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Wednesday 4 August 2021
ValueWise CEO Michael Mann Sentenced to 144 Months in Prison for $100 Million FraudRead the Press Release
ALBANY, NEW YORK – Michael T. Mann, age 51, was sentenced today to 144 months in prison for running a complex scheme that caused more than $100 million in losses to banks, financing companies, and other businesses, and also involved his misappropriation of millions of dollars entrusted to payroll companies that he owned.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Lawrence E. Kahn also ordered Mann to serve 3 years of post-imprisonment supervised release, pay restitution to victims in the total amount of $101,038,793.31, and to forfeit assets already seized by the Government, including $14,522,474.90 contained in bank accounts and 30,000 common shares of Pioneer Bancorp Inc.
Acting United States Attorney Antoinette T. Bacon stated: “Today’s sentence holds Michael Mann accountable for his despicable crimes. For years, instead of growing a legitimate business in Clifton Park, he grew a fraudulent scheme. Mann inflicted major losses on companies that loaned him money. He also stole the paychecks of thousands of hard-working people, and the tax payments of hundreds of small businesses, across the country. Mann caused immense stress for small business owners and fear among employees living paycheck to paycheck, and he justly deserves the term of imprisonment imposed today. This case should be a deterrent to businesspeople who would seek to lie, cheat and steal their way to success.”
FBI Special Agent in Charge Janeen DiGuiseppi stated: “Michael Mann's intricate fraud scheme allowed him to manipulate the system to the tune of $100 million. He played a dangerously deceitful game with the paychecks of thousands of hard-working Americans trying to make an honest living. Not only were thousands of employees impacted, but some small business owners lost their livelihoods when they went out of business due to Mann’s criminal scheme. While today’s sentence cannot build back those businesses or give back lost jobs, we can only hope it serves as a resounding message that the FBI, together with our law enforcement partners, will not stand for anyone looking to gamble with the hard-earned incomes of our citizens.”
Mann operated ValueWise Corporation, based in Clifton Park, New York, as well as subsidiary companies including MyPayrollHR.com LLC. He admitted that from 2013 to September 2019, he engaged in a fraudulent scheme to deceive banks and financing companies into loaning his companies tens of millions of dollars. Because Mann could not repay the loans with legitimate business revenues, he expanded the fraud, by stealing and diverting millions of dollars that were entrusted to his payroll companies, and engaging in the daily kiting of millions of dollars among bank accounts he controlled.
Mann’s scheme collapsed in late August and early September 2019, when one of his banks froze his accounts, setting off a chain of events that left his payroll companies unable to process payroll and tax payments for hundreds of small business customers nationwide.
On August 12, 2020, Mann pled guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, nine counts of bank fraud, and one count of filing a false tax return.
Mann’s scheme had multiple layers, including:
- Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies. Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.
- Mann fraudulently obtained a line of credit from several Capital Region banks; the line of credit had grown to $42 million by August 2019. To obtain the line of credit, Mann created companies whose sole purpose was to further the fraud by generating fake invoices, disguising sources of funds, and artificially inflating his assets; falsely represented to the banks that his fake businesses had revenues and receivables based on consulting work for Optum/UHG and other well-known companies, including 3M, Best Buy and T-Mobile; hid the tens of millions of dollars in loans he was receiving from the financing companies, and that he was using the line of credit to pay down these loans; and provided false financial statements, and individual and corporate tax returns, to his outside auditor, which in turn made inaccurate reports to the banks.
- Mann misappropriated payroll monies, entrusted to MyPayrollHR and other payroll companies he owned, by changing the instructions for digital Automated Clearing House (“ACH”) files that were supposed to transmit payroll from customers (employers) to the employees of the customers. Although his companies’ contracts with Cachet Financial Services specified that ACH transfers would route payroll funds from the employers’ accounts to a designated Cachet trust account and then directly to the customers’ employees, Mann changed the instructions inside digital ACH files provided to Cachet, in order to divert payroll funds into accounts that he controlled at Pioneer Bank. When Pioneer Bank froze Mann’s corporate accounts on or about August 30, 2019, it froze the payroll funds in those accounts, and caused several thousand people across the country to not receive a payroll payment.
Mann is the first person to be sentenced in connection with this fraud. A co-conspirator, former Optum employee Luke E. Steiner, age 33, of Minneapolis, Minnesota, pled guilty in February 2020 to conspiring with Mann to defraud two financing companies out of millions of dollars.This case was investigated by the FBI, as well as Internal Revenue Service-Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
- Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies. Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.
Union County Man Charged with Possessing Three Firearms and NarcoticsRead the Press Release
NEWARK, N.J. – A Union County resident was charged with possessing three firearms, as well as possessing with intent to distribute narcotics, Acting U.S. Attorney Rachael A. Honig announced today.
Orlando Perez, 38, of Elizabeth, New Jersey, is charged by complaint with possession of firearms and ammunition by a convicted felon, and possession with intent to distribute controlled substances. Perez appeared by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
On Dec. 10, 2020, law enforcement officers lawfully searched Perez’s residence and recovered the following: one .38 caliber Smith and Wesson revolver loaded with five rounds of .38 caliber ammunition; a .45 caliber Harrington and Richardson semiautomatic carbine; a 20 gauge Browning shotgun; three magazines; approximately 1,500 rounds of ammunition; as well as heroin, fentanyl, cocaine, methamphetamine pills, and drug paraphernalia.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The felon in possession of firearms and ammunition charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents and task force officers with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and officers of the Elizabeth Police Department, under the direction of Police Director Earl Graves, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two North Louisiana Men Headed to Federal PrisonRead the Press Release
MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced that two North Louisiana men each have been sentenced to 10 years in prison by United States District Judge Terry A. Doughty for offenses involving drug trafficking and illegal possession of firearms.
Derrick King Brooks, 45, of Monroe, Louisiana, was sentenced to spend 120 months (10 years) in prison, followed by 5 years of supervised release, for possession with intent to distribute cocaine and possession of a firearm during a drug trafficking offense. In February 2020, officers with the Monroe Police Department received a crime stoppers tip that Brooks was supplying cocaine in the Monroe area. Law enforcement agents with the Metro Narcotics Unit began investigating and surveilling the residence where Brooks was staying on Medra Street in Monroe. Through their investigation, agents seized baggies from Brooks’ residence containing chunks of cocaine residue which were sent to the lab for testing and was determined to be cocaine. A search warrant was obtained for the residence and arrest warrant for Brooks. Agents arrested Brooks as he was leaving from the residence and a search of the residence was conducted. In his vehicle, agents found baggies with cocaine, cash and two cell phones. A search of the residence resulted in more bags containing cocaine, other narcotics, a loaded semi-automatic pistol, cash and drug paraphernalia. In total, agents seized over $11,000 in cash, over 2,159 grams of powder cocaine, 29 grams of crack cocaine, and 38 pills.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Anthony Tywan Newton, 38, of Ruston, Louisiana, was sentenced to spend 124 months (10 years, 4 months) in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. In March 2020, agents with the U.S. Drug Enforcement Administration (DEA) executed a search warrant at a residence on Eastland Avenue in Ruston. Agents seized plastic bags containing 17.5 grams of methamphetamine, 267 dosage units of MDMA, 7 dosage units of Xanax, 27 dosage units of penicillin, and 15 dosage units of Tylenol with codeine, as well as cash. When examining the serial numbers on the U.S. Currency, agents were able to determine that a portion of it was used in earlier controlled buys conducted by law enforcement agents and involving Newton. In addition to the drugs and cash, agents seized a pistol and rifle in Newton’s residence.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
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Two Men Admit Receiving over $500,000 in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
CAMDEN, N.J. – Two Indian nationals today admitted to conspiracy to commit wire fraud by accepting illegally obtained wire transfers from victims across the country totaling over $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Zeeshan Khan, 22, and Maaz Ahmed Shamsi, 24, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging each with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, criminal India-based call centers utilized automated robocalls to victims with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including Shamsi and Khan. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or Drug Enforcement Administration, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victims they were speaking with someone from a tech support company and coercing the victims into granting the caller remote access to their personal computers, and through that, to the victims’ bank accounts. By manipulating the victims’ bank accounts, the caller would convince the victims that an overpayment was made to the victims and ultimately instruct them to send money by way of mail or wire transfer to other members of the conspiracy, including Shamsi and Khan.
As part of this scheme, Shamsi and Khan are charged with receiving fraudulent wire transfers from 19 victims across the country totaling approximately $618,000.
The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine or twice the amount of the loss, whichever is greatest. Sentencing for both defendants is scheduled for Dec. 6, 2021.
Acting U.S. Attorney Honig credited special agents of the Social Security Administration, Office of the Inspector General Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the Department of Homeland Security, Homeland Security Investigations (HSI) New York Field Office – El Dorado Task Force, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Three drug traffickers convicted of drug and money laundering conspiracies, as well as illegal gun possession, following a two-week jury trialRead the Press Release
Seattle – Three men were convicted late yesterday of multiple federal felonies for distributing fentanyl disguised as oxycodone pills in Snohomish, Skagit and Whatcom Counties, announced Acting U.S. Attorney Tessa M. Gorman. The leader of the drug ring, Bradley Woolard, 42, of Arlington, was convicted of 28 counts involving conspiracy to distribute controlled substances, conspiracy to commit money laundering, money laundering, illegal gun possession, and possessing drugs with the intent to distribute them. Co-defendants Anthony Pelayo, 34, of Marysville, and Jerome Isham, 40, of Everett, were also convicted of conspiracies related to drug distribution and illegal gun possession.
The jury deliberated for two days following the ten-day trial. The men are scheduled for sentencing by U.S. District Judge John C. Coughenour on November 16, 2021.
According to testimony and exhibits during trial, the case began in the summer of 2018, when law enforcement officers from the Drug Enforcement Administration and the Snohomish Regional Drug and Gang Task Force obtained multiple court-authorized search warrants for Woolard’s home. On July 28, 2018, they found more than 12,000 fentanyl pills designed to look like 30 mg oxycodone prescription narcotic. The pills ultimately tested positive for furanyl fentanyl, an analogue of fentanyl and a controlled substance.
The pills were pale blue in color and had “M” printed on one side and “30” on the other side. Over the course of multiple searches, law enforcement seized more than $1 million in cash and gold from Woolard’s five-acre compound, including cash hidden behind drywall, in the ceilings of outbuildings, and in a hole beneath a dishwasher. Investigators also discovered a hidden room containing 29 firearms ranging from handguns to assault rifles, including four firearm silencers and several thousand rounds of ammunition.
Testimony at trial revealed that in 2015 and 2016, Woolard began buying fentanyl and furanyl fentanyl powder from China after researching how to do so on the Dark Web. He bought a pill press and mixing materials from websites such as Amazon and eBay and taught himself how to make homemade pills. Testimony at trial established that Woolard’s pill making operation was capable of producing more than 2.5 million pills containing fentanyl and furanyl fentanyl, and that he regularly provided thousands of pills to other conspirators for distribution. In 2017, Woolard turned the pill press operation over to Pelayo, who continued the manufacturing at a rural compound in Snohomish County. Woolard retained the role of ordering the fentanyl from China and continued to help Pelayo make and distribute the pills. Woolard continued to distribute the pills while seeking treatment for his own drug addictions at spa-like resorts in Costa Rica and Mexico which cost him between $30,000 and $50,000 per month, which he paid for with the profits of his illicit pill operation.
Jerome Isham was one of the conspiracy’s top distributors. Evidence at trial established that he was responsible for re-distributing close to 100,000 illegal fentanyl and furanyl fentanyl pills over a one-year period between July 2017, and June 2018. Isham also recruited people to receive the shipments of powdered fentanyl and furanyl fentanyl from China. Woolard and Pelayo paid for the drugs by recruiting co-conspirators to wire money to China or by paying with bitcoin.
Pelayo was also convicted of two money laundering conspiracies and multiple counts of money laundering, including using $100,000 of his cash drug proceeds to purchase a luxury RV. He was also convicted of possessing a firearm in furtherance of his drug trafficking – resulting in a 5 year consecutive prison term to any other sentence imposed in the case.
Woolard was convicted of being a drug user and drug addict in possession of firearms. Isham was convicted of being a felon in possession of a firearm.
Conspiracy and possession of fentanyl with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison. Being a felon in possession of a firearm, or a drug user and drug addict in possession of firearms, is punishable by up to ten years in prison. Money laundering is punishable by up to twenty years in prison.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The investigation is being led by the Drug Enforcement Administration (DEA) with assistance from the Snohomish Regional Drug and Gang Task Force (SRDGTF) and the Whatcom County Drug and Gang Task Force. A total of eleven defendants were charged in this case. Eight have pleaded guilty, and two have been sentenced. Woolard, Pelayo, and Isham were the final three defendants in this conspiracy to proceed to trial.
The case is being prosecuted by Assistant United States Attorneys Karyn Johnson and Mike Lang.
Texas Man Sentenced After Pleading Guilty to Making a False Statement to Law EnforcementRead the Press Release
NEW ORLEANS, LOUISIANA – EDMOND ARZATE, age 29, a resident of Houston, Texas, was sentenced to one year of probation by U.S. District Judge Jay C. Zainey after pleading guilty to a superseding bill of information charging him with making a false statement to a Special Agent of Homeland Security Investigations in violation of Title 18, United States Code, Section 1001 announced U.S. Attorney Duane A. Evans.
According to court documents, on October 12, 2017, a suspected drug trafficker informed a Homeland Security Investigations confidential source that a money courier would arrive in the Eastern District of Louisiana to collect funds for a previously conducted drug transaction. That evening, ARZATE contacted the source and instructed him to meet at a Waffle House in Mandeville, Louisiana. The source me with ARZATE and provided gave him with $30,000.00 in government funds as payment for the previously conducted drug transaction. ARZATE departed from the area but the Louisiana State Police conducted a traffic stop and obtained the money from his vehicle. A Homeland Security Investigations Special Agent and Louisiana State Police Trooper interviewed ARZATE regarding the money. ARZATE told the officers that he won the money playing poker at a Louisiana casino. When the officers asked if he had any receipts for the winnings, ARZATE changed his story and said he played “underground poker.” ARZATE then changed his story a second time and said he received the money from a “random guy” and provided no further information.
ARZATE faced a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00 and three years of supervised release following any term of imprisonment.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Department of Homeland Security-Office of Homeland Security Investigations and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones.
Ten Chicago-Area Residents Charged in Bank Fraud Schemes Involving Counterfeit Postal Service Money OrdersRead the Press Release
CHICAGO — Ten Chicago-area residents have been indicted on federal fraud charges for allegedly scheming to cash counterfeit U.S. Postal Service money orders.
The defendants deposited the counterfeit USPS money orders into various bank accounts to which they had access and then quickly withdrew the funds before the banks learned of the fraudulent nature of the deposits, according to indictments returned July 28, 2021, in U.S. District Court in Chicago. The defendants had purchased or caused to be purchased the money orders from post offices in amounts less than $10, so that the orders could then be altered to higher amounts – typically between $800 and $1,000 – before the deposits, the charges allege.
Charged with bank fraud are NATHAN R. CHAVIS, 29, of Chicago, Ill.; MARVIN L. COLE, 29, of Chicago Heights, Ill.; REGINALD RUSSELL, 29, of Glenwood, Ill.; DARIUS D. GOODWIN, 26, of Country Club Hills, Ill.; VICTOR J. JOHNSON, 27, of Oak Forest, Ill.; LANCE BRANDON COLE, 27, of Richton Park, Ill.; MUNANG O. EKOI, 26, of Lisle, Ill.; SERNARD D. GILL, JR., 26, of Matteson, Ill.; ARMANI M. SPENCER-SPRATTLIN, 32, of Park Forest, Ill.; and ALEXANDER S. COCROFT, 28, of Country Club Hills, Ill.. Most of the defendants have made initial appearances in federal court in Chicago.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The Elmhurst, Ill., Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys L. Heidi Manschreck and Ramon Villalpando.
According to the indictments, Chavis caused at least $158,610 in altered and counterfeit money orders to be deposited into third-party bank accounts; Marvin Cole and Russell were responsible for at least $132,593; Goodwin, Johnson, Lance Cole, Ekoi, Gill, and Spencer-Sprattlin were responsible for at least $895,000; and Cocroft was responsible for at least $207,985.
Bank fraud is punishable by up to 30 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Tacoma couple caught with more than 23 pounds of methamphetamine sentenced to lengthy prison termsRead the Press Release
Seattle – A Tacoma couple who had large quantities of methamphetamine, cocaine and MDMA in their home were sentenced today in U.S. District Court in Tacoma for being armed drug traffickers, announced Acting U.S. Attorney Tessa M. Gorman. Jaymes Arthur Gallagher, 34, was sentenced to 7 years in prison and Brittany Nicole Chipman, 28, was sentenced to 5-and-a-half years in prison. U.S. District Judge Benjamin H. Settle ordered both to be on four years of supervised release following their prison terms. “The quantity of methamphetamine in this case is staggering… and it is not just addicts that are suffering, it is their families too,” Judge Settle said at the Chipman sentencing hearing.
According to records filed in the case, Gallagher came to the attention of law enforcement as a significant distributor of methamphetamine in the Thurston County and Tacoma areas. After some undercover purchases in August 2019, law enforcement obtained a court authorized search warrant for the home Gallagher and Chipman shared. In the home, officers seized 6 pounds of MDMA, more than a pound of cocaine, and more than 4 pounds of methamphetamine. In a detached garage on the property, officers located another 19 pounds of methamphetamine. There was $76,000 in cash in the house as well as a shotgun and a pistol that the couple admit were used to protect their drug operation. Gallagher admitted to officers that he purchased 20-30 pounds of methamphetamine from a California source every week or so, and would then distribute the meth in Western Washington.
The couple was indicted in October 2019, and each pleaded guilty to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime, in March 2020.
In her sentencing memo, Assistant United States Attorney Angelica Williams noted that Gallagher “has introduced hundreds of thousands of doses of harmful narcotics into Western Washington. He made a profit. He purchased firearms and kept them loaded to protect his business. He turned a blind eye to the harm he was doing to the community…. His drug distribution has undoubtedly affected many lives.”
The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Joint Narcotics Enforcement Team (JNET).
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Tacoma Landlord Agrees to Pay $16,618 for Overcharging Homeless Veteran Tenant and Fraudulently Obtaining Federal FundsRead the Press Release
Sunrhys, LLC, a landlord and property management company headquartered in Tacoma, Washington, agreed to pay $16,618 to resolve allegations that it violated the False Claims Act by overcharging a tenant and by fraudulently obtaining federal funds from a federal program designed to provide housing to homeless Veterans.
The United States Department of Housing and Urban Development (HUD) and United States Department for Veterans Affairs (VA) jointly administer the HUD-VA Support Housing (HUD-VASH) program. HUD provides rental assistance for Veterans experiencing homelessness, while VA support services assist homeless veterans in identifying, obtaining, and maintaining housing and other needed support services. At the end of Fiscal Year 2020, approximately 80,000 formerly homeless Veterans were receiving permanent housing through the HUD-VASH program.
“In creating the VA’s predecessor agency, President Abraham Lincoln said that we must ‘care for him who shall have borne the battle,’” said Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington. “No Veteran who has served our country and given everything to protect the safety and comfort of Americans should be himself or herself without the safety and comfort of a home. The HUD-VASH program provides important benefits to homeless Veterans. This settlement is an example of the United States Attorney’s Office for the Eastern District of Washington’s commitment to ensuring the integrity of that program.”
Between July 2019 and April 2020, Sunrhys was a participating landlord in the HUD-VASH program with respect to a Sunrhys rental property in Walla Walla, Washington that Sunrhys rented to Daniel Avila, an eligible Veteran. Each month, Sunrhys collected a portion of the monthly rent for the Walla Walla property from Mr. Avila. Sunrhys then submitted a claim for federal rent support funds for the remainder of the total agreed-upon rent. Pursuant to the Housing Assistance Payment Agreement governing Sunrhys’ participation in the program, Sunrhys was expressly prohibited from seeking or collecting additional rent from Mr. Avila in excess of the eligible amount. The United States alleged that Sunrhys violated the Agreement and the HUD-VASH program requirements by fraudulently overcharging Mr. Avila for monthly rent between July 2019 and April 2020.
Jason Root, Special Agent in Charge at the VA Office of Inspector General, stated, “VA OIG’s joint oversight of HUD-VASH is one of the agency’s highest priorities because of the importance of safeguarding grant programs designed to end veteran homelessness. VA OIG thanks the U.S. Attorney’s Office for the Eastern District of Washington and the HUD Office of General Counsel for their partnership and commitment to protecting at-risk homeless veterans.”
This matter originated when Mr. Avila filed a whistleblower, or “qui tam” complaint in February 2021. When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Here, the United States intervened in the action contemporaneous with the settlement. Mr. Avila will receive $4,154 of the settlement. Mr. Avila was represented by the Northwest Justice Project, Washington’s largest publicly funded legal aid program, which provides civil legal assistance and representation to low-income people in cases affecting basic human needs such as family safety and security, housing preservation, protection of income, access to health care, education and other basic needs.
“Under the False Claims Act, landlords that overcharge tenants under this program are liable not just to repay the amount that they overcharged their tenants, but for three times the total amount of federal funding that the landlord received in rent support payments plus additional penalties for each month, providing a powerful deterrent to fraud,” added Acting U.S. Attorney Harrington. “I want to especially commend the exceptional investigative work performed by the VA’s Office of Inspector General, Spokane Resident Agency, as well as the excellent work done by the Northwest Justice Project, which represented the whistleblower. Our office will continue to work together with our law enforcement partners, with whistleblowers, and with public interest groups like Northwest Justice Project to hold accountable landlords that abuse critical housing programs.”
The settlement was the result of a joint investigation conducted by the VA Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Washington, with support provided by HUD’s Office of General Counsel, Office of Program Enforcement and HUD’s Office of Inspector General. The investigation and prosecution for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil settlement are allegations only and there has been no determination of liability. The case is captioned United States ex rel. Avila v. Sunrhys, LLC, 4:21-cv-5013-TOR (E.D. Wash.).
Sturgis Man Sentenced to 15 ½ Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sturgis, South Dakota, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on July 28, 2021, by U.S. District Court Judge Karen E. Schreier.
John Thornberry, age 24, was sentenced to 15 1/2 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
John Thornberry was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on September 17, 2020. He pleaded guilty on May 7, 2021. The defendant was stopped by law enforcement in June 2020 and found in possession of multiple firearms. He was prohibited from possessing those firearms, which he forfeited as part of his plea agreement.
During his involvement in the conspiracy, methamphetamine was brought to South Dakota by others. The defendant then dispersed methamphetamine to others for use and further distribution, primarily in the Rapid City area.
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.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Thornberry was immediately returned to the custody of the U.S. Marshals Service.
Spirit Lake Man Pleads Guilty in Federal Court to Felon in Possession of a FirearmRead the Press Release
A Spirit Lake Man was sentenced July 30, 2021 to more than 5 years in federal prison.
Dylan Robert Hurd, age 30, from Spirit Lake, Iowa, received the prison term after a February 18, 2021, guilty plea to possession of a firearm by a felon.
At the plea hearing, Hurd admitted to knowing he was restricted from possessing a firearm after being convicted in 2017 of assault causing serious bodily injury in Dickinson County, Iowa. Hurd knowingly possessed a .380 ACP caliber Smith & Wesson M&P handgun.
Hurd was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hurd is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Spirit Lake Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4076.
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Sparta Man Sentenced for $600,000 Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – A Sparta, Missouri, man has been sentenced in federal court for failing to pay more than $600,000 in federal taxes.
Jeffrey Scott Allen, 52, was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, Aug. 3, to two years in federal prison without parole. The court also ordered Allen to pay $758,517 in restitution.
On Sept. 1, 2020, Allen pleaded guilty to one count of tax evasion. Allen admitted that he evaded, and failed to pay, $606,338 in federal taxes and $96,478 in state taxes from 2012 through 2017.
Allen, who operates his own business, has worked as a successful installer for satellite-based internet and television for the past 21 years. According to court documents, he utilizes contract labor with five separate contractors, claims a gross annual profit of $2.1 million, and takes a $6,000 draw each month from the business.
According to court documents, Allen substantially underreported net income from his business and paid most of his and his family’s personal expenses from his business accounts. By underreporting his income, Allen was able to illegally receive federal benefits to which he was not entitled. Allen fraudulently received $15,856 in Medicaid benefits for three of his children, $4,392 in free and reduced school lunches for his children, and $35,453 in federal student aid under the Pell Grant program. Allen is required to repay federal and state agencies for those benefits under the court’s restitution order.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by IRS-Criminal Investigation, Missouri Department of Revenue – Criminal Tax Investigation Bureau, Missouri Department of Social Services – Welfare Investigations Unit, U.S. Department of Education – Office of Inspector General, and USDA – Office of Inspector General.
Smithfield Man Sentenced to Three Life Sentences for Human TraffickingRead the Press Release
RALEIGH, N.C. – A Smithfield man was sentenced today to three consecutive life sentences in prison for conspiracy to commit sex trafficking by force, fraud, or coercion and of a minor; sex trafficking by force fraud and coercion; sex trafficking of a minor; using the internet to promote a prostitution business enterprise (ITAR); and possession of a firearm by a convicted felon. On March 1, 2021, Jenkins was convicted of those crimes by a jury after a five-day trial. Jenkins was also ordered to pay restitution in an amount of at least $418,361.70.
According to court records and evidence presented at trial, Jonathan Lynn Jenkins, aka “Max,” 48, and his co-conspirator prostituted many women between November 2014 and October 2015, including minors. The victims were young, vulnerable, and often struggling to survive. After luring the victims with promises of food, shelter, and a better life, Jenkins and his co-conspirator manipulated and controlled the victim’s lives, isolating them, withholding food, and keeping all money the victims earned. The defendant beat and choked the victims, sometimes to unconsciousness. He emotionally and psychologically abused them. Among other threats, he claimed to have magical powers that allowed him to hunt down victims and kill them. He sexually assaulted victims and forced them into sexual acts against their will. And he attempted to murder a man who helped one victim escape.
Before imposing the sentence, Judge Dever described Jenkins as “an extraordinarily dangerous human being” and his crimes as a “form of modern-day slavery.”
Jenkins was convicted of second-degree murder in North Carolina state court in 2006, and first-degree murder charges are pending against him in state court in Johnston County, North Carolina.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Department of Homeland Security – Homeland Security Investigations, the Raleigh Police Department, the North Carolina State Bureau of Investigation, and the Johnston County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Erin Blondel and Lucy Brown prosecuted the case.
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. 5:18-CR-451-D.
Shreveport Man Convicted of Illegal Possession of FirearmRead the Press Release
SHREVEPORT, La. – Lee Antonio Dunlap a.k.a Ra El Bey, 40, of Shreveport, Louisiana, was sentenced today by Chief United States District Judge S. Maurice Hicks, Jr. to spend 60 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, Acting United States Attorney Alexander C. Van Hook announced.
According to information presented to the court at the guilty plea hearing for Dunlap, on or about May 17, 2019, a Shreveport Police Department officer conducted a traffic stop of Dunlap’s vehicle near the intersection of Line Avenue and Olive Street in Shreveport. Dunlap was the driver and only occupant of the vehicle. When the officer approached the vehicle, he observed a firearm in plain view on the passenger seat. The firearm was seized and determined to be loaded with 15 rounds of ammunition.
Dunlap was previously convicted of a felony offense and knew that he was prohibited from possessing the firearm. His previous convictions are for possession with intent to distribute marijuana (2014), possession or introduction of contraband into a penal institution (2011), simple burglary of an inhabited dwelling (2007), and simple arson (2000).
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Savannah B&B manager accused of embezzling more than half a million dollarsRead the Press Release
SAVANNAH, GA: The former manager of a Savannah bed and breakfast is accused of embezzling more than $500,000 in a 14-count federal indictment.
Chiquita Blake, 46, of Pooler, Ga., is charged with 14 counts of Wire Fraud in an indictment returned by a federal grand jury, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charges carry a statutory penalty upon conviction of up to 20 years in prison, along with substantial financial penalties, followed by a period of supervised release. There is no parole in the federal system.
“Historic properties are an essential element of Savannah’s hospitality industry,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will protect these small businesses from the potential financial harm of illegal activities.”
As described in the indictment, Blake was employed as a manager of a bed and breakfast in Savannah’s Historic District. From around May 2015 through December 2020, Blake “knowingly executed and attempted to execute a scheme and artifice” to defraud the inn, “to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises.”
The indictment alleges that Blake fraudulently transferred funds from the inn’s accounts and into bank accounts Blake controlled, and then used those funds for expenditures “such as the defendant’s bills and personal use.”
The indictment specifically charges a portion of those transfers, alleging that from June 24, 2017, to Dec. 20, 2020, Blake made 14 electronic transfers to her personal accounts.
“Fraud committed by those in positions of trust are particularly hurtful,” said Steven R. Baisel, Special Agent in Charge of the Atlanta Field Office of the U.S. Secret Service. “Their actions are an affront to the societal norms we are all called to live by.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Secret Service, and prosecuted for the United States by Assistant U.S. Attorney Joshua S. Bearden.
Rosebud Man Sentenced for Obtaining Controlled Substances by DeceptionRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, man convicted of Obtaining Controlled Substances by Deception was sentenced on August 2, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Michael Brian Whirlwind Soldier, age 47, was sentenced to one month in federal prison, one year of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $4,428.98 to the Rosebud Ambulance Service and Crow Creek Ambulance Service.
Whirlwind Soldier was indicted by a federal grand jury on September 9, 2020. He pled guilty on August 2, 2021.
The conviction stemmed from incidents that occurred between December 17, 2019, and July 28, 2020, in the District of South Dakota, wherein Whirlwind Soldier, while employed as a paramedic with the Rosebud and Crow Creek Ambulance Services, knowingly and intentionally stole hundreds of vials of fentanyl, morphine, and hydromorphone from the ambulance services. Whirlwind Soldier consumed all of the substances he stole.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Whirlwind Soldier was ordered to turn himself into the custody of the U.S. Marshals service within one week of sentencing.
Rosebud Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 2, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Todd Eastman, age 33, was sentenced to 16 months in federal prison, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Eastman was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 16, 2020. He pled guilty on April 26, 2021.
From 2015 to 2020, Eastman was involved in a conspiracy to distribute methamphetamine in and around the Rosebud Sioux Indian Reservation in central South Dakota. Eastman helped to transport the methamphetamine from Nebraska to South Dakota.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Eastman was immediately turned over to the custody of the U.S. Marshals Service.
Rhode Island Man Sentenced to 4 Years in Prison for Credit Card Fraud and Identity Theft OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that HENRY A. FELLELA, JR., 63, of Johnston, Rhode Island, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for credit card fraud and identity theft offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in March 2018, Fellela was released from federal prison following a 48-month sentence imposed in the U.S. District Court in Rhode Island for credit card fraud, aggravated identity theft and other offenses. Between March 2018 and March 2019, while he was on federal supervised release, Fellela stole credit cards from residents of Connecticut and other states and used the cards to make approximately $48,000 in fraudulent purchases at various retail stores in Connecticut and elsewhere.
On November 5, 2019, Fellela pleaded guilty to one count of access device fraud and one count of aggravated identity theft.
This is Fellela’s fourth federal conviction.
Fellela was detained from March 8, 2019, to March 23, 2020, when he was released on bond. Judge Meyer ordered him to report to prison on September 20, 2021.
This matter was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Margaret Donovan and Sarala Nagala.
Registered Sex Offender Pleads Guilty to Federal Charge of Possessing Child Sex Abuse Images and VideosRead the Press Release
Ocala, Florida – Michael Edward Burr, Jr. (29, Homosassa) has pleaded guilty to a federal charge of possessing images and videos depicting the sexual abuse of children. Burr faces a minimum mandatory penalty of 10 years, and up to, 20 years in federal prison, as well as a potential lifetime term of supervised release. A sentencing date has not yet been set.
According to the plea agreement, federal agents executed a search warrant at Burr’s residence on October 28, 2020. During the search, agents seized a cellular phone used by Burr containing dozens of videos and hundreds of images depicting children being sexually abused. Burr was previously convicted in Grand Traverse, Michigan of possessing child sexual abuse material on October 8, 2014.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Readout of Deputy Attorney General Lisa O. Monaco’s Trip to New Jersey and New YorkRead the Press Release
This week, Deputy Attorney General (DAG) Lisa O. Monaco traveled to New Jersey and New York to highlight the Justice Department’s comprehensive strategy to reduce violent crime through a combination of enforcement as well as meaningful community engagement to prevent and deter crime before it happens.
In New Jersey, DAG Monaco visited the U.S. Attorney’s Office and attended a National Night Out event. At the U.S. Attorney’s Office, the DAG met with Acting U.S. Attorney Rachael Honig and the leadership of the office along with federal law enforcement leaders from the FBI, DEA and ATF. On Tuesday evening, DAG Monaco attended Newark, New Jersey’s annual National Night Out (NNO) event hosted by the Newark Public Safety Department where she had the opportunity to meet with local law enforcement officers, community leaders and Newark residents. The goal of NNO, a nation-wide campaign, is to connect law enforcement and neighbors in a positive setting. At the Newark NNO, the DAG heard directly from residents and law enforcement about community-led efforts to prevent violent crime and to build trust between law enforcement and the communities they serve.
Today, DAG Monaco participated in a press conference at the U.S. Attorney’s Office for the Southern District of New York to highlight the Department’s efforts to go after and dismantle illegal gun trafficking networks. The U.S. Attorney’s Office announced the unsealing of charges against several defendants for their involvement in an illegal scheme to traffic guns from Georgia for resale to residents of New York. While the charges are a result of an investigation that predates last month’s launch by the Department of gun trafficking Strike Forces, the case exemplifies the type of coordinated, multi-jurisdictional efforts needed to combat violent crime. Alongside U.S. Attorney Audrey Strauss, ATF Special Agent in Charge John B. DeVito, and New York Police Department Inspector Brian Gil, DAG Monaco spoke of the Department’s efforts to reduce violent crime and the gun violence that is often at the core of the problem.
Following the press conference, DAG Monaco participated in a meeting of the newly launched New York area gun trafficking strike force to discuss joint efforts to target and dismantle gun trafficking networks funneling firearms into the New York area. Participants in the meeting included: the U.S. Attorneys from the Southern and Eastern Districts of New York, the District of New Jersey, the Northern District of Georgia, the Eastern District of Virginia and the District of South Carolina and executives of the ATF, DEA, FBI, U.S. Marshals Service, as well as the New York Police Department. The conversation centered around what the Department’s firearms trafficking strike force is seeing along known trafficking corridors to the New York City region and how to best combat violent crime overall.
Immediately following the strike force meeting, DAG Monaco, U.S. Attorney Strauss, Acting U.S. Attorney Kasulis for the Eastern District of New York, and SAC DeVito visited the High Intensity Drug Trafficking Area (HIDTA) facility, which houses ATF’s Crime Gun Intelligence Center (CGIC) – an innovative partnership of federal, state and local law enforcement that fuses ATF’s crime gun intelligence with local law enforcement data to combat gun violence. There, DAG Monaco received a briefing on the CGIC’s efforts to trace firearms and ballistics from crime scenes to identify sources of illegal firearms and to identify illegal firearm trafficking corridors. This is the next step in the firearms tracing process that she was briefed on when visiting the ATF’s Mobile Crime Command Center in Washington, D.C., in late July.
“The partnership here at the CGIC, bringing our collective expertise and an all-hands-on-deck approach is what it’s going to take to solve this problem, along with creative and innovative thinking, which is all happening here,” DAG Monaco told members of the CGIC. “I applaud you all for bringing your teams together to one collaborative space to go after the sources of gun violence.”
While she was in New York, the DAG also visited the Metropolitan Correctional Center in Manhattan to get a first-hand look at its operations and infrastructure given ongoing concerns. She plans to have further meetings about the facility after her return to Washington.
Rapid City Man and Box Elder Man Sentenced for Unauthorized Access to a Protected Computer to DefraudRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man and a Rapid City, South Dakota, man convicted of Unauthorized Access to a Protected Computer to Defraud were sentenced by U.S. District Judge Karen E. Schreier.
Bryan Bernhold, Box Elder, age 26, was sentenced on July 29, 2021, to 1 year probation, 100 hours of community service, restitution to Microsoft, Inc. in the amount of $22,264.98, a $2,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jacob Sheldon LaFlash, Rapid City, age 26, was sentenced on July 30, 2021, to 2 years of probation, 100 hours of community service, 6 months of home confinement, restitution to Microsoft, Inc. in the amount of $83,652.69, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LaFlash and Bernhold were indicted by a federal grand jury on January 22, 2020. LaFlash pled guilty on April 23, 2021, and Bernhold pled guilty on May 7, 2021.
The convictions stemmed from incidents between October 27, 2017, and May 1, 2018, when both LaFlash and Bernhold knowingly and with intent to defraud accessed a protected computer without authorization to further their intended fraud and thereby obtain the benefits of Microsoft 0365.
Microsoft Office 365 (“O365”) was the brand name that Microsoft used for proprietary software and related services. O365 was sold in yearly subscriptions for home and business users and allowed users to access the services of that software from anywhere, anytime, on any device. O365 was typically sold for $99 for a one-year subscription, which included upgrades during the subscription period.
LaFlash and Bernhold discovered a means of gaining access to O365 on the Microsoft computers without paying for it. After they established a seller account on eBay, they advertised for sale "Microsoft Office 365 Lifetime License” on eBay for $8.99 and $9.99. LaFlash and Bernhold also established a PayPal account to receive money for the sale of O365. However, they were not authorized by Microsoft to sell any software or other services for any length of time. Between October 26, 2017, and May 1, 2018, LaFlash sold 4,592 fraudulent O365 user accounts and received $71,129.59 from the unauthorized and fraudulent sale of O365 on eBay. Bernhold sold 2,787 fraudulent O365 user accounts and received $22,264.98 from the unauthorized and fraudulent sale of O365 on eBay.
LaFlash and Bernhold accessed the Microsoft protected computers on different dates and in so doing, created more than 7,000 fraudulent O365 user accounts through wire signals that affected interstate and foreign commerce.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Porcupine Man Sentenced for Assault on a Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Porcupine, South Dakota, man convicted of Assault on a Federal Officer was sentenced on July 28, 2021, by Judge Karen E. Schreier, U.S. District Court.
Griffin Lee Cross, age 26, was sentenced to 2 years of probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cross was indicted for the charge by a federal grand jury in September 2020. He pleaded guilty on April 23, 2021.
The conviction stems from an Oglala Sioux Tribe Department of Public Safety Officer responding to a report of an intoxicated individual at a residence near Porcupine on February 12, 2020. Cross was intoxicated and the officer arrested him. While escorting Cross to the patrol vehicle, Cross threw his head back, making contact with the officer’s forehead and causing the officer to fall backwards.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Oglala Sioux Tribe Criminal Investigations Division. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Pennsylvania Man Pleads Guilty to Traveling to the Binghamton Area Intending to Engage in Sexual Conduct with Two ChildrenRead the Press Release
SYRACUSE, NEW YORK – James Obelkevich, age 51, of Carbondale, Pennsylvania, pled guilty today to traveling to New York from Pennsylvania for the purpose of engaging in illicit sexual conduct with two children. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Obelkevich admitted that from the summer of 2019 until the spring of 2020 he exchanged multiple sexually explicit messages via an online social networking application with an undercover officer posing as the mother of 9-year-old and 13-year-old girls. In these messages, Obelkevich expressed a desire to engage in sexually explicit conduct with both children. Obelkevich further admitted that on March 11, 2020, he traveled from Pennsylvania to New York in order to meet with the children and engage in sexual conduct with them at a location in the Binghamton area. Obelkevich was arrested after arriving at the location and has been in custody since that date.
Sentencing is scheduled for December 8, 2021, in Binghamton, before Senior United States District Judge Thomas J. McAvoy. Obelkevich faces up to 30 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life.
A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Upon his release from prison Obelkevich will be required to register as a sex offender in any state where he resides, is employed, or is a student.
This case was investigated by the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Part-time Grant Administrator Sentenced for Converting $57K from FEMA Grant to His Own Use, Filing False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. – A resident of Hollidaysburg, PA, has been sentenced in federal court to one day in prison in prison and 24 months’ supervised release, with six months of home confinement with electronic monitoring, on his conviction of conversion of government funds and filing false tax returns Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anthony DiBona, 58, of Hollidaysburg, PA.
According to information presented to the court, on April 19, 2013, DiBona received and converted falsely to his own use a total of $57,242 in federally funded grant money from Federal Emergency Management Agency, through payments made to him, to which he was not entitled.
Further, when filing his original tax returns for tax years 2013, 2014, and 2015, DiBona omitted all grant income from his form 1040s, and made written declarations under the penalties of perjury, which he did not believe to be true and correct. After the IRS discovered that DiBona had received unreported income from the grant, DiBona was advised the grant income was taxable. Accordingly, DiBona through a tax preparer, filed a first set of amended returns for the relevant tax years and added the grant income to his returns. However, on July 24 to July 25, 2018, DiBona went to a different tax preparer and filed a second set of amended returns removing the grant income, again making written declarations under the penalties of perjury which he did not believe to be true and correct. Similarly, DiBona also filed an original return for tax year 2017 and omitted his grant income. This conduct resulted in a total tax loss of $19,809.
In addition to his supervised release, DiBona was ordered to pay $25,264.07 in restitution to the IRS and $57,242 in restitution to FEMA. As a special condition of his supervised release, he is barred from holding a fiduciary position with the Phoenix Volunteer Fire Company.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Kaufman commended the Internal Revenue Service-Criminal Investigation and Department of Homeland Security Investigations-Office of Inspector General for the investigation that led to the successful prosecution of DiBona.
New Orleans Men Sentenced for Conspiring to Distribute HeroinRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Sarah S. Vance sentenced ALLEN ROBERTSON, age 32, and TARON BROWN, age 24, both of New Orleans, Louisiana, for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans. ROBERTSON was sentenced for the violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 846 and BROWN was sentenced for the violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C).
According to court records, ROBERTSON, and TARON BROWN both admitted being caught on federally authorized wire taps targeting a heroin distribution organization operating in New Orleans. They admitted to conspiring to distribute heroin.
District Judge Vance sentenced BROWN to 37 months in the Bureau of Prison to be followed by three years of supervised release and sentenced ROBERTSON to 27 months in the Bureau of Prison to be followed by three years of supervised release. Both were ordered to pay a $100 mandatory special assessment cost.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
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Naval Seaman Charged with CyberstalkingRead the Press Release
SAN DIEGO – Naval seaman Sergio Reinaldo Williams was arraigned today on an indictment charging him with cyberstalking a civilian woman. According to the indictment, in October 2020, Williams sent graphic sexual messages via social media to the victim and members of her family, posted sexual videos of her on Pornhub.com without her knowledge or consent, and sent screenshots of the Pornhub.com videos to the victim’s niece. Williams included the victim’s Instagram account and hometown in the videos he posted to Pornhub.com. He also repeatedly threatened the victim, texting her “I'm always around and my eyes are everywhere” and, after she blocked him on social media, “U want it to be over with and this fade away, unblock me and video me. . . . it will only get worse if u don’t.”
“The indictment alleges a disturbing campaign of revenge, harassment and intimidation,” stated Acting United States Randy Grossman. “This Office is committed to protecting victims of cyberstalking and holding perpetrators accountable for malicious internet activity.” Grossman commended Assistant U.S. Attorney Sabrina Fève and the Naval Criminal Investigative Service (NCIS) and DOJ teams that diligently pursued this matter.
“NCIS takes seriously any instances of cyberstalking, harassment or intimidation against or by any Department of the Navy service member,” said Joshua Flowers, Special Agent in Charge of the NCIS Southwest Field Office. “We will work aggressively with our law enforcement partners to stop the behavior and pursue those responsible.”
Williams is scheduled to appear before U.S. Magistrate Judge Linda Lopez on Friday, August 6, 2021 at 10:30 a.m. for a detention hearing.
This case was investigated by the Naval Criminal Investigative Service with assistance provided by the Department of Justice’s Computer Crime and Intellectual Property Section.
Those who have experienced cyberstalking by an active duty service member are urged to contact the following anonymous tip lines: https://www.ncis.navy.mil/Resources/NCIS-Tips/ (Navy and Marines), https://www.cid.army.mil/report-a-crime.html (Army), and https://www.osi.af.mil/Submit-a-Tip/ (Air Force), or call the Department of Defense Hotline at (800) 424-9098. Victims of cyberstalking by non-active duty members should contact local law enforcement or the FBI field office.
DEFENDANTS Case Number 21cr2192-BAS
Sergio Reinaldo Williams Age: 36 Coronado, CA
SUMMARY OF CHARGES
Cyberstalking – Title 18, U.S.C., Section 2261A(2)(B)
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCY
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Muncie, Indiana Police Officer Pleads Guilty to Misprision of Felony for Concealing Crime Committed by Another OfficerRead the Press Release
Dalton Kurtz, 31, an officer with the Muncie Police Department (MPD), in Muncie, Indiana, pleaded guilty today to one count of misprision of felony, for concealing and failing to report a fellow officer’s inappropriate use of force.
According to court documents and admissions Kurtz made during the hearing, on June 5, 2018, Kurtz responded to a call involving three juveniles who had fled from officers after crashing a vehicle into a building. Kurtz and another MPD officer, Officer Chase Winkle, chased after one of the juveniles on foot and found him lying face down in a yard, with his arms extended in front of him. While the juvenile was lying with his hands visible and outstretched in front of him, Officer Winkle ran toward the juvenile and kicked him in the head without justification. Kurtz knew that Officer Winkle’s actions constituted a felony, but failed to notify anyone of the crime, and instead took the affirmative step of concealing his knowledge of this felony by writing a false report about the incident.
Kurtz faces a maximum penalty of three years in prison for this offense.
Chase Winkle was previously charged, along with other officers, with civil rights and obstruction offenses. He has pleaded not guilty and is scheduled for trial in January 2022.
The FBI conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant U.S. Attorney Nick Linder are prosecuting the case.
Muncie Police Officer Pleads Guilty for Concealing Crime Committed by Another OfficerRead the Press Release
INDIANAPOLIS - Dalton Kurtz, 32, an officer with the Muncie Police Department, pleaded guilty today to one count of Misprision of Felony, for concealing and failing to report a fellow officer’s inappropriate use of force.
According to court documents and admissions Kurtz made during the hearing, on June 5, 2018, Kurtz responded to a call involving three juveniles who had fled from officers after crashing a vehicle into a building. Kurtz and another MPD officer, Officer Chase Winkle, chased after one of the juveniles on foot, and found him lying face down in a yard, with his arms extended in front of him. While the juvenile was lying with his hands visible and outstretched in front of him, Officer Winkle ran toward the juvenile and kicked him in the head without justification. Kurtz knew that Officer Winkle’s actions constituted a felony, but failed to notify anyone of the crime, and instead took the affirmative step of concealing his knowledge of this felony by writing a false report about the incident.
Kurtz faces a maximum penalty of three years in prison.
Chase Winkle was previously indicted, along with other officers, with civil rights and obstruction of justice offenses. He has pleaded not guilty and is scheduled for trial in January 2022.
The Federal Bureau of Investigation conducted the investigation.
Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant U.S. Attorney Nick Linder are prosecuting the case.
Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office or visit https://fbi.gov/tips
Mission Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 2, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Renae Jo Pacheco, a/k/a Renae Jo Hopkins, age 52, was sentenced to 48 months in federal prison, followed by 3 years of supervise release, $1,000 fine, and $100 special assessment to the Federal Crime Victims Fund.
Pacheco was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on August 11, 2020. She pled guilty on May 10, 2021.
Between 2015 and 2020, Pacheco was involved in a conspiracy with several family members and others to distribute between 500 and 1500 grams of methamphetamine on the Rosebud Sioux Indian Reservation in central South Dakota.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Pacheco was ordered to self-surrender on August 9, 20201, to the U.S. Marshals Service.
Minnesota Man Sentenced to 15 ½ Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Brooklyn Park, Minnesota, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on July 28, 2021, by U.S. District Court Judge Karen E. Schreier.
Michael Sherard, age 34, was sentenced to 15 1/2 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Michael Sherard was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on August 20, 2020. He pleaded guilty on April 5, 2021.
During his involvement in the conspiracy the defendant travelled to Nebraska to obtain methamphetamine, which he then transported to South Dakota. Upon arrival in the Rapid City area, the defendant then dispersed methamphetamine to others for use and further distribution.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Sherard was immediately returned to the custody of the U.S. Marshals Service.
Millsboro Man Indicted for Possession of Multiple Bombs and a Stolen AK-47 with an Altered Serial NumberRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal grand jury returned a superseding indictment yesterday charging a Millsboro man with possession of four destructive devices and an AK-47 with an altered serial number.
According to the indictment, Job Gillette, 23, had previously been convicted of a crime that prohibited him from possessing any firearms. The indictment alleges that on March 24, 2021, Gillette was found in possession of one intact improvised incendiary device made of a glass bottle containing a yellow-colored ignitable liquid and a white foam-like material, with matches secured to the cap and neck of the bottle. The indictment further alleges that, on the same date, Gillette also possessed the parts to readily assemble three additional devices made of Hennessy Cognac bottles filled with yellow-colored ignitable liquid and a foam-like material. Gillette was also in possession of an AK-47 rifle with an altered serial number.
Gillette is charged with four counts of possession of an unregistered destructive device, one count of possession of a firearm by a prohibited person, and one count of possession of a firearm with an altered or obliterated serial number. If convicted, he faces maximum penalties of ten years in prison for each of the first five counts and five years in prison for possession of a firearm with an altered serial number. 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.
U.S. Attorney Weiss stated, “Law enforcement recovered homemade bombs and an AK-47 from the defendant, who was prohibited from legally possessing any firearms. The officers’ actions thereby ensured that these homemade bombs could never be put to use. Delaware is safer because of their efforts. I am particularly grateful to the concerned citizens who alerted the authorities so the defendant could be held accountable in a court of law.”
“You so often hear us say, ‘if you see something, say something’ that’s exactly what happened in this case and because of that citizen alert we averted a potentially hazardous situation,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “According to this indictment, Mr. Gillette was stock-piling dangerous explosive materials and possessed an illegally acquired AK-47. We are fortunate, through swift law enforcement action, that no one was hurt. The FBI would like to highlight the assistance of our federal, state and local partners who stand ready to identify, disrupt, and dismantle any plans to inflict harm on our communities.”
This case was investigated by the FBI Wilmington Resident Office, with substantial assistance from the Delaware State Police and Delaware State Fire Marshals. It is being prosecuted by Assistant U.S. Attorney Ruth Mandelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-33-RGA.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Mexican Woman Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Almendra Escobedo-Orozco, 36, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Escobedo-Orozco to 100 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a 2-year term of supervised release. Escobedo-Orozco is subject to deportation by U.S. immigration authorities when she completes her sentence to imprisonment.
In March of 2020, Omaha Police Department narcotics investigators received information that Joseph Rauber was distributing methamphetamine and that he was being supplied by a female, later determined to be Escobedo-Orozco. On May 14, 2020, investigators obtained a warrant to search a residence in Omaha frequented by Escobedo-Orozco. On May 19, 2020, while executing the warrant, investigators arrested two residents. During the search, investigators seized drug ledgers, packaging material, 8,677 grams of marijuana, $4,336.00, Mexican passports, and various identity documents. Escobedo-Orozco, who had just left the residence, was stopped driving a minivan and found with two pounds of methamphetamine. Another residence in Omaha frequented by Escobedo-Orozco was searched. There, officers seized $7,800.00, a box for a digital scale, and 6 grams of methamphetamine.
On May 28, 2020, investigators executed a search warrant at Rauber’s residence in Iowa. The search yielded approximately 83.8 grams of methamphetamine, approximately 3.6 grams of cocaine, 7 long guns, 11 handguns, ammunition, stolen property, digital scales, and $55,035.00 in drug proceeds. All currency seized in this case will be forfeited to the United States. Rauber was also convicted and on June 30, 2021, he was sentenced to imprisonment for a term of 180 months to be followed by a 5-year term of supervised release.
This case was investigated by Omaha Police Department and Iowa Division of Narcotics Enforcement.
Massachusetts Man Sentenced to 12 Years for Fentanyl Trafficking OffensesRead the Press Release
CONCORD - Winfred Pimentel, 25, of Lowell, Massachusetts was sentenced on Monday to 144 months in federal prison for conspiring to distribute fentanyl and distributing fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on September 12, 2019, Pimentel sold approximately five grams of fentanyl to an individual who suffered a drug overdose and died. The following day, law enforcement officers investigating the drug overdose were able to use the victim’s cellphone to contact Pimentel and order additional fentanyl. Thereafter, an undercover DEA agent purchased fentanyl from Pimentel on two occasions in Lawrence, Massachusetts. On December 5, 2019, the DEA undercover agent arranged to purchase approximately 170 grams of fentanyl from Pimentel. Surveillance units positioned in Lawrence located Pimentel in his vehicle prior to the deal and arrested him. Pimentel had approximately 196 grams of fentanyl in the vehicle. A subsequent search of Pimentel’s residence resulted in the seizure of quantities of drugs, cash, and a firearm.
Additionally, in 2018, Pimentel conspired with several individuals who travelled from Maine to purchase large quantities of fentanyl from Pimentel in Lawrence intended for distribution to drug customers in Maine.
Pimentel previously pleaded guilty on March 22, 2021.
“Drug dealers who sell fentanyl are damaging lives throughout New Hampshire,” said Acting U.S. Attorney Farley. “As this defendant has learned, fentanyl traffickers in New Hampshire will face significant penalties for their unlawful and dangerous conduct. We will continue to work closely with our law enforcement partners to put fentanyl traffickers behind bars so they cannot cause more harm to residents of the Granite State.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “DEA will continue to use every resource available to identify traffickers, like Mr. Pimentel who distribute this poison to the citizens of New Hampshire. This sentence not only holds Mr. Pimentel accountable for his crimes but serves as a warning to those who are fueling the opioid epidemic.”
This matter was investigated by the Maine and New Hampshire branches of the United States Drug Enforcement Administration with assistance from the Somerset, Maine County Sheriff’s Department and Portsmouth, New Hampshire Police Department. The case was prosecuted by New Hampshire Assistant U.S. Attorney Jennifer Cole Davis and Maine Assistant U.S. Attorney Raphaelle Silver.
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Marshall County man indicted on drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Dalton Kade Riggs, of Cameron, West Virginia, was indicted today on a methamphetamine charge, Acting United States Attorney Randolph J. Bernard announced.
Riggs, 33, was indicted on one count of “Distribution of Methamphetamine.” Riggs is accused of selling methamphetamine in Marshall County in March 2021.
Riggs 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 Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manderson Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Manderson, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on July 28, 2021, by Judge Karen E. Schreier, U.S. District Court.
Jon Cole Clifford, age 35, was sentenced to 16 months in federal prison with credit for time served, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Clifford was indicted for the charge by a federal grand jury in December 2019. He pleaded guilty on April 30, 2021.
The conviction stems from Clifford stabbing his brother in July 2019, during an argument near Manderson.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Man with Convictions for Domestic Violence Sentenced to Federal Prison for Possessing Two FirearmsRead the Press Release
A man who possessed guns after being convicted of multiple misdemeanor crimes of domestic violence was sentenced August 3, 2021 to more than a year in federal prison.
Jamie Hansman, age 52, from Glidden, Iowa, received the prison term after an April 13, 2021, guilty plea to possession of a firearm by a domestic violence misdemeanant.
Evidence at Hanman’s detention, change of plea, and sentencing hearings revealed that on April 18, 2020, law enforcement officers were advised of a possible domestic disturbance which led deputies to the residence of Jamie Hansman. The other party involved in the domestic disturbance claimed that Hansman had previously threatened her with a gun. When asked about this, Hansman admitted to possessing a shotgun. Law enforcement was aware that Hansman could not legally possess guns due to his criminal history. Hansman consented to let the officer see the shotgun and led the officer to his bedroom. The shotgun was located out of the case and next to his bed. Officers also saw a semi-automatic .22 caliber rifle in the same location. It was loaded with fourteen .22 caliber long rifle rounds.
Hansman has five domestic violence convictions, one of which occurred after he was disarmed by police in the instant case. Moreover, the current gun offense was discovered during the investigation of a possible domestic disturbance
Hansman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hansman was sentenced to 18 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Hansman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Carroll County Sheriff’s Office and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3005.
Follow us on Twitter @USAO_NDIA.
Man Trafficking Methamphetamine from Mexico to Iowa Sentenced in Federal CourtRead the Press Release
A Storm Lake man who intended to distribute large quantities of methamphetamine in the Storm Lake area was sentenced on July 13, 2021, to 20 years in federal prison.
Christian Javier Ramirez, age 31, from Storm Lake, Iowa, received the prison term after a guilty plea to conspiracy to distribute methamphetamine.
In January of 2020, Ramirez conspired with others to import methamphetamine from Mexico and distribute methamphetamine in Iowa. According to the complaint filed in this matter, approximately 7 pounds of methamphetamine was intercepted in Colorado by the Colorado State Patrol and was destined for Storm Lake, Iowa, at the direction of Ramirez. Ramirez also possessed firearms at various times during the conspiracy.
Ramirez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ramirez was sentenced to 240 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Iowa Division of Narcotics Enforcement, Homeland Security Investigations, Buena Vista County Sheriff’s Office, and Colorado State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4011.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to 420 Months in Prison for Enticing and Sexually Abusing a MinorRead the Press Release
A North Carolina man was sentenced today to 420 months, or 35 years, in prison followed by 10 years of supervised release for enticing and sexually abusing a minor.
Emilio Moran, 39, of Jacksonville, pleaded guilty on Aug. 17, 2020, to sexual abuse of a minor and enticement of a minor to engage in unlawful sexual activity. According to information presented at the sentencing proceeding, Moran enticed a minor to engage in a prolonged sexual relationship while he was accompanying the armed forces in Okinawa, Japan. Moran, a former U.S. Marine, used text messages and gifts to entice the minor into the illicit sexual relationship, and he took cellphone videos of some of the sexual abuse. Moran also encouraged the minor to destroy evidence in the case. The sexual relationship ended when it was reported to investigators with the U.S. Air Force Office of Special Investigations.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney G. Norman Acker III made the announcement.
The U.S. Air Force Office of Special Investigations and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations investigated the case.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney John Parris of the U.S. Attorney’s Office for the Eastern District of North Carolina prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Man Sentenced for the Sexual Exploitation of Two ChildrenRead the Press Release
ALEXANDRIA, Va. – A Mexican national was sentenced today to 22 years in prison and a lifetime of supervised release for production of child pornography.
According to court documents, in March 2018, Abel Ambrocio, 55, of Alexandria, developed an online relationship with a woman in Honduras over a social media platform. From at least October 2018 through at least February 2019, Ambrocio instructed the woman to record and send him over 100 images of herself sexually abusing two children—an approximately three-year-old boy and an approximately ten-year-old girl. Ambrocio instructed the woman to engage in specific sex acts with the children and record herself doing so on multiple occasions, even when she told Ambrocio that one of the children was in pain and crying from the previous sex act. Later, in March 2019, Ambrocio distributed images of the woman sexually abusing the three-year-old boy over a social media platform.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorney Jonathan S. Keim prosecuted the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police. Tips regarding child exploitation and human trafficking can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
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 U.S. Attorney’s 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-135.
Man Sentenced for Receiving, Soliciting and Promoting Child PornographyRead the Press Release
A Virginia man was sentenced today to 240 months, or 20 years, in prison, to be followed by a lifetime of supervised release, for downloading images and videos depicting children as young as 4 years old being sexually abused, and for utilizing the Dark Net to solicit and promote child pornography.
According to court documents and evidence presented at trial, Christopher Robert Sueiro, 40, of Fairfax, used a peer-to-peer network to download child sexual abuse material (CSAM). Sueiro was also a member of a Dark Net hidden service website dedicated to trafficking in CSAM depicting preteen boys, where he made posts promoting and soliciting CSAM images and videos and attempted to receive CSAM from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded CSAM repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro’s child pornography offenses first came to the attention of law enforcement when investigators searched Sueiro’s digital devices during an unrelated online threats investigation.
“The Department of Justice is committed to tracking down people like Christopher Sueiro who traffic in haunting images and videos of children during their worst moments and who perpetuate the grievous harm to the victims,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I commend the excellent work done by the investigators and prosecutors in this case. Today’s sentence is a step in achieving some justice for the victims and sends a message to other offenders that we will continue to find and prosecute people who victimize vulnerable children.”
“For years, this defendant used the internet, including the dark web, to solicit, obtain and promote images and videos depicting the sexual abuse of children,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The trafficking of child pornography is egregious and repugnant behavior, and as today’s sentence demonstrates, will be met with serious consequences in EDVA. We are grateful to everyone who worked tirelessly on this case to secure a measure of justice on behalf of society’s most vulnerable victims.”
“Each time someone downloads child pornography, the child is victimized all over again,” said Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C. “Predators cannot hide behind the cloak of the internet; our special agents and law enforcement partners work tirelessly to identify them and ensure they are prosecuted to the fullest extent of the law.”
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
CEOS Trial Attorney James E. Burke IV and former Assistant U.S. Attorney Nathaniel Smith III of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Man Sentenced for Inappropriately Touching a Customer at a Sapulpa Convenience StoreRead the Press Release
A Tulsa man was sentenced today in federal court for inappropriately touching a 17-year-old customer at a Sapulpa convenience store, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Sajjad Ali Khan, 51, of Tulsa, to five years of probation with six months on home detention. The defendant is also required to register as a sex offender.
On Feb. 2, 2021, Kahn pleaded guilty to abusive sexual contact in Indian Country. In the blind plea, Khan admitted that he engaged in abusive sexual contact by intentionally touching the victim’s breasts without her permission on Sept. 15, 2020. The crime occurred at a convenience store owned and operated by Khan, which is across the street from a public park and swimming pool.
The FBI, Sapulpa Police Department, and Oklahoma State Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Marianne Hardcastle prosecuted the case.
Man Convicted of Lying to Federal Agents During International Wildlife Trafficking InvestigationRead the Press Release
Miami, Florida -- A Texas man pled guilty today to knowingly and willfully making a materially false, fictitious, and fraudulent statement and representation to Special Agents of the United States Fish & Wildlife Service during a criminal investigation into international trafficking of primates into the United States.
Gary Tucker, 64, of Alice, Texas, pled guilty to the charge during a hearing in Fort Lauderdale before U.S. District Judge William P. Dimitrouleas. In connection with his guilty plea, Tucker admitted the following: He agreed to be interviewed by Special Agents of the United States Fish & Wildlife Service (USFWS) about potential illegal trafficking of wildlife. During the interview, agents asked Tucker about his involvement in the procurement and importation to the United States of long-tailed macaques -- small non-human primates regularly employed in scientific research -- from Southeast Asia. See included image. In particular, agents asked Tucker whether he or others working for his employer, Orient BioResource Center (OBRC), prepared or submitted to OBRC any audits or reports concerning visits to supplier sites in Cambodia. Tucker responded to those questions in the negative, that is, that no supplier site visits were memorialized in any written audit reports to OBRC. In fact, as Tucker well knew, preparation and submission of site visit reports was a standard procedure at OBRC.
According to court documents, the existence of site visit reports or audits was material to the on-going investigation into the trafficking of the primates, whose possession, sale, export and import is highly regulated by the international community and the United States under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, to which the United States is a party, and the U.S. Endangered Species Act, Title 16, United States Code, Section 1538, et seq. Congress has tasked the USFWS to administer and enforce the provisions of the Treaty.
Sentencing in the matter has been set before Judge Dimitrouleas on October 13, at 1:30 pm in Fort Lauderdale. Tucker faces a possible prison sentence of up to five years in jail, a term of supervised release thereafter of up to three years, and a criminal fine of up to $250,000.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge Jeffrey Burke of the U.S. Fish & Wildlife Service (USFWS), Special Investigations Unit made the announcement.
USFWS investigated the case with assistance from Special Agent Jason Molina of Homeland Security Investigations in Newark, New Jersey. Assistant U.S. Attorney Thomas Watts-FitzGerald of the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 21-cr-20263.
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Louisville Metro Police Officer Pleads Guilty to Using Excessive ForceRead the Press Release
A former officer of the Louisville Metro Police Department pleaded guilty today to using unreasonable force against an arrestee.
According to court documents, former officer Cory P. Evans, 33, of Sellersburg, Indiana, was arraigned and pleaded guilty to striking an individual in the back of the head with a riot stick while the individual was kneeling with his hands in the air, surrendering for arrest.
During the plea hearing in federal court, Evans admitted that on May 31, while he was working as a part of the Louisville Metro Police Department Special Response Team, he followed a group of individuals around downtown Louisville to execute arrests for unlawful assembly and violations of curfew. Around the intersection of Brook and Broadway, the victim surrendered for arrest by getting on his knees and placing his hands in the air. While the victim was kneeling in this position, the defendant struck the victim in the back of the head with a riot stick, which created a wound on the back of the victim’s head. The victim fell forward and was taken into custody by other officers.
“One of our most cherished fundamental rights in the United States is the right to peacefully protest against the government,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “An officer’s use of excessive force to interfere with the right to protest is particularly damaging to our democracy, and the Department of Justice will continue to investigate and prosecute these cases to the fullest extent of the law.”
“I commend the FBI and LMPD’s Public Integrity Unit for their outstanding work in this case,” said Acting U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “The effort put forth by the assigned agents, detectives, and prosecutors was crucial to the successful prosecution of the case. In addition, the work of those assigned to a case such as this fosters confidence in the system and promotes trust between our citizens and the officers who are sworn to protect them.”
“While the vast majority of law enforcement officers are hardworking professionals who work conscientiously to protect the public, Cory Evans was simply not one of those officers,” said Acting Special Agent in Charge Edward J. Gray of the FBI’s Louisville Field Office. “Every citizen has the right to expect law enforcement officers to act in accordance with the laws they have sworn to uphold. We entrust law enforcement officers with great power and authority, which we, as a community, expect them to wield with the utmost integrity. This case provides another example that abusing that power and authority will not be tolerated in Louisville.”
The crime Evans pleaded guilty to carries a maximum sentence of ten years imprisonment and a $250,000 fine. Evans is scheduled to be sentenced on Nov. 23.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory and Civil Rights Trial Attorney Timothy Visser are prosecuting the case.
Louisville Metro Police Officer Pleads Guilty to Using Excessive ForceRead the Press Release
WASHINGTON – A former officer of the Louisville Metro Police Department pleaded guilty today to using unreasonable force against an arrestee.
According to court documents, former officer Cory P. Evans, 33, of Sellersburg, Indiana, was arraigned and pleaded guilty to striking an individual in the back of the head with a riot stick while the individual was kneeling with hands in the air, surrendering for arrest.
During the plea hearing in federal court, Evans admitted that on May 31, while he was working as a part of the Louisville Metro Police Department Special Response Team, he followed a group of individuals around downtown Louisville to execute arrests for unlawful assembly and violations of curfew. Around the intersection of Brook and Broadway, the victim surrendered for arrest by getting on his knees and placing his hands in the air. While the victim was kneeling in this position, the defendant struck the victim in the back of the head with a riot stick, which created a wound on the back of the victim’s head. The victim fell forward and was taken into custody by other officers.
“One of our most cherished fundamental rights in the United States is the right to peacefully protest against the government,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “An officer’s use of excessive force to interfere with the right to protest is particularly damaging to our democracy, and the Department of Justice will continue to investigate and prosecute these cases to the fullest extent of the law.”
“I commend the FBI and LMPD’s Public Integrity Unit for their outstanding work in this case,” said Acting U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “The effort put forth by the assigned agents, detectives, and prosecutors was crucial to the successful prosecution of the case. In addition, the work of those assigned to a case such as this fosters confidence in the system and promotes trust between our citizens and the officers who are sworn to protect them.”
“While the vast majority of law enforcement officers are hardworking professionals who work conscientiously to protect the public, Cory Evans was simply not one of those officers,” said Acting Special Agent in Charge Edward J. Gray of the FBI’s Louisville Field Office. “Every citizen has the right to expect law enforcement officers to act in accordance with the laws they have sworn to uphold. We entrust law enforcement officers with great power and authority, which we, as a community, expect them to wield with the utmost integrity. This case provides another example that abusing that power and authority will not be tolerated in Louisville.”
The crime Evans pleaded guilty to carries a maximum sentence of ten years imprisonment and a $250,000 fine. Evans is scheduled to be sentenced on Nov. 23.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory and Civil Rights Trial Attorney Timothy Visser are prosecuting the case.
Kill Devil Hills Cocaine Trafficker Sentenced to More Than 10 YearsRead the Press Release
RALEIGH, N.C. – A Kill Devil Hills man was sentenced today to 126 months in prison and five years of supervised release for trafficking cocaine.
On May 21, 2020, Herndon Hunt Outlaw Riddle, III, pleaded guilty to Conspiracy to Distribute More than Five Kilograms of Cocaine (Count One).
According to court documents and other information presented in court, investigators with the Hialeah Police Department in Hialeah, Florida, received information from a confidential informant (CI) that Riddle, 40, was seeking to purchase bulk quantities of cocaine. On May 16, 2019, the CI and an undercover officer (UC) met with Riddle and his co-conspirator Adolphus McLain, Jr., where they agreed to purchase five kilograms of cocaine for $100,000. Riddle indicated to the CI that he intended to purchase 10 to 15 kilograms of cocaine per month going forward to distribute in the Raleigh and Fayetteville, North Carolina areas. Shortly after the drug transaction, Riddle and McClain were arrested and detectives seized $46,348.00 in U.S. currency from the defendants.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Dare County Sheriff’s Office, the Kitty Hawk Police Department, the Hialeah, FL Police Department, and the U.S. Marshals Service (USMS) investigated the case. Assistant U.S. Attorney Ethan Ontjes prosecuted the case.
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. 2:19-CR-16-D-1.
Kanawha County man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jalin Tyref Mcarn, of Charleston, West Virginia, was indicted today on a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Mcarn, 37, was indicted on one count of “Unlawful Possession of a Firearm.” Mcarn, a person prohibited from having firearms because of a prior conviction, is accused of having a .40 caliber semi-automatic pistol in June 2021 in Tyler County.
Mcarn faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sistersville police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
KC Man Sentenced to 10 Years for Illegal Firearm Following Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing a firearm after leading police officers on a high-speed chase.
Raymond L. Pierce, 23, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole.
On Feb. 10, 2021, Pierce pleaded guilty to one count of being a felon in possession of a firearm. Pierce admitted that he illegally possessed a loaded Glock 9mm handgun on Dec. 28, 2019. Pierce also admitted in his plea agreement that he was in possession of a Smith and Wesson .40-caliber semi-automatic handgun and a Glock 9mm on July 9, 2020.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Pierce has a prior felony conviction for possession of a controlled substance.
On Dec. 28, 2019, a Jackson County Sheriff’s Deputy was working uniformed, but off-duty, patrolling the area around nightclubs that were letting out on Southwest Boulevard in Kansas City, Mo., at 2:36 a.m. As he was trying to move people out of the street, the deputy saw in his rear-view mirror a green Ford Mustang approaching him without its headlights on at a high rate of speed. The Mustang quickly changed lanes to avoid the deputy’s car and individuals in the street moved back to ensure not being hit. The deputy attempted to pull the Mustang over, but the Mustang fled and the deputy discontinued the chase.
At 3:05 a.m., a different Jackson County sheriff’s deputy was traveling eastbound on 1-670 just east of the Broadway overpass in Kansas City, Mo., and saw a green Ford Mustang crash into the center mediate concrete barrier and guard rail. The deputy stopped to render aid. As he approached the green Mustang, he saw Pierce, who was on probation, standing outside the driver’s door. As the deputy approached him, Pierce climbed back inside the vehicle, reached across the center console, and placed his hand down near the passenger side floorboard. The deputy directed Pierce to exit the vehicle and show his hands, and Pierce refused. Once back-up arrived, officers were able to get Pierce out of the vehicle. Pierce said his leg and mouth hurt, and officers ordered EMS. The car was inventoried prior to being towed and officers found the loaded Glock 9mm handgun under the front passenger seat. The serial number on the barrel of the Glock was filed off and the serial number plate had been removed.
On July 9, 2020, law enforcement officers were conducting surveillance on Pierce, who had felony arrest warrants. They saw Pierce driving a silver Dodge Avenger with two passengers. Pierce drove to a house in Raytown, Mo., where all three went into the house. When they returned to the car, they placed a backpack in the back seat. Investigators attempted to pull Pierce over, but Pierce fled, disregarding stop signs and light signals. Investigators used aerial surveillance to track Pierce to a gas station in Kansas City, Kansas, where they again attempted to take him into custody. Pierce refused to comply again and fled, striking a law enforcement vehicle in his escape.
Aerial surveillance continued to track Pierce. At one point in his flight, Pierce drove through the area of 40th Street and Genessee Street in Kansas City, Mo. Officers received a call from that area about a car traveling at a high rate of speed the wrong way, which threw out a firearm and a Louis Vuitton backpack. Officers responded to the location and found a Smith and Wesson .40-caliber semi-automatic handgun. Inside the Louis Vuitton backpack, officers found the Glock 9mm handgun, the Glock 9mm extended magazine, and 115 grams of marijuana. Investigators later identified Pierce’s Facebook account. Posted to that account was a photograph of Pierce with the Louis Vuitton backpack.
Arial surveillance tracked Pierce to a Grandview residence, where he and the two passengers left the car and went into the house. Officers found Pierce hiding in the basement.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the FBI, the Jackson County, Mo., Sheriff’s Department, and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice and Interior Departments Take Next Steps in Implementation of Not Invisible ActRead the Press Release
The Departments of Justice and the Interior today announced next steps in the implementation of the Not Invisible Act, including the publication of a solicitation for nominations of non-federal members to join a Joint Commission on reducing violent crime against American Indians and Alaska Natives to address the long-standing missing and murdered indigenous persons crisis. The agencies are also moving forward with nation-to-nation conduct consultations with Tribal leaders related to the Commission and implementation of the Act.
The Not Invisible Act, sponsored by Secretary Deb Haaland when she served in Congress, mandates the creation of a commission that includes representatives of Tribal, state, and local law enforcement; Tribal judges; health care and mental health practitioners with experience working with Indian survivors of trafficking and sexual assault; urban Indian organizations focused on violence against women and children; Indian survivors of human trafficking; and family members of missing and murdered Indian people.
“The Justice Department is committed to working with the Interior Department to address the persistent violence endured by Native American families and communities across the country,” said Attorney General Merrick B. Garland. “The membership of this joint commission must represent a diverse range of expertise, experience and perspectives, and we will consult with Tribal leaders who know best what their communities need to make them safer.”
“The Interior and Justice Departments have a unique opportunity to marshal our resources to finally address the crisis of violence against Indigenous peoples,” said Secretary Haaland. “Doing this successfully means seeking active and ongoing engagement from experts both inside and outside of the government. Incorporating Indigenous knowledge, Tribal consultation and a commission that reflects members who know first-hand the needs of their people will be critical as we address this epidemic in Native American and Alaska Native communities.”
Congress unanimously passed the Not Invisible Act in October 2020 to increase intergovernmental coordination to identify and combat violent crime against Indians and on Indian lands. The Act calls for the Interior Department to coordinate prevention efforts, grants, and programs related to missing and murdered Indigenous peoples.
The commission must be composed of at least 28 federal and non-federal members who represent diverse experiences, backgrounds and geography, and who are able to provide balanced points of view with regard to the duties of the commission. The commission will hold hearings, take testimony and receive evidence in order to develop recommendations for the federal government to combat violent crime against Indians and within Indian lands.
More information is available at the Bureau of Indian Affairs’ Not Invisible Act website.
Justice Department Obtains $1.25 Million Settlement from Oklahoma City Landlords to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Oklahoma have reached a $1.25 million agreement with defendants Rosemarie Pelfrey, Omega Enterprises LLC and Pelfrey Investment Company Inc. to resolve a Fair Housing Act lawsuit alleging that their agent, Walter Ray Pelfrey (Pelfrey), sexually harassed female tenants and prospective tenants while owning or managing dozens of Oklahoma City – area rental properties. Pelfrey died in 2018.
Under the terms of the consent order, which was approved this week by the United States District Court for the Western District of Oklahoma, the defendants will pay $1.2 million in damages to female tenants and prospective tenants harmed by Pelfrey’s harassment and a $50,000 civil penalty to the United States.
“This settlement, which came after protracted litigation, sends a clear message that the Justice Department will not tolerate sexual harassment,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “No one should ever have to endure what the women in this case were subjected to.”
“For nearly 20 years, more than 40 female tenants and prospective tenants endured abhorrent sexual harassment when all they wanted was a safe place to call home,” said Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Tenants have the right under federal fair housing laws to be free from unwanted sexual harassment in order to obtain or maintain housing. The magnitude of this settlement and consent order demonstrates that the Justice Department will neither tolerate this type of discrimination from abusers nor ignore the vulnerable victims who suffer this abuse.”
The United States’ lawsuit alleged that Pelfrey’s harassment spanned a period of almost 20 years, through at least 2017, and included demanding that prospective tenants engage in sexual acts to obtain housing, offering to reduce rent and overlooking unpaid rent in exchange for sexual intercourse or contact, evicting and threatening to evict female tenants for refusing his sexual advances, groping and grabbing female tenants’ breasts, buttocks, and genitals, making unwelcome sexual advances and comments, and entering the homes of female tenants unannounced and without their consent to further these advances. The defendants — Rosemarie Pelfrey, in her capacity as trustee of two named trusts and as personal representative of Pelfrey’s estate, Omega Enterprises LLC and Pelfrey Investment Company Inc. — were named in the lawsuit because they owned the properties at which the discriminatory conduct took place, and are therefore vicariously liable for their agent Pelfrey’s harassment. Under the terms of the settlement, the defendants must provide Fair Housing Act training for their employees, provide a complaint procedure to tenants and release judgments obtained against victims whom Pelfrey wrongfully evicted.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in Oct. 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.8 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, emailing the Justice Department at [email protected] or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Obtains $1.25 Million Settlement from Oklahoma City Landlords to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
OKLAHOMA CITY – The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Oklahoma have reached a $1.25 million agreement with defendants Rosemarie Pelfrey, Omega Enterprises LLC and Pelfrey Investment Company Inc. to resolve a Fair Housing Act lawsuit alleging that their agent, Walter Ray Pelfrey (Pelfrey), sexually harassed female tenants and prospective tenants while owning or managing dozens of Oklahoma City – area rental properties. Pelfrey died in 2018.
Under the terms of the consent order, which was approved this week by the United States District Court for the Western District of Oklahoma, the defendants will pay $1.2 million in damages to female tenants and prospective tenants harmed by Pelfrey’s harassment and a $50,000 civil penalty to the United States.
"This settlement, which came after protracted litigation, sends a clear message that the Justice Department will not tolerate sexual harassment," said Assistant Attorney General Kristen Clarke of the Civil Rights Division. "No one should ever have to endure what the women in this case were subjected to."
"For nearly 20 years, more than 40 female tenants and prospective tenants endured abhorrent sexual harassment when all they wanted was a safe place to call home," said Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma. "Tenants have the right under federal fair housing laws to be free from unwanted sexual harassment in order to obtain or maintain housing. The magnitude of this settlement and consent order demonstrates that the Justice Department will neither tolerate this type of discrimination from abusers nor ignore the vulnerable victims who suffer this abuse."
The United States’ lawsuit alleged that Pelfrey’s harassment spanned a period of almost 20 years, through at least 2017, and included demanding that prospective tenants engage in sexual acts to obtain housing, offering to reduce rent and overlooking unpaid rent in exchange for sexual intercourse or contact, evicting and threatening to evict female tenants for refusing his sexual advances, groping and grabbing female tenants’ breasts, buttocks, and genitals, making unwelcome sexual advances and comments, and entering the homes of female tenants unannounced and without their consent to further these advances. The defendants — Rosemarie Pelfrey, in her capacity as trustee of two named trusts and as personal representative of Pelfrey’s estate, Omega Enterprises LLC and Pelfrey Investment Company Inc. — were named in the lawsuit because they owned the properties at which the discriminatory conduct took place, and are therefore vicariously liable for their agent Pelfrey’s harassment. Under the terms of the settlement, the defendants must provide Fair Housing Act training for their employees, provide a complaint procedure to tenants and release judgments obtained against victims whom Pelfrey wrongfully evicted.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in Oct. 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.8 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, emailing the Justice Department at [email protected] or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
This case was prosecuted by Western District of Oklahoma Assistant U.S. Attorneys Ron Gallegos and Emily Fagan, together with trial attorneys from the Department of Justice’s Civil Rights Division in Washington, D.C.
The national press release from the Department of Justice Office of Public Affairs can be found at https://www.justice.gov/opa/pr/justice-department-obtains-125-million-settlement-oklahoma-city-landlords-resolve-claims.