Court also ordered Taylor to pay restitution to the United States in the amount of $8,083.19.
According to court documents, on September 4, 2017, Taylor, while in Duval County, Florida, made an application for disaster assistance benefits to FEMA. In the application, he claimed that his primary residence in Jacksonville, Florida had suffered storm damage from Hurricane Irma. Taylor stated that storm surge flooded his residence and lightning caused a power surge which resulted in the residence losing power. As a result of these issues, Taylor claimed that he moved to a hotel and needed housing assistance. Based on the false statements made by Taylor in his application for disaster assistance benefits, FEMA paid $8,038.19 in benefits for Taylor.
Further investigation determined that Taylor did not live at the residence listed in his benefits application since at least 2015, nor was he at that residence in any capacity when Hurricane Irma impacted the Jacksonville area. An inspection of the residence by FEMA also determined that it did not suffer storm surge damage or power loss as a result of Hurricane Irma.
“When criminals commit disaster relief fraud, they are victimizing all taxpayers, but more specifically, those directly impacted by the disaster,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “HSI is proud of our partnership with the DHS, Office of Inspector General, in identifying and prosecuting those who attempt to thwart the integrity of the FEMA disaster assistance program.”
This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kevin C. Frein. This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator is available 24 hours a day, 7 days a week. Information may also be faxed to the Center at (225) 334-4707 or emailed to [email protected].
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Oct. 21 was:
Colton James Fredrickson, 35, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Fredrickson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Fredrickson was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-71.
Appearing on Oct. 20 was:
Michael Paul Nohrenberg, 57, of Ryegate, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Nohrenberg faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. The FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-61.
Appearing on Oct. 19 was:
Jeffrey Ryan O’Keefe, 27, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, O’Keefe faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. O’Keefe was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. PACER case reference. 21-34.
Appearing on Oct. 18 was:
Cameron Ross Forney, 38, of Billings, on charges of false statement during a firearms transaction and prohibited person in possession of a firearm. If convicted of the most serious crime, Forney faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Forney was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-135.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Oct. 19 was:
Shane William Driscoll, 36, of Whitehall, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Driscoll faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Driscoll was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Probation and Parole Division and Jefferson County Sheriff’s Office investigated the case. PACER case reference. 21-09.
Nicole Ann Lopez, 37, of Great Falls, on charges of wire fraud. If convicted of the most serious crime, Lopez faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Lopez was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-69.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 21 was:
Dale Robert Johnson, 36, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Johnson faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Johnson was detained pending further proceedings. The Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Service, Butte Silver Bow Police Department and Montana Division of Criminal Investigation investigated the case. PACER case reference. 21-34.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Native Sentenced for 2019 Attempt Armed Robbery of Uptown CVS Which Resulted in Shooting of NOPD OfficerRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on October 19, 2021 that ALAN PARSON, age 21, a resident of Indianapolis, Indiana, was sentenced in the United States District Court for his participation in the June 17, 2019 robbery of the CVS pharmacy located at 4901 Prytania Street.
United States District Court Judge Greg G. Guidry imposed a sentence to each count of the three-count Indictment to which PARSON plead guilty. In Count One, PARSON was charged with conspiracy to commit a robbery involving a controlled substance, in violation of Title 18, United States Section, 2118. For Count One, the court sentenced PARSON sentenced to a term of imprisonment of 120 months in the Bureau of Prisons. In Count Two, PARSON was charged with armed robbery involving controlled substances in violation of Title 18, United States Sections, 2118(a) and (c)(1). For Count Two, the court sentenced PARSON sentenced to a term of imprisonment of 121 months in the Bureau of Prisons. Count 1 and 2 were ordered to run consecutive with one another. In Count Three, PARSON was charged with discharge of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Section, 924(c)(1)(A)(iii). The Court sentenced PARSON to a term of imprisonment of 120 months for this count. The sentence imposed in Count Three will run consecutive to the sentences imposed in Counts One and Two. Following his term of imprisonment, PARSON will be placed on supervised release for a period of 4 years. A restitution hearing will be held to determine if any restitution is owed to the victims in this case. Finally, PARSON was ordered to pay a $300 mandatory special assessment fee.
At approximately 6:06 a.m., PARSON and his co-defendant, Richard Sansbury entered the 24-hour pharmacy, armed with weapons. Both wore hooded sweatshirts and blue medical gloves. Upon entering the store, Sansbury removed a firearm from his waistband, went behind the front counter, and detained a cashier by using zip-ties. Sansbury led the cashier to another area of the store. PARSON relocated to the rear of the store, in the pharmacy area, and forced another employee to the ground before securing the employee’s feet with zip-ties. PARSON is then filled a large trash bag with several pill bottles that he retrieved from the pharmacy safe. Sansbury relocated to the pharmacy area where he continued to zip-tie the employee’s hands whom PARSON initially detained. Sansbury and PARSON began to exit the store.
Upon exiting the store, PARSON and Sansbury engaged on a shootout with responding officers of the New Orleans Police Department. The confrontation resulted in a bullet wound to one of the officers, who was shot in the shoulder. Video surveillance captured the robbery as it occurred inside of the CVS, as well as the subsequent shootout with police as Sansbury and PARSON fled the store.
United States District Court Judge Greg G. Guidry will sentence SANSBURY on November 30, 2021.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys David Haller and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Hinton Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
BECKLEY, W.Va. – David Alan Hunt, 30, of Hinton, was sentenced today to 10 years in prison for possession of child pornography. At the time Hunt possessed the child pornography, he was on supervised release for a 2014 federal child pornography conviction. Hunt was sentenced to an additional two years in prison, to run consecutively to the 10-year sentence, for violating his supervised release.
According to court documents, Hunt possessed child pornography of prepubescent minors on an iPad at his Hinton residence on January 22, 2021. Hunt’s supervising United States Probation Officer recovered the iPad containing the child pornography during a home visit.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the United States Probation Office.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Kristin F. Scott and Jennifer Rada Herrald handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00075.
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Gordonsville Man Pleads Guilty in Series of 2020 Summertime Armed Robberies of Local BusinessesRead the Press Release
CHARLOTTESVILLE, Va. – A Gordonsville, Virginia man pleaded guilty today to federal Hobbs Act robbery charges in connection to a series of armed robberies that took place at commercial businesses in Charlottesville, Albemarle County, and Stafford County.
According to court documents, Dominique Dejone Thurston, 23, committed a series of armed Hobbs Act robberies at commercial businesses in Albemarle County, the City of Charlottesville, and Stafford County. These robberies included the Oak Hill Market in Albemarle County, the 7-Eleven on Ivy Road in the City of Charlottesville, a BP gas station convenience store in the City of Charlottesville, the 7-Eleven on Greenbrier Drive in Albemarle County, a Kangaroo Gas station in Albemarle County, a 7 Day Junior Store in the City of Charlottesville, and the 7-Eleven on Boulderview Road in Albemarle County. During each robbery, Thurston brandished a firearm while pointing it at a store employee and demanding cash.
“This case serves as a perfect example of when federal, state, and local law enforcement work together to help address violent crime. The U.S. Attorney’s Office for the Western District of Virginia is dedicated to investigating and prosecuting the most violent offenders in our communities,” United States Attorney Christopher R. Kavanaugh said today.
“This investigation is a great example of law enforcement collaboration at its best. ATF is proud to partner with the U.S. Attorney’s Office, the Albemarle County Police Department, the City of Charlottesville Police Department, and the Stafford County Police Department in addressing violent offenders and those that illegally possess firearms,” ATF Special Agent in Charge Charlie J. Patterson said. “The ATF Washington Field Division will continue to stand alongside our partners to ensure our communities are protected against people that commit acts of violence.”
Thurston pleaded guilty today to seven counts of Hobbs Act robbery and two counts of brandishing and possessing a firearm during and in relation to a crime of violence. He is scheduled to be sentenced on January 31, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Albemarle County Police Department, the City of Charlottesville Police Department, the Office of the Commonwealth's Attorney for the City of Charlottesville, and the Stafford County Sheriff’s Office.
Assistant United States Attorney Ronald M. Huber and Special Assistant United States Attorney Nina-Alice Antony with the Office of the Commonwealth's Attorney for the City of Charlottesville are prosecuting the case for the United States.
Fresno Woman Pleads Guilty to Committing $100,000 in Credit Card FraudRead the Press Release
FRESNO, Calif. — Alena Nicole George, 43, of Fresno, pleaded guilty today to access device fraud, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from February through April 2019, George used a credit card that was fraudulently opened in the identity of a victim with a name similar to her own name to make $100,000 in purchases at national retailers and cash advances at a national bank.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
George is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 21, 2022. George faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Spa Owner Sentenced for Using Cosmetic Fillers Not Approved for Distribution in the United StatesRead the Press Release
A woman who operated a Tulsa spa was sentenced today in federal court for using medical devices on her patients that were not approved by the U.S. Food and Drug Administration, announced Acting U.S. Attorney Clint Johnson. The devices are also known as cosmetic fillers.
U.S. District Judge Gregory K. Frizzell sentenced Elisa Kaye Sanders, 62, of Tulsa, to three years of probation. As a condition of her probation, Sanders cannot apply for reinstatement of her nurse’s license for the duration of her sentence. Sanders was further ordered to pay a fine of $25,000.
“U.S. consumers rely on FDA oversight to ensure that the drugs and devices they receive are safe and effective. Rogue health care professionals who obtain foreign unapproved medical products and then dispense and administer them to their patients, put the health of those patients at significant risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who choose to put the public’s health at such risk.”
Sanders was a majority owner and operator of L’Chaim Medical Spa, previously known as Enhance Skin and Body Medical Spa. She was originally charged in a 13-count indictment in January 2020 alleging Sanders defrauded clients seeking treatment from her spa; her staff; and state and federal regulatory agencies responsible for the oversight of the spa.
Sanders pleaded guilty on April 30, 2021, to misdemeanor fraud relating to misbranded devices. The defendant admitted that on March 10, 2017, she administered the medical devices Juvederm® Ultra 4 and Juvederm® Ultra with Lidocaine to a patient who, as a result, suffered adverse reactions. These specific devices are not approved by the FDA for distribution in the United States and are considered adulterated under the Food, Drug, and Cosmetic Act. Sanders failed to tell the patient she was using unapproved fillers. The defendant purchased the fillers from unauthorized sources after previously being advised by the FDA that purchasing these prescription devices from unauthorized sources was illegal.
L’Chaim Medical Spa is no longer in operation.
The Food and Drug Administration Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni prosecuted the case.