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Tuesday 31 August 2021
Active-duty Sailor and his former Navy colleague are charged with conspiring to traffic guns from Georgia to New JerseyRead the Press Release
ATLANTA - Elijah Isaiah Boykin, an active-duty U.S. Navy Sailor, and Elijah Keashon Barnes have been indicted for unlawfully obtaining and transporting dozens of firearms that were later used in New Jersey-area crimes. Boykin and Barnes served together in the U.S. Navy until June 2020, when Barnes was discharged following his confinement for repeated violations of military law.
“Federal law prohibits the making of false statements and misrepresentations to licensed firearms dealers,” said Acting U.S. Attorney Kurt R. Erskine. “Individuals who use deception to buy guns intended for other people will face severe consequences, including imprisonment and the loss of valuable civil rights.”
“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad,” said ATF Special Agent in Charge, Atlanta Field Division Ben Gibbons. “This investigation illustrates the dedication of ATF and its law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere criminals choose to operate.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Between April 2020 and August 2020, Elijah Isaiah Boykin purchased more than two dozen firearms from federally licensed firearms dealers in Georgia and Virginia. The total purchase price exceeded $17,000 and was spread over eight transactions. On each occasion, Boykin signed paperwork stating that he was the actual purchaser of the guns but paid using a credit card belonging to co-defendant Elijah Keashon Barnes.
Local law enforcement in and around Newark, New Jersey began to recover Boykin’s firearms shortly after they were purchased. One pistol was recovered in October 2020, when police officers in Newark conducted a traffic stop and arrested Barnes, who was wanted on a Virginia warrant for domestic assault and battery. The pistol was found in Barnes’s car. A few months later, Newark police officers recovered another gun that Boykin purchased. Forensic testing linked that second firearm to three separate shootings in Newark, including a violent mugging during which a victim was shot multiple times in the right leg.
To date, at least six firearms purchased by Boykin have been recovered in the city of Newark or a nearby township.
Elijah Isaiah Boykin, 25, of Palmetto, Georgia, and Elijah Keashon Barnes, 21, of Newark, New Jersey, were indicted by a federal grand jury on June 15, 2021 for conspiracy to make false statements, three counts of making false statements to federally licensed firearms dealers, and one count of unlawful transfer of firearm. On August 25, 2021, Boykin was arrested by Naval Criminal Investigative Service (NCIS) Agents at Naval Air Station Key West. Barnes was arrested the same day in Newark. The defendants will be arraigned at a later date in the Northern District of Georgia.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Monday 30 August 2021
Worcester Man Sentenced for Being Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court for being a felon in possession of a firearm and ammunition.
Nicholas Briggs, 22, was sentenced by U.S. District Court Judge Timothy S. Hillman to 40 months in prison and three years of supervised release. On May 11, 2021, Briggs pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On July 4, 2020, Briggs was arrested for carrying a loaded Glock pistol. Briggs is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Danial E. Bennett of Mendell’s Worcester Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
White River Man Charged with Burglary and LarcenyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Kurt Bartlett, age 27, was indicted on February 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 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.
The Indictment alleges that on July 9, 2021, in Mission, Bartlett unlawfully entered the Todd County School District Bus Shop and stole property valued over $1,000.
The charges are merely accusations and Bartlett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Bartlett was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Violent felon charged with using stolen ID to purchase guns recovered from crimes scenes in multiple statesRead the Press Release
ATLANTA - Dawuan Na’jee Williams has been indicted on federal charges of making false statements to federally licensed firearms dealers, aggravated identity theft, and possession of firearms by a convicted felon.
“Convicted felons are prohibited from legally possessing and purchasing firearms under any circumstance,” said Acting U.S. Attorney Kurt R. Erskine. “Criminals who try to circumvent these restrictions by stealing and using the identities of law-abiding citizens will be prosecuted.”
“It is illegal for any convicted felon to possess a firearm,” said L. C. Cheeks Jr, Acting ATF Atlanta Special Agent in Charge. “These illegally purchased firearms will more than often be used in violent crimes and it is these types of guns that we need to get off our streets. ATF will continue to work with our Federal and State partners to improve safety in each and every community we serve.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Dawuan Williams allegedly used a fraudulently obtained identification card bearing his photograph, but the name and date of birth of another person, to purchase dozens of firearms and large-capacity ammunition magazines in the metro Atlanta and North Georgia areas. Williams could not lawfully purchase the guns because he had been convicted previously of numerous felonies, including burglary, robbery, terroristic threats, kidnapping, aggravated battery, and criminal use of personal identification information.
Federal agents began investigating Williams’s purchases in May 2021, when police officers recovered from a Newark, New Jersey, crime scene a semiautomatic pistol that Williams allegedly purchased in Georgia just eight days earlier.
In July 2021, police officers recovered a second semiautomatic pistol from the scene of a shooting in Tallahassee, Florida. Federal agents traced this firearm to a Georgia purchase made with Williams’s identification card. A cellular telephone video taken around the time of the Florida shooting depicted the alleged shooter as a man of Williams’s race and complexion wearing a distinctive red baseball cap and red Gucci belt.
On July 20, 2021, federal agents searched a Jonesboro, Georgia, residence where Williams rented a room. In one of the bedrooms, agents recovered four firearms that had been purchased with Williams’s fake ID, empty firearm boxes for other firearms purchased with that ID, a red baseball cap, and a red Gucci belt. Williams was arrested that same day.
Dawuan Na’jee Williams, 39, of Jonesboro, Georgia. and Tallahassee, Florida, was arraigned before U.S. Magistrate Judge John K. Larkins III. He was indicted by a federal grand jury on August 17, 2021. He was arraigned August 26. 2021. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Atlanta, Georgia, and Newark, New Jersey, Field Divisions of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Vacaville High-Speed Chase Leads to Federal Conviction of Hayward Felon for Illegal Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — On Thursday, Aug. 26, after a three–day trial, a federal jury found Eligio Nunez, 42, of Hayward, guilty of being a felon in possession of firearms, Acting U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on Aug. 7, 2020, Nunez led police in a high-speed chase while driving a stolen Lexus. He ended the pursuit by abandoning the car in a grassy area off of Shelton Lane in Vacaville. After running from police, he was apprehended by officers in a dry creek bed. Just after he fled on foot, the car caught fire, which caused ammunition inside the car to explode. Later, an investigation found three handguns inside the burned car, which the jury found Nunez to have possessed. Nunez was prohibited from possessing firearms a result of his 10 felony convictions, which include assault with a deadly weapon, felon in possession of a firearm, evading a peace officer, and two drug trafficking offenses.
This case is the product of an investigation by the Federal Bureau of Investigation and the Vacaville Police Department. Assistant U.S. Attorneys Jason Hitt and Paul A. Hemesath are prosecuting the case.
Nunez is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 23, 2021. Nunez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Utah Real Estate Developer Pleads Guilty to Wire Fraud and Tax Fraud involving Daufuskie Island ResortRead the Press Release
Charleston, South Carolina --- Acting United States Attorney Rhett DeHart announced today that James Thomas Bramlette, 42, of Salt Lake City, Utah, pled guilty to Wire Fraud and Tax Fraud in violation of 18 U.S.C. § 1343 and 26 U.S. § 7202, before United States District Judge Richard M. Gergel. Bramlette will be sentenced at a later date.
The following evidence was presented at the guilty plea: this investigation involved Melrose Report on Daufuskie Island, S.C. Bramlette was a real estate developer in Salt Lake City, Utah. In 2011, he borrowed $17.5 million from a Dutch investor to purchase the resort out of bankruptcy. This loan was a short-term bridge loan with high interest rates. Bramlette did not put any of his own money into the purchase. Bramlette thought he could resale the resort soon after the sale, but his attempts to refinance or sell the resort failed repeatedly throughout the case.
In addition to the Dutch loan, Bramlette and a co-defendant raised more than $10 million from individual investors by issuing promissory notes with high interest rates. The promissory notes were not secured by the resort. Most of the investors resided in the West.
The investment in the resort was difficult from the start. Bramlette could not make the mortgage payments to the Dutch lender, which led to a $27 million foreclosure judgment in 2014. Bramlette lost further control of the resort in October 2014 when he pledged ownership of the property to secure a separate $700,000 loan, which he later defaulted on.
Bramlette and his co-defendant struggled every month to raise money from new investors to pay the Dutch lender not to foreclose, to pay previous investors, and to pay employees, utilities, and taxes at the resort. From 2013 through 2017, Bramlette repeatedly told investors that the resort was on the cusp of being refinanced by a private equity firm. While several firms considered investing in the resort, none of these deals came to fruition.
After he lost control of Melrose Resort in late 2014, Bramlette was allowed to remain as manager of the resort due to his operational knowledge of the property. Part of his duties as manager included paying the property taxes for Melrose Resort.
Concerning the wire fraud charge, in September 2016, Melrose Resort owed $502,759 in past due property taxes to the Beaufort County Treasurer’s Office. As a result of this tax delinquency, the Beaufort County Treasurer’s Office notified Bramlette that Melrose Resort would be auctioned at a tax sale if the property taxes were not paid.
On September 20, 2016, an employee of Bramlette emailed this notice and stated that “we have a week from this Friday, September 30th, 2016 to pay these taxes, which total $502,759.40 or the properties go up for sale on Monday, October 3, 2016.”
It was part of the scheme to defraud that, in order to prevent the resort from being sold at this tax sale, Bramlette created a fake wire receipt that falsely represented that Melrose Resort had wired $502,759 to the Beaufort County Treasurer’s Office to pay the property taxes. In reality, Melrose Resort had only $121.07 in its bank account at this time, and these funds were not wired as Bramlette represented.
It was further part of the scheme that Bramlette emailed the fraudulent wire receipt to one of his employees, and he caused this employee to send the fraudulent wire receipt to the Beaufort County Treasurer’s Office, in order to have Melrose Resort removed from the tax sale. After receiving the fraudulent wire receipt, the Beaufort County Treasurer’s Office removed Melrose Resort from the tax sale.
As to tax fraud charge, Bramlette was required to collect and pay over federal payroll taxes from the wages of all employees at Melrose Resort. Bramlette collected payroll taxes from the Melrose employees, but he failed to turn over these taxes to the IRS. In total, Bramlette collected but failed to turn over to the IRS approximately $1 million in payroll taxes.
In addition to the fraud above, Bramlette used at least $1.8 million from investors for personal use, which was not disclosed to investors. Bramlette lived a lavish lifestyle, and he spent money on himself even when he failed to pay employees, vendors, and subcontractors. The accountant at his company urged Bramlette to draw a salary and not use investor money for personal use. Bramlette ignored this advice and failed to report this income to the IRS or even file income tax returns.
This case was prosecuted by Acting United States Attorney Rhett DeHart. It was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Securities and Exchange Commission in Los Angeles.
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U.S. Attorney’s Office Announces Agreement Securing Westinghouse’s Cooperation in the V.C. Summer Criminal Investigation and Payment of $21.25 Million for Low Income Ratepayer ReliefRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has reached a $21.25 million cooperation agreement with Westinghouse Electric Company, amidst the ongoing investigation of criminal misconduct surrounding the failed construction of two new nuclear units at the V.C. Summer nuclear plant.
According to the agreement, Westinghouse agrees to cooperate fully and completely with the V.C. Summer criminal investigation until the conclusion of all related criminal prosecutions involving former Westinghouse officials. Federal charges are pending against former Westinghouse manager Carl Churchman and former Westinghouse Senior Vice President for New Plants and Major Projects Jeffrey A. Benjamin. Benjamin will be arraigned in federal court on August 31, 2021.
The agreement further specifies that Westinghouse will contribute an initial $5 million within 30 days to the South Carolina Low-Income Home Energy Assistance Program to help certain ratepayers affected by the project’s failure. A final payment of $16.25 million would be paid by Westinghouse on or before July 1, 2022.
Westinghouse has produced more than three million pages of documents, data, and correspondences to federal investigators; made employee witnesses available for interviews; and provided extensive debriefing sessions on the process and facts developed during the course of the company’s internal investigations related to the project.
Following abandonment of the proposed new nuclear units, Westinghouse was acquired by Brookfield Business Partners. The company has since removed, reassigned, or re-trained Westinghouse senior management; elected new members to the Board of Directors; restructured and re-trained the company’s finance organization; established a global financial controls function; implemented new controls over financial reporting; revised and adopted a global ethics code; elected independent directors for its audit committee; established a corporate controller position; and implemented a new whistleblower program to provide employees with the ability to raise concerns without fear of retaliation.
In addition, Westinghouse – through its former parent company Toshiba – has satisfied $2.168 billion in settlement payments related to the V.C. Summer project, including $1.032 billion to SCANA, $976 million to Santee Cooper, and $160 million to pay various contractor liens.
“Our office continues to seek justice for the victims of the V.C. Summer Project failure,” said Acting U.S. Attorney DeHart. “Westinghouse’s cooperation is vital to our ongoing efforts to hold accountable the individuals most responsible for this debacle. More than $21 million in new low-income ratepayer relief is a strong sign of our commitment to assist those most affected.”
This agreement is the latest development in the ongoing multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the U.S. Securities and Exchange Commission, the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division.
Assistant United States Attorneys Winston Holliday, Brook Andrews, Emily Limehouse, and Jason Peavy are prosecuting the case, along with Special Assistant United States Attorney John O’Halloran.
The South Carolina Attorney General’s Office and Westinghouse have reached a similar cooperation agreement. South Carolina Deputy Attorney General Donald J. Zelenka, Senior Assistant Deputy S. Creighton Waters, and Assistant Attorney David Fernandez have been representing the State of South Carolina.
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Two Tacoma men sentenced to lengthy prison terms for gun and drug crimesRead the Press Release
Tacoma – Two Tacoma residents were sentenced today in U.S. District Court in Tacoma to lengthy prison terms for gun and drug-distribution crimes, announced Acting U.S. Attorney Tessa M. Gorman. Tyson Lloyd, 33, was sentenced to 10 years in prison, and Cole Hornbeck, 25, was sentenced to 6 years in prison. Both defendants conspired to distribute controlled substances, including methamphetamine. Both men also illegally possessed firearms in connection with their drug-dealing activity. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “There is nothing good about methamphetamine – it destroys lives. People are harmed, people suffer. And not just the user – it is families of users who are harmed as well.”
“These defendants were dealing substantial quantities of methamphetamine – a drug linked to overdoses and deaths nationwide,” said Acting U.S. Attorney Tessa Gorman. “And these defendants conducted their drug business while illegally possessing firearms – a dangerous combination.”
According to the plea agreements, Lloyd supervised Hornbeck as a distributor in his drug-trafficking network. In April 2020, the defendants agreed to sell methamphetamine to a person who, unbeknownst to them, was working with law enforcement. The defendants sold this person $5,000 worth of methamphetamine and made plans for another drug deal the following week. Ultimately, the defendants and a potential supplier were arrested in Auburn, Washington, during a deal for a large quantity of methamphetamine. When law enforcement subsequently searched Lloyd and Hornbeck’s shared residence under a court-authorized search warrant, investigators seized more methamphetamine, cocaine, and other drugs that the defendants planned to distribute. Law enforcement also found two firearms in the residence: a shotgun and a stolen .45‑caliber pistol.
In addition to the drug-conspiracy charges, Lloyd pleaded guilty to possessing firearms as a felon; he has multiple Washington State convictions for crimes such as burglary, car theft, and identity theft. Hornbeck pleaded guilty to possessing firearms as an unlawful user of controlled substances. Both firearm offenses are punishable by up to 10 years in prison.
Lloyd and Hornbeck have been in custody at the Federal Detention Center at SeaTac since their arrests on April 29, 2020. Once they complete their prison terms, Lloyd will serve a five-year term of supervised release, and Hornbeck will serve a four-year term of supervised release.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The case was investigated by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF). The case was prosecuted by Assistant United States Attorney Jonas Lerman.
Two Georgia men sentenced for stealing millions from Synchrony BankRead the Press Release
ATLANTA - Franck Davidoff and Dwight Pearson have been sentenced after pleading guilty to a multi-million-dollar fraud scheme that resulted in a loss of over $2,000,000 to Synchrony Bank.
“These two defendants not only harmed the bank, but the pair also victimized countless businesses and individuals by stealing their information and posing as them to perpetrate a massive bank fraud scheme,” said Acting U.S. Attorney Kurt R. Erskine.“We warn others who might follow their example that this conduct will be prosecuted.”
“The defendants in this case deliberately defrauded scores of innocent citizens out of millions of dollars for their own personal gain,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “With the help of our local law enforcement partners at the Duluth PD, we were able to successfully end their criminal enterprise.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From January 2017 until they were arrested in October 2018, Franck Davidoff and Dwight Pearson conspired to defraud Synchrony Bank in a complicated fraud scheme that netted them over $2 million. The scheme involved using stolen corporate information to open merchant bank accounts at Synchrony Bank.
Specifically, in June 2018, Davidoff and Pearson opened a merchant account with Synchrony Bank in the name “S&G Carpet Stores,” a real business that operates in the state of Florida and used S&G Carpet’s CEO’s information to open the account. At the time the account was created, the pair directed the bank to transfer any funds deposited into the S&G Carpet account into a separate merchant account opened in their own names.
The pair then established $600,000 worth of lines of credit for 57 individuals whose information they stole. The lines of credit appeared to be advance financing for large purchases from S&G Carpet. Once the money was deposited into the S&G Carpet account, it was immediately transferred to the secondary account. Davidoff and Pearson conducted this scheme multiple times using multiple businesses. They targeted businesses in Florida for the merchant accounts. They also targeted residents in a wealthy neighborhood in Florida to use for the fake lines of credit.
For this conduct, they were charged with a wire fraud conspiracy to defraud Synchrony Bank, 13 counts of wire fraud, and seven counts of aggravated identity theft. Each pled guilty to the wire fraud conspiracy and aggravated identity theft.
Franck Davidoff, 34, of Milton, Georgia, has been sentenced to six years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19. Davidoff was convicted of these charges on March 22, 2021, after he pleaded guilty.
Dwight Pearson, 49, of Johns Creek, Georgia, has been sentenced to seven years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19. Pearson was convicted of these charges on May 17, 2019, after he pleaded guilty.
This case was investigated by the U.S. Secret Service and the Duluth Police Department.
Special Assistant U.S. Attorney Diane C. Schulman and former Assistant U.S. Attorney Cassandra Schansman 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.
Three Men Sentenced to Ten Years in Prison for Marijuana ConspiracyRead the Press Release
COUNCIL BLUFFS, IOWA – Three men, two from Texas, and one from Washington State, were sentenced Friday, August 27, 2021, by United States District Court Chief Judge John A. Jarvey to 120 months in prison. Hieu Minh Le was sentenced to 120 months for Conspiracy to Distribute Marijuana and was found to be an organizer or leader of the conspiracy. Tu Anh Nguyen and Sanh Binh Tran were both sentenced to 60 months for Conspiracy to Distribute Marijuana and Possession with Intent to Distribute Marijuana and 60 months to be served consecutively for Possession of a Firearm in Furtherance of Drug Trafficking. According to court documents, Le, Nguyen, and Tran were found guilty by a jury on April 1, 2021. Their prison terms will be followed by four years of supervised release.
An Iowa State Patrol Trooper stopped Nguyen and Tran, who were driving a truck and trailer registered in Washington, on December 21, 2018, to perform a Commercial Motor Vehicle regulatory inspection. The trooper noticed numerous irregularities with the commercial motor vehicle paperwork, safety equipment, and lack of conformity with commercial motor vehicle industry standards. The trooper also detected an odor of bleach in the trailer and the load was not properly secured. A Council Bluffs Police canine officer and police service dog arrived for a free air sniff. An Iowa Department of Transportation sergeant also assisted with the commercial motor vehicle inspection. The police service dog alerted and indicated to the odor of illegal drugs and the truck and trailer were searched. The officers located 470 pounds of marijuana, numerous boxes containing cartridges of THC oil, and a firearm.
The Iowa Division of Narcotics Enforcement assisted with this investigation and discovered that Le and Nguyen were stopped by a Scott County, Mississippi officer on November 2, 2018, and found in possession of boxes of THC cartridges and $108,000 in United States currency. Le and Nguyen were again stopped by Lincoln, Nebraska Police Department officers on March 1, 2019, and found in possession of $15,000 and a THC cartridge in a different truck and cargo trailer. During the course of the investigation, investigators also determined the business owned by Le, Extra Elbow Grease, was legitimately registered, however the bills of lading paperwork provided by Nguyen and Tran were fraudulent and the business was a front for distributing marijuana across the United States.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Iowa Division of Narcotics Enforcement, Iowa State Patrol, Iowa Division of Intelligence, Iowa Division of Criminal Investigations Crime Laboratory, Council Bluffs Police Department, Iowa Department of Transportation Motor Vehicle Enforcement, Scott County (Mississippi) Sheriff’s Department, Lincoln (Nebraska) Police Department, Lancaster County (Nebraska) Sheriff’s Department, and Douglas County (Nebraska) Sheriff’s Department Crime Lab.
Sutter Health and Affiliates to Pay $90 Million to Settle False Claims Act Allegations of Mischarging the Medicare Advantage ProgramRead the Press Release
SAN FRANCISCO- Sutter Health, a California-based health care services provider, and several affiliated entities including Sutter Bay Medical Foundation (dba Palo Alto Medical Foundation, Sutter East Bay Medical Foundation, and Sutter Pacific Medical Foundation) and Sutter Valley Medical Foundation (dba Sutter Gould Medical Foundation and Sutter Medical Foundation) (collectively, “Sutter Health”), have agreed to pay $90 million to resolve allegations that Sutter Health violated the False Claims Act by knowingly submitting inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed health care insurance plans called Medicare Advantage Plans. The Plans are paid a capitated, or per-person, amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. Payments to Plans are based on demographic information and the health status of each plan beneficiary. In general, Plans receive larger payments for beneficiaries with more severe diagnoses.
Sutter Health, headquartered in Sacramento, contracted to provide health care services to California beneficiaries enrolled in certain Plans. In exchange, Sutter Health received a portion of the payments for treating the beneficiaries under its care.
The government alleged that Sutter Health knowingly submitted unsupported diagnosis codes for certain patient encounters for beneficiaries under its care. These unsupported diagnosis codes caused inflated payments to be made to the Plans and to Sutter Health. The lawsuit further alleged that, once Sutter Health became aware of these unsupported diagnosis codes, it failed to take sufficient corrective action to identify and delete additional unsupported diagnosis codes.
“Today’s settlement exemplifies our commitment to fighting fraud in the Medicare program,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Health care providers who flout the law need to know that my office will hold accountable those who pad their bottom line at taxpayer expense.”
“The government relies on health care providers, including those furnishing services to Medicare Part C beneficiaries, to submit accurate information to ensure proper payment,” said Deputy Assistant Attorney General Sarah E. Harrington of the Justice Department’s Civil Division. “Today’s result sends a clear message that we will hold health care providers responsible if they knowingly provide or fail to correct information that is untruthful.”
“The knowing submission of inaccurate information to Medicare diverts funds from this vital health care program, which is a disservice to patients needing care,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect the integrity of federal health care programs and hold accountable entities who engage in false claims practices.”
In connection with the settlement, Sutter Health, Sutter Bay Medical Foundation, and Sutter Valley Medical Foundation entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sutter Health implement a centralized risk assessment program as part of its compliance program and hire an Independent Review Organization to annually review a sample of Sutter Health’s Medicare Advantage patients’ medical records and associated diagnoses data.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Kathy Ormsby, a former employee of Palo Alto Medical Foundation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits, as it has done in this case as to claims submitted for the Palo Alto Medical Foundation. Although the United States did not intervene as to claims submitted by the remaining Sutter affiliates, Ms. Ormsby continued to pursue those claims, some of which are also being resolved by this settlement. The qui tam case is captioned United States ex rel. Ormsby v. Sutter Health, et al., No. 15-CV-01062-LB (N.D. Cal.).
The resolution obtained in this matter resulted from a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of California, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Benjamin Wolinsky, with assistance from Jonathan Birch, and Department of Justice Fraud Section Attorneys Olga Yevtukhova, Jennifer J. Koh, Thomas Morris, and Lyle Gruby.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sutter Health and Affiliates to Pay $90 Million to Settle False Claims Act Allegations of Mischarging the Medicare Advantage ProgramRead the Press Release
Sutter Health, a California-based health care services provider, and several affiliated entities including Sutter Bay Medical Foundation (dba Palo Alto Medical Foundation, Sutter East Bay Medical Foundation, and Sutter Pacific Medical Foundation) and Sutter Valley Medical Foundation (dba Sutter Gould Medical Foundation and Sutter Medical Foundation) (collectively, “Sutter Health”), have agreed to pay $90 million to resolve allegations that Sutter Health violated the False Claims Act by knowingly submitting inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed health care insurance plans called Medicare Advantage Plans. The plans are paid a capitated, or per-person, amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. Payments to plans are based on demographic information and the health status of each plan beneficiary. In general, plans receive larger payments for beneficiaries with more severe diagnoses.
Sutter Health, headquartered in Sacramento, contracted to provide health care services to California beneficiaries enrolled in certain plans. In exchange, Sutter Health received a portion of the payments for treating the beneficiaries under its care.
The government alleged that Sutter Health knowingly submitted unsupported diagnosis codes for certain patient encounters for beneficiaries under its care. These unsupported diagnosis codes caused inflated payments to be made to the plans and to Sutter Health. The lawsuit further alleged that, once Sutter Health became aware of these unsupported diagnosis codes, it failed to take sufficient corrective action to identify and delete additional unsupported diagnosis codes.
“The government relies on health care providers, including those furnishing services to Medicare Part C beneficiaries, to submit accurate information to ensure proper payment,” said Deputy Assistant Attorney General Sarah E. Harrington of the Justice Department’s Civil Division. “Today’s result sends a clear message that we will hold health care providers responsible if they knowingly provide or fail to correct information that is untruthful.”
“Today’s settlement exemplifies our commitment to fighting fraud in the Medicare program,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Health care providers who flout the law need to know that my office will hold accountable those who pad their bottom line at taxpayer expense.”
“The knowing submission of inaccurate information to Medicare diverts funds from this vital health care program, which is a disservice to patients needing care,” said Special Agent in Charge Steven J. Ryan for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect the integrity of federal health care programs and hold accountable entities who engage in false claims practices.”
In connection with the settlement, Sutter Health, Sutter Bay Medical Foundation and Sutter Valley Medical Foundation entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sutter Health implement a centralized risk assessment program as part of its compliance program and hire an Independent Review Organization to annually review a sample of Sutter Health’s Medicare Advantage patients’ medical records and associated diagnoses data.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Kathleen Ormsby, a former employee of Palo Alto Medical Foundation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits, as it has done in this case as to claims submitted for the Palo Alto Medical Foundation. Although the United States did not intervene as to claims submitted by the remaining Sutter affiliates, Ms. Ormsby continued to pursue those claims, some of which are also being resolved by this settlement. The qui tam case is captioned United States ex rel. Ormsby v. Sutter Health, et al., No. 15-CV-01062-LB (N.D. Cal.).
The resolution obtained in this matter resulted from a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of California, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Attorneys Olga Yevtukhova, Jennifer J. Koh, Thomas Morris and Lyle Gruby of the Civil Division's Fraud Section and by Assistant U.S. Attorney Benjamin Wolinsky for the Northern District of California, with assistance from Jonathan Birch.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
St. Thomas Man Pleads to Conspiring to Bring over 6 Kilograms of Marijuana Through the Henry E. Rohlsen Airport on St. CroixRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Jahvar Looby, age 31, of St. Thomas, appeared before Magistrate Judge George W. Cannon, Jr., in U.S. District Court and pleaded guilty today to Conspiracy to Possess Marihuana with Intent to Distribute.
According to court documents, on February 11, 2021, Looby and three other co-conspirators flew into the Henry E. Rohlsen Airport on St. Croix on American Airlines flight number 2003 from Charlotte, North Carolina. Upon their arrival, Customs and Border Protection officers selected several pieces of luggage for physical inspection. The CBP officers observed anomalies while the luggage was examined by an X-ray machine. A subsequent search revealed several clear, vacuum sealed bundles containing a green, leafy substance, which later field-tested positive for marijuana. In total, approximately 6.33 kilograms of suspected marijuana was seized from Looby and his co-conspirators.
Looby is scheduled to be sentenced on December 29, 2021, and faces a maximum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Customs and Border Protection and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Daniel H. Huston is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
St. Croix Woman Sentenced to 2 Years in Federal Prison for Her Role in a Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Joanne Benjamin, age 41, from St. Croix, Virgin Islands was sentenced on August 26, 2021 in federal court by Judge Wilma A. Lewis to twenty-four months incarceration followed by three years of supervised release for her part in a multi-defendant tax fraud scheme. She pled guilty on March 11, 2021 to Conspiracy to Defraud the United States.
According to the plea agreement filed with the court, from January 2011 to July 2012, Joanne Benjamin and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of individuals (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds, spent them using a debit card, or transferred them to other accounts, all for personal use.
As a result of the scheme, approximately $110,896 of falsely claimed returns was designated for deposit into Defendant’s bank account, of which approximately $80,424.83 was actually deposited therein. The Court also ordered Benjamin to pay restitution of $80,424.83 to the Internal Revenue Service, and her $1000 posted bail bond will be applied toward restitution and a $100 special assessment fee, upon motion of the United States.
Of ten defendants charged in the tax fraud scheme, Benjamin is one of nine to plead guilty. The tenth defendant, Jacinta Gussie, was found guilty in June of 2021 after a six-day trial of Conspiracy to Defraud the United States, four counts of Theft of Government Money, and two counts of Aggravated Identity Theft. Gussie’s sentencing date is pending.
The prosecution of this fraud scheme is the result of years of investigative work by the Internal Revenue Service-Criminal Investigations, which identified and dismantled a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz.
Spring Valley internet entrepreneur pleads guilty to federal income tax chargesRead the Press Release
John S. Billhimer, age 40, of Spring Valley, Ohio pleaded guilty today to a one count federal information charging him with filing a false U.S. Individual Income Tax Return, Form 1040, for tax years 2014 through 2017, said Bryant Jackson, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Cincinnati Field Office.
Billhimer owned and operated various businesses which conducted internet sales of aftermarket automobile parts and accessories, and electronics, on eBay and Amazon. As the sole shareholder of these corporations, Billhimer was responsible for reporting any income that he personally received from these corporations on Schedule E of his U.S. Individual Income Tax Return, Form 1040. For tax years 2014 through 2017, Billhimer willfully filed tax returns which fraudulently understated his tax liabilities and caused a tax loss to the United States of $56,000.
“Income, from whatever source derived, is taxable and needs to be properly reported by all taxpayers,” Bryant said. “IRS-CI works everyday to ensure those who don’t pay their fair share are held accountable to the fullest extent possible under the law.”
Billhimer will be sentenced on January 6, 2022 by U.S. District Court Judge Michael J. Newman. The defendant’s sentence will be determined by the Court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum (3 years) and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Dominick Gerace, following an investigation by the Internal Revenue Service – Criminal Investigation.
Specialized Mining Equipment Thief Sentenced to 33 Months in Federal PrisonRead the Press Release
PITTSBURGH, PA - A former resident of Beckley, West Virginia, has been sentenced in federal court to 33 months’ imprisonment, three years’ supervised release and ordered to pay approximately $2.9 million in restitution on his conviction for stealing specialized mining equipment, Acting United States Attorney Stephen R. Kaufman announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Eudell Dickerson, following his April 28, 2021, guilty plea to conspiring to transport across state lines specialized mining equipment from the Commonwealths of Pennsylvania, Virginia, and Kentucky to West Virginia and transporting said equipment from the Commonwealth of Pennsylvania to West Virginia.
According to information presented to the court, five break-ins and thefts occurred in and around February 2017 through May 2017, at mining sites located in the Indiana and Armstrong counties, in the Western District of Pennsylvania. Dickerson admitted, in conjunction with his guilty plea, that he and other individuals, including his co-defendant David Stanley, stole high-value mining equipment, valued at nearly $3 million, from these sites and sold it to a company in the business of selling new and/or used mining equipment in Beckley, West Virginia. Special agents, the court was informed, located some of the stolen equipment at the reseller’s facility and also identified trucks operated by Dickerson and Stanley as those involved in the thefts. Dickerson also admitted that he, and other individuals, were involved in additional thefts at mining sites in Virginia and Kentucky.
The Court noted that the sentence in this case, 33 months, was sufficient but not greater than necessary to achieve the goals of sentencing and tailored to the defendant’s case. Here, the Court noted the seriousness of Dickerson’s conduct – that it was a considerable theft, executed with specificity for only the high-value mining equipment and the impact that it had on the victim companies and their employees. Judge Hornak urged the defendant, who has a substantial criminal history, including other theft-related crimes, to “decide [you are] done with this way of living” when released from custody.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Dickerson.
South L.A. Man Pleads Guilty to Federal Charge for Transporting Fireworks, Including Devices That Caused Huge ExplosionRead the Press Release
LOS ANGELES – A South Los Angeles man whose fireworks were detonated by police, leading to a massive explosion that destroyed a specially designed containment vehicle, damaged a neighborhood and injured 17 people, pleaded guilty today to a federal criminal charge.
Arturo Ceja III, a.k.a. “Autron,” 26, pleaded guilty to a single-count information charging him with transportation of explosives without a license.
According to court documents, Ceja made several trips to Nevada in late June to purchase various types of explosives that he transported to his residence in rental vans. Most of the explosives were purchased at Area 51, a fireworks dealer in Pahrump, Nevada. Fireworks in California can be sold for as much as four times what purchasers pay for the fireworks in Nevada. Ceja also purchased homemade explosives – constructed of cardboard paper, hobby fuse and packed with explosive flash powder – from an individual selling the devices out of vehicle, according to court documents.
On June 30, after receiving a tip that fireworks were being stored in Ceja’s backyard, Los Angeles Police officers responded to his residence on East 27th Street. At the house, officers found more than 500 boxes of commercial grade fireworks in large cardboard boxes. The initial investigation by local authorities estimated that approximately 5,000 pounds (2.5 tons) of fireworks were found. But law enforcement later determined that Ceja was storing approximately 32,000 pounds (16 tons) of fireworks on the property.
In addition to the commercial fireworks, the initial search of Ceja’s residence led to the discovery of more than 140 other homemade fireworks as well as explosives-making components, according to court documents.
While the fireworks were being removed from Ceja’s residence, the LAPD Bomb Squad determined that some of the homemade fireworks containing explosive materials were not safe to transport due to risk of detonation in a densely populated area and therefore would be destroyed on scene using a total containment vessel (TCV), according to court documents. During the destruction of the devices, the entire TCV exploded, damaging homes in the neighborhood and injuring a total of 17 law enforcement personnel and civilians.
United States District Judge Fernando M. Olguin has not yet scheduled a sentencing hearing, at which time Ceja will face a statutory maximum sentence of 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Department of Transportation, Office of Inspector General; and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Amanda M. Bettinelli and Erik M. Silber of the Environmental and Community Safety Crimes Section are prosecuting this case.
Sioux Falls Man Sentenced for Making a False Statement in the Acquisition of a FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Making a False Statement in the Acquisition of a Firearm was sentenced on August 23, 2021, by U.S. District Judge Karen E. Schreier.
Zachary Taylor Bobbs, age 36, was sentenced to 30 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bobbs was indicted by a federal grand jury on September 1, 2020. He pled guilty on June 1, 2021.
The conviction stemmed from an incident on November 8, 2019, when Bobbs knowingly made a false and fictitious written statement to a federally licensed firearms dealer when he tried to purchase a firearm. Said written statement was likely to deceive the firearms dealer. Bobbs falsely indicated on ATF Form 4473 that he had never been convicted of a felony and that he had never been convicted of a domestic violence when, in fact, he had been convicted of both.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Deputy Chief John E. Haak prosecuted the case.
Bobbs was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 25, 2021, by U.S. District Judge Karen E. Schreier.
Myles Feather Earring, age 37, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Feather Earring was indicted by a federal grand jury on April 6, 2021. He pled guilty on June 8, 2021.
The conviction stems from Feather Earring failing to register as a sex offender as required by federal law between January 7, 2021, and February 9, 2021. Feather Earring had previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Feather Earring was immediately turned over to the custody of the U.S. Marshals Service.
Red Lake Man Sentenced to Prison for Possession of an Unregistered FirearmRead the Press Release
ST. PAUL, Minn. – A Red Lake man was sentenced today to 48 months in prison followed by three years of supervised release for possessing an unregistered firearm.
According to court documents, on September 27, 2019, following a 911 call, officers responded to a Red Lake residence and found Keith Wayne Lussier, Jr., 36, in possession of a 12-gauge sawed-off shotgun. Lussier initially refused the officers’ commands to surrender, but ultimately put down the shotgun and was taken into custody.
On November 6, 2020, Lussier pleaded guilty to one count of possessing an unregistered firearm.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms and the Red Lake Department of Public Safety.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Readout of Associate Attorney General Vanita Gupta's Call with European Commission Executive Vice-President Margrethe VestagerRead the Press Release
U.S. Associate Attorney General Vanita Gupta this morning spoke with European Commission Executive Vice-President Margrethe Vestager. In their inaugural conversation, the two leaders discussed the Justice Department and European Commission’s mutual interest in promoting competition in a fair, global marketplace and building stronger transatlantic cooperation on justice issues and antitrust enforcement.
They also discussed important ongoing investigations, digital market cases, and policy proposals. Associate Attorney General Gupta also conveyed Attorney General Garland’s strong commitment to an aggressive antitrust enforcement program.
The two leaders agreed to continue to work together to share expertise and ideas between the department and European Commission staff and to deepen cooperation that will benefit the people and economies of both jurisdictions.
Philadelphia Woman Charged with Straw-Purchasing Nearly 20 Handguns in Bucks CountyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sharon Jones, 44, of Philadelphia, PA, was arrested and charged by Indictment with one count of dealing in firearms without a license and six counts of making false statements to a Federal Firearms Licensee (FFL) during the purchase of firearms.
The Indictment alleges that between July and September 2020, during six separate transactions, the defendant purchased a total of 19 firearms from a FFL on York Road in Warminster, PA, and that she made false statements during each of the purchases. Specifically, she allegedly certified on an official Firearm Transaction Record that she was the actual buyer, and that she lived at an address on Hartville Street in Philadelphia. According to the Indictment, Jones purchased firearms from manufacturers including Smith & Wesson, Ruger, Sig Sauer, and two .40 caliber Glocks, all for the purpose of reselling them for profit. The defendant was taken into custody and made her initial appearance in federal magistrate court on Friday, August 27.
“The purpose of our ‘All Hands On Deck’ initiative is, first and foremost, to prevent violent crime, which includes targeting for prosecution prolific straw firearms purchasers,” said Acting U.S. Attorney Williams. “This defendant’s alleged actions certainly fit that description. By charging crimes like straw purchasing of firearms, where firearms are purchased in order to turn them over to people who are prohibited from legally buying or possessing them, we can cut off the supply of illegal weapons at the source.”
“ATF remains dedicated to investigating violent crime and disrupting straw purchasing schemes as this indictment alleges,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “Together, with our law enforcement partners, we will continue to take measures to ensure the safety of our communities and stop the flow of guns to individuals who cannot legally purchase them.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of 35 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Justin Oshana.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced for Distributing Drugs in Butler CountyRead the Press Release
PITTSBURGH, PA – Nasir Sharpe was sentenced to 18 months in prison for distributing fentanyl, heroin, and cocaine within 1,000 feet of a school and playground, Acting United States Attorney Stephen R. Kaufman announced today.
Sharpe, age 23, formerly of Philadelphia, Pennsylvania, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered that Sharpe serve six years of supervised release following his prison term.
Sharpe moved to Butler County from Philadelphia and distributed fentanyl, heroin, and cocaine for a Butler-based drug trafficking crew between January and March 2020. Sharpe distributed fentanyl, heroin, and cocaine on a regular basis in Butler, including within 1,000 feet of a school and playground, until he returned to Philadelphia and was arrested there following a shootout on a public street in March 2020. Sharpe was on bond throughout this time period with pending charges for 2019 firearm possession crimes in Philadelphia.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction and sentence in this case.
Panama child pornography investigation leads to sentencing of young manRead the Press Release
BROWNSVILLE, Texas – An 18-year-old Brownsville man has been ordered to federal prison for possessing nearly 10,000 of images and videos of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Irbenis Mederos Jr. pleaded guilty April 27.
Today, U.S. District Judge Fernando Rodriguez ordered him to serve a 168-month sentence to be immediately followed by 10 years of supervised release. The court considered statements from many victims describing the trauma they’ve endured. In handing down the sentence, Judge Rodriguez additionally ordered that $36,000 in restitution be paid and divided equally amongst the 12 victims who requested restitution.
On Sep. 28, 2020, authorities discovered the sexual exploitation of a minor child via social media. It was determined she was an eight-year-old U.S. citizen residing in Panama.
The investigation led to an IP address in Brownsville belonging to Mederos. Law enforcement conducted a search at his residence and seized a cellphone. Forensic analysis resulted in the discovery of 1,229 images and 110 videos of child pornography, approximately 55 of which were of the minor female in Panama. Several others also depicted child pornography involving infants and toddlers.
Mederos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Panama conducted the investigation along with HSI-Rio Grande Valley Child Exploitation Investigation Task Force.
Assistant U.S. Attorney Nikki Piquette is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Omaha Man Sentenced to 188 Months’ Imprisonment for Possessing with the Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Daniel Cerna, Sr., age 38, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Possession with Intent to Distribute Methamphetamine. Senior United States District Court Judge Joseph F. Bataillon sentenced Cerna to 188 months’ imprisonment. Cerna also forfeited all rights to $4,251 in U.S. currency seized during the investigation. After completing his term of imprisonment, Cerna will be required to serve an 8-year term of supervised release. There is no parole in the federal system.
On July 19, 2018, Omaha Police Officers executed a search warrant on Cerna’s Omaha residence. Inside officers found Cerna, approximately 23 grams of actual methamphetamine, drug scales, numerous unused baggies, and $4,251 in U.S. currency. While officers were conducting the search, Cerna made a voluntary statement that all the drugs in the house were his.
This case was investigated by the Omaha Police Department.
Mobridge Man Convicted by Federal Jury for AssaultRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Luke Newton Mowrer, age 31, of Mobridge, South Dakota, was found guilty of Assault by Striking, Beating, or Wounding as a result of a two-day federal jury trial in Aberdeen, South Dakota. He was acquitted of two counts of Assault with a Dangerous Weapon and one count of Assault Resulting in Serious Bodily Injury.
The charge carries a maximum penalty of one year in federal prison and/or a $100,000 fine, one year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Mowrer was indicted by a federal grand jury on March 9, 2021.
The evidence at trial showed that on October 6, 2019, in McLaughlin, South Dakota, Mowrer voluntarily and intentionally assaulted an individual and caused an injury to the person. Mowrer was sitting in the back seat of a pickup truck when he assaulted the driver. He then fled the scene while the victim and others reported the crime and sought medical treatment. The victim suffered a cut to the neck. Mowrer had been drinking with the victim and some other acquaintances before the assault and unexpectedly lashed out in violence.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Mobridge Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Sentencing in the case was scheduled for November 15, 2021. The defendant was ordered to self-surrender to the custody of the U.S. Marshals Service on October 5, 2021.
Mineral County attorney sentenced for fraud chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Mark Sirk, an attorney who lives in Keyser, West Virginia, was sentenced today to three years of probation for a fraud charge, Acting United States Attorney Randolph J. Bernard announced.
Sirk, 63, pleaded guilty in April 2021 to one count of “Wire Fraud.” Sirk, a court-appointed attorney in Mineral County, admitted to submitting at least 33 fraudulent pay vouchers for his alleged public defender legal services. He also admitted to forging the signature of a Circuit Court Judge when submitting these vouchers. The crime occurred from December 2016 to June 2018 in Mineral County.
Sirk was also ordered to pay $34,773.68 in restitution.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Middlesex County Man Admits Lying in Employment Application with DEARead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted to lying about his educational background in his application for employment with the Drug Enforcement Administration (DEA), Acting U.S. Attorney Rachael A. Honig announced.
Gulshan Manko, 37, of Woodbridge, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements to federal agents.
According to documents filed in this case and statements made in court:
Manko submitted an application, referred to as an SF-86 Form, for employment as a federal agent with the DEA. Manko submitted fictitious academic transcripts from two higher education institutions located in New Jersey and represented that he had graduated from these two academic institutions. Manko made these statements in his employment application knowing that they were false in an attempt to gain employment with the DEA.
The count of providing false statements to which Manko pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, and special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit in Newark.
Massachusetts Man Sentenced to 33 Months for Seeking Sex with MinorRead the Press Release
CONCORD - Keith Colantonio, 39, of Milford, Massachusetts was sentenced to 33 months in federal prison for traveling with the intent to engage in illicit sexual conduct, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2019, members of the New Hampshire Internet Crimes Against Children Task Force (ICAC) conducted an undercover investigation targeting online sexual offenders. A detective created an undercover online persona of a 14-year-old girl residing in Nashua. Between May 21 and May 23, 2019, Colantonio engaged in sexually-charged conversations on social media with the undercover officer. On May 23, 2019, Colantonio traveled from Massachusetts to Nashua for the purpose of meeting the young girl to engage in illicit sexual conduct. When Colantonio arrived at the pre-determined location for the meeting, he was arrested.
Colantonio previously pleaded guilty on March 23, 2021.
“Dangerous predators lurk on the internet seeking to manipulate and sexually exploit young children,” said Acting U.S. Attorney Farley. “Thanks to good criminal investigative work, this defendant was unable to fulfill his unlawful goal of having sex with a young girl. As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute the criminals who threaten the well being of children in the Granite State.”
“We’re very satisfied with today’s sentence for this child sex predator who posed a clear threat to our communities based on his actions in this investigation” said Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations, (HSI) Boston. “Colantonio would likely have continued to victimize others were it not for the tireless work of our partners in the New Hampshire Internet Crimes Against Children Task Force. We also appreciate the continuing commitment of the U.S. Attorney for New Hampshire in seeking justice for the victims of child predators in our region.”
“The New Hampshire Internet Crimes Against Children Task Force is proud to partner with our Federal Law Enforcement partners at Homeland Security Investigations and the US Attorney’s Office in an effort to protect the children of New Hampshire. NH ICAC would like to remind parents to stay vigilant and talk with your children about their online activity. For more information please visit www.missingkids.org” said Lt. Eric Kinsman, Commander, NH ICAC Task Force.
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Maryland man sentenced for firearms offenseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alieu Crayton, of Silver Spring, Maryland, was sentenced today to 57 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Crayton, 22, pleaded guilty in September 2020 to one count of “Unlawful Possession of Firearms.” Crayton, a person prohibited from having firearms because of a prior conviction, admitted to having two pistols in October 2019 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland Man Pleads Guilty to Defrauding Customers in Scam Involving Fake Sales of PuppiesRead the Press Release
WASHINGTON – A Maryland man who advertised the sale of pit bull puppies on various websites pleaded guilty today to a scheme in which he generated at least $158,000 in money transfers from more than 100 victims who never got the dogs.
The guilty plea was announced by Acting U.S. Attorney Channing D. Phillips and Raymond Villanueva, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
Fonjeck Eric Azoh, 42, of Mount Rainier, Md., pleaded guilty to wire fraud. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. As part of the plea agreement, Azoh agreed that a restitution order of at least $158,000 is appropriate in the case. He also agreed to forfeit $67,000 seized by law enforcement during the investigation and pay an additional $92,000 forfeiture money judgment. Azoh will be sentenced in the U.S. District Court for the District of Columbia on Nov. 17, 2021, by the Honorable Carl J. Nichols.
According to the government’s evidence, between January 2019 and October 2020, Azoh offered the pit bull puppies, using various websites. He agreed to sell these puppies to victims living throughout the United States even though he never intended to provide them. Azoh directed victims to send money to him through money transfer businesses, which he then collected at retail stores and elsewhere. Throughout the scheme, Azoh collected at least $158,000 from at least 119 victims who lived in 40 different states.
Azoh was arrested in January 2021 and has been in custody ever since.
In announcing the plea, Acting U.S. Attorney Phillips and Special Agent in Charge Villanueva commended the work of those who investigated the case from HSI. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney John W. Borchert, who prosecuted the case.
Marion County Woman Sentenced to Prison for Defrauding her Employer of $550,000Read the Press Release
DES MOINES, IA – On August 30, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced Melissa Deann Authier, age 36, of rural Pleasantville, to 33 months in prison for Wire Fraud announced Acting United States Attorney Richard D. Westphal. Authier was ordered to serve three years of supervised release to follow her prison term and pay Jolly Farms, Inc. $550,000 in restitution.
According to court documents, Authier was hired by Jolly Farms in early 2016 to provide bookkeeping services in support of a farming operation and tiling business that operated from rural Pleasantville. From early 2016 and continuing through February 2019, Authier devised and participated in a scheme to defraud Jolly Farms of monies. In total, Authier directed $550,000 of Jolly Farms’ monies to her own benefit without authorization. Authier stole through various means, including by paying Authier’s and Authier’s husband’s credit cards with Jolly Farms’ monies without authorization. Authier also repeatedly used, without authorization, credit cards issued to Jolly Farms to charge purchases and services that were for the benefit of Authier and her family; Authier then paid for those bills with Jolly Farms’ monies. In addition, Authier issued unauthorized paychecks to herself.
This case was investigated by the Federal Bureau of Investigation and the Marion County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Adam J. Kerndt.
Manor Man Sentenced to over 13 Years in Prison for Armed RobberyRead the Press Release
AUSTIN – A Manor man was sentenced on Friday to 161 months in prison for robbing a pawn store at gunpoint.
According to court documents, Joe Quinonez Jr., 32, was charged with one count of violating the Hobbs Act or interfering with commerce by threats of violence. On January 2, 2021, Quinonez entered a Cash America Pawn store in Austin and brandished a firearm at two persons in the store while robbing the store of firearms. In addition, Quinonez was charged with discharging a firearm during the robbery. Quinonez pleaded guilty to the charges on June 15, 2021.
Quinonez was arrested by officers of the Austin Police Department on January 6, 2021 and has remained in custody since his arrest.
“Violent conduct like the armed robbery in this case will not be tolerated in our community,” said U.S. Attorney Ashley C. Hoff. “When there is federal jurisdiction, our office will continue to vigorously prosecute such conduct in order to protect the public and bring justice for innocent victims.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division said, “ATF is committed to relentlessly pursuing those that commit violent acts with firearms against our communities. This criminal was an extremely dangerous trigger puller who will now be in a place where he cannot cause harm to the public. The sentencing shows what can result when federal and local law enforcement work together to tackle crime.”
ATF investigated the case. Assistant U.S. Attorney Keith Henneke prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lincoln County Woman Sentenced to Serve More Than 21 Years in Federal Prison for Second-Degree Murder in Connection with a House FireRead the Press Release
OKLAHOMA CITY - Today, DESMA VALDEZ, 20, of Lincoln County, was sentenced to more than 21 years in federal prison for second-degree murder in connection with a house fire in Indian Country, announced Acting U.S. Attorney Robert J. Troester.
On January 21, 2020, a federal grand jury returned a six-count Indictment charging Valdez with two counts of first-degree murder, two counts of second-degree murder, arson, and using fire and explosives to commit a felony. On March 10, 2021, Valdez pleaded guilty to the two counts of second-degree murder.
The case stemmed from a fire on December 28, 2019, at a trailer home on tribal land of the Kickapoo Tribe of Oklahoma. Public records reflect that Valdez deliberately set fire to the trailer home in which her sister and her sister’s boyfriend slept. Both victims died in the fire. The case was charged in federal court because the crime took place in Indian Country and Valdez is an Indian.
Today, U.S. District Judge Bernard M. Jones sentenced Valdez to serve 262 months in federal prison, followed by five years of supervised release. In imposing the sentence, Judge Jones noted the seriousness of the offense, including the impact to both the victims and the families of the victims. Valdez has been in federal custody since her arrest on January 1, 2020.
This case is a result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division, the Kickapoo Tribal Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bureau of Indian Affairs. Assistant U.S. Attorneys Mark Stoneman and Thomas B. Snyder prosecuted the case.
Reference is made to public filings for more information.
Justice Department and Office of the Comptroller of the Currency Announce Actions to Resolve Lending Discrimination Claims Against Cadence BankRead the Press Release
The Justice Department and the Office of the Comptroller of the Currency (OCC) today announced coordinated actions to address allegations of lending discrimination by Cadence Bank N.A.
The department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, metro area. Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. “Redlining” is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race, color or national origin of the people who live in those communities.
Additionally, Cadence’s prudential regulator, the OCC, announced today that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint. The department opened its investigation after the OCC referred the matter.
The Justice Department’s settlement will resolve a lawsuit filed today in the U.S. District Court for the Northern District of Georgia. In its complaint, the department alleges that Cadence Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending services. Specifically, the complaint alleges that, from 2013 to 2017, Cadence engaged in unlawful redlining in the Houston area by avoiding predominantly Black and Hispanic neighborhoods because of the race, color and national origin of the people living in those neighborhoods. The department also alleges that Cadence’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods and that the bank’s outreach and marketing avoided those neighborhoods.
“When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Redlining is an illegal practice that has far-reaching consequences for people of color, their families and for the neighborhoods where they live. The Civil Rights Division will continue to enforce our nation’s fair lending laws to ensure that qualified applicants and borrowers can access credit and invest in their financial futures without facing unlawful barriers.”
“There is no place for discrimination in the federal banking system,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”
“The Fair Housing Act and Equal Credit Opportunity Act are intended to provide equal treatment for all people in their pursuit of home ownership and financing,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “This case highlights the need for vigilance in addressing practices which treat certain communities unfairly and has led to an agreement with Cadence Bank intended to improve the fairness of its business practices and to make remedial financial investments in the negatively impacted communities. This office will continue in its efforts to eliminate housing and credit discrimination.”
Under the department’s settlement, which was approved by the District Court on Aug. 31, 2021, Cadence will invest $4.17 million in a loan subsidy fund for residents of predominantly Black and Hispanic neighborhoods in the Houston area, $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods, and at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives. The bank will dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods. Cadence will employ a director of community lending and development who will oversee these efforts and work in close consultation with the bank’s leadership. The bank will take these steps in addition to other fair lending measures it has already put in place.
Cadence Bank’s assets total over $18 billion. In addition to Texas, the bank has branches in Alabama, Florida, Georgia, Mississippi and Tennessee. Its mortgage lending in the Houston area accounts for approximately 40 percent of its total home mortgage business.
The department’s Civil Rights Division and the OCC have long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin, and regardless of the neighborhood where they live. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.” See Memorandum on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, The White House (Jan. 26, 2021).
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Justice Department and Office of the Comptroller of the Currency Announce Actions to Resolve Lending Discrimination Claims Against Cadence BankRead the Press Release
ATLANTA – The Justice Department and the Office of the Comptroller of the Currency (OCC) announced coordinated actions to address allegations of lending discrimination by Cadence Bank, N.A. The Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, Georgia, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, Texas, metro area. Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. “Redlining” is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race, color, or national origin of the people who live in those communities.
“The Fair Housing Act and Equal Credit Opportunity Act are intended to provide equal treatment for all people in their pursuit of home ownership and financing. This case highlights the need for vigilance in addressing practices which treat certain communities unfairly, and has led to an agreement with Cadence Bank intended to improve the fairness of its business practices and to make remedial financial investments in the negatively impacted communities,” said Acting U.S. Attorney Kurt R. Erskine. “This office will continue in its efforts to eliminate housing and credit discrimination.”
“When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Redlining is an illegal practice that has far-reaching consequences for people of color, their families and for the neighborhoods where they live. The Civil Rights Division will continue to enforce our nation’s fair lending laws to ensure that qualified applicants and borrowers can access credit and invest in their financial futures without facing unlawful barriers.”
“There is no place for discrimination in the federal banking system,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”
Additionally, Cadence’s prudential regulator, the OCC, announced today that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint. The department opened its investigation after the OCC referred the matter.
The Justice Department’s settlement will resolve a lawsuit filed today in the U.S. District Court for the Northern District of Georgia. In its complaint, the department alleges that Cadence Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services. Specifically, the complaint alleges that, from 2013 to 2017, Cadence engaged in unlawful redlining in the Houston area by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in those neighborhoods. The department also alleges that Cadence’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, and that the bank’s outreach and marketing avoided those neighborhoods.
Under the department’s settlement, which is subject to approval by the District Court, Cadence will invest $4.17 million in a loan subsidy fund for residents of predominantly Black and Hispanic neighborhoods in the Houston area, $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods, and at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives. The bank will dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods. Cadence will employ a director of community lending and development who will oversee these efforts and work in close consultation with the bank’s leadership. The bank will take these steps in addition to other fair lending measures it has already put in place.
Cadence Bank’s assets total over $18 billion. In addition to Texas, the bank has branches in Georgia, Alabama, Florida, Mississippi, and Tennessee. Its mortgage lending in the Houston area accounts for approximately 40 percent of its total home mortgage business.
The department’s Civil Rights Division and the OCC have long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin, and regardless of the neighborhood where they live. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.” See Memorandum on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, The White House (Jan. 26, 2021).
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Assistant U.S. Attorney Y. Soo Jo is handling this matter for the Northern District of Georgia.
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.
Justice Department and EPA Reach Clean Air Act Settlement with Gear Box Z for Selling Defeat DevicesRead the Press Release
Arizona-based Gear Box Z (GBZ) has agreed to stop manufacturing and selling aftermarket automotive products widely known as “defeat devices,” that, when installed, bypass, defeat or render inoperative Environmental Protection Agency (EPA)-certified emission controls on motor vehicles thereby increasing emissions and harming air quality.
In January 2020, the United States sued GBZ, which manufactured and sold thousands of defeat devices, alleging that these devices violated the Clean Air Act (CAA). In March 2021, the court found that the United States would likely prevail on the merits of its case that GBZ’s products are defeat devices, and issued a preliminary injunction ordering GBZ to immediately halt the illegal sale of the devices. In its decision, the court found that the continued selling of these defeat devices would cause irreparable harm by increasing motor vehicle emissions that impair human health and the environment.
“This lawsuit and settlement show that the United States will vigorously enforce the Clean Air Act, including its prohibition of illegal devices that disable emission controls and harm the environment and public health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD).
“Defeat devices in automobiles and trucks can significantly increase emissions of hazardous air pollutants,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Businesses manufacturing and selling illegal aftermarket defeat devices should take note that this is a priority enforcement focus for EPA and we will continue to actively investigate these violations of the Clean Air Act.”
The settlement prohibits GBZ from manufacturing and selling any defeat devices; it also bars GBZ and its owners from selling or transferring any intellectual property associated with these products, providing technical support for these products, and investing in or obtaining revenue from other companies’ manufacture and sales of defeat devices. Under the settlement, GBZ and its owners will pay a civil penalty of $10,000, which was based on their financial situation.
Tampering with diesel-powered vehicles by installing defeat devices can cause large amounts of nitrogen oxide (NOx) and particulate matter emissions, both of which contribute to serious public health problems. EPA expects that GBZ’s defeat devices will cause excess NOx and particulate matter emissions over the anticipated remaining life of the diesel pickup trucks equipped with them. By stopping the manufacture and sale of these products, this settlement will prevent harmful emissions from diesel trucks that, if outfitted with GBZ’s products, would pollute far more than the regulations allow. Such emissions can cause premature death, aggravation of respiratory and cardiovascular disease, aggravation of existing asthma, acute respiratory symptoms, chronic bronchitis, and decreased lung function. Numerous studies also link diesel exhaust to increased incidence of lung cancer. Respiratory issues disproportionately affect families, especially children, living in underserved communities overburdened by pollution. Stopping the sale and use of defeat devices will help prevent harmful air pollution that exacerbates the health effects of pollutant exposures.
Stopping the manufacture, sale, and installation of defeat devices on vehicles and engines used on public roads as well as on nonroad vehicles and engines is a priority for EPA. To learn more, visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The consent decree for this settlement was lodged in the U.S. District Court for the District of Arizona and is subject to a 30-day public comment period and final court approval. A copy of the decree, and information on submitting comments will be available on the Department of Justice website at: www.justice.gov/enrd/consent-decrees.
For more information on this settlement: https://www.epa.gov/enforcement/gear-box-z-inc-clean-air-act-settlement.
If you suspect someone is manufacturing, selling, or installing illegal defeat devices, or is tampering with emission controls, tell the EPA by writing to [email protected]
Greenwich Resident Admits Defrauding Investors of Nearly $1.5 MillionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that SAMUEL KLEIN, 65, of Greenwich, pleaded guilty today to fraud and money laundering offenses stemming from an investment fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, Klein controlled several different entities, including Visual Group LLC; O.S. Management, LLC; KF Pecksland LLC; Four Pines Holdings, LLC; and Payton Lane NH, Inc. In 2018, Klein made false representations to a victim investor, including that the victim’s funds would be invested in distressed debt, when Klein knew that all of the investment funds would not be used for the stated purposes. Based on these false representations, the victim investor wrote a check in the amount of $200,000 to Visual Group LLC for the purpose of making a purported investment in distressed debt. Klein caused the check to be transported from New York to Connecticut and deposited into a bank account in the name of Visual Group LLC. Klein subsequently solicited and received approximately $50,000 in additional funds from the victim investor.
The investigation further revealed that, from approximately July 2016 through at least June 2019, Klein defrauded three additional victim investors of a total of more than $1.2 million by making multiple false statements and misrepresentations.
Klein knew that all of the funds solicited from the victim investors would not be used for his stated purposes, and instead would be utilized by Klein for personal and other expenditures.
Klein pleaded guilty to one count of interstate transportation of property taken by fraud and one count of money laundering. Each offense carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 22, 2021, in New Haven.
Klein has agreed to pay restitution in the amount of $1,497,797.52.
Klein is released on a $500,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and David T. Huang.
Former Netflix engineer pleads guilty to insider tradingRead the Press Release
Seattle – A former Netflix software engineer, and his brother pleaded guilty today in U.S. District Court in Seattle to securities fraud for their roles in an insider trading ring that generated more than $1 million in illegal proceeds, announced Acting U.S. Attorney Tessa M. Gorman. Sung Mo Jun, 49, of Bellevue, Washington, and his brother, Joon Jun, 45, of Issaquah, Washington, were charged along with two others earlier this month with insider trading in Netflix securities. The Jun brothers are scheduled to be sentenced by U.S. District Judge Richard A. Jones on December 3, 2021.
According to the plea agreement, from July 2016 to February 2017, Sung Mo Jun was employed by Netflix as a software engineer. He had access to subscriber data and had been trained by the company that such data was material, non-public information. Nevertheless, Jun disclosed that information to his brother Joon Jun, and his close friend, Junwoo Chon, 50, of Bellevue, Washington, with the knowledge that the two intended to use the information to profit on the purchase and sale of Netflix securities. After Chon made significant profits on the securities, he secretly provided Sung Mo Jun with $60,000 in cash as Sung Mo Jun’s share of the profits.
After Sung Mo Jun left Netflix, he obtained additional non-public information about subscriber data from another Netflix employee, software engineer Ayden Lee, 33, of San Jose, California. Jun not only passed that information on to his brother and Chon, he also used it to make his own trades. Between April 2017 and July 2019, Sung Mo Jun made a profit of $434,086 by trading in Netflix stock and options with this inside information. Between July 2016 and April 2017, Jun’s brother, Joon Jun, made $215,419 and co-conspirator Junwon Chon made $521,400. All told, the insider trading attributable to Sun Mo Jun in Netflix securities resulted in an illicit gain of $1,170,905.
Sung Mo Jun also obtained insider information from a “tipper” he knew at another tech company, and shared this information with his brother and Chon. Their profits from trading on that inside information was less than $2,000.
Joon Jun is responsible for illicit profits of $1,106.208. Chon is responsible for illicit profits of $1,642,855, and Lee is connected to illicit profits of $453,465.
Chon pleaded guilty August 18, 2021. Lee is the last to have a plea hearing, which is not yet scheduled.
Insider trading is punishable by up to 20 years in prison and a $5 million fine. The judge will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Securities and Exchange Commission (SEC) has filed a separate civil enforcement action against the defendants who have each entered into settlements with the SEC.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Justin Arnold.
Former Federal Protective Service Commander Pleads Guilty to Conspiracy and Wire Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — Joshua Bilal George, 38, of San Diego, pleaded guilty today to conspiracy to defraud the United States and wire fraud, Acting U.S. Attorney Phillip A. Talbert announced.
This is the third and final defendant to plead guilty in this case involving a conspiracy and scheme to defraud the Social Security Administration (SSA). Co-defendants Eric Lemoyne Willis and Darron Dimitri Ross pleaded guilty to similar charges in June 2019 and February 2020, respectively.
According to court documents, George worked for the Federal Protective Service (FPS) in Sacramento between 2011 and 2015, and in San Diego thereafter where he was promoted to the position of Area Commander. Willis worked as an SSA Operations Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. George met Willis through his work at FPS in Sacramento and knew Ross from his childhood in North Carolina.
Between January 2016 and October 2018, George, Willis, and Ross conspired to steal public money from the SSA. Willis used his authority as an SSA employee to access the confidential Social Security records of numerous beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Additionally, Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. He then transferred this information to Ross in North Carolina, who in turn transferred it to George.
Ross and George’s roles in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 70 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims and caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. Before the fraud could be detected, the SSA deposited the benefit payments into the fraudulent accounts. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.
SSA has identified over 200 beneficiaries nationwide who were targeted by these crimes, and the total loss has exceeded $695,000. The defendants spent the proceeds of their crimes on trips to Las Vegas, luxury items such as Rolex watches, and other things.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security – Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
George is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 15, 2021. Willis and Ross are scheduled to be sentenced on Dec. 6, 2021, and Jan. 31, 2022, respectively. George faces a maximum statutory penalty of 25 years in prison and a $500,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Department of Unemployment Assistance Employee Pleads Guilty to Fraud and Identity Theft Charges Related to COVID-19 PandemicRead the Press Release
BOSTON – A former employee of the Massachusetts Department of Unemployment Assistance (DUA) pleaded guilty today to fraud and identity theft charges arising from her claims for Pandemic Unemployment Assistance (PUA) funds.
Tiffany Pacheco, a/k/a Tiffany Tavery, 35, formerly of New Bedford, pleaded guilty to six counts of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 12, 2022. She was indicted in January 2021 along with her husband, Arthur Pacheco, who pleaded guilty in July 2021 and is scheduled to be sentenced on Nov. 18, 2021.
Tiffany Pacheco was hired by the DUA in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany Pacheco misused her position to submit fraudulent PUA claim information on behalf of herself and Arthur Pacheco, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.
Specifically, in June 2020, PUA claims submitted for Tiffany Pacheco and her husband reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA, Tiffany Pacheco obtained access to the PUA computer system, and later changed claim information for herself and Arthur Pacheco in order to increase the amount of PUA funds they would receive. For example, Tiffany Pacheco increased the amount of 2019 income for her and Arthur Pacheco to more than $240,000 and increased the number of their dependents to seven. Tiffany Pacheco further used her access to the PUA system to verify the increased 2019 income on both claims without the required income verification documents.
In November 2020, Arthur Pacheco called DUA and falsely denied that he had been incarcerated during the timeframe leading up to September 2020, and that he was only incarcerated for approximately one month. Tiffany Pacheco also spoke with DUA and misrepresented the period of time in which Arthur Pacheco had been incarcerated.
A search of the New Bedford apartment where Tiffany and Arthur Pacheco resided uncovered various tools of identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately $17,000 cash and a notebook that appeared to contain the personal identifying information of various individuals. In addition, a driver’s license recovered during the search matched the name of a victim Tiffany Pacheco used to submit another fraudulent PUA claim. On Sept. 23, 2020, DUA terminated Tiffany Pacheco’s employment.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division and Assistant U.S. Attorney Dustin Chao, Chief of Mendell’s Public Corruption and Special Prosecutions Unit, are prosecuting the case.
Former Chiropractor Sentenced to Federal Prison for Distribution of OxycodoneRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man was sentenced to federal prison today for distributing oxycodone pills acquired from dozens of fraudulent prescriptions, one of which led to the overdose death of Starlin Swan, a 26-year-old woman.
Mark Steven Gardner, 33, was sentenced by the Honorable Michael W. Mosman to 50 months in federal prison followed by 3 years of supervised release.
“The opioid epidemic has cost more than 500,000 American lives. The death toll in this country is staggering and the tragic loss that surviving family members must endure is devastating. This prosecution represents our office’s firm commitment to hold those accountable who unlawfully distribute controlled substances that results in death.” said Acting United States Attorney, Scott Erik Asphaug.
In November 2015, Gardner, a chiropractor, stole a prescription pad from a physician with whom he shared his Portland office building. Over the next four months, Gardner used the doctor’s name to forge fraudulent oxycodone prescriptions. Gardner instructed others to fill the prescriptions at times when he knew the doctor’s office, to which he had access, was closed. Gardner would then enter the doctor’s office, answer the doctor’s office phone, and pose as the doctor to verify the authenticity of the prescriptions when contacted by pharmacies. The individuals filling the prescriptions would typically give Gardner half of the pills received.
On January 8, 2016, Gardner called 911 to report finding a female friend unresponsive. Paramedics arrived on scene and found Ms. Swan deceased. A subsequent autopsy and toxicology examination revealed that Ms. Swan had died of an oxycodone overdose.
On the afternoon before Ms. Swan’s death, Gardner forged a prescription for Ms. Swan for 90 30mg pills of oxycodone. The prescription was filled the same day, although the pharmacy only filled it for 60 oxycodone pills.
In total, Gardner forged 48 prescriptions for 25 different recipients, including some scripts that were written after the overdose death of Ms. Swan. A total of 2,352 30mg oxycodone pills were fraudulently dispersed because of Gardner’s scheme. Following the discovery of the script forgeries, Gardner was stripped of his chiropractic license.
On May 15, 2019, a federal grand jury in Portland returned a three-count indictment charging Gardner with distribution of oxycodone resulting in death; distribution of oxycodone; and acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. On April 19, 2021, he pleaded guilty to unlawful distribution of oxycodone.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement. This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Clackamas County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
Former Big Sandy Prison Employee Sentenced for Methamphetamine Trafficking and Bribery ChargesRead the Press Release
LEXINGTON, Ky. — A former Cook Supervisor at United States Penitentiary Big Sandy, Hank Williams, 56, of Weeksbury, Kentucky, was sentenced Monday to 210 months in federal prison, by Senior U.S. District Judge Joseph M. Hood, following his convictions for conspiracy to distribute 50 grams or more of methamphetamine, accepting a bribe by a public official, and using a communication device to facilitate a felony offense.
According to Williams’ plea agreement, he admitted to conspiring with an inmate, Librado Navarette, 34, and others, to distribute 50 grams or more of methamphetamine. Williams, a public official, also accepted bribes from Navarette, and others, and used the U.S. mail to possess and distribute the controlled substances.
Williams pleaded guilty in June 2021. Navarette pleaded guilty in July 2021 and is scheduled to be sentenced in October.
Under federal law, Williams must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; William Hannah, Special Agent in Charge, Department of Justice- Office of Inspector General, Chicago Field Office, Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, announced the sentence.
The investigation was conducted by the Department of Justice’s Office of the Inspector General, the FBI, the United States Postal Inspection Service, and the Georgetown Police Department. The United States was represented by Assistant U.S. Attorney Ron Walker.
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Florida Man Sentenced for Stealing FirearmsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Sandra J. Stewart announced that a Florida man has been sentenced for stealing guns from a licensed firearms dealer in Dothan, Alabama. On August 24, 2021, 30-year-old Tevin Michael Coffman was sentenced to 72 months in prison for unlawfully taking a firearm from a federal firearms licensee, possession of stolen firearms, and being a felon in possession of a firearm. Following his prison sentence, Coffman will serve three years of supervised release. There is no parole in the federal system. Coffman pleaded guilty to all three charges on March 3, 2021.
According to court records and statements made in court, on March 22, 2020, Gander Outdoors, a business authorized to sell firearms in Dothan, Alabama, was burglarized and multiple guns were stolen. Surveillance footage showed someone entering the store, smashing the glass casing of a firearm display counter, and removing thirteen handguns. The suspect then placed the guns into a black bag and left the store. The Dothan Police Department began an investigation and, after reviewing video footage along with other evidence, developed Coffman as a suspect. Shortly afterwards, Coffman was spotted driving a recreational vehicle (RV) that had also been stolen from Gander Outdoors. Officers conducted a traffic stop of the RV and took him into custody. When they searched the vehicle, officers discovered the stolen firearms and other items used during the burglary. Coffman has previous felony convictions and is prohibited from possessing a firearm.
This case was investigated by the Dothan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Mark E. Andreu prosecuted the case.
Federal Charges Filed in Deadly East St. Louis Bank RobberyRead the Press Release
EAST ST. LOUIS, Ill. – Two East St. Louis men are facing federal charges today for a deadly bank
robbery over the weekend. Jaylan D. Quinn, 22, and Andrew R. Brinkley, 19, have been charged in a
two-count criminal complaint for the August 27 armed robbery of the First Bank in East St. Louis
that resulted in the murder of security guard Ted Horn.“The shooter rightly faces life in federal prison. Armed violence is intolerable in any civilized
society, and we are resolved that a firm and definite measure of justice will be imposed in this
case,” said U.S. Attorney Steven D. Weinhoeft. “The public should be reassured by the professional
work led by the FBI, with outstanding support from the Illinois State Police Public Safety
Enforcement Group and the East St. Louis Police Department. These officers worked around the clock
from the moment of the killing to ensure that the suspects will face a swift and certain outcome in
the federal system.”“The FBI offers our deepest condolences to the family of security guard Ted Horn, whose life was
senselessly taken in a vicious act of violence,” said FBI-Springfield’s Acting Special Agent in
Charge Timothy Ferguson. “This case demonstrates the tenacity of the FBI and our law enforcement
partners in investigating and identifying the subjects swiftly. We thank the public for their
vigilance, as well as our media partners who provided critical details to the communities. The
FBI’s commitment to justice remains at the forefront of every investigation, and we remain
dedicated to ensuring those responsible are held accountable for their actions.”The federal complaint filed this afternoon alleges that at approximately 4:00 pm on August 27, two
masked men entered the First Bank located at 350 River Park Drive in East St. Louis. After they
approached the tellers, one of the men, who was wearing a white face mask, put a demand note on the
counter which read, “I GOT A BOMB STRAPPED TO MY CHEST PUT ALL THE MONEY IN OR EVERYONE DIE.” The
bank teller gave the man some money, and the two robbers turned away from the counter and headed
toward the doors.Ted Horn, 56, of St. Libory, Illinois, was working at the bank that day as a uniformed security
guard. Horn moved to intercept the two men before they could leave. The man wearing the white face
mask pushed past Horn and ran out of the bank. The second man, who was wearing a black face mask,
drew
a semi-automatic handgun and shot Horn in the head. The robbers then fled in a white Lexus sedan.Horn was pronounced dead at the scene. He is survived by his wife, two adult sons,
and three grandchildren. A memorial service will be held at noon on September 4 at
Wenneman Park in Marissa, Illinois.The release of photos from the bank surveillance video quickly led to the identification of Andrew
R. Brinkley as a suspect. By 2:00 p.m. the following day, FBI surveillance of Brinkley’s residence
on North 13ᵗʰ Street in St. Louis resulted in the arrest of Brinkley and Quinn. Agents executed a
search warrant at the residence and recovered a loaded 9mm handgun, two marked bills that were
taken during the First Bank robbery, and clothing that matched what the robbers wore. A white Lexus
sedan was found parked outside the residence.The complaint identifies Quinn as the man who shot Horn and charges him with armed bank robbery
resulting in death. By law, he could receive life in prison or possibly even the death penalty.
Brinkley is charged with bank robbery, which carries up to 20 years in prison, a $250,000 fine, and
up to 3 years of supervised release.A criminal complaint is a formal charge against a defendant that is comprised of the essential
facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a
charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.A date for the defendants’ initial appearance in federal court has not been set.
The case is being investigated by FBI-Springfield, with assistance from the Illinois State Police
and the East St. Louis Police Department.
Faribault Man Sentenced to 75 Months in Prison for Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Faribault man was sentenced today to 75 months in prison followed by two years of supervised release for possessing a firearm as a felon.
According to court documents, on June 15, 2020, multiple law enforcement agencies executed a search warrant at a Faribault residence belonging to Andrew Albert Comeaux, 38. During the search, law enforcement found a Mossberg 702 Plinkster .22 caliber rifle, a Mosin-Nagant 7.62x54R rifle, several boxes of .223 caliber ammunition, methamphetamine, psilocybin mushrooms, and numerous items of drug paraphernalia. Comeaux also admitted to possessing an unserialized AR-15 style pistol with a large capacity magazine and a homemade silencer. Because Comeaux has prior felony convictions in Blue Earth County and in Le Sueur County, he is prohibited under federal law from possessing firearms or ammunition.
On February 3, 2021, Comeaux pleaded guilty to one count of possessing a firearm as a felon.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, the South Central Drug Task Force, the Cannon River Drug Task Force, Rice and Steel County Sheriff’s Offices, the Faribault and Owatonna Police Departments, Metro SWAT, and the St. Paul Bomb Squad, with coordination from the Rice County Attorney’s Office.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Ex-Chairman of Los Angeles-Based Church Sentenced to More Than 10 Years in Federal Prison for Stealing $11 Million in Church FundsRead the Press Release
LOS ANGELES – The former chairman of the board of the Fifth Church of Christ, Scientist, of Los Angeles was sentenced today to 130 months in federal prison for stealing more than $11 million in church funds.
Charles Thomas Sebesta, 56, of Huntington Beach, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $11,438,213 in restitution. Sebesta pleaded guilty in February 2020 to one count of wire fraud and one count of bank fraud. He has been in federal custody since his arrest in August 2019.
The church hired Sebesta in 2001 as its facilities manager. He joined the church four years later and ultimately served as its chairman, giving him control over the church branch’s financial assets and operations, including some of its bank accounts.
From at least August 2006 through December 2016, Sebesta caused the church to make checks and other payments to banks accounts in the name of fictitious companies he created, as well as to bank accounts he held in his own name and in the names of his family members and a female companion. To further conceal these payments, Sebesta forged a church member’s signature on numerous checks drawn against the church’s bank accounts.
In the fall of 2008, Sebesta oversaw the sale of church property in Hollywood for approximately $12.8 million. Sebesta stole a significant majority of the proceeds for his personal use, including purchasing a home with more than $2 million in cashier’s checks drawn from church bank accounts. The checks were falsely recorded in church records as “donations” and environmental remediation payments to a fictitious “Sky Blue Environmental” company.
In 2009 and 2010, Sebesta used church money to wire $1.86 million and $309,622 to be credited to his own personal tax accounts to generate overpayment refunds from the U.S. Treasury and the California Franchise Tax Board, respectively.
To conceal his crimes, Sebesta impersonated a real estate developer by creating an email account in the executive’s name. Posing as the developer, Sebesta sent emails to church members in which he fraudulently represented that the real estate developer held Sebesta in high esteem and was making donations to the church and paying the rent for the church’s new location.
In total, Sebesta stole at least $11,438,213 of church assets.
“Having wrested operational and financial control of the Church from its elderly members by 2006, [Sebesta] began a 10-year spree in which he treated the Church and its considerable assets as his own personal piggy bank,” prosecutors wrote in a sentencing memorandum. “[Sebesta] stole $11,438,213 and destroyed a venerable church, its congregation, and the faith its congregants had in one another by employing sophisticated means to abuse his position of trust and cause the Church not only substantial, but ruinous, financial hardship.”
Sebesta also defrauded another former employer – a private high school in Los Angeles County – out of $34,032 and embezzled $36,282 that a donor’s estate had donated to the church.
The United States Secret Service investigated this matter.
Assistant United States Attorneys Adam P. Schleifer and Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.
El Departamento de Justicia y la Oficina del Controlador de la Moneda anuncian medidas para resolver reclamaciones de discriminación en el ámbito crediticio contra el banco Cadence BankRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia y la Oficina del Controlador de la Moneda (OCC, por sus siglas en inglés) anunciaron hoy una serie de medidas coordinadas para hacer frente a alegaciones de discriminación en el ámbito crediticio por parte del banco Cadence Bank, N.A. La División de Derechos Civiles del Departamento y la Fiscalía Federal para el Distrito Norte de Georgia anunciaron un acuerdo para la resolución de alegaciones de que Cadence Bank, con sede en Atlanta, Georgia, discriminó en el ámbito crediticio al «excluir» a barrios cuyos residentes son principalmente negros e hispanos en la zona metropolitana de Houston, Texas. Conforme la conciliación del Departamento, Cadence invertirá más de $5.5 millones para aumentar el número de oportunidades crediticias de residentes de aquellos barrios. La «exclusión» es una práctica ilegal en la que prestamistas evitan la prestación de servicios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de las personas que viven en tales comunidades.
Además, el regulador prudencial de Cadence, la OCC, anunció hoy que ha aplicado una sanción al banco por un importe que asciende a $3 millones, en conexión con las infracciones alegadas en la demanda del Departamento. Después de que la OCC refirió el asunto, el Departamento inició su investigación.
El acuerdo del Departamento de Justicia resolverá un pleito entablado hoy ante el Tribunal Federal de Distrito para el Distrito Norte de Georgia. En su demanda, el Departamento alega que Cadence Bank vulneró la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, las que prohíben que las instituciones financieras discriminen a los individuos por motivos de su raza, color de piel u origen nacional en sus servicios de financiación hipotecaria. En concreto, la denuncia alega que, entre el 2013 y el 2017, Cadence empleó medidas ilegales de exclusión en la zona de Houston al evitar barrios cuyos residentes eran principalmente negros o hispanos, por motivos de la raza, el color de piel o el origen nacional de las personas que vivían en tales barrios. Asimismo, el Departamento alega que las sucursales de Cadence estaban concentradas en barrios donde la mayoría eran blancos, que los oficiales de crédito del banco no satisfacían las necesidades de barrios donde la mayoría eran negros o hispanos y que el alcance y mercadeo del banco evitaban esos barrios.
«Cuando los bancos no facilitan la igualdad de acceso al crédito en comunidades de color, están vulnerando nuestras leyes de derechos civiles y privando a la gente en esas comunidades de la oportunidad de generar riqueza», afirmó Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La exclusión es una práctica ilegal que tiene consecuencias de gran alcance para personas de color, sus familias y los barrios en los que viven. La División de Derechos Civiles seguirá haciendo cumplir las leyes de préstamos justos para asegurar que solicitantes y prestatarios cualificados puedan acceder al crédito e invertir en sus futuros financieros sin enfrentarse a barreras ilegales».
«No hay lugar para la discriminación en el sistema bancario federal», declaró el Controlador Interino de la Moneda, Michael J. Hsu. «La OCC empleará toda la fuerza de nuestra autoridad para corregir infracciones de las leyes de préstamos justos mediante nuestras herramientas de supervisión y aplicación, entre ellas sanciones civiles monetarias, ordenes de cese y requerir restitución para consumidores perjudicados como resultado de cualquier práctica discriminatoria que hubiese».
«El propósito de ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito es tratar por igual a todo individuo durante el proceso de comprar y financiar una casa», dijo el Fiscal Federal Interino para el Distrito Norte de Georgia, Kurt R. Erskine. «Este caso resalta la necesidad de vigilancia a la hora de abordar prácticas que tratan a ciertas comunidades de una forma injusta y ha llevado a un acuerdo con Cadence Bank, el propósito del cual es mejorar la justicia de sus prácticas empresariales y realizar inversiones financieras correctivas en las comunidades impactadas. Esta oficina seguirá luchando por eliminar la discriminación en la vivienda y el ámbito crediticio».
Conforme la conciliación del Departamento, que fue aprobada por el Tribunal Federal de Distrito el 31 de agosto del 2021, Cadence invertirá $4.17 millones en un fondo de préstamos subsidiados para residentes de barrios en la zona de Houston cuyos residentes son principalmente negros o hispanos, $750,000 en la formación de alianzas comunitarias para la prestación de servicios que mejoran el acceso a créditos hipotecarios residenciales en esos barrios y al menos $625,000 en iniciativas de publicidad, alcance comunitario, educación financiero para el consumidor y reparaciones de crédito. El banco dedicará al menos cuatro oficiales de crédito hipotecario a barrios de mayoría negra o hispana en Houston y abrirá una nueva sucursal en uno de esos barrios. Cadence empleará a un director de desarrollo y préstamos comunitarios que supervisará estos esfuerzos y trabajará en estrecha consulta con el liderazgo del banco. El banco tomará estas medidas, además de otras medidas de préstamos justos que ya ha implementado.
Los activos de Cadence Bank ascienden a más de $18 mil millones. Además de Texas, el banco tiene sucursales en Alabama, Florida, Georgia, Mississippi y Tennessee. Sus préstamos hipotecarios en la zona de Houston representan aproximadamente el 40 por ciento de sus negocios hipotecarios residenciales.
La División de Derechos Civiles del Departamento y la OCC han trabajado durante mucho tiempo para hacer que todo estadounidense pueda acceder al crédito hipotecario bajo las mismas condiciones, independientemente de su raza u origen nacional o del barrio en que vive. En enero del 2021, el presidente Biden reafirmó el papel crítico del gobierno federal en enfrentar legados de segregación y discriminación en la vivienda y declaró que su gobierno tiene la política de eliminar «sesgos racionales y otros tipos de discriminación en todas las fases del alquiler y la compra de una vivienda». Véase el Memorando sobre la Reparación de la historia de nuestro país y gobierno federal de prácticas y políticas discriminatorias en la vivienda, la Casa Blanca (26 de enero del 2021).
La aplicación del Departamento de Justicia de las leyes de préstamos justos la dirige la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Para más información sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos, vaya a www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregando un informe en línea.
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Dennis Port Man Sentenced for Receiving and Possessing Child PornographyRead the Press Release
BOSTON – A Dennis Port man was sentenced today for receipt and possession of child pornography.
Sean Gleason, 36, was sentenced by U.S. District Court Judge Denise J. Casper to 68 months in prison and five years of supervised release. In August 2020, Gleason pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
Following an investigation into the use of a messaging application in the exchange of child pornography, a search of Gleason’s cell phone on Sept. 10, 2019 revealed hundreds of images of child pornography. A full forensic review of the phone revealed at least 498 images and at least one video of child pornography. The cache of child pornography included images depicting the abuse of infants, toddlers and prepubescent minors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Adam W. Deitch of Mendell’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IOWA -- On August 27, 2021, a Council Bluffs man, John Allen Lindeman, Jr., age 26, was sentenced by United States District Court Chief Judge John A. Jarvey to 78 months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment is to be followed by three years of supervised release.
On November 19, 2020, Lindeman eluded law enforcement by driving back and forth between Nebraska and Iowa. Deputies with the Pottawattamie County Sheriff’s Office eventually spotted Lindeman’s vehicle in a parking lot in Council Bluffs. Lindeman refused to exit his vehicle and instead reversed his car at a high rate of speed. He continued to resist until law enforcement was able to arrest him. Lindeman was found in possession of a pistol at the time of his arrest.
According to court documents, Lindeman pleaded guilty to Prohibited Person in Possession of a Firearm in April of 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Pottawattamie County Sheriff’s Office, Council Bluffs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.