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Friday 13 August 2021
William Stenger Pleads Guilty to False Document Charges Related to the Anc Vermont Eb-5 Project in Northeast VermontRead the Press Release
The United States Attorney’s Office announced that today William Stenger, 72, of Newport, Vermont, pleaded guilty before Chief Judge Geoffrey W. Crawford in United States District Court in Burlington to a felony count of knowingly and willfully submitting false documents to the Vermont Regional Center (“VRC”) in connection with his involvement in the Jay Peak Biomedical Research Park EB-5 investment project, also called the AnC Vermont project.
Stenger pleaded guilty to using false documents in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS), which oversaw the EB-5 program. According to court records and proceedings, the AnC Vermont project was designed to raise $110 million from 220 immigrant investors in order to construct and operate a biotechnology facility in Newport, Vermont. EB-5 immigrant investors could qualify for permanent resident status (commonly known as a green card) by investing $500,000 in a commercial enterprise approved by the VRC, which had the authority to approve and monitor EB-5 projects in Vermont, and by USCIS. In order to obtain a green card, each investor needed to demonstrate to USCIS that his or her investment had created, or would create within a few years, ten jobs. So, for the AnC Vermont project, it was necessary to demonstrate a plan to create at least 2,200 jobs in a short time frame in order to obtain USCIS approval.
As described during today’s hearing, according to materials provided to investors, to the VRC, and to USCIS, the AnC Vermont project would include three lines of business: clean room rentals, sales of stem cell products, and sales of artificial organs. The financial projections for the project forecasted that the three lines of business would generate over $40 million in revenue within three years, and would generate over $300 million in revenue in six years. These financial projections impacted both the potential that investors would have their investments repaid, and the predicted number of jobs that the project would create.
In the end of June 2014, Stenger agreed with the VRC to suspend offering and marketing the AnC Vermont project due to the VRC’s concerns about a number of aspects of the project. Stenger understood that, in order to be permitted to market the AnC Vermont project again, he needed to provide answers to questions the VRC had asked about the financial projections and about the status of U.S. Food and Drug Administration (“FDA”) approvals needed for commercialization of the products. Stenger made a number of submissions to the VRC in an effort to convince the VRC to allow continued marketing of the AnC Vermont project, including a submission on January 9, 2015. The January 2015 submission addressed, among other things, the AnC Vermont financial projections and the timeline for commercialization of the products.
As to the financial projections, during the plea hearing Stenger admitted that he engaged a third-party consulting firm in October 2014 and asked the consulting firm to conduct a market demand study to analyze the potential market size of the AnC Vermont products and services, if the products and services were developed and FDA approved. Throughout the rest of 2014, the consulting firm, which spent many hours working on the market demand analysis and had regular update meetings with Stenger and his team, was never asked to review, analyze, or opine on the project’s financial projections. Instead, the process of working with the consulting firm made clear to Stenger that the AnC Vermont project had no stem cell products, and that the artificial organs either did not exist yet or required updating. In the waning days of December 2014 and beginning of January 2015, Stenger asked the consulting firm’s project lead to write a letter stating that the AnC Vermont project’s business projections were reasonable. Although the consulting firm had not assessed the project’s financial projections, the project lead ultimately signed a letter that falsely asserted that, based upon the consulting firm’s market analysis, the financial projections in the AnC Vermont business plan appeared reasonable. Stenger knew that the consulting firm had not analyzed the financial projections. Nonetheless, Stenger provided the letter to the VRC as part of the January 9, 2015 package of materials in support of reopening project fundraising.
As to the product commercialization timeline, during today’s hearing Stenger admitted that he knew that each of the three lines of business—clean room rentals, sales of stem cells, and sales of artificial organs—required approvals from the FDA in order to generate revenue. Stenger also knew that the FDA approval process was potentially a lengthy one, that obtaining FDA approval would require assistance from someone with regulatory expertise, and that no one associated with the AnC Vermont project had communicated with the FDA about any of the AnC Vermont business line ideas since Stenger exchanged letters with the FDA about one of the artificial organs in 2011. As part of Stenger’s effort to convince the VRC to allow continued marketing of the AnC Vermont project, Stenger caused to be modified a commercialization timeline that he had previously received from co-defendant Alex Choi. The timeline listed various steps required in order to commercialize the stem cell therapies and artificial organs referenced in the business plan, along with how long each step was expected to take. In modifying Choi’s timeline, Stenger had the initial year changed from 2012 to 2015, reflecting the delays in the project’s development. He also had four prominent red boxes, which contained text that read “Need to consult with FDA or experts in FDA’s regulation,” removed from the timeline. As modified, the timeline downplayed uncertainty and lack of progress on FDA approvals, supporting the narrative that the AnC products would become profitable and create jobs in a short time. Stenger submitted this modified timeline to VRC as part of the January 9, 2015 set of materials. In the same submission, Stenger represented to the VRC that he had engaged FDA consultants to assist with the FDA process. Stenger had the red caveats removed from the timeline without receiving any information from the consultants that might provide further support for the timeline, and without asking the consultants to start any work on the AnC Vermont project. From 2012 to 2016, approximately 169 investors invested approximately $85 million in the AnC Vermont project, in addition to paying approximately $8 million in “administrative fees.” Fundraising was never completed, and the AnC Vermont facility was never constructed. Court records show that over $47 million of AnC Vermont investor funds were paid to Jay Construction Management, a Quiros-controlled company, and almost all of those $47 million were used for purposes unrelated to the AnC Vermont project.Stenger faces up to five years in prison and three years of supervised release for his knowing and willful submission of false documents to the VRC. For sentencing, as stated in the plea agreement, the government will offer evidence about Stenger’s broader involvement in the fraud scheme as alleged in other counts of the indictment. The Court will determine the sentence with reference to the federal sentencing guidelines. The government has agreed that it will not recommend a fine or forfeiture, but instead will focus on seeking a restitution order for victims.
Co-defendant Ariel Quiros pleaded guilty to wire fraud conspiracy, money laundering, and concealment charges in August 2020 and currently awaits sentencing. Co-defendant William Kelly pleaded guilty to wire fraud conspiracy and concealment charges in July 2021. Both Quiros and Kelly have agreed to cooperate in the government’s ongoing matters. Co-defendant Choi remains at large.
Jonathan A. Ophardt, Acting United States Attorney, expresses his gratitude for the outstanding investigation assistance by the Federal Bureau of Investigation, the IRS Criminal Investigation, the Food and Drug Administration, and for the assistance of the Justice Department’s Fraud Section and Office of International Affairs. The prosecutors handling the case are Assistant U.S. Attorneys Nicole Cate and Paul Van de Graaf. William Stenger is represented by Brooks McArthur, Esq. and David Williams, Esq. Ariel Quiros is represented by Neil Taylor, Esq. and Robert Katims, Esq. William Kelly is represented by Robert Goldstein, Esq. and Mary Kehoe, Esq.
United States Attorneys' Joint Statement Regarding Oklahoma Court of Criminal Appeals Decision State Ex Rel. Matloff v. WallaceRead the Press Release
"This morning the Oklahoma Court of Criminal Appeals issued its decision in State ex rel. Matloff v. Wallace holding the United States Supreme Court’s ruling in McGirt v. Oklahoma does not apply retroactively. The United States Attorney’s offices in Oklahoma are reviewing today’s OCCA opinion and assessing its potential impact on cases previously referred to the United States for potential federal criminal prosecution,” said Acting United States Attorneys Christopher Wilson, Clint Johnson and Robert Troester. “In the interim, our offices will continue to focus on our mission of ensuring public safety and holding defendants accountable for their criminal acts.”
Uniontown Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
PITTSBURGH, PA- A resident of Uniontown, Pennsylvania, has pleaded guilty to violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Ryan Huffman, 33, from Uniontown, Pennsylvania, pleaded guilty before Senior United States District Judge Donetta W. Ambrose to possessing of a firearm with an obliterated serial number.
In connection with the guilty plea, the court was advised that on December 30, 2019, Uniontown Police responded to a break-in at Huffman’s residence. During a protective sweep, officers saw in plain view ammunition, suspected drugs, and drug paraphernalia. Officers obtained a warrant to search the residence. During the search, officers seized three firearms, including a .40 caliber rifle, a .45 caliber pistol, and a .22 caliber revolver with an obliterated serial number. Huffman later confessed to possessing all of the firearms seized from his home.
The law provides for a term of imprisonment not more than five years, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Judge Ambrose scheduled sentencing for December 13, 2021 and order the defendant to remain on bond pending the sentencing of this case.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Uniontown Police Department conducted the investigation leading to these charges.
Three Phoenix Men Indicted for Conspiracy to Purchase Firearms Using False StatementsRead the Press Release
PHOENIX, Ariz. – On August 3, a federal grand jury in Phoenix returned a 65-count indictment against Chris Oliver, 23, of Gilbert, Arizona, Michael Kelly, 23, of Tempe, Arizona, and Dion Delpino, 23, of Gilbert, Arizona, for conspiracy to make false statements in acquisition of firearms and 63 instances of making a false statement during the purchase of firearms. In addition, the indictment charges Oliver with dealing firearms without a license.
The indictment alleges that Oliver, Kelly, and Delpino conspired to purchase firearms from licensed dealers by means of false statements and representations. It also alleges that, on 63 occasions between September 2019 and November 2020, Oliver, Kelly, and Delpino used false statements to successfully purchase 102 firearms from 14 licensed dealers throughout the Phoenix metropolitan area. Oliver then sold these firearms to persons known and unknown in Arizona and elsewhere.
“Evidence shows that illegally-trafficked firearms go hand-in-hand with violent criminal acts,” said Acting U.S. Attorney Glenn McCormick. “The District of Arizona remains steadfast in its commitment to work with law enforcement partners to identify and prosecute those who fuel dangerous offenses by violating federal firearms laws.”
On July 22, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces are working to stem the supply of illegally trafficked firearms from source cities, like Phoenix, into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
“The District of Arizona’s indictment is an important example of the partnership across jurisdictions to identify and prosecute the sources of illegally trafficked firearms,” said Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California. “As part of the new firearms trafficking strike force for the San Francisco Bay Area/Sacramento Region, the Eastern District of California commends the District of Arizona for its important work in holding traffickers accountable.”
“I wish to commend the efforts of our agents and the United States Attorney’s Office as these indictments exhibit our collective efforts in combating firearms trafficking. Together, with our law enforcement partners, we will continue to focus on these criminals that promote gun violence in our community,” said ATF Special Agent in Charge, Gabriel Pinon.
Convictions for conspiracy, false statement during the purchase of a firearm, and dealing firearms without a license, are each punishable by a maximum fine of $250,000, a maximum term of imprisonment of five years, or both, and a term of supervised release of three years.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Phoenix, Mesa, Gilbert, and Scottsdale Police Departments, as well as Homeland Security Investigations and Phoenix Police Department – Commercial Narcotics Interdiction Unit, is conducting the investigation in this case. Coleen Schoch, Assistant U.S. Attorney, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR 21-00600-DLR (DMF)
RELEASE NUMBER: 2021-049_Oliver# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tampa Men Plead Guilty to Armed Robbery Spree and A Shooting, Possessed Notebook of Criminal AmbitionsRead the Press Release
Tampa, Florida – Tyee Spike II (18, Tampa) and Jeffrey L. Davis (22, Tampa) have pleaded guilty to committing a string of armed commercial robberies. Spike pleaded guilty to participating in 10 armed robberies, discharging a firearm in furtherance of a robbery, and possessing a firearm and ammunition after being convicted of a felony. Davis pleaded guilty to participating in 8 armed robberies. They both face a maximum sentence of life in federal prison. Sentencing dates have not yet been set.
According to their plea agreements, Spike and Davis committed a series of commercial armed robberies, which took place in Tampa, Fishhawk, and Riverview, between October 13 and October 19, 2020. Firearms were brandished during every robbery. In the first robbery, an individual confronted Spike, and Spike shot him in the stomach. The victim remained hospitalized for 12 days but survived. Prior to the spree, Spike committed a carjacking to obtain the getaway vehicle which the men used for the robberies. The robbery spree ended with a high-speed chase, in which the defendants crashed the getaway vehicle before being apprehended. At the time of the defendants’ arrest, their getaway vehicle contained a “list of criminal achievements and/or ambitions,” which itemized various houses they intended to target and personal possessions they intended to take, including the names and locations of several commercial establishments.
In the year prior to the robbery spree, Spike had been convicted of battery on a law enforcement officer with a deadly weapon, resisting an officer with violence, grand theft of a motor vehicle, two counts of robbery, and burglary of an unoccupied conveyance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives It is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.
Suburban Chicago Man Sentenced to Three Years in Prison for Scheming to Defraud the IRS Out of $815,000Read the Press Release
CHICAGO — A suburban Chicago man has been sentenced to three years in federal prison for causing the IRS to issue more than $815,000 in fraudulent tax returns.
SHAWN P. STEWART filed eight fraudulent returns seeking more than $3.1 million in refunds, causing the IRS to issue him more than $815,000. Stewart created construction and other companies that barely did any business, and he used those businesses to create false W-2 forms that falsely listed him as earning hundreds of thousands or millions of dollars in wages. The large wages allowed him to list correspondingly large federal income tax withholdings, and he used purported Schedule E losses from the businesses to greatly reduce the purported wage income and then claim entitlement to the large tax refunds.
After fraudulently receiving the money from the IRS, Stewart used it to fund a luxurious lifestyle. He purchased several BMW vehicles, a trailer for a truck, expensive dinners, and items at luxury retail stores.
Stewart, 50, of Matteson, Ill., pleaded guilty to a charge of presenting a false claim upon the United States. U.S. District Chief Judge Rebecca R. Pallmeyer imposed the 36-month sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Stewart’s tax fraud was brazen,” Assistant U.S. Attorney Vikas Didwania argued in the government’s sentencing memorandum. “He was stealing from funds that go to schools, soldiers, veterans, senior citizens, and others for vital services provided by our government.”
Stroudsburg Man Sentenced to 120 Months’ Imprisonment for Attempted Online Enticement of A MinorRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Duus, age 35, of Stroudsburg, Pennsylvania, was sentenced on August 11, 2021, to 120 months’ imprisonment to be followed by a 5-year term of supervised release, by United States District Court Judge Malachy E. Mannion for using the internet to attempt to entice a 12-year-old minor female to engage in prohibited sex acts.
According to Acting United States Attorney Bruce D. Brandler, on September 24, 2020, during an on-line communication with a law enforcement officer posing as the mother of a minor female, Duus agreed to pay money to the mother in exchange for sexual intercourse with the minor and then traveled to a location in Tannersville, PA for the purpose of meeting the mother and minor and paying for sex. Duus was arrested on scene.
At sentencing, Judge Mannion also ordered Duus to comply with the Sex Offender Registration and Notification Act (SORNA).
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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St. Joseph Woman Sentenced to 15 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine and for illegally possessing firearms.
Caci R. Clizer, 32, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
On Oct. 16, 2020, Clizer pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing firearms in furtherance of a drug-trafficking crime.
According to the plea agreement, Clizer traveled to Kansas City, Mo., every two or three days to pick up cocaine and methamphetamine, and would pick up approximately one pound of cocaine and approximately one pound and 10 ounces of methamphetamine.
On June 16, 2015, Missouri Department of Corrections officials intercepted a controlled substance sent into the prison by Clizer. Investigators also used a confidential informant to purchase methamphetamine, and interviewed buyers who purchased methamphetamine from Clizer.
On July 29, 2015, law enforcement officers executed a search warrant at Clizer’s residence. Officers found approximately 484 grams of pure methamphetamine, approximately 103.55 grams of cocaine, approximately 18.12 grams of crack cocaine, pills, a Glock 9mm semi-automatic handgun, a Bersa .380-caliber semi-automatic handgun, a Springfield Armory 9mm semi-automatic handgun, a 9mm 50-round drum (magazine), a Savage .22-caliber rifle, a box that contained ammunition, $3,025 in cash, five cell phones, and drug paraphernalia in the master bedroom.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Social Security Employee Charged with Pandemic Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Takiyah Gordon Austin, age 46, of Wilkes Barre, Pennsylvania, was charged in a 29-count Indictment on July 20, 2021, which conducting a scheme to fraudulently obtain unemployment benefits related to COVID-19 emergency relief funds. The case was unsealed on August 12, 2021, following Austin's initial appearance.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits was predicated on the applicant’s unemployment for reasons related to the pandemic; however, the applicant must also have been able to work each day and, if offered a job, the applicant must have been able to accept it. Once the applicant was approved to receive benefits, the applicant was required to submit weekly certifications that indicated that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and, had reported any employment during the week and the gross pay or other payments received.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment charges Austin with 21 counts of wire fraud, four counts of aggravated identify theft, and four counts of theft of government funds. The Indictment alleges that from in or about May 2020 to in or about May 2021, Austin, a claims specialist with the Social Security Administration, filed PUA claims for ineligible recipients. As part of the scheme, Austin filed PUA claims for ineligible individuals in exchange for payment from the individuals. Additionally, Austin filed claims after accessing SSA databases to obtain the personal identifying information from unsuspecting individuals and then diverted the unemployment funds to addresses she controlled in order to use the funds for her own personal expenses. Through the scheme, Austin is alleged to have defrauded the government of over $288,000.
“Fighting pandemic fraud is a high priority for our office and the Department of Justice,” stated Acting U.S. Attorney Bruce D. Brandler. “When public officials are engaged in the fraud it is particularly disappointing because public officials know all too well how much these diverted funds are needed by those truly affected by the pandemic. I want to thank all the law enforcement agents and prosecutors who investigated this matter for their diligence and hard work in bringing this fraud to light.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to Unemployment Insurance Programs,” stated Syreeta Scott, Acting Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to protect the integrity of programs intended for unemployed American workers.”
“The public trusts Social Security employees to handle their sensitive information and records appropriately. Mrs. Gordon violated that trust to perpetrate a fraud scheme to take advantage of COVID-related assistance at a time when so many others have a legitimate need for those funds,” said Gail S. Ennis, Inspector General of the Social Security Administration. “I am grateful for our partnerships with the U.S. Department of Labor Office of Inspector General and the United States Postal Inspection Service, and I thank the U.S. Attorney’s Office for their continued efforts to prosecute those who violate public trust and commit fraud.”
The case was investigated by the Social Security Administration, Office of Inspector General, the Department of Labor, Office of Inspector General, and the United States Postal Inspection Service. Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Alisan V. Martin are prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for wire fraud is 20 years’ imprisonment. Aggravated identity theft carries a mandatory two-year sentence consecutive to sentences imposed for other offenses. Theft of government funds has a maximum penalty of 10 years’ imprisonment. All three charges may also carry a fine and a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Robertsdale Man Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Robertsdale, Alabama, man was sentenced on August 13, 2021, to 84 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Jason Charles Diard, 41, distributed methamphetamine ice he obtained from various suppliers in Baldwin County, Alabama, and in Pensacola, Florida. Diard was distributing the drugs from various places in the county, including hotels in Robertsdale and Bay Minette.
Chief United States District Court Judge Kristi K. Dubose imposed the 84-month sentence and ordered that Diard undergo drug abuse counseling while in custody. Chief Judge DuBose further ordered that Diard would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Diard will also undergo testing and treatment for drug abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but Chief Judge Dubose ordered that Diard pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.Pura Vida Boat Trips Owner Indicted and Arrested for Operating Business Without Appropriate LicensesRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a three-count indictment charging Carlos J. Izquierdo-Carrero with obstruction of justice and two counts of failure to obey Captain of the Port Orders related to a boat charter business Izquierdo-Carrero operated from La Parguera in Lajas, PR, to Caracoles Bay, without the appropriate licenses to do so, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The United States Coast Guard (USCG) and Coast Guard Investigative Section (CGIS) were in charge of the investigation.
According to the Indictment, on October 28, 2019, USCG Prevention Department personnel contacted Izquierdo-Carrero, owner of Pura Vida Boat Trips, and advised him of the requirements to obtain the necessary licensing to commercially operate vessels with passengers for hire. Izquierdo-Carrero utilized various vessels as a part of Pura Vida Boat Trips, a commercial charter business, including the Bertram, the Pura Vida, and the Kaira.
On or about April 17, 2021, the USCG determined that the operation of the Bertram, the Pura Vida, and the Kaira represented a significant unsafe boating condition and environmental threat to the port and navigable waterways of the United States given Izquierdo-Carrero’s failure to comply with the applicable licensing laws and regulations for commercial charters. Izquierdo-Carrero was served with Captain of the Port Orders for his three vessels and formally warned regarding his non-compliance with the applicable regulatory and licensing requirements. Despite the warnings, Izquierdo-Carrero continued to commercially operate those three vessels, among others, without complying with the USCG Captain of the Port Orders and applicable regulations related to the safe operation of commercial charters.
On May 7, 2021, during an undercover operation, Izquierdo-Carrero, aided and abetted by others, operated commercial charters from La Parguera to Caracoles Bay, including on the Pura Vida, the Kaira, and the Mirta Iris, in violation of the USCG Captain of the Port Orders and applicable licensing regulations. Further, Izquierdo-Carrero obstructed the inspection of the Mirta Iris by instructing undercover USCG agents to lie and misrepresent that they were friends of Izquierdo-Carrero and not paying charter passengers.
“Unfortunately, Pura Vida Boat Trips is not the only company illegally operating in Puerto Rico beach and tourist areas,” said US Attorney Muldrow. “This prosecution should serve as a warning to other boat operators who are not complying with important safety and other regulations designed to protect local citizens and tourists.”
“Illegal passenger operations represent a threat to the safety of life at sea and the environment, those who continue this practice may be facing stiff fines and possible prosecution,” said Capt. Gregory H. Magee, Sector San Juan commander. “The Coast Guard is committed to identifying and eradicating this illegal practice. In doing so, our Sector San Juan Prevention Department will continue to work closely with our Coast Guard Investigative Service, and our partners in the U.S. Department of Justice and local and federal law enforcement to protect the people of Puerto Rico, the U.S. Virgin Islands, and our visitors from this threat.”
“Illegal charter operations pose a significant threat to our communities, they can also become a pathway to other illegal activity and must be dealt with aggressively by the maritime law enforcement community,” said Zinnia James, Coast Guard Investigative Service Southeast Region Special Agent in Charge.
Assistant U.S. Attorney María L. Montañez-Concepción of the Financial Fraud and Public Corruption Section is in charge of the prosecution of the case. If convicted, the defendant faces up to 5 years in prison for obstruction of justice and up to 6 years in prison for failure to obey the Captain of the Port Orders, plus the imposition of a fine and supervised release.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Prison Inmates Among Four Defendants Indicted for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Two New York State prison inmates and two others were indicted last week for conspiring to defraud COVID-19 pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL).
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Nikitas Splagounias, Acting Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Joshua McCallister, Acting Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of NYSDOL.
In one indictment, Reginald Thornton, age 28, an inmate at the Bare Hill Correctional Facility in Malone, New York, and Briana Garland, age 28, of Uniondale, New York, were charged with conspiracy to commit mail fraud and aggravated identity theft.
In a second indictment, Thornton and Rhasha Wright, age 29, of Roosevelt, New York, were charged with conspiracy to commit mail fraud and aggravated identity theft. Another Bare Hill inmate, Lord Paulin, age 40, was also charged with conspiracy to commit mail fraud in the second indictment.
The indictments, returned on August 5, 2021, allege conspiracies to submit fraudulent unemployment insurance claims in the names of Bare Hill inmates. Specifically, Thornton provided his own means of identification to Garland, and the means of identification of Paulin and another inmate to Wright, in order for the non-inmates to submit claims. NYSDOL paid over $30,000 as a result of the scheme. The charges in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Garland and Wright were arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and were released with conditions. Thornton and Paulin will be arraigned on August 19.
The charges for conspiracy to commit mail fraud carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charges for aggravated identity theft carry a mandatory term of 2 years in prison, to be imposed consecutive to any other term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
These cases are being investigated by USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL. The cases are being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Philadelphia Man Charged with Seven Armed Robberies of Philadelphia and Montgomery County Banks and PharmaciesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Daniel King, 25, of Philadelphia, PA, was charged by Superseding Indictment with three counts of bank robbery; four counts of armed robbery of commercial businesses; one count of using and carrying a firearm during and in relation to a crime of violence; and one count of possessing a firearm after having been convicted of a felony.
The Indictment alleges that the defendant robbed the following banks and commercial businesses: the Rite Aid on Windrim Avenue in Philadelphia on June 10, 2018; the PNC Bank on North Broad Street in Philadelphia on June 18, 2018; the Santander Bank on Easton Road in Wyncote on June 20, 2018; the Citizens Bank on South Easton Road in Glenside on June 16, 2018; the Family Financial Check Cashing on West Girard Avenue in Philadelphia on August 28, 2018; the Rite Aid on Rising Sun Avenue in Philadelphia on September 10, 2018; and the Walgreens in Yorktown Plaza in Elkins Park on September 17, 2018.
King allegedly robbed the pharmacies and the check cashing business while armed with a handgun. The Superseding Indictment further charges the defendant with knowingly possessing a firearm loaded with 18 live rounds of ammunition, while also knowing he had previously been convicted of a felony offense which precluded him from possessing firearms.
“As alleged, this defendant went on a prolific armed robbery spree in the summer of 2018, wreaking havoc on businesses and their employees,” said Acting U.S. Attorney Williams. “Law enforcement experts have said that the majority of violent crimes committed in and around Philadelphia are perpetrated by a small number of brazen criminals. The charges in this Indictment are a perfect case-in-point and exactly why our All Hands On Deck initiative is committed to investigating and prosecuting the most violent criminals; by focusing on the most violent among us, we will have a big impact.”
“The FBI is committed to keeping the Philadelphia area and its citizens safe from predators like Daniel King. Today’s indictment sends a message to violent criminals that if you terrorize our community, we will find you and bring you to justice,” said Acting Special Agent in Charge Brian T. Herrick.
If convicted, the defendant faces a maximum possible sentence of life in prison, with a mandatory seven-year sentence, five years supervised release, and a $2,250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Cheltenham Township Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Okaloosa Drug Trafficking Organization Members Sentenced to Federal Prison for Drug and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced today the sentences of defendants who were indicted in multiple cases and convicted for their participation in an opioid, methamphetamine, and cocaine distribution ring previously active in Okaloosa County. The prosecutions were the result of a large-scale multi-agency investigation spearheaded by the Drug Enforcement Administration and the Okaloosa County Sheriff’s Office over the past two years.
In the summer of 2019, federal agents seized over 16.5 kilograms of methamphetamine, over 7 kilograms of fentanyl/heroin mixtures, over 2 kilograms of opioid pills, over a kilogram of cocaine, and almost 2 kilograms of marijuana from locations in the Fort Walton Beach, Destin, and Sandestin areas. Over $180,000 in drug proceeds, eight vehicles, five firearms, and over 1300 rounds of ammunition were seized and forfeited to the government.
As a result of the investigation, the following defendants were convicted and have been sentenced to the following prison terms in federal court:
- Henry Clay White IV, 43, of Fort Walton Beach—120 months for conspiracy to distribute controlled substances and four counts possession of a firearm or ammunition by a convicted felon;
- Jonah R. Jack-Fuller, 40, of Fort Walton Beach—66 months for two counts of possession of a firearm by a convicted felon;
- Gesnan Mejia-Urbina, 32, of Fort Walton Beach—30 months for illegal reentry by a removed alien and possession of a firearm by a convicted felon and removed alien;
- Joshua K. Bailey, 40, of Miramar Beach—300 months for conspiracy to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon as an armed career criminal;
- Stephannie N. Macnew, 31, of Fort Walton Beach—120 months for conspiracy to distribute controlled substances and possession with intent to distribute controlled substances;
- Alexander X. Evans, 34, of Fort Walton Beach—75 months for conspiracy to distribute controlled substances and possession with intent to distribute controlled substances;
- Thomas A. Mitchell, 37, of Mary Esther—28 months for conspiracy to distribute controlled substances and possession with intent to distribute controlled substances;
- Stephen S. Wilson, 31, of Fort Walton Beach—120 months for two counts of possession with intent to distribute controlled substances;
- Barry D. Harrelson, 37, of Navarre—360 months for conspiracy to distribute controlled substances, four counts of possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon as an armed career criminal;
- Milton C. Pruitt, 60, of Fort Walton Beach—36 months for conspiracy to distribute controlled substances and two counts of possession with intent to distribute controlled substances;
- Nicholas D. Latson, 36, of Mary Esther—69 months for conspiracy to distribute controlled substances and violation of federal supervised release;
- Ira D. Alston, 40, of Atlanta, Georgia—awaiting sentencing on September 1, 2021, for conspiracy to distribute controlled substances and conspiracy to use a communication facility in furtherance of drug trafficking;
- Tommy Lee Lovett, III, 37, of Milton—awaiting sentencing on September 16, 2021, for three counts of possession with intent to distribute controlled substances and violation of federal supervised release; and
- Andre Pierre Frank, 32, of Navarre—awaiting sentencing on November 29, 2021, for possession with intent to distribute controlled substances.
“This multi-year investigation and the resulting sentences demonstrate our law enforcement partners’ tireless efforts and commitment to public safety,” stated Acting U.S. Attorney Coody. “As a result of our partners’ collective efforts, a dangerous trafficking organization has been dismantled and its members have been held to account for their distribution of deadly substances.”
“This investigation is an outstanding example of what we can accomplish through our law enforcement partnerships,” said Drug Enforcement Administration Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “These sentences should serve as a deterrent to those who engage in criminal activities that put our communities at risk and reaffirms the Drug Enforcement Administration’s commitment to keeping our communities safe from these violent criminals.”
“This complex investigation exemplifies how leveraging law enforcement partnerships and expertise can thwart violent crime,” said ATF Special Agent in Charge Craig W. Saier. “Together we are removing criminal organizations from our communities who commit firearms crimes and other dangerous acts that pose a threat to public safety.”
These cases resulted from a joint investigation by the Drug Enforcement Administration, Okaloosa County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement, Santa Rosa County Sheriff’s Office, Florida Highway Patrol, Florida Department of Law Enforcement, Fort Walton Beach Police Department, Crestview Police Department, Gulf Breeze Police Department, and Walton County Sheriff’s Office. Assistant United States Attorney Alicia Forbes prosecuted these cases.
These prosecutions are all part of Organized Crime Drug Enforcement Task Forces (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Okaloosa Drug Trafficking Organization Members Sentenced to Federal Prison for Drug and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced today the sentences and upcoming sentence of defendants who were indicted in multiple cases and convicted for their participation in a methamphetamine, cocaine, heroin, and marijuana ring previously active in Crestview. The prosecutions were the result of a large-scale multi-agency investigation spearheaded by the Drug Enforcement Administration and the Okaloosa County Sheriff’s Office during a two-year investigation.
From the summer of 2018 through the fall of 2019, law enforcement seized over 12 kilograms of marijuana, 9 kilograms of methamphetamine, over 3 kilograms of cocaine, 680 grams of crack cocaine, 1.5 kilograms of heroin, 10 firearms, $71,094.00 in U.S. Currency, and $15,845 in drug proceeds, from multiple locations in Crestview, Fort Walton Beach, and Cottondale.
As a result of the investigation, the following defendants were convicted and have been sentenced to the following in federal court:
- Johnnie Hill Callahan III, 38, of Crestview— 20 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm or ammunition by a convicted felon;
- Arthur John Collins III, 39, of Crestview—10 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute of controlled substances;
- Cavese Marcus Will Charles Barnes, 38, of Crestview—10 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances and distribution of controlled substances;
- Rusty Zakee Moorer, 41, of Crestview—5 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances and possession with intent to distribute controlled substances;
- Daniel Glenn Capps, 40, of Crestview—40 months imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances;
- Stephanie Anne Martin, 29, of Crestview—30 months imprisonment conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances;
- Derrick Lavert Lewis, 39, of Crestview—30 months imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances and distribution of controlled substances;
- Dewayne Anthony Marion, 33, of Crestview— 5 years’ supervised release conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances;
- Ghazwan Famil Brown, 38, of Crestview—5 years’ probation for conspiracy to distribute and possess with intent to distribute controlled substances and distribution of controlled substances; and
- Kenneth N. Harrison, 40, of Crestview—awaiting sentencing on November 29, 2021, for conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm or ammunition by a convicted felon.
“This multi-year investigation and the resulting sentences demonstrate our law enforcement partners’ tireless efforts and commitment to public safety,” stated Acting U.S. Attorney Coody. “As a result of our partners’ collective efforts, a dangerous trafficking organization has been dismantled and its members have been held to account for their distribution of deadly substances. I want to commend both the former Okaloosa County Sheriff Larry Ashley and the current Okaloosa County Sheriff Eric Aden for their leadership and exceptional efforts to partner local, state, and federal agencies together to remove drug traffickers from our streets.”
“This investigation is an outstanding example of what we can accomplish through our law enforcement partnerships,” said Drug Enforcement Administration Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “These sentences should serve as a deterrent to those who engage in criminal activities that put our communities at risk and reaffirms the Drug Enforcement Administration’s commitment to keeping our communities safe from these violent criminals.”
“This complex investigation exemplifies how leveraging law enforcement partnerships and expertise can thwart violent crime,” said ATF Special Agent in Charge Craig W. Saier. “Together we are removing criminal organizations from our communities who commit firearms crimes and other dangerous acts that pose a threat to public safety.”
These cases resulted from a joint investigation by the Drug Enforcement Administration, Okaloosa County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Santa Rosa County Sheriff’s Office, Florida Highway Patrol, Florida Department of Law Enforcement, Crestview Police Department, and Gulf Breeze Police Department. Assistant United States Attorney J. Ryan Love prosecuted these cases.
These prosecutions are all part of Organized Crime Drug Enforcement Task Forces (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Investment Adviser Charged with Defrauding Clients and Misappropriating Their MoneyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of a Complaint charging MARTIN RUIZ with investment adviser fraud in connection with his fraudulent scheme to defraud investors using his investment advisory firm, Carter Bain Wealth Management (“CBWM”). RUIZ was arrested yesterday morning and presented yesterday afternoon before Magistrate Judge Barbara C. Moses.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Martin Ruiz promised his elderly investment advisory clients safe investments but in fact stole his clients’ retirement savings and lined his own pockets. Now, for this alleged violation of the law and of his fiduciary duty to his clients, Ruiz faces federal criminal charges.”
Special Agent-in-Charge Peter C. Fitzhugh said: “As alleged, with more than $8 million in misappropriated funds, Ruiz acted with impunity while building his own personal investments. Ruiz allegedly padded his lavish lifestyle by defrauding investors, many of them elderly working-class retirees, out of their life savings. No one should live their own version of ‘Lifestyles of the Rich and Famous’ by swindling others out of their hard-earned money. HSI New York’s El Dorado Task Force worked closely with the United States Attorney’s Office for the Southern District of New York to see that Ruiz will now face the consequences of these alleged actions.”
According to the allegations contained in the Complaint[1] unsealed yesterday in Manhattan federal court:
From at least in or about March 2011 through in or about the present, RUIZ induced multiple individual investment advisory clients of CBWM, many of whom are elderly, to retain RUIZ and CBWM to advise them on how they should invest their retirement savings. While ostensibly acting in his fiduciary capacity as their investment adviser, RUIZ instead induced more than a dozen such clients to invest more than $10 million in an investment fund called RAM Fund through the purchase of limited partnership interests. RUIZ did not disclose to those clients that RUIZ controlled RAM Fund and that he planned to misappropriate their funds.
In fact, rather than invest the funds in legitimate investment projects and real estate, as he represented to clients, RUIZ misappropriated more than $8 million of client funds from the RAM Fund, transferred those funds through a series of entities RUIZ also controlled, and spent the vast majority of the funds on personal expenses, including the purchase of a home, rent payments on several apartments, and the payment of his personal credit card bills. In so doing, he violated his fiduciary duty to act in his clients’ best interest and avoid self-dealing.
* * *
RUIZ, 45, of New York, New York, and Santa Fe, New Mexico, is charged with one count of investment adviser fraud. RUIZ faces a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
Ms. Strauss praised the investigative work of HSI. Ms. Strauss also thanked the Securities & Exchange Commission, which brought a related civil action against RUIZ.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Nashua Man Pleads Guilty to Firearm ChargeRead the Press Release
CONCORD - Paul Channell, 31, of Nashua, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on December 13, 2020, Channell was arrested for driving under the influence by the Hudson Police Department. As a result of the arrest, a tow truck was called and the police began an inventory of the vehicle pursuant to their inventory policy. The police located a Glock 26 handgun with an extended magazine and a round in the chamber. Channell was prohibited from possessing a firearm and ammunition because he was convicted of a felony in 2018. He was also on supervised release at the time of his arrest.
Channell is scheduled to be sentenced on November 30, 2021.
“To protect our community from violence, it is vital to keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute armed criminals who threaten public safety in the Granite State.”
“Today’s guilty plea demonstrates the outstanding partnership between the Hudson Police Department and the ATF as well as the commitment we share to work together to interdict illegal firearms and the criminals that compromise the safety of our communities” said ATF Special Agent in Charge James M. Ferguson
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Hudson Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
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Member of Brooklyn-Based “KavKaz Nation” Crime Syndicate Indicted for Extortion and Other ChargesRead the Press Release
A five-count indictment was filed yesterday in federal court in Brooklyn charging Roman Nikoghosyan, a member of a violent, Brooklyn-based Eurasian organized crime syndicate that operated primarily in the Manhattan Beach and Brighton Beach neighborhoods, with two counts of Hobbs Act extortion conspiracy, one count of Hobbs Act extortion, interstate transportation of stolen property and being a convicted felon in possession of a firearm. Nikoghosyan was arrested in Los Angeles, California on July 20, 2021 and ordered detained pending trial. He will be arraigned in the Eastern District of New York at a later date.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Jacqueline Maguire, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, the defendant is an extortionist who uses threats of violence and intimidation to coerce his victims into making extortionate payments to him for refusing to participate in his life of crime, which also includes illegally possessing a Hi-point 995 rifle despite his having a prior felony conviction,” stated Acting United States Attorney Kasulis. “Together with our law enforcement partners, this Office is working tirelessly to dismantle violent criminal organizations like KavKaz that threaten the safety of communities in the Eastern District.” Ms. Kasulis thanked the FBI and NYPD for their contributions to date in the investigation.
“Crime syndicates thrive on creating a deep fear in the communities where they operate, and members of these syndicates instill this fear through a range of criminal tactics to include violence, extortion, and narcotics trafficking,” stated FBI Assistant Director-in-Charge Maguire. “Forcing someone against their will to transport drugs through threats of violence, as alleged done by the defendant, is criminal behavior. Our FBI Eurasian Organized Crime Task Force, together with our NYPD partners, have made great strides in ridding local neighborhoods of these violent offenders, and we won’t stop our pursuit of them until they are stopped.”
“The NYPD remains vigilant in its work to prevent the violence so often associated with gangs and crews that tear at the fabric of life in New York. I commend our NYPD investigators, federal partners and prosecutors in the United States Attorney’s Office in the Eastern District of New York for their relentless work in this case,” stated NYPD Commissioner Shea.
As set forth in court filings, KavKaz is a criminal enterprise that operates in the Eastern District of New York and elsewhere, with Brooklyn as its largest base of operation. Members of KavKaz refer to their membership as the “KWAY” or “K WAY,” and often wear jewelry or articles of clothing emblazoned with the word “KavKaz.” Brooklyn-based members of KavKaz draw on ties to the Caucus region of Eurasia, namely Armenia, Uzbekistan, parts of Southern Russia and Azerbaijan, in furtherance of accomplishing their criminal goals, including extortion and narcotics trafficking.
In early 2021, Nikoghosyan was operating a narcotics distribution scheme in which he employed the victim of one of his extortionate schemes to transport packages containing marijuana. When the victim discovered the illicit content of the packages and refused to continue distributing the narcotics, Nikoghosyan, with the assistance of coconspirators, demanded $10,000 in extortionate payments from the victim, threatening to stab him or break his legs if he did not comply.
In addition, Nikoghosyan and co-conspirators plotted to transport luxury vehicles acquired by fraud from California to New York. Finally, Nikoghosyan, having been previously convicted of a felony, was charged with possessing a firearm, a Hi-point 995 rifle found during the execution of a search warrant on July 20, 2021 at a stash house in Brooklyn that was allegedly used by Nikoghosyan. During that search, law enforcement also recovered ammunition and a quantity of marijuana.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Matthew Galeotti and Dana Rehnquist are in charge of the prosecution.
The Defendants:
ROMAN NIKOGHOSYAN
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 21-cr-421 (RJD)
Maryland man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Antonio Cortez Darden, of Maugansville, Maryland, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Darden, 44, pleaded guilty this week to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Darden admitted to having cocaine hydrochloride in September 2019 in Berkeley County.
Darden faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Man Sentenced to 7 ½-Year Prison Term for Fraud, Money Laundering, and Identity Theft SchemeRead the Press Release
WASHINGTON – Kelvin Otunyo, 37, of Hyattsville, Md., was sentenced today to 90 months in prison on federal charges stemming from his role in at least six schemes to deposit and launder stolen and unauthorized checks valued at more than $350,000.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office, Criminal Division, and Special Agent in Charge Shimon R. Richmond, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).
Otunyo, a Nigerian national, pleaded guilty on April 1, 2021, in the U.S. District Court for the District of Columbia, to two counts of bank fraud, one count of aggravated identity theft, and two counts of conspiracy to commit money laundering. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Following his prison term, he will be placed on four years of supervised release. Otunyo also was ordered to pay a restitution judgment in the amount of $124,157, and a forfeiture money judgment in the amount of $303,207.
According to court papers, between August 2017 and at least August 2018, Otunyo and co-conspirators engaged in a series of schemes in which they obtained stolen or unauthorized checks from victims, established fraudulent shell corporations and bank accounts, and deposited or attempted to deposit the checks before laundering the resulting proceeds. The frauds were committed using false IDs and fraudulent aliases. Otunyo also procured the real name and Social Security number of an identity theft victim for use in one of the schemes.
In total, the six schemes involved nine stolen or unauthorized checks from eight victims totaling $355,745.29.
As part of the larger investigation of Otunyo and others involved in laundering the proceeds of various frauds, business email compromises, and bad check schemes, at least three other defendants have been charged. In June 2019, Chief Judge Howell sentenced Michael Orji, 42, formerly of Washington D.C, to 10 years of incarceration, five years of supervised release, and $905,274 in restitution. One of Otunyo’s co-conspirators, Samson Olawale Afolabi, 36, of Hyattsville, Md., has pleaded guilty and is awaiting sentencing on Oct. 1, 2021. Another defendant, Jamar Skeete, 37, of Washington, D.C., has been indicted in connection with similar, related fraud and money laundering; he has pleaded not guilty to charges.
The case was investigated by the FBI’s Washington Field Office and the Federal Deposit Insurance Corporation-Office of Inspector General. Assistance was provided by the U.S. Postal Inspection Service, and the U.S. Department of Homeland Security-Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Christopher B. Brown and Charles Willoughby, Jr., with assistance from Paralegal Specialists Chad Byron, Rhonda Richardson, and former Paralegal Specialist C. Rosalind Pressley.
Man Sentenced to 33 months in Prison for Possessing Molotov Cocktails at La Mesa ProtestRead the Press Release
Man Sentenced to 33 months in Prison for Possessing Molotov Cocktails at La Mesa Protest
NEWS RELEASE SUMMARY – August 13, 2021
SAN DIEGO – Zachary Alexander Karas was sentenced in federal court today to 33 months in prison for possessing incendiary devices known as Molotov cocktails at a protest that began on May 30, 2020, in La Mesa.
“This defendant’s conduct endangered the welfare and safety of officers and protesters,” said Acting U.S. Attorney Randy Grossman. “He knowingly and intentionally constructed and brought Molotov cocktails to a crowded and volatile situation with the intention of using them, and this sentence reflects the very serious nature of his offense.” Grossman commended prosecutors Matthew Brehm and Joseph Orabona, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI, and investigators from the San Diego County Sheriff’s Department for their excellent work on this case.
“Today’s sentence should send a clear message to those who choose violence as a form of expression,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our local, state, and federal partners on the Joint Terrorism Task Force to protect the right to peacefully assemble while keeping our communities safe.”
“The possession of the destructive devices known as Molotov cocktails has the potential to lead to violent crime,” said Los Angeles Field Division ATF Special Agent in Charge Monique Villegas. “Molotov cocktails can destroy lives and damage property. This prosecution and sentencing is a prime example of our commitment to the communities we serve to prevent individuals from possessing such destructive devices. Strong partnerships with our partner law enforcement agencies and the U.S. Attorney’s Office result in safer communities.”
Karas was convicted by a federal jury on May 11, 2021 and was immediately taken into custody following the verdict.
According to evidence presented at trial, on May 31, 2020, at 2:00 a.m., hours after police had declared an unlawful assembly and given numerous dispersal orders, Karas was standing in the middle of the road at the intersection of Allison Avenue and Spring Street, blocking traffic as part of the protest in La Mesa.
At the time of the protest in La Mesa, several fires had been set, and those fires damaged buildings and property. In fact, Karas was standing in the street in front of the Chase and Union banks that had been set ablaze. In the early morning hours of May 31, 2020, at approximately 2:00 a.m., officers gave orders to the crowd, including Karas, to disperse for an unlawful assembly. However, Karas and others refused, and Karas was arrested for refusing to leave his position in the middle of the street. After his arrest, officers discovered that Karas possessed two glass bottles with wicks that contained gasoline and two smoke bombs.
In video-recorded statements, after being read his Miranda rights, Karas stated that he made the Molotov cocktails and brought them to the La Mesa protest because he intended to use them to set fires, but claimed he ultimately did not cause any fires. Karas said he got the bottles from a Rite Aid parking lot and used 87 octane gasoline as the fuel.
A chemist with the ATF laboratory in Atlanta, Georgia, tested the liquid found inside Karas’ Molotov cocktails and confirmed it was gasoline. An explosives enforcement officer with the ATF received the chemist’s analysis, inspected the physical evidence, and found that the Molotov cocktails were functioning destructive devices.
DEFENDANT Case Number 20CR1842-DMS
Zachary Alexander Karas Age: 29 San Diego, CA
SUMMARY OF CHARGES
Possession of an Unregistered Destructive Device – Title 26, U.S.C., Section 5861
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
San Diego County Sheriff’s Department
Lowell Man Sentenced for Gun TraffickingRead the Press Release
BOSTON - A Lowell man was sentenced on Wednesday, Aug. 11, 2021 for firearms trafficking related to five separate sales, including the sale of an illegal sawed-off shotgun.
Rathsomnang Neth, 24, was sentenced by U.S. District Court Judge Indira Talwani to time served (approximately two days) and three years of supervised release. The government recommended a sentence of 30 months in prison. In January 2019, Neth pleaded guilty to one count of dealing in firearms without a license and two counts of possessing and transferring an unregistered shotgun with a shortened barrel.
From December 2016 to April 2017 in Lowell, Neth sold four handguns and a .20 gauge pump-action shotgun with a barrel that had been sawed-off below 18 inches.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office, made the announcement. Assistant U.S. Attorney Robert E. Richardson of Mendell’s Major Crimes Unit prosecuted the case.
Justice Department Settles with Iowa-Based Nursing Home and Management Company to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Department of Justice announced today that it reached a settlement with JP Senior Healthcare LLC and JP Senior Management LLC, resolving the department’s claims that these companies violated the Immigration and Nationality Act (INA) by discriminating against a Latino employee based on assumptions that the worker was not a U.S. citizen.
JP Senior Management manages two nursing facilities owned by JP Senior Healthcare: Pioneer Valley Living and Rehab located in Sergeant Bluff, Iowa, and Goldenrod Manor Care Center located in Clarinda, Iowa.
Based on its investigation, the department determined that while verifying a new employee’s legal right to work in the United States, JP Senior Healthcare and JP Senior Management rejected the U.S. citizen’s valid driver’s license and unrestricted Social Security card. The investigation further concluded that the companies demanded that the worker instead present a Permanent Resident Card based on the companies’ incorrect belief that the worker was not a U.S. citizen, even after the worker explained that he was a U.S. citizen, and therefore, not eligible for a Permanent Resident Card. Additionally, the department determined that these documentary demands resulted in the end of the worker’s employment. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin. Instead, all work-authorized individuals, regardless of citizenship status or national origin, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States.
“Employers must treat all workers fairly and consistent with the law, without making assumptions about a worker’s citizenship based on appearance or Hispanic national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that workplaces are free of discrimination.”
Under the terms of the settlement agreement, JP Senior Healthcare LLC and JP Senior Management LLC will pay a civil penalty to the United States; pay the injured worker back pay plus interest; and train relevant employees on the INA’s anti-discrimination provision.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Announces Expansion of Firearms Technical Assistance Project to Strengthen Community Response to Domestic Violence Incidents Involving FirearmsRead the Press Release
BIRMINGHAM, Ala. — The U.S. Department of Justice’s Office on Violence Against Women (OVW) announced the expansion of its Firearms Technical Assistance Project (FTAP) to help communities across the country reduce domestic violence homicides and injuries committed with firearms. OVW will award an estimated $6 million for up to 12 sites and $4 million for training and technical assistance on firearms and domestic violence.
“We are grateful that Birmingham is one of the sites chosen to receive FTAP support,” U.S. Attorney Prim Escalona said. “Much of the violent crime committed in Jefferson County is perpetrated by domestic violence offenders. In 2021, there have already been 22 intimate partner homicides in Jefferson County. Moreover, we know that a majority of the people committing overall homicides in Jefferson County are domestic violence offenders. Domestic violence is community violence. In October 2020, my office announced a new initiative, Operation Safe Families, to enhance protections and support for victims of domestic violence and enforcement of laws to keep guns away from domestic abusers. Resources and support from FTAP will be a tremendous asset to our local partners who aid and protect victims of domestic violence.”
“Enforcing gun laws and keeping firearms from the hands of perpetrators of domestic violence is crucial to keeping victims safe,” said OVW Acting Director Allison Randall. “The FTAP expansion is another example of the Department’s commitment in its efforts to reduce violent crime. The funding will help our grantees develop and implement community-based and culturally specific strategies to enforce firearms laws and is an important part of preventing homicides.”
In 2019, OVW and the National Council of Juvenile and Family Court Judges launched FTAP, which was designed to help communities implement policies, protocols and promising practices to prevent abusers from having access to firearms in domestic violence cases. As part of the announcement, OVW released a solicitation to fund six new FTAP sites in addition to the six existing FTAP sites, which include: Birmingham, Alabama; Muscogee (Creek) Nation; Columbus, Ohio; Brooklyn, New York; the state of Vermont; and Spokane, Washington. The deadline for applications in Grants.Gov is Sept. 20, 2021, and the JustGrants deadline is Sept. 22, 2021. Applicants are strongly encouraged to submit a non-binding Letter of Intent by Sept. 7, 2021.
The FTAP expansion will provide direct financial support for all sites, as well as new technical assistance designed to help each site incorporate community partners, particularly partner organizations that center underserved populations, into their efforts to implement effective responses to firearms and domestic violence. Training and technical assistance projects will include $2 million to help the sites implement an effective firearms response. Of particular importance will be an additional $2 million to train and support the sites on the cultural context of domestic violence in underserved communities. Additionally, OVW will award $750,000 to continue a domestic violence and firearms national resource center.
This solicitation supports the Justice Department’s comprehensive strategy for reducing violent crime. Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners.
About the Office on Violence Against Women
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Judge sentences St. Louis man for tax evasionRead the Press Release
ST. LOUIS – On Wednesday, August 12, 2021, United States District Court Judge Henry E. Autrey sentenced Nicholas Franke, 58, of St. Louis, Missouri, to a 24-month term of imprisonment to be followed by a 2-year term of supervised release. Franke pleaded guilty in May to one count of tax evasion.
Franke, an attorney, operated a solo law practice that generated business revenue. Franke paid himself from those proceeds. Franke filed income tax extension requests for the years 2013-2015, stating zero taxes were due or owed. Franke knew that those statements were false. Franke then failed to file tax returns for those years. As a result of Franke’s actions, he failed to pay more than $300,000 in taxes.
“Franke was a licensed attorney who knew his duty to file an accurate income tax return and pay his fair share of taxes. He knowingly violated the law and admitted to his conduct through his guilty plea. This sentence shows that IRS Criminal Investigation will investigate those individuals who intentionally violate tax laws and work with the United States Attorney’s Office to bring these individuals to justice,” said Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office following Wednesday’s sentencing.
This case was investigated by the Criminal Investigative Division of the Internal Revenue Service.
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John Thomas Burnette Convicted of Five CountsRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee has convicted John Thomas Burnette, 44, of Tallahassee, Florida of one count of Extortion Under Color of Official Right, two counts of Honest Services Fraud by Bribery, one count of Use of Interstate Commerce Facilities to Promote Bribery, and one count of Making False Statements to a Federal Officer. The guilty verdict was returned August 13, 2021, at the conclusion of a fifteen-day trial.
Acting United States Attorney for the Northern District of Florida, Jason R. Coody, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office made the announcement.
In December 2018, a federal grand jury charged Tallahassee City Commissioner Scott Maddox and Paige Carter-Smith in a forty-four count indictment. In May 2019, a grand jury returned a superseding indictment adding Burnette as a defendant. Maddox and Carter-Smith subsequently pleaded guilty to two counts of Honest Services Fraud by Bribery and one count of Conspiring to Interfere with the Lawful Function of the IRS. In October 2019, a grand jury returned a second superseding indictment against Burnette.
At trial, the government presented evidence that Burnette engaged in a multi-year scheme with Maddox and Carter-Smith to commit extortion, fraud, and bribery. During the scheme, Burnette and Maddox extorted bribe payments from FBI undercover agents (“UCs”) who were posing as real estate developers and entrepreneurs. Burnette instructed the UCs that to obtain preferential treatment, they must pay bribes to Maddox through Governance Services. Burnette, Maddox, Carter-Smith, and the UCs agreed that the UCs would pay Governance Services $10,000 per month in exchange for Maddox agreeing to perform official acts meant to benefit the UCs’ sham development company.
In 2017, FBI agents approached Burnette, identified themselves as FBI agents, and asked Burnette about his involvement in the bribe payments to Maddox. During the interview, Burnette repeatedly lied about his knowledge of the UCs’ payments to and involvement with Maddox.
"Today's verdict affirms a multi-year investigation of public corruption in the City of Tallahassee," stated Acting U.S. Attorney Coody. "Our citizens deserve and expect that those in public office will act in the public's interest, rather than their own and that of their confederates. Those who violate their oath and betray the public's trust will be the subject of this office and our law enforcement partners' unwavering efforts, which will continue beyond this verdict."
“Our citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying business owners seeking to line their own pocketbooks,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Let there be no doubt - bribes are not good business in Tallahassee, nor anywhere else. The FBI remains fully committed to ensuring that anyone who violates the public’s trust is held accountable.”
Burnette’s sentencing hearing is scheduled for October 28, 2021, at 1:00 pm at the United States Courthouse in Tallahassee before the Honorable United States District Judge Robert L. Hinkle. Burnette faces maximum penalties of 20 years in prison for Counts Two, Five, and Six (the Extortion and Honest Services Fraud offenses) and 5 years for Counts Eight and Nine (the Use of Interstate Facilities to Promote Bribery and Making False Statements to a Federal Officer offenses).
Scott Maddox and Paige Carter-Smith’s sentencing hearing is scheduled for September 9, 2021, at 10:00 am at the United States Courthouse in Tallahassee before the Honorable United States District Judge Robert L. Hinkle. Both Maddox and Smith face maximum penalties of 20 years in prison for the Honest Services Wire Fraud and Honest Services Mail Fraud offenses and 5 years in prison for the Conspiracy to Defraud the United States offense.
The conviction was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case against Maddox and Carter-Smith was prosecuted by Assistant United States Attorneys Stephen M. Kunz, and Andrew J. Grogan of the Northern District of Florida, and Deputy Chief Peter M. Nothstein, and Trial Attorney Rosaleen T. O’Gara of the Department of Justice, Criminal Division’s Public Integrity Section.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 11 was:
Adrian Gutierrez, 20, of Gallatin County, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Gutierrez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gutierrez was detained pending further proceedings. The Missouri River Drug Task Force investigated the case. PACER case reference. 21-18.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 12 was:
Colleen Denise Abresch, 64, of Great Falls, and Mark Edwin Abresch, 63, of Great Falls, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, both defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Both defendants were detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-49.
Ashley Nicole Rico, 34, of Great Falls, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Rico faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Rico was detained pending further proceedings. The FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis and Clark County Sheriff’s Office investigated the case. PACER case reference. 21-52.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 12 was:
Tirrell Lewis, 40, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Lewis faces a maximum 10 years in prison, $250,000 fine and three years of supervised release. Lewis was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-46.
Jerry Allen Stone Jr., aka Joshua Ivan Doefer, 38, of Culbertson, on charges of felon in possession of a firearm and ammunition. If convicted of the most serious crime, Stone faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Stone was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-54.
Roy “Doc” Rosales, 27, of Dickinson, North Dakota, on charges of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Rosales faces a maximum 20 years in prison, a $1 million fine and at least three years of supervised release on the drug offense and a mandatory minimum five years to life in prison consecutive to any other crime and a $250,000 fine on the firearm offense. Rosales was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-26.
Donald Ray Gardner, 58, of Lodge Grass, on charges of aggravated sexual abuse of a child and abusive sexual contact. If convicted of the most serious crime, Gardner faces life in prison, a $250,000 fine and five years to life of supervised release. Gardner was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-70.
Dakota James Calendrillo, 30, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Calendrillo faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Calendrillo was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-48.
Appearing on Aug. 13 and pleading not guilty was:
Lydia Lynn Doney, 29, address unknown, on charges of distribution of meth. If convicted of the most serious crime, Doney faces a maximum 20 years in prison, a $1 million fine and at least four years of supervised release. Doney was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-104.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Idaho Falls Man Sentenced to 5 Years for Trafficking LSDRead the Press Release
POCATELLO – John Morgan McComas, 25, of Idaho Falls, was sentenced to 60 months in federal prison for trafficking lysergic acid diethylamide (LSD), Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. McComas was indicted by a federal grand jury on January 28, 2020.
According to court records, the Bonneville County Sheriff’s Office served a search warrant at McComas’ Idaho Falls residence in April 2019. During the search, law enforcement located indicia of drugs sales, a large amount of LSD, firearms, and a book entitled “How to Be a Drug Dealer.”
Acting U.S. Attorney Gonzalez highlighted the cooperative efforts of the Bonneville County Sheriff’s Office and the Idaho Falls Police Department, which led to charges.
This case is being prosecuted by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 174 defendants have been indicted by the EIP SAUSA. Of these defendants, 127 have been indicted on drug trafficking charges. Collectively, the defendants indicted under the program have been sentenced to 7,468 months (approximately 622 years) in federal prison, representing an average prison sentence of 53.72 months (4.47 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 60.33 months (5.02 years) in federal prison.
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High-Ranking Member of MS-13 Sentenced to More Than 9 Years in Prison for Racketeering and Narcotics OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JAIME SANTANA, a/k/a “Smiley,” a high-ranking member of Mara Salvatrucha, or MS-13, was sentenced by U.S. District Judge Vernon S. Broderick to 110 months in prison. SANTANA previously pled guilty to participating in a racketeering conspiracy, and participating in a conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine.
U.S. Attorney Audrey Strauss said: “Jaime Santana, a leader of the L.A. Program of MS-13, trafficked in weapons and cocaine and helped plan a cross-border methamphetamine distribution network. Santana was also party to an extortion in which he and others threatened to murder the victim. Thanks to our partners at HSI and the NYPD, Santana was arrested, convicted, and has now been sentenced to prison for his crimes.”
According to the Indictment, other filings in this case, and statements during court proceedings:
SANTANA is a member of MS-13, a transnational racketeering enterprise that operates throughout North and Central America, including in El Salvador, Mexico, New York, California, Texas, Virginia, Tennessee, and North Carolina. In order to enrich the enterprise, protect and expand its criminal operations, enforce discipline among its members, and retaliate against members of rival gangs, members and associates of MS-13 committed, conspired, attempted, and threatened to commit acts of violence, distributed and possessed with intent to distribute narcotics, including methamphetamine and cocaine, and obtained, possessed, and used firearms.
MS-13 is organized into chapters called “cliques.” Groups of cliques, in turn, are aligned as “programs.” Each program is governed by a group of senior gang leaders known as the “table.” SANTANA is a high-ranking member of the table of the “L.A. Program” of MS-13.
In July and September 2019, SANTANA sold a 9mm handgun, a .40 caliber handgun, a .45 caliber handgun, boxes of ammunition, and cocaine to individuals working at the direction of law enforcement.
Furthermore, in the summer and fall of 2019, SANTANA was involved, with other high-ranking members of MS-13, in planning for the establishment of a methamphetamine distribution network that started in Mexico and operated throughout the United States, including North Carolina, New York, Virginia, and Tennessee.
In addition, in September 2019, SANTANA and other senior members of MS-13 conspired to extort another gang member, who was told that he either had to repay money or be “green lit” (i.e., killed) for introducing a “bad connection” who supplied poor quality narcotics to the gang.
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In addition to the prison term, Judge Broderick sentenced SANTANA, 41, of Galatin, Tennessee, to five years of supervised release.
Ms. Strauss praised the investigative work of Homeland Security Investigations and the New York City Police Department.
This prosecution 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.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Michael D. Longyear, Justin V. Rodriguez, and Jacob Warren are in charge of the prosecution.
High Desert Doctor Arrested on Federal Narcotics Charges for Issuing Prescriptions Without Medical Need after Telemedicine SessionsRead the Press Release
LOS ANGELES – A High Desert physician remains in federal custody today after his arrest Wednesday on charges of illegally dispensing prescriptions for often-abused controlled substances – including opioid-based medications – during telemedicine sessions with “patients” from across the United States.
Dr. Raphael Tomas Malikian, 36, who resides in Llano and Palmdale and called his medical practice Happy Family Medicine, was arrested Wednesday afternoon by special agents with the Drug Enforcement Administration.
An indictment naming Malikian was unsealed at his arraignment Thursday evening, when Malikian entered not guilty pleas and a United States Magistrate Judge ordered him detained pending trial, which is currently scheduled for October 5.
Malikian is charged in an 11-count indictment with illegally distributing narcotics “while acting and intending to act outside the usual course of professional practice and without a legitimate medical purpose.” The controlled substances that Malikian allegedly distributed are oxycodone, hydrocodone, alprazolam, promethazine and codeine.
The DEA investigation was prompted by multiple reports in February 2020 of suspicious prescriptions issued by Malikian. The indictment alleges specific incidents in which Malikian prescribed controlled substances without a medical purpose after seven telemedicine consultations – including one conducted entirely via text message – starting in April 2020 and continuing through July 2020. None of the consultations involved any physical exam or diagnostic tests, and the appointments lasted as little as 2 minutes and 20 seconds.
A federal judge on Thursday unsealed search warrants executed at Malikian’s residences in conjunction with his arrest. The affidavit in support of the search warrants outlines the DEA’s investigation, which included various undercover operations in which agents from the DEA and California DOJ posed as patients and received the prescriptions that form the basis of the indictment. The DEA agent who authored the affidavit concluded that Malikian “effectively sells prescriptions for controlled substances to patients upon request, and does so without obtaining a patient’s medical history or conducting a physical examination.”
According to the affidavit, an independent medical expert reviewed the interactions between Malikian and the undercover agents and “concluded that Malikian ‘did not thoroughly evaluate his patients’ before prescribing ‘potent and potentially deadly medications,’ and had done so ‘without any regard to what is required of conscientious physicians in the United States before proceeding with controlled medications.’”
A DEA investigator also reviewed patient records maintained by Malikian, which showed that Malikian saw patients across the United States and that about 43 percent of them shared common addresses, email addresses, “caregivers” or phone numbers with other patients. According to the affidavit, one of those patients was a convicted narcotics trafficker and another was stopped at Los Angeles International Airport while carrying over $19,000 in cash and approximately 1,764 Hydrocodone and Alprazolam pills.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges alleged in the indictment carry different statutory maximum sentences. Seven of the counts allege the illegal distribution of opioids, such as oxycodone, and those charges carry a maximum possible penalty of 20 years in federal prison.
The DEA is conducting an ongoing investigation in this case. The California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse provided substantial assistance.
Assistant United States Attorney Marina A. Torres of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Hartford Optician and Business to Pay More Than $678K to Resolve False Claims Act AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that LISA AZINHEIRA and L.A. VISION LLC, have entered into a civil settlement agreement with the federal and state governments and have agreed to pay $678,901.21 to resolve allegations that they violated the federal and state False Claims Acts.
Azinheira is a licensed optician and an owner of L.A. Vision, a business located on South Whitney Street in Hartford that offers optical goods and services. The allegations against Azinheira and L.A. Vision concern the submission of claims for optical goods and services that were not medically necessary.
The government alleges that starting in January 2014, every time Azinheira and L.A. Vision billed Connecticut Medicaid for a pair of eyeglasses, they also submitted a claim to Medicaid for “miscellaneous vision services or items,” using procedure code V2799. Pursuant to the Department of Social Services (“DSS”) fee schedule, procedure code V2799 can only be billed for medically necessary vision services, and must be billed at actual acquisition cost. The United States and the State of Connecticut allege that Azinheira and L.A. Vision did not provide any services or items that would justify billing that procedure code, and if any services or goods were provided, they were not medically necessary, and not billed at acquisition cost.
The government also alleges that starting in January 2014, Azinheira and L.A. Vision encouraged Medicaid beneficiaries under the age of 21 to choose up to three pairs of eyeglasses at a time. Relevant Medicaid guidance indicates that spare pairs of eyeglasses are not medically necessary and are not covered. The federal and state governments contend that Azinheira and L.A. Vision knowingly submitted false claims to Medicaid for multiple pairs of eyeglasses that were not medically necessary.
To resolve the allegations under the federal and state False Claims Acts, Azinheira and L.A. Vision have agreed to pay $678,901.21 to the federal and state governments for conduct occurring between January 1, 2014, and November 10, 2018.
As part of the settlement, Azinheira and L.A. Vision have entered into a three-year billing Integrity Agreement with the U.S. Department of Health and Human Services that is designed to ensure future compliance with the requirements of federal healthcare programs.
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek, and by Assistant Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.
Harrison County woman sentenced for meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amber Ramos, of Hepzibah, West Virginia, was sentenced today to 37 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Ramos, also known as “Amber Finch,” 33, pleaded guilty in April 2021 to one count of “Distribution of Methamphetamine.” Ramos admitted to selling methamphetamine in July 2018 in Harrison County.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Grant County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Bryan Edward Summerton, of Petersburg, West Virginia, has admitted to a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Summerton, 35, pleaded guilty today to one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Summerton admitted to having a 9mm pistol during drug trafficking in April 2020 in Grant County.
Summerton faces at least five years and up to life incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Grant County Sheriff’s Office investigated. The Task Force consists of members from the Drug Enforcement Administration, West Virginia State Police, the FBI, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Original case press release here: https://www.justice.gov/usao-ndwv/pr/grant-and-hardy-county-residents-indicted-fentanyl-and-firearms-charges
Georgia man admits to having more than 50 grams of methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – James Matthew Hembree, of Snellville, Georgia, has admitted to a methamphetamine charge, Acting U.S. Attorney Randolph J. Bernard announced.
Hembree, 40, pleaded guilty today to one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Hembree admitted to having more than 50 grams of methamphetamine in September 2019 in Ohio County. During a traffic stop of a vehicle in which Hembree was a passenger, Wheeling Police officers found more than 371 grams of methamphetamine, also known as “ice,” a digital scale, and baggies typically used for resale.
Hembree faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Former Social Services Employee in Harnett County Sentenced for Theft of Government FundsRead the Press Release
RALEIGH, N.C. – A Fayetteville, North Carolina woman, Lakisha Victoria McDougald, was sentenced today to 30 months and three years of supervised release for theft of government funds. McDougald was also ordered to pay $233,913 in restitution to the U.S. Department of Agriculture. On May 11, 2021, McDougald pled guilty to the charge.
According to court documents and other information presented in court, McDougald was employed as an income maintenance caseworker for the Department of Social Services in Harnett County. Between approximately 2014 and 2019, McDougald used state computer networks to unlawfully access the accounts of individuals who were enrolled in the federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. The targeted individuals were no longer eligible to collect benefits. McDougald, however, used her access privileges to cause food stamp EBT cards registered in the names of the beneficiaries to be sent to her home address, added false dependents to increase the monthly benefit allotment, sold the cards to others, and used the cards herself to purchase merchandise. For example, one of McDougald’s clients in Harnett County moved to Florida, disqualifying her from receiving further SNAP benefits from the State of North Carolina. McDougald accessed the client’s account and changed the address on file to her own address, thereby causing multiple EBT cards loaded with government funds to be sent to her. Later, McDougald added three false dependents to the account to drive up the benefit amount and converted the funds for her own use.
McDougald’s unlawful activities resulted in the loss of over $200,000 in government funds.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The U.S. Department of Agriculture, Office of Inspector General, with the assistance of the Harnett County Sheriff’s Office and the Harnett County Social Services Department investigated the case. Assistant U.S. Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00524-BR.
Former Pharmacy Technician Pleads Guilty to Prescription FraudRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to acquiring over 50,000 dosage units of prescription medications through fraudulent means.
“Pharmacy technicians are entrusted with safeguarding and maintaining prescription medications in a responsible manner,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This defendant did the opposite. He stole a large supply of prescription medications from a hospital that were intended for the treatment of deserving patients. As this case demonstrates, those who masquerade as health care professionals and abuse their trusted positions will be prosecuted in the Eastern District of Virginia.”
According to court documents, Justin Feliciano Agloro, 40, a former licensed pharmacy technician at Sentara Norfolk General Hospital, had the role of ensuring that the hospital’s controlled substance distribution system, a machine known as an Omnicell, was filled with the correct amounts of various controlled substances. From April 2018 to October 2019, Agloro executed a scheme by which he would steal controlled substances and falsify the Omnicell records to cover his theft. In this manner, Agloro was able to steal a variety of prescription medications, including thousands of prescription opioid pills and other medications.
According to court records, the supervising pharmacist and an Omnicell technician uncovered Agloro’s fraudulent scheme when he was on personal leave from the hospital. Agloro avoided camera systems and successfully intercepted daily Omnicell reports that would have confirmed his diversion of controlled substances while on duty at the hospital. Agloro also removed reports related to cabinets from which he had diverted controlled substances and replaced them with ones from cabinets he had not accessed or from which he had not diverted controlled substances. In total, Agloro stole over 50,000 units of controlled substances.
Agloro is scheduled to be sentenced on December 17. He faces a maximum penalty of four years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Joseph Kosky are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-75.
Former Mayor of Adelanto Arrested on Wire Fraud and Bribery Charges Alleging Illicit Payments for Support of Commercial Marijuana ActivityRead the Press Release
RIVERSIDE, California – The former mayor of Adelanto was arrested today by special agents of the FBI on a federal grand jury indictment alleging he accepted more than $57,000 in bribes and kickbacks in exchange for approving ordinances authorizing various types of commercial marijuana activity within the city, and ensuring his co-schemers obtained city licenses or permits authorizing certain commercial marijuana activities.
Richard Allen Kerr, 64, of Adelanto, was taken into federal custody without incident this morning. He is charged with seven counts of honest services wire fraud and two counts of bribery.
Kerr, who served as Adelanto’s mayor from 2014 to 2018, is expected to make his initial appearance this afternoon in United States District Court in Riverside.
According to the indictment returned on August 11, as part of his official duties, Kerr voted on ordinances governing zoning regulations in the city and served on Adelanto’s Cannabis Dispensary Permit Committee, which determined the number of dispensary permits that would be issued and which applicants would receive them.
As mayor, Kerr supported marijuana legalization, voted in favor of an ordinance authorizing marijuana cultivation in the city, voted in favor of an ordinance authorizing the operation of medical marijuana dispensaries, and voted to authorize the distribution, transportation and testing of medical marijuana, among other commercial marijuana activities. At the same time, Kerr secretly used his official position to enrich himself and his co-schemers by passing these same ordinances, according to the indictment.
Kerr allegedly also drafted zones for commercial marijuana activities to include locations used by his co-schemers, and he ensured they obtained the licenses and permits they sought – in exchange for bribes, kickbacks and gifts.
Kerr’s alleged co-schemers were a lawyer who specialized in plaintiffs’ tort litigation – identified in the indictment as “Person A” – and two individuals – labeled “Person C and “Person D” – who had business interests in the city, including those involving marijuana cultivation.
The bribes and kickbacks were disguised by Kerr and his co-schemers as gifts, donations to a charitable fund, donations to Kerr’s election campaign, or advance payments for the proceeds of planned litigation associated with a motorcycle accident.
In exchange for the bribes and kickbacks, Kerr provided favorable official action on behalf of the city to Person A, Person C, and other co-schemers with business interests in the city by authorizing various types of commercial marijuana activities, ensuring his supporters obtained the licenses or permits they sought, and interfering with enforcement activities by city officials.
For example, on November 29, 2016, the Adelanto City Council held a public discussion related to an ordinance, including discussion of “overlay zones” within which medical marijuana dispensaries would be located. The initial proposal included two zones, neither of which included a former restaurant – purchased two months earlier by Person A and his spouse.
During the discussion, Kerr requested a change in the boundaries of the second overlay zone, which expanded the zone to include Person A’s business. The plans for the business initially called for the building to be an attorney’s office, although they included items such as “elongated sales counters,” a “dispensing room,” “cashier,” and “security room,” the indictment alleges.
On December 5, 2016, Kerr deposited a $5,000 check – dated November 29, 2016 – from Person A’s real estate trust account into his bank account, and the check’s memorandum line read, “ADV XMAS FUND.”
In May 2017, Kerr voted twice in favor of a city ordinance that included Person A’s business in the marijuana dispensary overlay zone. In February, June and August of 2017, Kerr deposited three $10,000 checks from Person A’s law firm, with the memorandum lines of each check stating, “ADVANCE.”
In total, Kerr accepted at least $57,500 in bribes and kickbacks from Person A, Person C and other co-schemers.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Kerr would face a statutory maximum sentence of 160 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office is prosecuting this case.
Former Ft. Bragg Employees Accused of Receiving BribesRead the Press Release
RALEIGH, N.C. – Three men formerly employed at Ft. Bragg, North Carolina were arrested today on charges of bribery of a government official. Calvin Alfonza Jordan, 64, Edward Wade Crisco, 59, and Stephen Paul Sabato, 50, were charged via indictment with Jordan also charged with money laundering.
According to court documents, from 2011 to 2019, Jordan was a procurement agent assigned to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC, and entrusted to contract for services for DPW. DPW is responsible for design, construction, maintenance, and operation of utility systems on Ft. Bragg. The indictment alleges that Jordan, Crisco, a flooring technician assigned to DPW, and Sabato, a roofing technician assigned to DPW, each accepted payments from companies and individuals in return for increasing the amount of federal contracts with those companies and individuals. In particular, Jordan is alleged to have received thousands of such payments of at least $200 each. Over the 8-year period, payments received for such work orders amounted to a total estimated income to Jordan of $1,080,400. It is alleged that Jordan laundered some of that money by making cash deposits and then, in turn, withdrawing money to make large purchases including a BMW. It is alleged that during that time, Sabato profited at least $200,000, and Crisco profited at least $50,000.
Sabato and Crisco are charged with two counts of receiving bribes and gratuities for steering contracts to vendors and for recommending particular contractors for jobs and by passing their work on inspection without regard to completion workmanship. Jordan is charged with multiple counts of bribery and also faces charges of money laundering. If convicted, Jordan would face up to a maximum term of 30 years’ imprisonment, a $250,000 fine as to each of the counts, and a term of up to three years supervised release following any term of imprisonment. Crisco and Sabato face up to 15 years’ imprisonment, a $250,000 fine as to each count, as well as supervised release following any imprisonment. The indictment also gives notice that the defendants may be subject to substantial forfeiture of the proceeds of these crimes.
“Any allegations of bribery by a government employee are disheartening. In this case, it is alleged these men, tasked with maintaining and contracting to maintain the very spaces in which the members of our military live and work, put their own monetary gain above that task,” said Acting United States Attorney, Norman Acker.
"The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the Department of Defense (DoD) procurement system," said Special Agent in Charge Christopher Dillard, DCIS, Mid-Atlantic Field Office. "This indictment demonstrates our resolve, alongside our law enforcement partners, to bring to justice those who subvert the DoD contracting process for their own gain, jeopardizing the combat readiness of our military."
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Defense Criminal Investigative Service and the U.S. Army Criminal Investigative Division, Major Procurement Fraud Unit, are investigating the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:21-CR-313-M.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Former D.C. Everest Teacher Sentenced to 8 1/2 Years for Secretly Recording StudentsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Travis Greil, 40, Wausau, Wisconsin, was sentenced today by U.S. District Judge William Conley to 8 ½ years in prison for secretly producing videos that depict minors engaging in sexually explicit conduct. This term of imprisonment is to be followed by three years of supervised release. Greil pleaded guilty to this charge on May 13, 2021.
Greil was a teacher at D.C. Everest Senior High School for approximately 15 years. On February 12, 2020, a parent reported that his daughter, one of Greil’s students, thought that Greil had taken a picture of her, up her skirt. The daughter was interviewed and explained that something similar had also happened to one of her friends.
Later that night, school officials obtained Greil’s electronic devices and turned them over to law enforcement. Law enforcement eventually searched the defendant’s personal iPad and found 132 videos of 81 underage female students and 1 adult, dating from September 2015 to February 2020. It appeared that all the videos were taken at Greil’s desk at the school and were either “up-blouse” images that focused on the victim’s breasts or “up-skirt” images that focused on victim’s pubic area or buttocks.
At the sentencing, numerous victims told the Court how Greil’s actions had impacted their lives, expressing feelings including anger and betrayal. Judge Conley noted the defendant used his position of trust as an educator to manipulate his bright and ambitious students and called the defendant’s conduct predatory.
The charge against Greil was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation – Internet Crimes Against Children Task Force; Wisconsin Department of Justice Office of Crime Victim Services; Everest Metro and Wausau Police Departments; Marathon County Sheriff’s Office; Marathon County District Attorney’s Office; and the Wausau Police Department – Victim Resource Unit, with the assistance of the D.C. Everest Area School District. The prosecution of the case has been handled by Assistant U.S. Attorneys Elizabeth Altman and Chadwick Elgersma and State of Wisconsin Assistant Attorney General David Maas.
Former City of Shreveport Employee Sentenced for Conspiracy and Aggravated Identity TheftRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Tory Deshawn Jackson, 42, of Shreveport, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to 32 months in prison, followed by 3 years of supervised release, for his involvement in a scheme to commit credit card fraud. Jackson was also ordered to pay restitution in the amount of $409,769.56.
Jackson was indicted by a federal grand jury in July 2020 for engaging in a scheme with a co-conspirator to fraudulently purchase fuel using Fuelman credit cards stolen from the City of Shreveport. He pleaded guilty on April 7, 2021 to conspiracy to commit credit card fraud and aggravated identity theft. According to information presented in court at the guilty plea hearing, Jackson was employed by the Solid Waste Department in the City of Shreveport Public Works. In September 2017, using his position, Jackson stole three City of Shreveport Fuelman credit cards which he and his co-conspirator would use to unlawfully purchase gasoline and other items at Shreveport area gas stations.
The way the fraudulent scheme was carried out is that Jackson would meet a co-conspirator and others at a local gas station where they would use one of the stolen Fuelman credit cards, along with the Fuelman personal identification number of a Solid Waste Department supervisor, to pump fuel into large containers which could hold up to 500 gallons of fuel. Jackson’s co-conspirator and others would then take the tanks to a third party to sell, and the profit would be split among the co-conspirators. Many times, they would have to run multiple, successive transactions in order to fill up the tanks. From September 3, 2017 through Jackson’s arrest on October 16, 2019, the three credit cards belonging to the City of Shreveport were used to make transactions totaling $409,769.56.
Jawaski Johnson, Jackson’s co-defendant, is scheduled to be sentenced December 7, 2021.
The Federal Bureau of Investigation and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
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Former CEO of Publicly Traded Houston Company Pleads Guilty to Accounting Fraud SchemeRead the Press Release
Ilan Graff, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced today the guilty plea of JEFFREY HASTINGS, the former chief executive officer and chairman of the board of directors of SAExploration Holdings, Inc. (“SAEX” or the “Company”), a publicly traded seismic data company based in Houston, Texas, for his role in a scheme to fraudulently and materially inflate the publicly reported revenue of SAEX by tens of millions of dollars, in 2015 and 2016, and also for misappropriating millions of dollars from the Company. HASTINGS pled guilty before U.S. District Judge Gregory H. Woods to conspiracy to commit securities fraud and wire fraud offenses.
Ilan Graff, Attorney for the United States, said: “As he acknowledged in court today, Jeffrey Hastings schemed to inflate his company’s revenue, making it appear more profitable than it was. Hastings then stole money from the company for his own use. Hastings now awaits sentencing for his admitted fraud and deception.”
According to the allegations contained in the Superseding Information, the Superseding Indictment, and the Complaint filed in this case, and statements made during the plea proceeding:
At all times relevant to the Information until August 2016, HASTINGS was the executive chairman of the board of directors of SAEX (the “Board”). After August 2016, HASTINGS served as both the chairman of the Board and the chief executive officer (“CEO”) of SAEX until he separated from the company in August 2019. SAEX was a publicly traded seismic data acquisition company headquartered in Houston, Texas, that traded under the symbol “SAEX” on the NASDAQ. In May 2020, SAEX was delisted from the NASDAQ and, in December 2020, was taken private. SAEX provided land- and marine-based seismic acquisition services, including program design, planning and permitting, camp services, survey, drilling, recording, and processing. Seismic data is used by oil and gas companies to identify and analyze drilling prospects and maximize successful drilling.
From February 2015 through May 2019, HASTINGS, together with Brent Whiteley, the then chief financial officer and general counsel of SAEX, Michael Scott, the then executive vice president of operations at SAEX, and “CC-1,” the founder and at various times president, CEO, and chief operating officer of SAEX, devised and carried out a scheme to defraud SAEX’s shareholders, bondholders, and the investing public by artificially and materially inflating SAEX’s reported revenue by making it appear that Alaskan Seismic Ventures, LLC (“ASV”) was an independent and reliable source of tens of millions of dollars of revenue.
In February 2015, HASTINGS and Whiteley discussed finding a way for SAEX to take advantage of certain tax credits offered by the State of Alaska to seismic data library companies, to offset the costs of exploring for oil and gas in Alaska (the “Alaska Tax Credits”). The Board of SAEX was opposed to operating its own data library company because of concerns about the ability to ensure payment to SAEX, including through the monetization of Alaska Tax Credits, among other reasons. To avoid the appearance that SAEX was operating a data library company that licensed data to third parties, HASTINGS and Whiteley set up ASV, to purport to operate as an independent customer purchasing seismic data from SAEX and licensing it to third parties. HASTINGS recruited an acquaintance to serve as the owner and sole employee of ASV. In truth and in fact, and as hidden from investors, ASV was not independent and could not pay SAEX for its seismic data.
After setting up ASV, HASTINGS and Whiteley created and caused to be created a number of shell companies (the “Shell Companies”) for the purpose of secretly transferring funds from SAEX into ASV. One of the Shell Companies, Global Equipment Solutions (“Global Equipment”), was purportedly an equipment rental company from which SAEX rented seismic acquisition equipment. In truth and in fact, and as HASTINGS and his co-conspirators well knew, SAEX did not rent any equipment from Global Equipment and did not owe Global Equipment any money. The co-conspirators took steps to make the payments from SAEX to Global Equipment appear legitimate to others at SAEX. For example, Whiteley drafted a lease agreement between SAEX and Global Equipment, and Scott caused fake purchase orders to be created that purported to show expenses incurred by SAEX as a result of renting equipment from Global Equipment.
By the end of 2015, SAEX had recorded on its books approximately $12 million in payables to Global Equipment. HASTINGS and his co-conspirators ultimately routed approximately $5.8 million of SAEX’s funds through Global Equipment and the other Shell Companies to ASV. That money then went from ASV back to SAEX to pay outstanding receivables. The fact that these funds belonged to and originated with SAEX was not disclosed to investors. HASTINGS and his co-conspirators referred to this portion of the scheme as “round-tripping.” In addition, HASTINGS and Whiteley then misappropriated more than $5 million of the funds that SAEX transferred to Global Equipment for their own use, including making payments to Scott and CC-1, among others.
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HASTINGS, 63, of Anchorage, Alaska, and British Columbia, Canada, pled guilty to one count of conspiracy to commit securities fraud, to make false statements in annual and quarterly SEC reports, and to make false statements to SAEX’s auditors, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HASTINGS is scheduled to be sentenced by Judge Woods on November 15, 2021, at 1:00 p.m.
Whiteley and Scott have already pled guilty and await sentencing before Judge Woods.
Mr. Graff praised the investigative work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant, for its assistance in the investigation.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo, Gina Castellano, and Robert Boone are in charge of the prosecution.
Florida Man Pleads Guilty to Wire Fraud Conspiracy SchemeRead the Press Release
BOSTON – A Florida man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud a Massachusetts-based company by falsifying invoices.
Brian Halpern, 48, pleaded guilty to conspiracy to commit mail and wire fraud, wire fraud and money laundering. U.S. District Judge George A. O’Toole Jr. scheduled sentencing for Dec. 16, 2021. Halpern was charged on May 5, 2021.
Between approximately 1998 and April 2019, Halpern and others defrauded a Massachusetts-based uniform supplier by falsifying invoices for products that were not actually delivered and diverting other products that they re-sold for their own benefit.
The charge of wire fraud and conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater, restitution and forfeiture. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Sara M. Bloom and Ian J. Sterns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Financial Adviser Sentenced to Three and a Half Years in Prison for Swindling Millions from ClientsRead the Press Release
CHICAGO — A Chicago financial adviser has been sentenced to three and a half years in federal prison for swindling more than $3 million from clients, including a man who received compensation from the State of Illinois in a wrongful conviction settlement.
MARCUS E. BOGGS represented to clients and his employer, an investment advisory firm, that he would use client funds to buy and sell securities. In reality, Boggs spent more than $3 million of his clients’ funds over a ten-year period to pay his personal credit cards and the mortgage on his residence. His credit card purchases included international vacations, expensive dinners at restaurants, and rent for multiple apartments that Boggs leased in Chicago.
One of the defrauded clients was wrongfully imprisoned for several years after being convicted of a 1991 sexual assault, kidnapping, and murder of a teenage girl. After DNA testing exonerated the client and led to his release from prison, he received approximately $5 million from the State of Illinois and retained Boggs to manage and invest some of the money. Boggs instead stole approximately $800,000 of the client’s funds.
Boggs, 51, of Chicago, pleaded guilty earlier this year to a charge of wire fraud. In addition to the 36-month prison sentence, U.S. District Judge Mary M. Rowland on Thursday ordered Boggs to pay more than $3.08 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which filed a civil enforcement action against Boggs.
“Defendant had a personal relationship with his clients and knew what they hoped to achieve with their life savings and retirement,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum. “But that didn’t stop him from stealing their hard-earned money.”
Felon Sentenced to Nearly Five Years in Federal Prison for Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Dwayne Purdie Jr., age 28, of Baltimore, Maryland to 57 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).
According to his plea agreement, on November 14, 2019, Baltimore Police Department officers saw a male suspect and Purdie conduct a suspected drug transaction in a Baltimore alley way. After Purdie began to leave the alley, he noticed the police officers, and quickly returned to the alley.
Believing that they had just interrupted a drug transaction, the BPD officers drove into the alley to investigate. Purdie then fled on his bicycle and threw a clear bag that appeared to contain small objects consistent with street-level packaged drugs.
Eventually, Purdie abandoned his bicycle and fled on foot, and hid behind a truck. When a BPD officer located Purdie, he was in the motion of reaching for his right leg. Upon his apprehension, a BPD officer found a loaded 9mm semi-automatic firearm, a total of 13 rounds of ammunition, and two vials of cocaine under Purdie’s right pant leg.
After canvasing the area where Purdie threw the bag while riding his bicycle, an officer found a clear bag containing a total of 51 vials and gel caps of cocaine and 31 of the gel caps also contained a fentanyl mixture. The two vials recovered from Purdie also contained cocaine. The amount and packaging of the drugs suggest that they were intended for distribution rather than personal use.
Prior to possessing the firearm, Purdie had a felony conviction and as a result, knew that he was prohibited from possessing a firearm or ammunition.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney James C. Tuomey and Assistant U.S. Attorney Brandon K. Moore, who prosecuted the case.
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Federal Jury Convicts Oklahoma City Man of Illegal Possession of Firearm after Previous Domestic Abuse ConvictionsRead the Press Release
OKLAHOMA CITY – Earlier this week, a federal jury convicted TRACI ASHFORD, 34, of Oklahoma City, of possessing a firearm after a prior felony conviction of domestic assault and battery, announced Acting U.S. Attorney Robert J. Troester.
On February 19, 2021, a federal grand jury returned a single-count Indictment against Ashford, charging him and a co-defendant with possessing a firearm after a former felony conviction. Federal law prohibits a person who has previously been convicted of felony from possessing a firearm.
On August 11, 2021, after a two-day trial, a federal jury returned a guilty verdict against Ashford. Evidence at trial showed that, on October 6, 2020, Ashford engaged in an altercation with his girlfriend, which resulted in Ashford brandishing an AK-47 style rifle. Soon after the altercation, Ashford was stopped by Oklahoma City Police Department officers who located the rifle in the backseat of the car Ashford was driving. Prior to being found in possession of the firearm, Ashford had been convicted of a felony domestic assault and battery in Oklahoma County, as well as domestic battery in Jefferson County, Arkansas.
Ashford’s co-defendant, DARIUS HEAD, 25, of Oklahoma City, pled guilty to the Indictment on June 3, 2021.
At sentencing, Ashford and Head each face up to ten years in federal prison, followed by up to three years of supervised release, in addition to a fine of up to $250,000. Both continue to be detained pending sentencing.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Jacquelyn Hutzell and Travis Leverett prosecuted the case.
This case is part of "Operation 922," the Western District’s local implementation of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s initiatives to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
Federal Jury Convicts Man of Illegally Possessing Handgun on Evanston StreetRead the Press Release
CHICAGO — A federal jury in Chicago convicted a man of illegally possessing a semi-automatic handgun in Evanston after he tried to flee from police in a car and on foot.
DARIUS MORALES illegally possessed the firearm in Evanston on May 8, 2019. Evanston Police responded to gun shots fired in an alley and saw a silver Jeep Commander pull out and speed away. An officer pursued the vehicle at a high rate of speed until the Jeep crashed into a fence in the backyard of a residence. Morales, who was a passenger in the Jeep, left the gun on the fence and fled on foot. He was arrested a few blocks away.
After a three-day trial in federal court in Chicago, the jury on Thursday convicted Morales, 31, of Evanston, of illegally possessing the firearm. Morales had previously been convicted of multiple felonies and was not legally allowed to possess a gun.
Judge Amy J. St. Eve of the U.S. Court of Appeals for the Seventh Circuit, sitting by designation in the U.S. District Court, heard the trial and scheduled sentencing for Nov. 29, 2021, at 1:00 p.m.
The conviction is punishable by a sentence of up to ten years in federal prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Evanston Police Department, and Cook County State’s Attorney’s Office. The government was represented by Assistant U.S. Attorneys Jeannice Appenteng and Charles W. Mulaney.
Fairbanks Man Convicted for Stalking and Murder for Hire PlotRead the Press Release
FAIRBANKS – A federal jury today convicted a Fairbanks man for stalking and attempting to arrange a murder for hire.
According to court documents and evidence presented at trial, Roger Keeling, 55, devised and solicited a murder for hire plot targeting his former girlfriend while he was in custody on stalking charges.
In October 2020 Keeling placed his hands around his girlfriend’s neck, told her he should rip her heart out and threatened to burn her house down. Keeling pleaded guilty to a misdemeanor assault charge in state court. The victim applied for and was granted a Domestic Violence Protective Order (DVPO) and it was served on Keeling before his release on the assault charges. Over the next six weeks, Keeling was arrested – and released by the state court – for violating this DVPO multiple times in an escalating pattern that included following the victim, slashing her tires, sending dozens of threatening emails from various “disguised” email accounts and planting disturbing handwritten notes along her usual running route.
Keeling was arrested for stalking the victim in December 2020. While in custody, Keeling told his cellmate he wanted to find someone to harm his girlfriend. During the next few days, Keeling agreed to pay his cellmate $1,500 to arrange for a hitman to kill her, and after being released by a state court judge, he made an initial payment of $500. During a search of Keeling’s home, Alaska State Troopers and the Federal Bureau of Investigation found numerous notes and documents confirming the existence of the plot, as well as multiple documents and drawings created by Mr. Keeling that showed his desire to see her harmed, including a hand-drawn picture of her home in flames.
“Every citizen has the right to feel safe as they go about their daily life. With today’s conviction, the victim will no longer live in fear always looking over her back and worried about her personal safety,” said Acting U.S. Attorney Bryan Wilson, District of Alaska.
“The Alaska State Troopers are committed to working with our law enforcement partners to keep the citizens of our great state safe,” said Colonel Bryan Barlow, Director of the Alaska State Troopers. “Investigations like these should serve as a warning to anyone considering soliciting a murder; the Alaska State Troopers and our local, state, and federal law enforcement partners will aggressively investigate and hold accountable anyone that perpetrates these unconscionable acts.”
Keeling faces up to a five year sentence on the stalking conviction and up to a 10 year sentence on the murder for hire conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Alaska State Troopers, the Federal Bureau of Investigation and the Fairbanks Police Department conducted the investigation.
Assistant U.S. Attorneys Daniel Doty and Ryan Tansey are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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El Departamento de Justicia Resuleve Una Acusación de Discriminación Relacionada Con La Inmigración Con Una Compañía de Gestión y Residencias de Tercera Edad Ubicados en IowaRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con JP Senior Healthcare LLC y JP Senior Management LLC, el cual resuelve las acusaciones del Departamento de que estas compañías vulneraron la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a un empleado Latino con base en suposiciones que el trabajador no era ciudadano de los EE. UU. JP Senior Management gestiona dos centros de cuidados, de los cuales JP Senior Healthcare es el dueño: Pioneer Valley Living and Rehab, ubicado en Sergeant Bluff, Iowa, y Goldenrod Manor Care Center, ubicado en Clarinda, Iowa.
Con base en su investigación, el Departamento determinó que a la hora de verificar el derecho legal de un empleado nuevo a trabajar en los Estados Unidos, JP Senior Healthcare y JP Senior Management rechazaron el carnet de conducir válido y tarjeta de seguro social sin restricciones del ciudadano estadounidense. Más aún, la investigación concluyó que las compañías pidieron que, en su lugar, el trabajador presentase una Tarjeta de Residente Permanente, todo esto porque las compañías creían, por error, que el trabajador no era ciudadano de los EE. UU., incluso después de que el ciudadano había explicado que era ciudadano estadounidense y, por lo tanto, no era elegible para una Tarjeta de Residente Permanente. Asimismo, el Departamento determinó que estas solicitudes documentales llevaron al fin del empleo de dicho trabajador. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios para demostrar la autorización para trabajar con base en el estatus de ciudadanía del empleado o bien por su nacionalidad de origen. En su lugar, todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía o nacionalidad de origen, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos.
«Los empleadores deben tratar a todos sus trabajadores de una manera justa y coherente con la ley, sin basar ninguna conclusión acerca de la ciudadanía de un trabajador en la apariencia o nacionalidad de origen hispana del trabajador», afirmó la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia, Kristen Clarke. «La División de Derechos Civiles se ha comprometido a garantizar que los lugares de trabajo estén libres de discriminación».
Conforme los términos del acuerdo conciliatorio, JP Senior Healthcare LLC y JP Senior Management pagará una sanción civil a los Estados Unidos; emitirá pagos retroactivos más intereses al trabajador afectado y capacitará a los empleados relevantes acerca de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dracut Man Arrested for Armed RobberyRead the Press Release
BOSTON – A Dracut man was arrested yesterday and charged in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Christmas Eve 2020.
Michael Vangpa, 32, was charged with interfering with commerce by robbery and using a firearm in furtherance of a crime of violence. Following an initial appearance today before U.S. District Court Magistrate Judge Donald L. Cabell, Vangpa was detained pending a detention hearing scheduled for August 16, 2021.
According to the charging documents, on Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa brandished a firearm and demanded money from the store clerks. He also discharged the firearm during one of the robberies.
The charge of interference with commerce by robbery provides 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 discharging a firearm in furtherance of a crime of violence provides for a sentence of up to life in prison and a mandatory consecutive term of imprisonment of 10 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Denton Sex Offender Indicted for Failing to RegisterRead the Press Release
SHERMAN, Texas – A Denton man has been indicted on federal sex offender registry violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Chad Allan Titus, 35, was named in an indictment returned by a federal grand jury in Sherman, Texas on July 14, 2021, charging him with failure to register as a sex offender. Titus has pleaded not guilty and appeared in federal court on August 12, 2021, for a detention hearing before U.S. Magistrate Judge Kimberly C. Priest Johnson. At that time, Titus was ordered to be held until trial.
“Sex offender registration serves an important public information and safety function. When sex offenders evade registration requirements, they place the entire community at risk,” said Acting U.S. Attorney Nicholas J. Ganjei. “The public can count on the U.S. Department of Justice aggressively prosecuting sex offenders that seek to evade their monitoring requirements and slink unnoticed in our communities.”
According to court documents, Titus was convicted of assault with intent to commit sexual abuse, a felony, in Iowa in 2011. As a result of that conviction, he is required to register as a sex offender in the jurisdictions where he lives and works. In the spring of 2020, Titus came to North Texas from Iowa and registered as a sex offender. Shortly thereafter, he returned to Iowa, and properly deregistered in Texas and registered in Iowa. However, in October of 2020, Titus left Iowa and returned to North Texas, ultimately residing in an apartment in Denton, Denton County, Texas. Titus failed to deregister in Iowa or register in Texas as required. Members of the U.S. Marshals Service and the North Texas Fugitive Task Force became aware of Titus’ presence in the Eastern District of Texas in May 2021. Specifically, a caller reported that Titus had exposed himself in the parking lot of a business in Denton, Texas.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If convicted, Titus faces up to 10 years in federal prison.
This case is being investigated by the U.S. Marshals Service, the North Texas Fugitive Task Force, and the Denton Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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