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Wednesday 1 September 2021
Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Former Ladysmith Teacher Charged with Producing & Possessing Child Pornography
McKenzie W. Johnson, 34, Ladysmith, Wisconsin, is charged in a two-count indictment with producing child pornography and with possessing child pornography. The indictment alleges that on January 13, 2021, Johnson used a minor to produce a visual depiction of the minor engaged in sexually explicit conduct. The second count of the indictment alleges that on August 24, 2021, he possessed an iPad that contained visual depictions involving the use of minors engaging in sexually explicit conduct. The indictment alleges that at least one of the depictions involved a minor who had not attained 12 years of age.
Johnson was arrested in Ladysmith on August 24 and was charged with producing child pornography in a complaint filed in U.S. District Court in Madison on August 26. Federal law requires that an offense charged by criminal complaint must be presented to a grand jury for indictment.
At the time Johnson allegedly produced the child pornography, he was a teacher at the Ladysmith High School. This offense alleged in the indictment does not involve a victim from Wisconsin.
If convicted, Johnson faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the production charge, and a maximum of 20 years on the possession charge. The charges against him are the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Ladysmith Police Department, Rusk County Sheriff’s Office, Clark County Sheriff’s Office, the Ladysmith School District, and the Fontana (California) Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Andre L. McClinton, 49, Madison, Wisconsin, is charged in a nine-count superseding indictment with drug and gun crimes. The indictment alleges that from September through December 2020, McClinton participated in a conspiracy to distribute and to possess for distribution cocaine. The indictment alleges that the conspiracy involved five kilograms or more of cocaine.
The superseding indictment also charges McClinton with two counts of distributing cocaine, one count of possessing cocaine and crack cocaine with the intent to distribute, and one count of possessing marijuana with the intent to distribute.
McClinton is also charged with two counts of possessing a firearm in furtherance of a drug trafficking crime, and with two counts of being a felon in possession of a firearm and ammunition. The indictment alleges that McClinton possessed a .38 caliber revolver and ammunition and a .45 caliber pistol and ammunition.
McClinton was previously charged with the drug conspiracy in a one-count indictment returned by the grand jury on February 10, 2021.
If convicted, McClinton faces a mandatory minimum of 10 years and a maximum of life in prison on the conspiracy charge, a maximum of 20 years on each of the three drug charges involving cocaine and crack cocaine, and a maximum of 5 years on the marijuana charge. The two charges of being a felon in possession of a firearm and ammunition each have a maximum penalty of 10 years in federal prison. The two charges of possessing a firearm in furtherance of a drug trafficking crime each have a mandatory minimum penalty of 5 years in federal prison, to be served consecutive to any other sentence imposed.
The charges against McClinton are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Drug Enforcement Administration, Federal Bureau of Investigation, and Chicago (Illinois) Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Georgia Woman Sentenced to Prison for Money Laundering Involving the Theft of University of Iowa Employee IdentificationsRead the Press Release
DAVENPORT, IA- On Monday, August 23, 2021, Florence Rosale Julio, age 39, of Brunswick, Georgia, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 46 months in prison for conspiracy to commit money laundering in connection with a scheme to obtain federal tax refunds by fraud using the identification information of dozens of University of Iowa employees announced Acting United States Attorney Richard D. Westphal. Julio was ordered to serve three years of supervised release following the period of imprisonment and pay $100 to the Crime Victims’ Fund.
Julio opened bank accounts in Georgia under a fictitious business name and used them to launder hundreds of money orders purchased with the proceeds of the fraudulently obtained tax refunds. More than $450,000 in tax refunds using University of Iowa employees’ names were obtained fraudulently through the overall scheme and more than $1,400,000 in fraudulently obtained funds passed through the fictitious business accounts during early to mid-2015. In April of 2015, Julio had $44,000 in laundered funds sent to a Nashville, Tenn. car dealer to purchase a Mercedes Benz automobile.
The investigation was conducted by the Internal Revenue Service – Criminal Investigations and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Garden City Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – James Thomas McNiff, 31, of Garden City, pleaded guilty to distribution of methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. McNiff was indicted by a federal grand jury in Boise on February 10, 2021.
According to court records, McNiff, a known Norteno (Northside) gang associate, sold methamphetamine to another person in a parking lot in Meridian. McNiff sold 12.65 grams of a substance that the Drug Enforcement Administration (DEA) laboratory later confirmed was actual methamphetamine.
McNiff faces a statutory mandatory minimum sentence of at least five years and a maximum sentence of forty years in federal prison, a five million dollar fine, and at least four years of supervised release. Sentencing is set for November 16, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez applauded the efforts of the Treasure Valley Metro Violent Crimes Task Force which led to the charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department, Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole. The DEA forensic laboratory was credited with analyzing the methamphetamine.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Former Vice President of Mercyhealth in Janesville & Owner of Marketing Agency Charged in Kickback SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Barbara Bortner, 57, Milton, Wisconsin, and Ryan Weckerly, 46, Sycamore, Illinois, were charged today with wire fraud. In addition, Bortner was charged with tax evasion and Weckerly was charged with aiding and abetting in the preparation of a false income tax return.
Bortner and Weckerly were charged by an information filed in U.S. District Court today, waiving their right to indictment by a grand jury. Bortner and Weckerly have both agreed to plead guilty to the wire fraud and tax charges. Their plea hearings have not been scheduled.
The wire fraud and tax charges stem from Bortner and Weckerly’s involvement in a kickback scheme while she was the Vice President of Marketing at Mercyhealth based in Janesville, Wisconsin. Weckerly was the owner of Morningstar Media Group, a marketing agency based in Sycamore, Illinois. Beginning in February of 2015, Bortner and Weckerly devised a plan whereby he would submit inflated invoices to Bortner for his marketing work for Mercyhealth. Bortner and Weckerly agreed that he would provide monetary kickbacks to Bortner for the funds he received from the inflated invoices. In return, Bortner agreed she would continue to use Morningstar Media Group as the primary marketing agency for Mercyhealth. The kickback scheme continued until June of 2020 and involved over $3,000,000.
The tax charge against Bortner involves her failure to report the proceeds of the kickback scheme as gross income on her federal tax return for calendar year 2018. Weckerly’s aiding and abetting charge stems from Weckerly providing Bortner with a false Form 1099 for calendar year 2019 that underreported her compensation from Weckerly by excluding the amount of money received in the kickback scheme.
The charges against Bortner and Weckerly were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Former Madison County Pharmacy Owner Sentenced for Health Card FraudRead the Press Release
SYRACUSE, NEW YORK - Jennifer Caloia, age 57, a licensed pharmacist who owned and operated Dougherty Pharmacy in Morrisville, New York, from 1998 to 2015, was sentenced today in federal court in Utica to serve a two-year term of probation, perform 80 hours of community service, a fine in the amount of $10,000.00, a special assessment of $100 after previously pleading guilty to one felony count of health care fraud.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG); Ralph D. Tortora III, Regional Director, New York Attorney General’s Medicaid Fraud Control Unit, Syracuse Office; Carol S. Hamilton, Regional Director, U.S. Department of Labor Employee Benefits Security Administration (DOL EBSA); and Shirin Emami, Acting Superintendent, New York State Department of Financial Services.
In pleading guilty previously, Jennifer Caloia admitted that between 2011 and 2015 she defrauded public and private health insurance programs by submitting false and fraudulent claims for prescription drugs that the pharmacy did not dispense. Caloia also admitted that customers submitting prescriptions for medications had their health insurance providers billed for more expensive drugs than those prescribed. To facilitate this scheme, Caloia changed the names of some of the prescription drugs in the software she used to communicate with insurance companies and to print drug labels, which allowed her to submit her fraudulent claims while providing the customer with the appropriate labels and instructions. Evidence presented to the court in support of Caloia’s guilty plea also revealed that in at least a few instances she dispensed a drug different than what a customer’s doctor had prescribed as part of her scheme to defraud. Caloia no longer owns or operates Dougherty Pharmacy.
In sentencing Caloia, United States District Judge David N. Hurd also ordered her to pay restitution in the amount of $110,431.02 to the public and private insurers affected by her fraud scheme.
In separately negotiated civil settlements with the Civil Division of the United States Attorney’s Office for the Northern District of New York and the New York State Attorney General’s Office, Caloia and her company agreed to pay $92,308.76 related to her submission of false claims to public insurers such as Medicare and Medicaid. The civil settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, knowns as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $18,461.75 of the settlement proceeds. The federal civil case is docketed with the United States District Court for the Northern District of New York under number 6:17-cv-92 (BKS/ATB).
This case was investigated by the Federal Bureau of Investigation (FBI); the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG); the U.S. Drug Enforcement Administration (DEA), the U.S. Department of Labor-Employee Benefits Security Administration (DOL EBSA), New York Attorney General’s Medicaid Fraud Control Unit; and the New York State Department of Financial Services, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry. The civil investigation is being handled by Assistant United States Attorney John Hoggan and New York Attorney General’s Medicaid Fraud Control Unit, Syracuse Office Regional Director Ralph D. Tortora III.
Former Long Island Construction Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
A Long Island, New York, business owner in the construction industry was sentenced to one year and one day in prison yesterday for employment tax fraud.
According to court documents and statements made in court, Edward Hansen owned and operated a steel erection businesses in Suffolk County. From 2008 to 2011, the IRS assessed more than $480,000 in penalties against Hansen for his failure to pay over employment taxes on behalf of several of these businesses. In the spring of 2011, after receiving another notification from IRS that he was liable for payroll taxes, Hansen closed County Steel Inc. and proceeded to operate the same steel erection business under the name BR-Teck. Hansen made another individual the nominal “President” of BR-Teck. Hansen, however, continued to operate the business and continued to not pay over employment taxes. From January 2012 through June 2017, Hansen did not pay the IRS more than $950,000 in payroll taxes withheld from the wages of BR-Teck’s employees.
In addition to the term of imprisonment, U.S. District Judge Denis R. Hurley ordered Hansen to serve two years of supervised release and to pay a $5,000 fine.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kathryn Sparks and former Trial Attorneys Abigail Burger Chingos and Jeffrey B. Bender of the Tax Division prosecuted the case.
Former Erie Man Sentenced to 13 Years for Selling Fentanyl that Caused a Fatal OverdoseRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 13 years in jail on his conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Derrick Lamont Hemphill, Sr., 30 formerly of Erie, Pennsylvania.
According to information presented to the court, and as part of his guilty plea, Hemphill acknowledged his responsibility for the sale of fentanyl that caused the death of K.A.J. on November 26, 2017.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Erie County District Attorney’s Office County Detective Bureau, the Erie County District Attorney’s Office Drug Task Force, the Millcreek Township Police Department, and the Erie Police Department, with assistance from the Drug Enforcement Administration for the investigation leading to the successful prosecution of Hemphill.
Foreign National from Trinidad Previously Convicted of Federal Felonies Pleads Guilty to Illegal Re-Entry into the United StatesRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Allan Browne, a citizen of Trinidad, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of illegal re-entry of a removed alien. He faces up to twenty years in federal prison.
According to court documents, on April 8, 2021, Browne appeared at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands. Browne was a ticketed passenger on an American Airlines Flight traveling to Miami, Florida.
During the inspection, Browne presented a Pennsylvania driver’s license bearing the name Antonio S. Brown and a date of birth, neither of which belonged to him. CBP officers asked Browne if he were a citizen of the United States or a legal permanent resident, to which he replied that he was a legal permanent resident. Browne claimed he possessed a legal permanent resident card, but that it was not with him. Based on record checks conducted using Browne’s fingerprints, officers ascertained that Browne had no legal basis to remain in the United States.
Court records show that Browne was previously convicted in the Eastern District of New York for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, and conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. He was sentenced to 41 months imprisonment on June 28, 2013. Browne was removed from the United States following his custodial sentence. Officers also discovered that Browne was removed from the U.S. as recently as last year, after re-entering the United States illegally. Officers conducted record checks and verified that Browne was not a citizen of the United States and found no information showing Browne was granted any documentation to enter or remain in the U.S.
This case is being investigated by CBP and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Juan A. Albino.
Federal Inmate Sentenced to 5 Additional Years in Prison for Bribing Guard to Bring Drugs into JailRead the Press Release
LITTLE ROCK—A federal prison inmate has been sentenced to five more years in prison for his role in a drug conspiracy at the Dallas County jail. Tuesday afternoon, United States District Judge Kristine G. Baker sentenced Terry McClendon, 32, of Sherwood, to 60 months’ imprisonment, which he will serve in addition to the prison sentence he was already serving for possessing a stolen firearm.
In August and September of 2017, McClendon was a federal inmate being held at the Dallas County Detention Center to await the resolution of his federal criminal case, in which he was charged with a firearms offense. While at this jail, McClendon approached Laron Williams, a guard working at the jail, and offered to pay Williams to bring contraband into the jail. With the help of two other inmates, McClendon directed other individuals to deliver tobacco, marijuana, cocaine, and heroin to Williams, who then passed these contraband items to McClendon within the jail.
Williams accepted deliveries on September 4 and 8, 2017, and a jail employee noticed Williams making a transfer to McClendon’s cell. Security video from September 9, 2017, shows Williams getting out of his car with an object wrapped in a blanket, which he later passed to McClendon. A search of McClendon’s cell revealed a pillowcase containing two square objects, which were examined by the Arkansas State Crime Laboratory and determined to be 764.4 grams of cocaine and 739.6 grams of heroin.
On November 7, 2017, McClendon was sentenced to five years in prison for possessing a stolen firearm. Yesterday, Judge Baker sentenced McClendon to an additional five years’ imprisonment on the contraband conspiracy, which is the maximum penalty allowed by law. Judge Baker also ordered this additional five years to run consecutive to McClendon’s original five-year sentence for possessing a stolen firearm, which means McClendon now faces a total of 10 years in prison.
Williams and the two inmate co-conspirators, Michael Brewer and Antonio Fowler, have all pleaded guilty and are awaiting sentencing. A fifth co-conspirator, Dekimberol Brewer, has also pleaded guilty to conspiracy for her role in bringing drugs into the jail through her husband, Michael Brewer.
The investigation was conducted by the FBI with assistance from the United States Marshals Service. The case was prosecuted by Assistant United States Attorneys Julie Peters and Amanda Jegley.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Escondido Man Sentenced to 168 months in Fentanyl Overdose Death of Camp Pendleton MarineRead the Press Release
Assistant U. S. Attorneys Timothy Coughlin and Michael Kaplan (619) 546-6768/7927
NEWS RELEASE SUMMARY – September 1, 2021
SAN DIEGO – Kyle Anthony Shephard was sentenced in federal court today to 168 months in prison for supplying the fentanyl that led to the fatal overdose of a 25-year-old U.S. Marine corporal stationed at Camp Pendleton.
Shephard pleaded guilty in March, admitting that on the evening of January 27, 2017, he met with the Marine in Escondido and sold him four pills containing fentanyl that caused his death later that night or early the next morning. On January 28, 2017, the young man’s body was discovered on Camp Pendleton in his barracks room by fellow Marines who became concerned when he failed to respond to phone calls and knocks on his door.
The initial investigation was conducted by Naval Criminal Investigative Service (NCIS) agents, who continued to pursue leads for almost a year while the case remained unsolved. Shephard was arrested on December 13, 2017 by members of the San Diego Sheriff’s Department while executing a search warrant at a local casino. Found in Shephard’s hotel room were 1,362 pills containing fentanyl, thousands in cash, packaging material, and four cell phones. A co-conspirator arrested earlier in the evening admitted to law enforcement that she and Shephard were aware they were dealing one of the “deadliest drugs.”
The Marine’s mother attended the sentencing and asked a friend to read her prepared statement: “On January 29, 2017, we received the dreaded knock at the door, in the middle of the night. The Marines came to inform us that (her son) was found unresponsive in his barracks. I now suffer with PTSD, and when I hear anyone at my door, it’s a trigger and I automatically panic with my heart dropping into the ground. I cannot put into words how (her son’s) death destroyed our family. Our family is forever changed. Nothing is, or will ever be, the same. I miss (my son) with every cell and fiber of my being. The pain is unimaginable and excruciating.”
The mother said that her son “joined the Marines when he was 21 years old. He wanted to serve our country. He chose the Marines because he wanted to take the toughest and most challenging route. His desire was to join the Infantry Division to be on the front lines.”
She noted that he “had a true passion for animals. He was signed up for a trip to Africa when he finished his tour with the Marines, to protect wildlife from poachers. He was only six months away from completing his four years. After Africa he wanted to go to Veterinary School.”
At today’s sentencing hearing, U.S. District Judge Cynthia A. Bashant said, “Drug traffickers never consider the impact of their actions on families. Drug traffickers destroy lives even when it doesn’t result in death.” Judge Bashant noted that she wished a statement like the one made by the Marine’s mother could be made at every sentencing to make it clear the devastating impact drug trafficking has on families.
Acting U.S. Attorney Randy Grossman said: “Another young life has been lost and a family destroyed because of fentanyl. Drug dealers who know their actions could have this outcome, and yet they peddle their poison anyway, must pay a stiff price. We will continue to aggressively pursue all those up the chain of distribution in these cases to ensure justice is served.” Grossman had high praise for prosecutors Timothy Coughlin and Michael Kaplan, as well as San Diego Sheriff’s Department detectives and NCIS agents who pursued this investigation and prosecution for more than four years.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 18cr5574-BAS
Kyle Anthony Shephard Age: 29 Escondido, California
SUMMARY OF CHARGES
Conspiracy to Possess with Intent to Distribute a Controlled Substance -Fentanyl – Title 21 U.S.C. Section 841(a)(1) and 846
Maximum Penalties – Twenty years in prison, at least four years of supervised release and $1 million fine.
INVESTIGATING AGENCIES
Naval Criminal Investigative Services
San Diego County Sheriff’s Department
Enfield Man Sentenced to 29 Months on Firearm ChargeRead the Press Release
CONCORD - Scotty Gonzalez, 29, of Enfield, was sentenced to 29 months in federal prison for unlawful possession of a firearm and ammunition, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Gonzalez is legally prohibited from possessing firearms due to a prior felony conviction and a prior conviction for a misdemeanor crime of domestic violence. On July 31, 2019, probation officers found Gonzalez in possession of a rifle and over 300 rounds of ammunition at his residence in Enfield.
Gonzalez previously pleaded guilty on April 29, 2021.
“In order to protect public safety, we must keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “By working with our law enforcement partners to identify and prosecute armed criminals, we are helping to keep the citizens of the Granite State safe from violent crime.”
“Possession of a firearm by a convicted felon is not only illegal, but it compromises the safety of our communities,” said ATF Special Agent in Charge James M. Ferguson “This sentencing is another example that working jointly with our partners makes our communities safer.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistant from New Hampshire Probation and Parole Officers. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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El Departamento de Justicia llega a un acuerdo con las escuelas públicas de Newark para proteger a los estudiantes de inglésRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy un acuerdo de conciliación con las escuelas públicas de Newark para resolver la investigación que realizó el Departamento sobre los programas que ofrece el distrito escolar a sus estudiantes de inglés. El acuerdo pone fin a la práctica habitual y de larga duración por parte del distrito de sacar a los estudiantes de los programas para aprender inglés antes de que dominen el idioma. El distrito ha acordado mejorar los servicios para estudiantes de inglés de manera que puedan acceder a las mismas oportunidades educativas que los demás estudiantes de las escuelas públicas de Newark.
La investigación que realizó el Departamento durante varios años reveló una gran cantidad de fallos que impedían atender adecuadamente a los estudiantes de inglés. El Departamento descubrió que el distrito no contrató ni conservó a suficientes maestros cualificados para respaldar su programa, lo que dio como resultado que algunos estudiantes recibieran un tiempo limitado de instrucción y que otros no recibieran ningún tipo de servicio lingüístico. La División de Derechos Civiles y la Fiscalía Federal del Distrito de Nueva Jersey realizaron esta investigación en virtud de la Ley de Igualdad de Oportunidades Educativas de 1974.
“Los distritos escolares deben proporcionar servicios eficaces para los estudiantes de inglés, de modo que todos los estudiantes puedan crear su propio sueño americano”, dijo Kristen Clarke, fiscal general auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Seguiremos luchando para garantizar el cumplimiento de nuestras leyes federales de derechos civiles mientras defendemos el derecho de todos los estudiantes a la igualdad de oportunidades educativas en todo nuestro país. Los amplios requisitos de este acuerdo de conciliación crearán un cambio duradero y proporcionarán acceso a la educación a miles de estudiantes de inglés en Newark”.
“Nuestra oficina apoya firmemente los derechos civiles de todos los estudiantes, incluidos los estudiantes de inglés”, dijo Rachael A. Honig, la fiscal de los EE. UU. en funciones del distrito de Nueva Jersey. “Nos complace que la Junta de Educación de Newark haya aceptado asumir plenamente su obligación de satisfacer las necesidades lingüísticas de sus estudiantes de inglés y de resolver las graves violaciones a la ley federal descubiertas durante esta investigación. Seguiremos exigiendo a los distritos escolares y a otras agencias educativas que se responsabilicen para que todos los estudiantes de Nueva Jersey puedan acceder a las mismas oportunidades educativas”.
El Departamento de Justicia supervisará la implementación del acuerdo de conciliación por parte del distrito durante al menos tres cursos escolares completos hasta que el distrito haya cumplido plenamente con sus obligaciones.
Nota: Aquí puede consultar una copia completa del acuerdo de conciliación en inglés.
Este comunicado de prensa también está disponible en español, portugués, criollo haitiano y francés.
La aplicación de la Ley de Igualdad de Oportunidades Educativas de 1974 es una de las principales prioridades de la División de Derechos Civiles y de la Oficina del Fiscal de los Estados Unidos para el Distrito de Nueva Jersey. Puede encontrar más información sobre la División de Derechos Civiles del Departamento de Justicia en su sitio web www.justice.gov/crt, y más información sobre el trabajo de la Sección de Oportunidades Educativas en https://www.justice.gov/crt/educational-opportunities-section. El público puede denunciar posibles violaciones de los derechos civiles en https://civilrights.justice.gov/report/, con la Oficina del Fiscal de los Estados Unidos para el Distrito de Nueva Jersey en http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint o puede llamar a la línea directa de derechos civiles de la Oficina del Fiscal de los Estados Unidos al (855) 281 - 3339.
Dublin man charged with enticing minors, producing child pornographyRead the Press Release
COLUMBUS, Ohio – A Dublin, Ohio, man has been charged federally with crimes related to sexually exploiting at least three minors.
Timothy W. Wright, 50, was arrested yesterday afternoon at his home and appeared in federal court today. The charges initiated thus far were unsealed during his initial appearance today.
Specifically, Wright is charged with enticing a minor, producing child pornography and possessing child pornography.
According to court documents, Wright paid females under the age of 18 to send him nude photographs and videos. As stated in the affidavit filed in support of the complaint, CashApp and phone records allegedly connect the payments for these videos and images to Wright and his company, L&T Trucking, and phone records also indicate Wright allegedly coordinated dates and times to meet with the victims at his Dublin residence.
The affidavit further details that Wright allegedly paid a minor victim $300 on least five occasions in exchange for the minor lying nude on Wright’s bed while Wright engaged in sex acts.
Enticement of a minor is a federal crime punishable by at least 10 years and up to life in prison. Producing child pornography carries a penalty of at least 15 and up to 30 years in prison. Possessing child pornography is punishable by up to 10 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
The case is being cooperatively investigated by the Central Ohio Human Trafficking Task Force, which operates under Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission, and by Homeland Security Investigations, Columbus Division of Police, Dublin Police Department, Franklin County Sheriff Dallas Baldwin’s Internet Crimes Against Children Task Force, Delaware County Sheriff’s Office Tactical Unit, Delaware County Drug Task Force, and the United States Marshals Service.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Director and Promoter of BitConnect Pleads Guilty in Global $2 Billion Cryptocurrency SchemeRead the Press Release
Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker
NEWS RELEASE SUMMARY—September 1, 2021
SAN DIEGO—Glenn Arcaro of Los Angeles pleaded guilty today in federal court for his participation in a massive conspiracy involving BitConnect, a cryptocurrency investment scheme, which defrauded investors from the United States and abroad of over $2 billion. The BitConnect scheme is believed to be the largest cryptocurrency fraud ever charged criminally.
As admitted in documents entered today before U.S. Magistrate Judge Mitchell D. Dembin, Arcaro conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s proprietary coin offering and digital currency exchange as a lucrative investment.
Arcaro further admitted that he and others conspired to mislead investors about BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. In truth, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors.
“Arcaro and his confidantes preyed on investor interest in cryptocurrency. As a result, a staggering number of individuals lost an enormous amount of money,” said Acting U.S. Attorney Randy S. Grossman of the Southern District of California. “The Department of Justice will continue to protect the investing public and scrutinize the burgeoning cryptocurrency industry. To those who would be the next in line to defraud the investing public, let this action by the Department of Justice stand as a stark cautionary tale. To the investing public, let this also serve as a cautionary tale to safeguard your money and invest it wisely.”
It was through the use of social media, Arcaro acknowledged in his plea agreement, that he and others made materially false and misleading statements, while concealing material facts, all to persuade investors that BitConnect was a lucrative investment. During the scheme, Arcaro posted videos that mocked those who questioned whether BitConnect had a Trading Bot and Volatility Software, doubted the true identity of BitConnect’s owner, and complained about losing their money in BitConnect.
According to the documents filed today, Arcaro sat atop a large network of promoters in North America, forming a pyramid scheme known as the BitConnect Referral Program. Arcaro earned as much as 15 percent of every investment into another part of the scheme—the BitConnect “Lending Program”—either from investors he recruited directly or those recruited by others beneath Arcaro in the pyramid. Arcaro further received portions of all investments from a concealed “slush” fund.
“Arcaro has accepted responsibility for his actions of defrauding thousands of individuals worldwide to invest in BitConnect,” said Special Agent in Charge Eric Smith of the FBI’s Cleveland Field Office. “He lined his pockets with millions of dollars, money from victims that believed their funds were being invested into a new cryptocurrency with a high rate of return. Those choosing to engage in financial criminal deception should know the FBI will not stop until all fraudsters are identified and held accountable.”
“Arcaro capitalized on the emergence of cryptocurrency markets, enticing innocent investors worldwide to get in early by promising them guaranteed returns, and exploiting the internet and social media to reach a larger pool of victims with greater ease and speed,” said Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office. “To conceal and further their scheme, Arcaro and his accomplices circumvented reporting regulations by the SEC and FinCEN, U.S. agencies that were created to protect investors and safeguard our financial systems. IRS-CI will pursue and root out these scams to protect investors and bring these financial fraudsters to justice.”
Arcaro admitted that he earned no less than $24 million from the BitConnect fraud conspiracy, all of which, according to court documents, he must repay to investors.
Acting U.S. Attorney Randy S. Grossman thanked the FBI’s Cleveland Field Office, IRS Criminal Investigation and law enforcement partners in India, Slovenia, and around the world for their efforts now and in the future, who assisted, and continue assist on this investigation. Grossman also thanked Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti, and Carl Brooker and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section who are handling this investigation. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
In a parallel action, the U.S. Securities and Exchange Commission today announced civil charges against Arcaro and 3 others in connection with the same conduct.
Sentencing is scheduled to occur on November 15, 2021 at 9:30 a.m. before U.S. District Judge Todd W. Robinson.
If you believe you are a victim of this fraud, please contact the FBI at [email protected].
DEFENDANT Case Number 21CR2542-TWR
Glenn Arcaro Los Angeles, CA Age: 44
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: Twenty years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; forfeiture and restitution
AGENCIES
FBI
IRS Criminal Investigation
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Depatman Jistis etabli ak lekòl piblik Newark pou pwoteje elèv k ap aprann anglè yoRead the Press Release
WACHINTONN – Jodi a, ministè lajistis te anonse yon akò règleman avèk lekòl piblik Newark yo pou mete yon bout nan ankèt ministè a sou pwogram, distrik eskolè a pou elèv li yo k ap aprann anglè. Akò a mete yon bout nan ansyen pratik ak depi lontan distrik lan ki vize pou retire elèv pwogram aprantizaj anglè yo avan yo pale lang sa byen. Distrik la te aksepte amelyore sèvis yo pou elèv k ap aprann anglè pou yo kapab gen aksè ak menm opòtinite edikativ menm jan ak lòt elèv lekòl piblik Newark yo.
Ankèt plizyè ane ministè a te montre gwo mankman nan sa ki konsène sèvis pou elèv k ap aprann anglè yo. Depatman an te dekouvri distrik la pa t reyisi bay ase anseyan kalifye travay epi kenbe yo pou yo soutni pwogram li an, sa ki te gen kòm konsekans yon tan edikasyon ki limite pou kèk elèv, epi pou lòt yo, pa gen okenn sèvis lengistik ditou. Divizyon dwa sivil yo ak biwo pwokirè Etazini an pou distrik New Jersey a te ankete selon lalwa 1974 la sou egalite chans yo nan sa ki gen pou wè ak edikasyon.
“Distrik eskolè yo dwe bay sèvis efikas ak moun k ap aprann anglè yo, sa k ap pèmèt tout elèv yo kapab reyalize pwòp rèv ameriken yo”, se sa asistant pwokirè jeneral la Kristen Clarke, pou divizyon dwa sivil yo nan ministè lajistis te deklare. “Nou pral kontinye batay pou asire respè lwa federal nou yo sou dwa sivil yo, tout pandan n ap defann dwa chak elèv ak egalite chans yo nan sa ki konsène edikasyon nan tout peyi a. Obligasyon total akò sa sou règleman an pral kreye yon chanjman dirab epi pral bay aksè ak edikasyon ak plizyè milye elèv k ap aprann anglè nan Newark”.
“Biwo nou an ap soutni avèk fòs dwa sivil tout etidyan yo, ak sa ki ap aprann anglè yo”, se sa Rachael A. Honig, pwokirè ameriken pwovizwa pou distrik New Jersey a te deklare. “Nou kontan Konsèy Edikasyon Newark la te aksepte pran an chaj san rezèv obligasyon li an pou reponn ak bezwen lengistik moun pa li yo k ap aprann anglè epi rezoud gwo vyolasyon lwa federal yo te dekouvri pandan ankèt sa. Nou pral kontinye mande kont ak distrik eskolè yo ak lòt òganizasyon edikativ, sa k ap pèmèt tout elèv New Jersey yo benefisye yon aksè san fòs kote ak opòtinite edikativ yo”.
Ministè Lajisits pral siveye jan akò règleman distrik la pral kòmanse pandan pou pi piti twa ane eskolè konplè, jiskaske distrik la konfòme l ak obligasyon li yo an antye.
Nòt : Yon kopi konplè akò règleman an kapab konsilte isit la an anglè.
Kominike pou laprès sa disponib tou an espanyòl, pòtigè, kreyòl ayisyen ak fransè.
Aplikasyon lalwa 1974 la sou egalite chans yo nan sa ki konsène edikasyon se yon priyorite total pou Divizyon dwa sivil yo ak biwo pwokirè Etazini an pou distrik New Jersey a. Enfòmasyon anplis yo sou Divizon dwa sivil yo pou ministè Lajisits disponib sou sit wèb li an nan adrès www.justice.gov/crt, ak enfòmasyon anplis yo sou travay Seksyon opòtinite edikativ yo disponib nan adrès https://www.justice.gov/crt/educational-opportunities-section. Manm piblik yo kapab siyale vyolasyon dwa sivil pwobab yo nan adrès https://civilrights.justice.gov/report/ oswa nan biwo pwokirè a pou distrik New Jersey nan adrès http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint oswa rele liy asistans telefonik la pou dwa sivil yo nan biwo pwokirè a nan (855) 281 - 3339.
Department of Justice Reaches Million-Dollar Settlement with Van Andel Research Institute to Resolve Allegations of Undisclosed Foreign Ties to Nih GrantsRead the Press Release
GRAND RAPIDS, MICHIGAN — The Department of Justice (“DOJ”) announced today that Van Andel Research Institute (“VARI” or the “Institute”) has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by failing to disclose a foreign component of a National Institutes of Health (“NIH”) award and by failing to disclose foreign research support for two VARI researchers who served as principal investigators on NIH awards. In addition to this settlement—the second settlement with VARI in two years involving allegations of undisclosed foreign influence in federally-sponsored research—NIH imposed Specific Award Conditions on all of VARI’s NIH grants, including by requiring personal, executive-level certifications to the accuracy of NIH submissions, withdrawing certain of VARI’s expanded grant authorities, and removing all of VARI’s NIH grants from the Streamlined Non-Competing Award Process (“SNAP”).
“Full disclosure is essential not only in validating scientific research, but also in the intense competition for scientific funding from the federal government,” U.S. Attorney Andrew Birge said. “NIH’s application process is intended to yield information that is critical to the agency’s responsible stewardship of billions of taxpayer dollars. My office will continue to use every available tool to preserve the integrity of that process. The research community should recognize that these cases are not going away.”
“The government’s allegations in this case should remind research institutions of the potential consequences for failing to adequately investigate ‘red flags’ concerning researchers’ relationships and affiliations,” said Lamont Pugh III, Special Agent in Charge of HHS-OIG’s Chicago Region. “HHS-OIG will continue to hold grantees accountable, and protect the government’s investment of taxpayer resources, regardless of the length or complexity of the investigation.”
NIH requires grant recipients to disclose and obtain prior agency approval if a significant scientific element or segment of an NIH-funded project will be performed outside of the United States (a “Foreign Component”). Foreign Components can include collaborations with foreign researchers who perform experiments in support of an NIH grant, regardless of whether those foreign researchers receive any of the NIH funding. NIH also requires grant recipients to disclose “Other Support,” defined as all resources made available to researchers in support of and/or related to all of their research endeavors, regardless of whether such resources have monetary value. Other Support includes high-value materials that are not freely available (biologics, e.g.) and selection to foreign talent recruitment programs.
In December 2019, VARI paid $5.5 million to resolve allegations that it violated the False Claims Act by submitting grant applications and progress reports to NIH in which VARI failed to disclose Other Support, including Chinese government grants that funded two VARI researchers. Approximately one month later, in January 2020, U.S. Customs and Border Protection (“CBP”) stopped an individual—a former VARI researcher and current professor at the Harbin Institute of Technology (“HIT”) in China (the “HIT Professor”)—at Detroit Metro Airport with undeclared biological research samples in his luggage. The government alleged that the HIT Professor told CBP that the research samples were intended for the laboratory of a professor at VARI (the “VARI Professor”). The CBP stop prompted another investigation of VARI that resulted in the following allegations:
- Undisclosed Foreign Component. The government alleged that after submitting a successful grant application to NIH in June 2017, a VARI researcher began negotiating a research collaboration agreement with HIT that overlapped with the NIH grant in research objectives and methods. The government alleged that VARI administrators did not communicate that the recollaboration agreement was never fully executed and, therefore, VARI and HIT faculty collaborated under the terms of the agreement in a manner that resulted in an undisclosed and unapproved “Foreign Composearch nent” of the NIH grant.
- Undisclosed Other Support (Biological Research Samples). The government alleged that VARI knew or should have known that the HIT Professor was providing biological research samples, synthesized in China, to VARI faculty. The government alleged that after VARI rejected a shipment of biological research samples from HIT in May 2018—a shipment that was falsely described as “documents”—the HIT Professor began bringing research samples into the United States on his person and covertly sending research samples to his home address in Grand Rapids, Michigan. The government alleged that VARI did not investigate the foreign-sourced samples after rejecting the May 2018 shipment and thus continued to make “Other Support” disclosures to NIH with deliberate ignorance or reckless disregard for their accuracy.
- Undisclosed Other Support (Foreign Talent Program). The government alleged that in August 2018, the VARI Professor accepted an invitation from Nanjing Agricultural University (“NAU”) to join an application to China’s “111 Program”; a program funded by the Chinese government to recruit foreign scientists to work at “innovation centers” established through Chinese universities. The government alleged that VARI knew or should have known about the VARI Professor’s affiliation with the 111 Program, including because, after initially failing to disclose the invitation to VARI, the VARI Professor later told the Institute that he had agreed to contribute to—but declined to participate in—a “111 collaborative research project.” The government alleged that the VARI Professor’s application to join the 111 Program, which also involved an agreement to engage in cooperative research with NAU, constituted “Other Support” that should have been disclosed in VARI’s submissions to NIH.
The government also expressed concerns that in November 2018, the VARI Professor separately sent his NIH award letter to an NAU professor in China who requested proof that he was collaborating with a researcher funded by the American government.
Approximately one-third of the settlement funds will be returned to NIH, with the remainder going to the United States Treasury. In addition to the $1.1 million settlement, NIH imposed Specific Award Conditions on all of VARI’s NIH grants. Federal regulations allow NIH to impose Specific Award Conditions on grant recipients, including on recipients that have a history of failures to comply with the terms of a federal award. In this case, NIH is requiring an executive-level manager to personally certify the accuracy of all of VARI’s “Other Support” disclosures. NIH is also withdrawing certain of VARI’s expanded budget authorities and removing VARI from SNAP prior to awards. These conditions will remain in place through September 30, 2022 or until NIH assesses and accepts VARI’s completed Corrective Action Plan and summary report.
This case was a cooperative effort among HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
A copy of the redacted executed settlement agreement is included in this link.
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Co-Founder of Investment Fund Sentenced to 4 Years in Prison for Defrauding Investors of over $25 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that JASON RHODES, the co-founder, chief investment officer, and chief compliance officer for Sentinel Growth Fund Management, LLC (“Sentinel”), was sentenced today by U.S. District Judge Sidney H. Stein to 48 months in prison for securities fraud, wire fraud, investment adviser fraud and conspiracy charges. Those charges relate to RHODES’s participation in a scheme to defraud over 25 investors in Sentinel out of more than $25 million by lying to the investors and using investor funds for his own personal use and to make repayments to earlier investors in a Ponzi-like manner.
U.S. Attorney Audrey Strauss said: “Jason Rhodes defrauded investors in the fund he co-founded of more than $25 million through years of lies and deceit. This conduct is made even worse by the fact that Rhodes served as the chief investment officer and Chief Risk Officer of Sentinel, roles in which it was his direct responsibility to safeguard investor funds. Rhodes will now serve four years in prison for his crimes.”
According to the Indictment and other Court filings:
Beginning in at least 2013 and through in or about December 2016, RHODES, together with his co-conspirators, solicited investments in Sentinel by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes, namely purchasing securities. In fact, RHODES failed to invest the investor monies as promised, but rather diverted investor funds to his own personal use and the personal use of his co-conspirators and, in a Ponzi-like manner, used them to make repayments to other investors who were demanding their money. Among other things, RHODES diverted investor funds to a trucking business operated by RHODES and his wife; used them to pay more than $1 million to settle an unrelated civil lawsuit filed against RHODES and one of his co-conspirators; and expended them on other, personal expenses including a resort stay in Dubai and a luxury time-share vacation club. Through this scheme, RHODES and his co-conspirators defrauded over 25 investors out of more than $25 million.
Among other fraudulent acts, RHODES and a co-conspirator falsified an account statement for an investor (“Investor-1”) to conceal the fact that RHODES and his co-conspirators had misappropriated most of the $4.2 million Investor-1 had invested in Sentinel. After Investor-1 discovered the fraudulent nature of the account statement, RHODES, working with others, obtained funds from yet another investor (“Investor-2”) in order to make payments to Investor-1. RHODES and his co-conspirators then, on multiple occasions, created fraudulent reports for Investor-2, falsely reflecting that Investor-2’s funds were invested with portfolio managers in Sentinel’s brokerage accounts and were earning returns. In truth and in fact, and as RHODES well knew, Investor-2’s funds had been almost entirely misappropriated upon their receipt to repay Investor-1 and were not being managed by portfolio managers on Sentinel’s platform.
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RHODES, 48, of Rowayton, Connecticut, was also sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $25,451,801.
Ms. Strauss praised the work of the FBI. She also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jared Lenow is in charge of the prosecution.
Cincinnati police officer charged with failing to report more than $50,000 in off-duty incomeRead the Press Release
CINCINNATI – A federal grand jury has charged a Cincinnati police officer with failing to report tens of thousands of dollars earned from off-duty jobs at area nightclubs.
Diondre Winstead, 44, of Cincinnati, is charged with three counts of filing false tax returns. He allegedly failed to report more than $58,000 earned from off-duty jobs in tax years 2015, 2016 and 2017.
Winstead was first charged by a federal criminal complaint and arrested on that complaint on August 18.
According to court documents, Winstead is charged as part of an investigation into alleged narcotics money laundering organizations operating as Cincinnati nightclubs. Promoters allegedly use drug proceeds to pay for artists and performers at the nightclubs as a way to generate revenue that would appear to be legitimate.
Winstead, a Cincinnati Police Officer of more than 16 years, worked off-duty jobs at the clubs and received cash payments from the promoters.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Cincinnati Police Chief Eliot K. Isaac announced the charges. Assistant United States Attorney Kenneth L. Parker is representing the United States in this case.
Federal, state and local law enforcement agencies with the Organized Crime Drug Enforcement Task Force (OCDETF) are assisting with investigating this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Cincinnati man sentenced to 20 years in prison for creating child pornography of minor in his care at sleepoverRead the Press Release
CINCINNATI – Scott Surgener, 43, of Cincinnati, was sentenced in U.S. District Court to 240 months in prison for sexually exploiting a minor.
According to court documents, from April 2018 through July 2019, Surgener engaged in sexually explicit conduct with a minor in his home for the purpose of taking pictures and videos of the sexual abuse. The pictures and videos were taken in Surgener’s residence while the victim, who was younger than 13, was in his care at child sleepovers.
In total, the defendant produced 28 videos and images of the exploitation.
Surgener was charged by a federal criminal complaint in October 2019 and has remained in custody since. He pleaded guilty in February 2021 to producing child pornography.
Surgener was also sentenced to 10 years of supervised release following imprisonment and ordered to pay $3,000 in victim restitution.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Dan Leeper, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmaine McGuffey and Springdale Police Chief Thomas Wells announced the sentence imposed yesterday evening by Senior U.S. District Judge Susan J. Dlott. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Bridgeport Man Charged with Federal Robbery and Firearm OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Hartford returned an indictment yesterday charging DIJON CHAMPAGNIE, 21, of Bridgeport, with robbery and firearm offenses stemming from a violent drug-related robbery in West Haven.
As alleged in the indictment, on July 1, 2019, Champagnie robbed narcotics from an individual by means of actual and threatened force, violence and fear of injury. During the robbery, Champagnie brandished and discharged a firearm.
Champagnie has been detained in state custody since his arrest on related state charges on July 20, 2019.
The indictment charges Champagnie with one count of interference with commerce by robbery (Hobbs Act robbery), which carries a maximum term of imprisonment of 20 years, and one count of possession and discharge of a firearm in furtherance of a crime of violence, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the West Haven, New Haven and Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Batavia Woman Arrested, Charged with COVID FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Danielle Tooley, 36, of Batavia, NY, was arrested and charged by criminal complaint with wire fraud and theft of government funds. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, between July and December 4, 2020, the defendant and others knowingly used the personal identifying information of other individuals unlawfully to apply for and collect unemployment benefits connected to federal COVID-19 relief programs.
The scheme came to the attention of law enforcement on November 24, 2020, when Tooley was arrested by the New York State Police on charges of criminal possession of a controlled substance during a vehicle traffic stop in Bergen, NY. During the interaction with the defendant, troopers observed a crack pipe with white residue inside of Tooley’s vehicle. After the arrest, the defendant’s vehicle was searched, and six New York State unemployment benefit cards were recovered. The benefit cards were issued to individuals other than Tooley. The benefit cards were turned over to the Buffalo Field Office of the U.S. Department of Labor, Office of Inspector General, for further investigation. A subsequent examination of bank records for the benefit cards revealed several indicators of fraud and video footage from ATMs where the cards were used confirmed that the defendant had consistently withdrawn money from the cards. Tooley routinely used the personal identifying information of others in order to apply for and collect unemployment benefits in their names. In total, the scheme resulted in a loss of at least $99,141.39 to the United States.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.
The criminal complaint is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Region, under the direction of Special Agent-in-Charge Jonathan Mellone; the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Todd Allen; the U.S. Secret Service, under the direction of Special Agent-in-Charge Jeffrey Burr; the Social Security Administration, Office of Inspector General, under the direction of Special Agent-in-Charge John F. Grasso; and the New York State Police, under the direction of Major Barry Chase.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.# # # #
Baltimore Man Sentenced to Eight Years in Federal Prison for Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Andre Christopher Brown, age 34, of Baltimore, Maryland to eight years in federal prison, followed by three years of supervised release, for possession of a stolen firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on March 27, 2019, Brown was found asleep in a vehicle in Reisterstown Road, Maryland parking lot. A concerned citizen called 911 to check on Brown’s wellness as he appeared to be unresponsive.
When officers arrived at Brown’s vehicle and awoke him to check on his condition, he appeared to be intoxicated due to his slurred speech. Once officers asked for Brown’s drivers license, Brown responded normally until he told the officers that his driver’s license was “upstairs” and not in his possession. Officers then asked Brown to step out of the vehicle to test his mobility.
As Brown exited the vehicle, an officer noticed a 9mm caliber pistol in Brown’s waistband. Upon further inspection of the firearm, officers discovered the pistol was loaded with 10 rounds of ammunition.
As stated in the plea agreement, ballistics evidence linked Brown’s firearm to a previous Owings Mills, Maryland discharging in September 2017. Law enforcement were unable to identify a victim or suspect from the discharging.
On April 10, 2019, Baltimore County Police Department detectives interviewed Brown where he waived his Miranda rights, and admitted to discharging the firearm on September 17, 2017. Brown stated that he took the firearm from another person during a drug transaction and shot the firearm at the ground and in the air because he was afraid the other person was going to harm him. Brown admitted to keeping the firearm ever since.
Acting United States Attorney Jonathan F. Lenzner praised the ATF, the Baltimore County Police Department, and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Brandon K. Moore, who prosecuted the case.
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Armour Man Charged with Threatening CommunicationsRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Armour, South Dakota, man has been indicted by a federal grand jury for threatening communications.
Larry Lee Grueschow, age 64, was indicted on August 3, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 30, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about the 11th day of June, 2020, Grueschow did transmit in interstate commerce, from the State of South Dakota to Washington, D.C., a telephone communication to a member of Congress. The telephone communication contained a threat to injure the member of Congress and others.
The charge is merely an accusation and Grueschow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
Grueschow was released pending trial. A trial date of November 2, 2021, has been set.
Albuquerque man ordered detained on gun trafficking chargesRead the Press Release
ALBUQUERQUE, N.M. – Genaro Ramos, 35, of Albuquerque, appeared in federal court on Aug. 30 for a preliminary hearing where he was charged with transfer or possession of a machine gun. Ramos will remain detained pending trial.
According to a criminal complaint, on Aug. 22, Ramos allegedly arranged to purchase four firearms, including a fully automatic machine gun. On Aug. 24, Ramos met the seller, who was an undercover agent, in Albuquerque. After discussing the firearms, Ramos allegedly paid the agreed amount in cash and took possession of the firearms. Agents arrested Ramos at the scene.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Ramos faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives this case. Assistant United States Attorney Jaymie L. Roybal is prosecuting the case.
13 Charged with Federal Drug Conspiracy and Firearms Charges in Operation Cash OutRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a joint team of more than 200 federal, state, and local law enforcement officers arrested nine individuals who have been charged in federal court for their roles in an alleged drug trafficking conspiracy that operated in the Charleston area as well for firearms charges. Four additional defendants are not in custody at this time.
The arrests made in “Operation Cash Out” follow a months-long joint investigation between the FBI, ATF, HSI, City of Charleston Police Department, the North Charleston Police Department, the Charleston County Sheriff’s Office, SLED, Summerville Police Department, Berkeley County Sheriff’s Office, Dorchester County Sheriff’s Office, Mount Pleasant Police Department, Charleston County Aviation Authority Police Department, and the 9th Circuit Solicitor’s Office.
The arrests also follow a 46-count indictment being returned by a Federal Grand Jury targeting alleged members of the violent street gang West Cash, in the case of United States v. Antwan Xavier Grant et al.
“Drug gangs are a primary reason for the violent crime surge not only in South Carolina but also across the nation,” said Acting U.S. Attorney DeHart. “Violent gang activity will never be tolerated in South Carolina. The United States Attorney’s Office and our local, state, and federal partners will not stop in our efforts to stop major drug traffickers, who use guns and violence to advance their activities. On behalf of our office, I thank our local, state and federal law enforcement agencies for their constant bravery in making the arrests today and for their unwavering partnership in making our communities safer.”
The indictment alleges that, starting in September 2016 to the present, six of the thirteen defendants conspired to possess and distribute cocaine, crack cocaine, methamphetamine, heroin, and marijuana. For their respective drug charges, the defendants could face up to 40 years in federal prison.
Additionally, four of the defendants have been charged with conspiring to make false statements to licensed firearms dealers in order to purchase firearms, as well as 13 individual charges of lying to licensed firearms dealers in order to purchase firearms, including an AR 15 pistol, FN 5.7 pistols, and a Glock 29.
The indictment alleges that these defendants lied to local licensed dealers, including Palmetto State Armory, ATP Gun Shop, Field & Stream, and Sportsman’s Warehouse, by attesting that they were the true purchaser of a firearm, when it is alleged that they were not. Each of the firearm-related counts carry up to 10 years in federal prison.
The indictment also charges five of the defendants with using telephones to facilitate their drug trafficking conspiracy, counts that each carry up to 4 years in federal prison.
Multiple charges for felon in possession, possession of firearm in furtherance of drug trafficking, and possession with intent to distribute drugs are also included in the indictment. These charges carry up to between 5 and 40 years in federal prison.
The nine defendants in custody are:
- Antwan Xavier Grant, a/k/a “Twan,” 25, of Charleston
- Tevin Jermaine Fulmore, a/k/a “Goon,” 27, of North Charleston
- Zyshonne Tremonte Dayon Gantt, a/k/a “Z Man,” 22, of Charleston
- Rashad Montez Heyward-Williams, a/k/a “Boola Bucks,” 28, of Charleston
- De’Andre Marquel Williams, a/k/a “Riley” and “Rilo,” 24, of Charleston
- Essence Tamia Cemon Ancrum, a/k/a “Poopie,” 24, of North Charleston
- Antonio Snipe, Jr., a/k/a “Bruiser,” 21, of Charleston
- Demetrius Samire Costen, a/k/a “Meechie,” 27, of North Charleston
- Jackie Benson, 46, of Summerville
Assistant United States Attorney Whit Sowards is prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Tuesday 31 August 2021
Woman sentenced for smuggling over five kilograms of methRead the Press Release
LAREDO, Texas – A 51-year-old resident of Hendersonville, North Carolina, has been ordered to federal prison for importing meth through Laredo, announced Acting U.S. Attorney Jennifer B. Lowery.
Deanne Burkhart Bautista pleaded guilty Aug. 4.
Today, U.S. District Judge Marina Garcia Marmolejo ordered her to serve a 120-month sentence to be immediately followed by five years of supervised release.
On June 3, 2020, Bautista attempted to enter the United States at the Juarez-Lincoln Bridge in Laredo. Upon her arrival, a law enforcement query resulted in the discovery that she might be transporting narcotics. A follow-up X-ray examination yielded anomalies in her luggage.
Authorities ultimately found a total of 5.5 kilograms of meth with an estimated street value of $27,000
Bautista admitted she was aware there were drugs in her luggage. She expected to be paid in cash, drugs or both upon final delivery to Atlanta, Georgia.
Bautista will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection and Drug Enforcement Administration. Assistant U.S. Attorney Brian Bajew prosecuted the case.
Washington Resident Sentenced to Two Years in Prison for Healthcare FraudRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Washington state resident for conspiracy to commit healthcare fraud, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie C. Axon sentenced William Robert Fayant, 56, of Liberty Lake, Washington, to two years in prison. Fayant pleaded guilty in March to one count of conspiracy to commit health care fraud. The court also ordered Fayant to forfeit nearly $85,000 and to repay more than $700,000 in restitution.
“This defendant unlawfully enriched himself by defrauding federally funded health care programs,” U.S. Attorney Escalona said. “As a result of today’s sentence, he will forfeit the money he made and will spend time in prison.”
“Health care professionals who use fraud and deceit to steal funds and scam the system will be held accountable for their actions.” SAC Sharp said. “Today’s sentencing shows individuals who commit fraud will be held responsible for their illegal actions. The FBI and our law enforcement partners will continue to work together to investigate allegations of health care fraud and ensure the integrity of Federal programs.”
According to the plea agreement, between 2016 and 2017, Fayant worked as a marketer and patient recruiter for InforMD and LabPharm, selling compounded and other high-reimbursing medications. Fayant was paid a commission by InforMD and LabPharm on each prescription that was referred to the companies if insurance covered the cost.
In order to increase his commissions, Fayant forged a prescriber’s signature on multiple prescriptions for himself and several other members of his family. Fayant also falsely authorized multiple refills. Fayant submitted the prescriptions to Alliance Allergy Solutions, a pharmacy based in Birmingham, Alabama, which then billed Express Scripts, Inc., and Medicare for the cost. ESI and Medicare paid at least $705,785 for these medically unnecessary medications, and the defendant received approximately $84,517 as commission payments for them.
FBI investigated the case. Assistant U.S. Attorney John B. Ward prosecuted the case.
Virgin Islands United States Attorney’s Office Secures Conviction in First Paycheck Protection Program (“PPP”) Fraud CaseRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that Mashama Ferdinand, 38, of St. Thomas pleaded guilty to wire fraud affecting a financial institution before Magistrate Ruth Miller. Ferdinand was released after posting a $25,000 unsecured bond pending sentencing.
According to court documents, on July 30, 2020, Ferdinand filed a Paycheck Protection Program (PPP) loan application on behalf of her company, Shama’s Specialties. The application fraudulently alleged that she employed 15 employees and earned a quarterly payroll of $460,079.82. Evidence developed in this investigation revealed that Ferdinand’s business did not have the purported 15 employees, nor the quarterly payroll that she claimed in her loan application. According to the Virgin Islands Division of Corporations and Trademarks, Shama’s Specialties was established as a Virgin Islands domestic limited liability company on January 9, 2014, and Ferdinand is listed as the company’s registered agent.
The PPP is a source of relief provided through the CARES Act that authorized loans and loan forgiveness to businesses operating as sole proprietorships or independent contractors. For the period from February 15, 2020 through June 30, 2020, such businesses were eligible to receive PPP loans to cover lost income. In order to be eligible to receive PPP loans, businesses were required to report and document their income and expenses as typically reported to the Internal Revenue Service on Form 1040, Schedule C, for a given tax year. These financial reports were used to determine the amount of money a business was entitled to receive under the PPP. Once awarded, PPP loan proceeds could only be used to cover specific expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the loans to be entirely forgiven if the business used the loan proceeds to cover those expenses within a designated period of time after receiving the proceeds.
According to court documents, on July 30, 2020, Ferdinand electronically submitted her PPP loan application package to Bluevine, Inc., and Bluevine’s IP records revealed that at approximately 3:26 p.m., they submitted Shama’s Specialties application package for approval. Bluevine’s IP records further revealed that the company is registered to unnamed alleged co-conspirators in Apopka, FL. Thereafter, on July 30, 2020, Ferdinand’s PPP loan application was approved in the amount of $383,397.00. On August 3, 2020, Bluevine deposited the PPP loan proceeds in the amount of $383,397.00 in Shama’s Specialties’ First Bank Virgin Islands’ checking account. On August 5, 2020, Ferdinand wired three separate payments in the amounts of $9,999.00, totaling $29,997.00, to her three alleged co-conspirators as payment for their roles in processing her PPP loan application. Records obtained from the Virgin Islands Bureau of Internal Revenue confirmed that during 2019 and 2020, the period in which PPP loans were offered, no 501-VI nor 941-VI payroll records were filed on behalf of Shama’s Specialties.
This case was investigated by the United States Secret Service and Small Business Association Office of Inspector General and prosecuted by Assistant United States Attorney Delia Smith.
“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Small Business Administration’s Inspector General Michael H. Ware.” “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the United States Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
More information on the SBA Paycheck Protection Program is available on their Website.
U.S. Justice Department Finds that Conditions at the San Luis Obispo County Jail Violate the ConstitutionRead the Press Release
SLO JAIL FINDINGSLOS ANGELES – The San Luis Obispo County Jail violates the rights of prisoners by, among other things, failing to provide adequate medical care and subjecting some prisoners to excessive uses of force, according to a Justice Department report that calls upon the jail to make changes to address the constitutional violations found during an investigation.
The Justice Department concluded that there is reason to believe that the practices at the jail violate the Eighth and Fourteenth Amendments of the Constitution, as well as the Americans with Disabilities Act (ADA).
Specifically, the Justice Department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate medical and mental health care to prisoners, that the jail violates the constitutional rights of prisoners with serious mental illness through its prolonged use of restrictive housing, and that the jail violates the constitutional rights of prisoners through the use of excessive force. The report also found that the jail violates the ADA by denying prisoners with mental health disabilities access to services, programs and activities because of their disabilities.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department today provided the facility with written notice of the supporting facts for these findings and the minimum remedial measures necessary to address them.
“San Luis Obispo County violated the rights of prisoners in its jail in several ways, including failing to provide adequate health care and subjecting some prisoners to excessive force,” said Acting U.S. Attorney Tracy L. Wilkison. “Our office is dedicated to defending the civil rights of everyone in this district, including those behind bars.”
“Our Constitution guarantees that all people held in jails and prisons across our country are treated humanely, and that includes providing access to necessary medical and mental health care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After a comprehensive investigation, we found that the San Luis Obispo Jail harms the people it incarcerates by subjecting them to excessive force and by failing to provide adequate medical and mental health care. The Justice Department hopes to continue to work with the jail to resolve these systemic problems.”
The United States Attorney’s Office and the Justice Department’s Civil Rights Division initiated the investigation in October 2018 under CRIPA and Title II of the ADA, which authorize the Justice Department to take action to address a pattern or practice of deprivation of legal rights of individuals confined to correctional facilities operated by state or local governments.
Individuals with relevant information are encouraged to contact the Justice Department by phone at (844) 710-4900, or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Additional information about the Civil Rights Section of the U.S. Attorney’s Office is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights. You may contact the Civil Rights Section by emailing [email protected] or calling (213) 894-2879. You can also report civil rights violations to the Section by completing this complaint form.
U.S. Attorney’s Office Recognizes Opioid Awareness Month; Highlights Enforcement and Outreach EffortsRead the Press Release
Assistant U. S. Attorneys Larry Casper, Dylan Aste and Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – August 31, 2021
SAN DIEGO -- On International Overdose Awareness Day, an annual commemoration designed to raise awareness of overdose prevention and reduce the stigma of drug-related deaths, Acting U.S. Attorney Randy Grossman again warned the San Diego community about the serious fentanyl crisis and advocated an “all of society” approach to countering overdoses.
“We are losing far too many lives to fentanyl, and the age of victims is getting younger, compounding the tragedy,” Grossman said. “Just this past weekend, a San Diego teenager died due to a suspected fentanyl overdose from a counterfeit pill. The public needs to realize that there is no such thing as a ’safe’ street drug -- just one pill can kill.”
Grossman noted that the U.S. Attorney’s Office and the San Diego County District Attorney’s Office are working closely with the Medical Examiner’s Office and law enforcement partners on overdose cases to trace the origin of deadly drugs and build cases against suppliers. Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury face a stiff penalty -- a 20-year mandatory minimum sentence. The U.S. Attorney’s Office has charged approximately 30 defendants in fentanyl overdose death cases to date.
Grossman emphasized that “federal prosecutors are leaving no stone unturned to hold peddlers of fentanyl accountable. Tomorrow, Kyle Anthony Shephard will be sentenced for supplying the fentanyl that caused the fatal overdose of a 25-year-old United States Marine. On Friday, August 27, a federal jury returned a verdict -- the first in a mandatory minimum case involving counterfeit pills -- that will result in a 20-year sentence for Jahvaris Lamoun Springfield, who sold a 26-year-old veteran the fentanyl pills that resulted in his death.
“These overdose prosecutions seek to accomplish three goals: Deter the distribution of illegal drugs, send a clear message that traffickers of deadly poison will face serious repercussions, and provide a measure of closure and justice to those faced with devastating personal loss,” Grossman said.
Experts report that fentanyl is 50-100 times more powerful than morphine and so dangerous that in its purest form, even a very small amount can be deadly. San Diego County officials report that fentanyl overdose deaths surged during the pandemic and are expected to reach as high as 700 this year, a staggering increase over 2019, when 152 individuals died from fentanyl overdoses; in 2020, the 2019 number more than tripled to 461.
Grossman emphasized that, in the face of this crisis, “law enforcement is just one part of the solution. We need an all of society approach. As a community, we must consider ways that we can all play a role in furthering the public understanding that substance abuse disorder is a disease that warrants treatment, resources, and positive collective action.”
In addition to prosecuting opioid dealers and smugglers, the U.S. Attorney's Office raises awareness of harm reduction, prevention and education efforts, through Opioid Coordinators Larry Casper and Dylan Aste, and Outreach Director Cindy Cipriani, who Co-Chairs the San Diego Prescription Drug Abuse Task Force. The U.S. Attorney’s Office also coordinates a quarterly Fentanyl Working Group, which brings together more than 100 law enforcement officers to share trends and best practices to combat the fentanyl scourge in this district.
Finally, the U.S. Attorney’s Office co-sponsors a biannual summit that convenes hundreds of leaders to focus on sharing information, reducing stigma, facilitating treatment, and implementing innovative evidence-based harm reduction prevention strategies. This year’s virtual Western States Opioid/Stimulant Summit, scheduled for November 4-5, 2021, will bring multiple disciplines together to address every aspect of the opioid crisis. National Institute of Drug Abuse Executive Director Nora Vokow, M.D., and Acting ONDCP Director Regina LaBelle will be featured speakers, along with dozens of leaders from the prevention, public health, treatment and law enforcement communities.
Grossman urged those struggling with a substance use disorder and their family members to talk to a doctor or pharmacist about Naloxone, which can reverse an opioid overdose.
To learn how to assist a person who is overdosing, including how to administer Naloxone, please see:
https://www.sandiegorxabusetaskforce.org/naloxone.
To obtain information about treatment, see the resources at the PDATF Treatment website:
https://www.sandiegorxabusetaskforce.org/treatment.
Two Dayton residents plead guilty in identity & financial fraud schemeRead the Press Release
DAYTON, Ohio – Two Daytonians pleaded guilty in federal court to crimes related to a conspiracy to steal checks, credit cards, debit cards, bank account information and Social Security numbers to enrich themselves.
Myrtle Lynn “Mi Mi” Jackson, 38, pleaded guilty in U.S. District Court today, and Joshua Dylan “Jo Jo” Chapman, 29, pleaded guilty on August 4, to conspiring to engage in access device fraud and to aggravated identity theft.
According to court documents, the defendants stole victims’ personal information from occupied and unoccupied residences, vehicles and mailboxes. Jackson and Chapman then used stolen credit cards, debit cards and checks to illicitly acquire cash, drugs, and other goods and services.
The co-conspirators used victims’ information to fraudulently apply for personal loans, student loans, unemployment benefits, credit cards, debit cards and checks.
Jackson and Chapman used the proceeds of their fraud scheme to buy illicit drugs and make purchases at Walmart, Dollar General, Kentucky Fried Chicken and Lees Famous Chicken. The fraudulent funds were also used to pay for motel rooms and for gambling activities at a casino in Dayton. The charged conspiracy transpired from May 28, 2019 – triggered by the tornadoes in the Greater-Dayton area – until/ May 11, 2021.
Conspiring to engage in access device fraud is a federal crime punishable by up to 90 months in prison. Aggravated identity theft carries a mandatory sentence of two years in prison in addition to any other sentence imposed.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced the guilty pleas entered and commended the investigation of the United States Secret Service and Dayton Police Department. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Tucson Man Sentenced to 27 Months for Failing to Register as a Sex OffenderRead the Press Release
TUCSON, Ariz. – Casey Juan Jose, 42, of Tucson, Arizona, was sentenced today by Senior U.S. District Judge Raner C. Collins to 27 months in prison, followed by a lifetime term of supervised release. Jose previously pleaded guilty to Failure to Register as a Sex Offender.
On August 23, 2018, Jose, an enrolled member of the Tohono O’odham Nation, was convicted of Abusive Sexual Contact with a Minor and ordered to register as a sex offender. In August, 2020, Jose acknowledged the registration requirement and registered his address in Tucson, Arizona. However, between December 25, 2020 and March 18, 2021, Jose did not update his sex offender registration, despite changing residences. On March 18, 2021, Jose was arrested by United States Marshals for violating his federal supervision.
The United States Marshal Service conducted the investigation in this case. Assistant U.S. Attorney Raquel Arellano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-1410-TUC-RCC
RELEASE NUMBER: 2021-057_Jose# # #
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.Troy Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
ALBANY, NEW YORK – John R. Paeglow III, age 64, of Troy, New York, pled guilty today to defrauding a commercial finance company. The company paid more than $400,000 to Paeglow’s book printing business for the right to collect payment for the sales of books that, in fact, had not been sold nor shipped.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DoL-OIG).
As part of his guilty plea to 10 counts of wire fraud, Paeglow admitted that, between October and December 2014, he fraudulently solicited and received more than $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”). Paeglow caused the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company, which paid him money on the basis of book sales and shipments that Paeglow falsified.
As part of his plea agreement, Paeglow agreed to pay full restitution to the victim finance company. Paeglow also agreed to pay $11,410 in restitution to reimburse the union that represented the IBT/Hamilton employees whose health care premiums Paeglow was charged with embezzling.
Sentencing is scheduled for December 9, 2021, in Albany, before Senior United States District Judge Frederick J. Scullin, Jr. Paeglow faces a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of supervised release of up to 3 years. 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 jointly investigated by the U.S. DoL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Train Passenger Sentenced in Fentanyl ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Douglas Sibley, 38, of Chicago, Illinois, was sentenced today in federal court in Omaha, Nebraska for conspiracy to possess with the intent to distribute fentanyl. Senior United States District Court Judge Joseph F. Bataillon sentenced Sibley to 120 months in the Bureau of Prisons to be followed by a 5-year term of supervised release. There is no parole in the federal system.
On March 5, 2019, investigators with the commercial interdiction unit stopped Sibley at the Amtrack train station in Omaha. Sibley and several companions were passengers on a train that originated from Fullerton, California, and was bound for Chicago, Illinois. Officers saw luggage on a rack above the seats where Sibley and his companions were seated, as well as near Sibley’s feet. Officers requested permission to search the luggage which Sibley granted and a search warrant was lawfully obtained for a backpack that was locked. Inside the searched luggage, investigators found two vacuum sealed packages that tested positive for fentanyl in the amount of 2,045 grams.
The case was investigated by the Nebraska State Patrol, Douglas County Sheriff’s Office and Drug Enforcement Administration.
Three Drug Traffickers Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that three defendants have been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to federal prison for their involvement in the trafficking of methamphetamine.
Steven Charles Montgomery, 55, and Tabitha Nicole Stewart, 38, of Steele, Alabama, were both sentenced for their role in conspiring to distribute methamphetamine. Montgomery was sentenced to 292 months (24 years, 4 months) in prison. Stewart was sentenced to 151 months (12 years, 7 months) in prison. Each will serve 5 years of supervised release following their release from prison. Montgomery and Stewart were stopped by a Louisiana State Police Trooper on July 11, 2020 for a traffic violation while driving on Interstate 20 in the Western District of Louisiana. Montgomery was the driver and Stewart the passenger of the vehicle. Troopers questioned both and asked for consent to search their vehicle, which Montgomery refused. A K-9 Trooper arrived and alerted to the odor of narcotics on the exterior of the vehicle. A search of the vehicle resulted in the seizure of a cardboard box containing 31 plastic bags of methamphetamine, all seized from the trunk of the vehicle. The net weight was 13,390 grams of methamphetamine. Stewart admitted to obtaining the narcotics from an individual in California and that they were driving them back to Alabama for distribution.
The DEA, Louisiana State Police, and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
In an unrelated case, Danny Glen Roy Welch, 46, of Shreveport, Louisiana, was sentenced to 37 months in prison, followed by 3 years of supervised release. Welch was charged in an indictment in February 2021 for conspiracy to distribute and possess with the intent to distribute methamphetamine. Welch pleaded guilty to the charge on April 22, 2021 and admitted to his involvement in the conspiracy. Law enforcement agents with the U.S. Drug Enforcement Administration (DEA) began an investigation into the drug trafficking activities of individuals in the Shreveport/Bossier City area in 2018, including Welch. Agents intercepted phone communications between Welch and a co-conspirator discussing the purchase of drugs from Welch, the price for the drugs, and when and where they would meet. Surveillance was established by law enforcement agents and they observed the methamphetamine being purchased from Welch’s co-conspirator who admitted that Welch had supplied him with the narcotics.
This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal agencies including DEA, Department of Homeland Security, ATF, FBI, U.S. Marshal’s Service and U.S. Postal Inspection Service, all worked jointly with the Louisiana State Police, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Bossier City Police Department, Desoto Parish Sheriff’s Office, Lincoln Parish Sheriff’s Office, Ruston Police Department and Ouachita Parish Sheriff’s Office, in conducting the investigation of Welch and his co-conspirators. Assistant U.S. Attorney Brandon B. Brown is prosecuting the federal cases.
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Sussex County Woman Charged with Producing, Distributing, and Advertising Child PornographyRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, woman was charged today with producing, distributing, and advertising images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Dominique Saczawa, 31, of Sparta, New Jersey, is charged by complaint with one count of production of child pornography, one count of distribution of child pornography, and one count of advertisement of child pornography. She appeared today by video conference before U.S. Magistrate Judge Leda Dunn Wettre and was detained.
According to documents filed in this case:
In August 2021, Saczawa used a web-based application to share images and videos depicting the sexual assault of a child, and to solicit others to share similar content. Saczawa produced video and images of a minor victim engaged in sexually explicit conduct and Saczawa communicated these to other individuals through the web-based application.
The charges of production and advertisement of child pornography each carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of five years in prison, a maximum of 20 years in prison, and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime & Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sioux City Man Sentenced to Federal Prison for Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
A man who possessed a firearm in furtherance of distributing marijuana was sentenced to more than 13 years in federal prison.
Fredrick Perkins, age 32, from Sioux City, Iowa, received the prison term after a May 20, 2019 guilty plea to one count of possession of a firearm in furtherance of a drug trafficking crime.
Evidence at his detention, plea, and sentencing hearings showed that law enforcement officers searched Perkins’ home as the result of suspected drug related activity. Perkins told an officer that there were no firearms in the residence but that anything illegal belonged to him and not his girlfriend who also lived in the residence. During the search, an officer found a handgun on a shelf in the master bedroom along with a loaded magazine in the firearm with 17 rounds of 9mm ammunition. The firearm was previously stolen from another address in Sioux City. In Perkins bedroom, closet, and living room, officers found large quantities of marijuana and $2,114 of U.S. currency.
Perkins has a lengthy criminal history including convictions for aggravated unlawful use of a weapon, receive/possess/sell a stolen vehicle, aggravated battery on a government official, and delivery of cannabis.
Perkins was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Perkins was sentenced to 165 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Perkins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4014.
Follow us on Twitter @USAO_NDIA.
Serial robber sentenced for string of North Georgia robberiesRead the Press Release
GAINESVILLE, Ga. - Giovanni Annucci-Romero has been sentenced for a string of armed robberies in the cities of Gainesville and Cleveland, Georgia.
“The excellent coordination of federal and local law enforcement officers achieved the arrest and successful prosecution of this serial robber,” said Acting U.S. Attorney Kurt R. Erskine. “These partnerships are helping to ensure the safety of the citizens of our district at a time when violent crime is spiking.”
“Giovanni Annucci-Romero terrorized several communities,” said ATF Special Agent in Charge, Atlanta Field Division Ben Gibbons. “This sentence represents the seriousness of his crime. ATF and our law enforcement partners will continue to reduce violent crime by arresting criminals, such as Annucci-Romero, who terrorizes the communities in which law-abiding citizens live.”
“We are pleased with the convictions and knowing that these violent criminals have been removed from our communities,” said Chief Jeff Shoemaker, Cleveland Police Department.
“Partnerships in policing, the community and a comprehensive investigation played a key role in serving justice in this case. We are fortunate and thankful that no one was injured during this dangerous crime spree,” said Chief Jay Parrish, Gainesville Police Department.
“This outcome is a direct reflection of what good multi-jurisdictional teamwork and communication can accomplish. As a law enforcement leader, I continually strive to impress upon my employees the need to be proactive in everything we do and to remain alert at all times. The fact that our deputy was able to locate and stop Mr. Annucci-Romero within moments of his last criminal act serves as a testament to the fact that our deputies embrace their obligation to protect the citizens they serve,” said Habersham County Sheriff Joey Terrell.
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Annucci-Romero wielded two firearms, one in each hand, during robberies of a grocery store in Gainesville, and two gas stations, one in Gainesville, and one in Cleveland, Georgia. Annucci-Romero was arrested on May 23, 2020, shortly after he robbed the gas station in Cleveland.
Following the robbery, Cleveland police officers released a description of the robbery suspect’s vehicle. Moments later, a deputy with the Habersham County Sheriff’s Office stopped a vehicle that matched the description. Annucci-Romero was arrested in the vehicle after the deputy saw him sitting on the cash he had just stolen from the Cleveland gas station.
Giovanni Annucci-Romero, 24, of Gainesville, Georgia, was sentenced to ten years in prison to be followed by four years of supervised release and ordered to pay restitution in the amount of $31,943. Annucci-Romero was convicted on these charges on May 19, 2021, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Police Department, the Gainesville Police Department, and the Habersham County Sheriff’s Office.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rapid City Man Sentenced to Federal Prison for RobberyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Interference with Commerce by Robbery and Use and Brandishing of a Firearm During the Commission of a Crime of Violence was sentenced on August 25, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Troy Fairbanks, age 29, was sentenced to three years and ten months in federal prison for the Robbery conviction and seven years in federal prison for the Firearm conviction. The sentences are to be served consecutively. Fairbanks was also sentenced to three years of supervised release, and ordered to pay restitution and a $200 special assessment to the Federal Crime Victims Fund.
The convictions relate to Fairbanks and two other individuals robbing the Quality Inn and Big D at Rapid City in January 2020, and brandishing a pistol at an employee at each establishment.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Fairbanks was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Receiving Child Pornography was sentenced on August 26, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Jebadiah Swenson, age 39, was sentenced to eight years in federal prison, followed by five years of supervised release, and ordered to pay $11,000 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Swenson was indicted for the charge by a federal grand jury in August 2020. He pleaded guilty on December 16, 2020.
The conviction stems from Swenson using the LiveMe social media application between October 1, 2019, and March 7, 2020, to obtain links to child pornography on the Internet. Special agents executed a search warrant and found hundreds of images and videos of child pornography on electronic devices belonging to Swenson. The images and videos included child pornography depicting sadism and masochism, sexual abuse of infants and toddlers, and bestiality.
This case was investigated by the Federal Bureau of Investigation and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Swenson was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Stolen Firearm and Receipt of a Firearm While Under Indictment.
Huya Smoke, age 19, was indicted on August 19, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on August 25, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from Smoke knowingly being in possession of a stolen 9mm semi-automatic pistol in Rapid City in April 2021. At the time, Smoke was also under indictment in Meade County, South Dakota. The charges are merely an accusation and Smoke is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Smoke was detained pending trial. A trial date has not been set.
Operation False Haven: Convicted Child Rapist Sentenced for Passport Fraud, Civilly Denaturalized and Judicially Ordered Removed from the United StatesRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Mario Sotelo, age 49, a naturalized citizen of the United States born in Mexico, was sentenced by Chief United States District Judge Richard E. Myers II to four months imprisonment following a guilty plea to passport fraud. Moreover, Sotelo was civilly denaturalized as a United States citizen and ordered judicially removed from the United States.
According to court records, on September 5, 2008, Sotelo fraudulently obtained U.S. citizenship by making a false statement under oath regarding his naturalization application. In response to the question “Have you ever committed a crime or offense for which you were not arrested?” he answered “No.”
On August 23, 2018, in the Superior Court of North Carolina in Chatham County, Sotelo was convicted of sixteen felony counts, including incest, first-degree sex offense with a child, indecent liberties with a child, and statutory rape, for crimes committed against multiple victims between 2003 and 2015. Sotelo was sentenced to 23 years in prison. Sotelo was not arrested until after he naturalized, thus immigration officials were unaware of his crimes.
“Ultimately, Sotelo was unable to escape the consequences of his criminal past, and he will now answer for his disturbing predatory behavior,” said ERO’s Atlanta Interim Field Office Director Francisco Madrigal. “Removing violent, criminal non-citizens is a vital part of our mission to make our communities safer.”
“The granting of United States citizenship is one of the most prized and ultimate benefits that the government can grant. The defendant exploited our immigration system and unlawfully secured his naturalization, which undermines both the nation’s security and our lawful immigration system, “ said G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement.
Agents with ICE’s Enforcement and Removal Operations, Homeland Security Investigations, and United States Citizenship and Immigration Services, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven, an ongoing initiative executed in conjunction with the Department of Justice’s Office of Immigration Litigation to aggressively identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship.
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-00173-M(1).
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North Carolina Man Ran Lucrative Fraud Scheme Selling Unapproved Substances that Mimic the Health Benefits of Legal DrugsRead the Press Release
PITTSBURGH, PA - A resident of North Carolina pleaded guilty in federal court to a charge of conspiracy to defraud the United States, Acting United States Attorney Stephen R. Kaufman announced today.
Joshua Fulton, 41, Bolivia, North Carolina, pleaded guilty to one count before United States District Judge Christy C. Wiegand.
In connection with the guilty plea, the court was advised that Fulton owned or operated several businesses that sold substances designed to mimic the effects of steroids, a Southeast Asian plant called kratom, and products labeled as nootropics. In connection with the sale of these products, Fulton’s businesses made claims about the health effects that would result from their consumption, and Fulton was aware that most of his customers consumed his products as drugs—in other words, to obtain those purported effects. To evade regulation by the Food and Drug Administration, which regulates the sale of drugs in interstate commerce, Fulton and his co-conspirators included disclaimers on their websites and the parcels shipped to consumers, falsely indicating that the products were not for human consumption. They also failed to register the facility where these substances were produced and distributed with the Secretary of Health and Human Services, as required by law. In connection with his plea, Fulton agreed to forfeit approximately $10.7 million in funds traceable to his businesses.
“Joshua Fulton sold SARMs (Selective Androgen Receptor Modulators) over the internet, a substance which mimics the effects of anabolic steroids, and other substances by misbranding the products in a scheme to avoid regulations by the FDA,” said Acting U.S. Attorney Kaufman. “As this case demonstrates, we are committed to prosecuting anyone who uses deceitful practices to defraud the United States.”
“The requirement that FDA approve new drugs before they are marketed is designed to ensure the health and safety of consumers,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA will continue to aggressively pursue those who place the public health at risk and compromise the integrity of the regulatory system by purposely evading scrutiny.”
“For generations, humans have looked for quick fix, and still, that 'all-natural' remedy could cause serious health effects. What Fulton admitted to selling were unapproved substances that mimicked steroids, which he purported would have certain effects on the buyer,” said Assistant Special Agent in Charge for HSI in Pittsburgh, J. David Abbate. “HSI worked closely with Federal Drug Administration's Office of Criminal Investigations on this case to ensure that Fulton can no
longer risk the health of others to fill his pockets.”Judge Wiegand scheduled sentencing for January 6, 2022, at 9 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted Fulton to remain free on bond.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Food and Drug Administration – Office of Criminal Investigations and Department of Homeland Security – Homeland Security Investigations conducted the investigation that led to the prosecution of Fulton.
New York Man Sentenced to 4 Years for Exporting Night-Vision and Thermal-Imaging Devices Worth $100k+ to RussiaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Anton Perevoznikov, 34, of Brooklyn, NY, was sentenced to 4 years in prison, and 3 years of supervised release. by United States District Court Judge Joel H. Slomsky for his participation in a conspiracy to unlawfully export night-vision goggles and thermal-imaging devices to buyers in Russia.
In October 2018, the defendant pleaded guilty to one count of a federal Indictment charging him with conspiracy to unlawfully export defense articles. Between February 2011 and November 2013, the defendant conspired with three Russian co-conspirators to export technologically sensitive imaging devices from the United States without first obtaining from the Department of State the required license or written authorization for such exports. Perevoznikov also purchased night vision equipment from a United States vendor while acknowledging formally, in writing, that he understood that the items he was purchasing were legally precluded from export and by falsely affirming that he did not intend to export those items. The defendant’s Russian co-conspirators sent him wire transfers so that he could, in turn, purchase more than 30 pieces of night-vision and thermal-imaging devices worth over $100,000. On shipping documents, the defendant provided false descriptions of these regulated articles, including “case box,” “case for camera,” “camera and soft case,” “photo camera,” “camcorder,” and “jacket”.
“Individuals who seek to profit by unlawfully obtaining and exporting items designated by the United States as articles important to our national defense will be prosecuted with the full weight of the federal justice system,” said Acting U.S. Attorney Williams. “It is important that we take all necessary steps to prevent our military technology from being exported and possibly used against our service members and our allies overseas.”
"Perevoznikov admitted to a conspiracy to export night-vision goggles and thermal imaging devices to buyers in Russia, all of which can pose a threat to national security," said Brian Michael, Special Agent in Charge of HSI Philadelphia. "HSI Philadelphia's resolve to keep Americans safe is present in each arrest of those criminals seeking to make a profit while threatening the safety of our country."
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Thomas R. Perricone.
New York Man Pleads Guilty in Fentanyl Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA -- A resident of Bronx, New York, pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Hector Taveras, age 42, who is from Bronx, New York pleaded guilty before United States District Judge Cathy Bissoon to conspiracy to distribute 400 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl.
In connection with the guilty plea, the court was advised that on July 8, 2019, Pennsylvania State Police stopped Taveras’s vehicle traveling towards Pittsburgh on the Pennsylvania turnpike. Although Taveras owned the vehicle, he was a passenger and another man, Juan Guzman, was driving. During the stop, both Taveras and Guzman consented to a search of the vehicle. Troopers found a hidden compartment in the vehicle that contained 1.3 kilograms of bulk fentanyl.
Judge Bissoon scheduled sentencing for Jan. 6, 2022. As to Count One and Count Two, the law provides for a total sentence of ten years in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Taveras to remain on bond.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Hector Taveras.
New Haven Man Pleads Guilty to Machinegun OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, announced that ANGEL REYES-RODRIGUEZ, 29, of New Haven, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to unlawful possession and transfer of machineguns.
According to court documents and statements made in court, on May 3, 2019, Reyes-Rodriguez communicated with an individual over Instagram about a photo of a Glock pistol that Reyes-Rodriguez had posted. Reyes-Rodriguez asked the individual if he had a Glock, and said that he had a friend with a “chip” to make the gun shoot automatically. At the direction of law enforcement, the individual arranged to purchase two Glock conversion devices from Reyes-Rodriguez. On May 9, 2019, Reyes-Rodriguez met the individual at a store parking lot in New Haven and transferred two conversion devices in exchange for $500.
Under federal law, a conversion device that changes a gun into an automatic weapon is considered a machinegun.
Judge Shea scheduled sentencing for November 23, 2021, at which time Reyes-Rodriguez faces a maximum term of imprisonment of 10 years. Reyes-Rodriguez is released on a $100,000 bond pending sentencing.
This is Reyes-Rodriguez’s second federal conviction. In 2016, he was sentenced to probation for delivering a package containing two kilograms of cocaine to a co-conspirator.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Nebraska Woman Sentenced to over Seven Years in Federal Prison for Meth TraffickingRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced to more than seven years in prison on August 23, 2021, in federal court in Sioux City.
Whitley Mitchell, age 30, from Walthill, Nebraska, pled guilty on April 13, 2021, to one count of conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that Mitchell and others conspired to distribute actual (pure) methamphetamine, commonly called “ice” methamphetamine. During a traffic stop of a car Mitchell was driving, 9.6 grams of pure methamphetamine was found in her purse and a gun belonging to her co-defendant and passenger was found in the glove box. Additionally, .09 grams of pure methamphetamine was found on the passenger’s person, 116.2 grams of pure methamphetamine were found in a plastic jar elsewhere in the car, and 210.4 grams of pure methamphetamine were found in individual baggies elsewhere in the car. Mitchell knew about the methamphetamine and planned to benefit from its sale, along with her passenger who had acquired the methamphetamine. Mitchell had held methamphetamine for and been fronted methamphetamine by her passenger previously.
Mitchell was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mitchell was sentenced to 90 months’ imprisonment. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Mitchell is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. It was also investigated by the Sioux City Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4035.
Follow us on Twitter @USAO_NDIA.
Minneapolis Man Pleads Guilty to Possession, Distribution of Fentanyl PillsRead the Press Release
MINNEAPOLIS – A Minneapolis man pleaded guilty today to conspiring to possess with intent to distribute fentanyl, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on June 1, 2019, officers with the Minneapolis Police Department seized 351 counterfeit prescription pills containing fentanyl from Fowzi Abdinasir Elmi, 19. On January 21, 2020, Elmi and two other individuals drove to Arizona with the intent of buying fentanyl pills and then returning to Minnesota to distribute them. Elmi successfully purchased the pills but was stopped by law enforcement in Oklahoma. Approximately 2,100 counterfeit prescription fentanyl pills were seized from Elmi. On September 15, 2020, Elmi, along with two other individuals, got into a single vehicle car crash. When Minneapolis police officers arrived, they found Elmi in possession of 170 counterfeit prescription fentanyl pills. Elmi admitted to purchasing the pills for $15 per pill and selling them for $30-$35 per pill.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, and the State of Oklahoma District One Narcotics Task Force.
Assistant U.S. Attorneys David P. Steinkamp and Justin A. Wesley are prosecuting the case.
Michigan Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan man was sentenced today to 48 months in federal prison for possession with intent to distribute oxycodone.
According to court documents, Calvin Allen, 44, sold oxycodone to a confidential informant on November 11, 2017. The drug sale occurred in Allen’s vehicle in the parking lot of Tractor Supply in Oak Hill.
Acting United States Lisa G. Johnston made the announcement and commended the investigative work of the Central West Virginia Drug Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Alex Hamner handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00116.
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Miami-Dade County Employee Pleads Guilty to COVID-19 Relief FraudRead the Press Release
Miami, Florida – Fifty-eight-year-old Willie Curry, of Miami-Dade County, pled guilty yesterday in Miami federal court to a felony Information charging him with wire fraud in connection with his fraudulent application to the U.S. Small Business Administration for a low-interest COVID-19 relief loan.
According to the facts admitted at the change of plea, Curry, during 2019 and 2020, was employed on a full-time basis by Miami-Dade County as a Network Manager. As a County employee, Curry suffered no loss of salary due to the COVID-19 pandemic. Despite this, on June 24, 2020, Curry submitted to the SBA an EIDL application stating that he was the 100% owner of a sole proprietorship operating under the name “Will Curry Computers.” In that application, Curry falsely and fraudulently certified that Will Curry Computers was established on January 1, 2015, and that during the 12-month period prior to January 31, 2020, Will Curry Computers had gross revenues of approximately $755,416, a cost of goods sold of approximately $170,664, and 10 employees. In reality, Curry established Will Curry Computers in 2020, it had only minimal gross revenues and cost of goods sold during the twelve-month period prior to January 31, 2020, and it had no employees.
Based on the defendant’s materially false and fraudulent EIDL application, the SBA disbursed a $10,000 advance and then $150,000 in loan proceeds to Curry’s listed financial institution for Curry’s benefit. The financial institution instead returned the money to the SBA, and after Curry was notified of this, he made numerous contacts to the SBA in an ultimately unsuccessful attempt to have the money sent to an account he maintained at another financial institution. Ultimately his fraudulent efforts were uncovered by law enforcement.
Curry is scheduled for sentencing on November 17, 2021, at 10:00 a.m. before Senior United States District Judge James Lawrence King, where he faces a possible maximum sentence of 20 years in prison.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Amaleka McCall-Brathwaite, Special Agent in Charge, Small Business Administration, Investigations Division’s Eastern Region (SBA-OIG) announced the guilty plea.
FBI Miami’s Area Corruption Task Force, which includes task force officers from the Miami-Dade Police Department’s Professional Compliance Bureau, Criminal Conspiracy Section, and SBA-OIG investigated this matter. Miami-Dade County Office of Inspector General and United States Secret Service provided invaluable assistance. Assistant U.S. Attorney Edward N. Stamm is prosecuting this case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20415.
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