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Tuesday 3 August 2021
Three Federal Trials: Three Guilty VerdictsRead the Press Release
LITTLE ROCK—The week of July 26, 2021, brought three guilty verdicts in separate federal trials. A combination of pandemic-related delays and a significant increase in caseload resulted in four simultaneous jury trials in federal court last week. One trial is expected to last several weeks, and the other three concluded last week with the convictions of three defendants.
The week’s first trial began Monday morning with a case in which Sparkle Hobbs, aka Sparkle Bryant, 33, of Little Rock, was charged with conspiracy to possess with intent to distribute heroin, methamphetamine, and fentanyl. She was also charged with possession with intent to distribute methamphetamine and fentanyl, possession of firearms in furtherance of a drug trafficking crime, and misprision (concealment) of a felony.
The evidence at trial indicated that Hobbs sold methamphetamine to an informant, which led to a search warrant at her residence in February of 2018. Law enforcement located five firearms, approximately $29,000 in cash, 103 grams of fentanyl, 497 grams of methamphetamine, and .049 grams of heroin in the residence. The jury returned their guilty verdict Tuesday evening. The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Arkansas State Police conducted the investigation, which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The case was prosecuted by Assistant United States Attorneys Anne Gardner and Amanda Jegley and tried before United States District Judge Kristine G. Baker.
The second guilty verdict of the week was returned on Friday morning. A jury convicted Darby Leroy Williams, 30, of North Little Rock, of being a felon in possession of two firearms and ammunition. Williams has prior felonies for distribution of drugs and is on parole because of those convictions. Law enforcement received information that Williams was dealing drugs from his residence. In March of 2018, North Little Rock Police Department (NLRPD) and Arkansas Community Corrections (ACC) conducted a parole search of Williams’ home and located two handguns, a Glock and a Ruger, both of which were loaded, as well as ammunition, methamphetamine, and marijuana. The case was investigated by NLRPD, ACC, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Cameron McCree and Lauren Eldridge and was also tried before Judge Baker.
The final guilty verdict arrived late Friday evening, when jurors deliberated for only 20 minutes after hearing the evidence against Ryan Kinsey, 35, of Beebe, who was charged with one count of Social Security fraud and one count of making materially false statements to the Social Security Administration (SSA). Kinsey was initially approved for Social Security Disability benefits in 2013 and had those benefits continued in June 2018. Part of the paperwork that Kinsey filled out in May 2018 to extend his benefits included sections where he affirmed that he was not working and was physically incapable of working based on his disability. But also in June 2018, a SSA employee with the Searcy field office noticed that, based on the physical appearance of Kinsey and the fact that he arrived at the office driving a truck with a large horse trailer attached, Kinsey appeared as if he had been working. A subsequent SSA-OIG investigation revealed that Kinsey had been working as a horse rancher on his family farm in Beebe. At trial, the United States called numerous witnesses who all testified that during the time periods alleged they had either bought horses or hay from Kinsey or had Kinsey transport livestock. In the 15 months prior to indictment, Kinsey received more than $100,000 in payments for his ranching activities. During that same time period, he fraudulently received more than $20,000 from SSA. The case was investigated by SSA-OIG, prosecuted by Assistant United States Attorneys Bart Dickinson and Chris Givens, and tried before United States District Judge Lee P. Rudofsky.
The fourth trial that began last week, United States v. Gilbert Baker, is expected to last several weeks and has been paused due to a positive COVID-19 test from one of the trial participants. It is scheduled to resume Tuesday morning pending negative COVID-19 test results from the remaining trial participants.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Texas Man Pleads Guilty for His Role in Cocaine Conspiracy Stretching from El Paso to BuffaloRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Edgar Pavia, 44, of El Paso, Texas, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, and conspiring to commit money laundering. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $20,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between October 2017, and December 7, 2018, the defendant conspired with Eduardo Enrique Valdez, Adrian Goudelock, Eric Young, Lance Parker, Jai Hunter, Daniel Sterling, Martin Lopez, Ivan Rene Rios Bustillos, Adrian Grier, Shamar Davis, and Gabrielle McGrady, to sell cocaine and hide the proceeds of their illegal drug trafficking.
On October 2, 2017, Pavia and co-defendant Eduardo Enrique Valdez traveled from El Paso to Cleveland, OH. The defendant admits that while in Cleveland, two co-defendants traveled from Buffalo to Cleveland to pick up 10 kilograms of cocaine to take back to Buffalo. The cocaine was secreted in the spare tire of their vehicle.
Investigators determined that during the course of the cocaine conspiracy, Pavia and his co-defendants frequently rotated their phones, which were almost exclusively utilized in furtherance of the drug conspiracy. The defendant’s phones had frequent contact with both a Mexican source of supply, co-defendant Adrian Goudelock, co-defendant Adrian Grier, and co-defendant Daniel Sterling. Numerous court-authorized wire and electronic communications were intercepted during the investigation. Those interceptions revealed that Pavia was brokering bulk quantity cocaine to multiple areas in the country including Buffalo, as well as locations in Kentucky and Georgia. On July 25, 2018, investigators seized 17 kilograms of cocaine from the vehicle of co-defendant Lance Parker. Shortly after the seizure, Pavia was intercepted discussing the seizure with Adrian Goudelock, who suggested to Pavia that they “chill for a few weeks” but then “keep goin.” They also discussed their new phones before ceasing use of their then-current phones.
Co-defendants Lance Parker, Eduardo Enrique Valdez, Ivan Rene Rios Bustillos, Daniel Sterling, and Adrian Grier were previously convicted. Charges remain pending against co-defendants Adrian Goudelock, Eric Young, Jai Hunter, Martin Lopez, Shamar Davis, and Gabrielle McGrady. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security Investigations (HSI) - Buffalo, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard; HSI-Louisville; the Kentucky State Police; the Louisville Metro Police; and the Greater Hardin County Drug Task Force.
Sentencing is scheduled for February 2, 2022, at 2:00 p.m. before Judge Sinatra.
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Tennessee Prison Inmate Sentenced to Federal Prison for White Powder Mailing HoaxRead the Press Release
NASHVILLE – Jeffery Durance, 38, of Gatlinburg, Tennessee, and an inmate of the Tennessee Department of Correction, was sentenced yesterday in U.S. District Court to three years in prison for mailing a threatening communication and conveying false information while threatening to use a Weapon of Mass Destruction (WMD), announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Durance was indicted in July 2019 after he mailed an envelope containing a white powder to the Commissioner of the Tennessee Department of Correction, Tony Parker, on September 6, 2018. The envelope was sent through the U.S. Mail to the Tennessee Tower State Office Building in Nashville and contained a threatening letter, which caused a reasonable belief that the powder contained a biological agent or toxin, which would constitute a WMD. The Powder was later determined to be an inert material.
Durance pleaded guilty to the charges in March of this year.
This case was investigated by the FBI; the Tennessee Highway Patrol; the Tennessee Department of Correction; the Metropolitan Nashville Police Department; and the Metropolitan Nashville Fire Department. Assistant U.S. Attorney Robert S. Levine is prosecuting the case.
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Stoneham Woman Pleads Guilty to Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Stoneham woman pleaded guilty today in connection with her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance using stolen identities.
Lilly Nguyen, 24, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 1, 2021. In April 2021, Nguyen was previously charged in a criminal complaint with an alleged co-conspirator.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance. The program is administered by the Massachusetts Department of Unemployment Assistance and provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers).
Nguyen participated in a scheme to submit fraudulent Pandemic Unemployment Assistance claims using the stolen personally identifiable information of others. The investigation connected Nguyen and her alleged co-conspirator to more than $250,000 in unemployment claims between April and December 2020.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud made the announcement. Special assistance was provided by the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stonecrest man sentenced to jail for defrauding the USDA COVID-19 relief programRead the Press Release
ATLANTA - Christopher Hayes has been sentenced for defrauding the USDA’s Coronavirus Food Relief Program and attempting to defraud the IRS's COVID-19 relief program.
“The government has provided significant relief for Americans as a result of the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine. “Unfortunately, there are those who take advantage of this to defraud these programs. Our office has placed the highest priority on prosecuting those that do so.”
“IRS-Criminal Investigation is committed to investigating fraud against COVID-19 relief programs,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Our financial expertise is a key asset to the COVID-19 Fraud Enforcement Task Force. We will continue to use our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”
“The USDA COVID-19 food assistance programs were meant to keep food on American family’s tables during this unprecedented time,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “This prosecution should send a strong zero-tolerance message to those opportunistic fraudsters who would take advantage of a national emergency to enrich themselves.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Hayes submitted a false claim to the USDA's Coronavirus Food Assistance Program (CFAP) for the claimed loss of livestock at his commercial farming operation. CFAP provided direct relief to producers who faced price declines and additional marketing costs due to COVID-19. Hayes did not own or operate a commercial farming operation and did not have losses associated with any livestock when he made a claim under CFAP.
In addition, Hayes submitted a fraudulent IRS Form 7200, which, when used legitimately, allows an employer to request an advance payment of employer credits under the Families First Coronavirus Response Act (FFCRA). The FFCRA provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19. In total, Hayes attempted to obtain over $1.5 million in COVID-19 relief funding.
This is the first completed prosecution for fraud on these two COVID-19 relief programs in the country.
Christopher Hayes, 35, of Stonecrest, Georgia, has been sentenced to two years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $248,739. Hayes was convicted on these charges on May 3, 2021, after he pleaded guilty.
This case is being investigated by the Internal Revenue Service Criminal Investigation and U.S. Department of Agriculture, Office of Inspector General.
Assistant U.S. Attorneys Sarah Klapman and Christopher J. Huber, Deputy Chief of the Complex Frauds Section, are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Stockton Woman Pleads Guilty to Unemployment Benefits and Identity-Theft Fraud SchemesRead the Press Release
SACRAMENTO, Calif. — Hopelyn Rhiannon Ausk, 25, of Stockton, pleaded guilty today to mail fraud, bank fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ausk engaged in two separate fraud schemes that caused significant harm to the U.S. Department of Labor’s Unemployment Insurance (UI) program and identity-theft victims throughout Northern California.
First, between May and September 2020, Ausk perpetrated a fraud scheme that targeted California’s unemployment insurance benefit program administered by the Employment Development Department (EDD). Under the 2020 CARES Act and the Pandemic Unemployment Assistance (PUA) program, EDD was responsible for administering benefits for qualifying residents who could no longer find employment due to the COVID-19 pandemic. In this scheme, Ausk used victims’ personally identifiable information (PII) to submit at least 20 fraudulent claims to EDD. For 12 of these claims, EDD paid out over $160,000 in the form of Bank of America debit cards that were mailed to Ausk’s residence.
Second, between January 2019 and September 2020, Ausk perpetrated a bank fraud scheme that involved stealing U.S. mail and harvesting bankcards, financial information, checks, and PII for use in fraudulent activity. For example, in July 2019, she used a stolen Bank of America debit card to purchase online merchandise from Louis Vuitton for delivery to her residence.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Stockton Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ausk is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 9, 2021. Ausk faces a maximum statutory penalty of 20 years in prison for mail fraud, 30 years in prison for bank fraud, a mandatory additional sentence of two years in prison and a maximum fine of $250,000 on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.
St. Ignatius man sentenced to 15 years in prison for child pornography crimeRead the Press Release
MISSOULA –Justin Douglas Lampke, 47, of St. Ignatius, was sentenced today to 15 years in federal prison, followed by 15 years of supervised release, for transporting child pornography and for failure to register as a sex offender, Acting U.S. Attorney Leif M. Johnson said.
U.S. District Judge Donald W. Molloy presided. Judge Molloy also ordered $3,000 restitution on the child pornography crime and forfeiture of electronic devices seized in the case. Lampke pleaded guilty in October 2020 to failure to register as a sex offender and in March 2021 to transporting child pornography.
Court documents filed by the government state Lampke has several prior sexual abuse convictions beginning in 1992 in the state of Oregon where his victims were as young as five and six years old. While placed on supervised release for those convictions, the defendant violated his parole on multiple occasions. In January 2020, Lampke was caught hiding in Montana under an alias. He was discovered when an Internet Crimes Against Children Task Force detective received multiple National Center for Missing and Exploited Children Cybertips regarding an individual transferring child pornography files via Facebook. Lampke’s real identity was discovered, and he was arrested for the underlying crimes. Child pornography was located on multiple devices seized from his residence, and agents determined Lampke transported or moved child pornography to a USB storage device from another digital device in May 2019.
Lampke absconded from Oregon supervision in March 2017, had been in Montana since approximately March 2017, and had not registered as a sex offender.
Assistant United States Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the Internet Crimes Against Children Task Force, Missoula County Sheriff’s Office and the FBI.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Slidell Man Pleads Guilty to Social Security Fraud of More Than $75,000Read the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL R. MATHERNE (“MATHERNE”), age 61, of Slidell, Louisiana pled guilty as charged on July 22, 2021 to an indictment returned by a grand jury on November 6, 2020, for Theft of Federal Funds.
According to the Indictment, the Social Security Administration (“SSA”), an agency or department of the United States of America, operated the Retirement Survivor Insurance Benefit program (“RSI Program”). The purpose of the RSI Program is to provide benefits to certain persons, including widows and widowers, in their retirement.
In or around January 1993, M.F. applied for and began receiving RSI Program benefits. The SSA sent the benefits to M.F. at her address in Slidell, Louisiana in the form of a paper check, which she regularly deposited into her Whitney bank account.
On September 24, 2006, M.F. and MATHERNE were married. In July 2012, MATHERNE created a joint Whitney bank account. On November 3, 2012, M.F. died and MATHERNE never advised the SSA of M.F.’s death.
From December 2012 through March 2019, SSA continued sending checks to M.F., at her home address in Slidell, Louisiana, and MATHERNE continued depositing the checks into the Whitney bank account. From December 2012 through March 2019, MATHERNE received monthly SSA benefits totaling approximately $75,838, which he deposited into the Whitney bank account and used for his living expenses.
MATHERNE entered a guilty plea on July 22, 2021 before U.S. District Judge Barry W. Ashe. He is set to be sentenced November 4, 2021. MATHERNE faces a maximum of 10 years imprisonment, a fine of not more than $250,000, supervised release of at least 3 years, and a mandatory special assessment of $100 as to each count.
The case was investigated by the Social Security Administration, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Carter K. D. Guice, Jr.
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SCDC Inmate Sentenced to 20 Years in Federal Prison for Drug ConspiracyRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney M. Rhett DeHart stated that Kenneth Bryant Evans, a/k/a “Country,” 38, of Aiken County, was sentenced to 20 years in federal prison for conspiracy to possess with the intent to distribute methamphetamine and heroin.
Evidence presented at his change of plea hearing and sentencing established that the Drug Enforcement Administration and the Aiken County Sheriff’s Department initiated an investigation into the narcotics distribution activities of Evans and Eddie Brockington, both state prison inmates. Evans is an inmate in the South Carolina Department of Corrections after pleading guilty to trafficking methamphetamine in 2016 and receiving a 16-year sentence. Brockington is an inmate in the Georgia Department of Corrections who has plead guilty and is awaiting sentencing.
Through controlled purchases and other investigative techniques, agents learned that Evans and Brockington used contraband cellphones, Facebook Messenger and other social media postings to have their co-defendants purchase, transport, and distribute large amounts of methamphetamine and/or heroin. Evans was responsible for distributing more than 97 kilograms of methamphetamine and 3.5 kilograms of heroin throughout South Carolina while incarcerated in SCDC. The drugs were primarily sourced from Atlanta and were transported into South Carolina by various members of his organization and then sold to customers.
United States District Judge J. Michelle Childs, who had accepted Evans’ guilty plea, imposed a sentence of 240 months incarceration, to be followed by 10 years of supervised release, and a special assessment of $100. Evans will begin serving his federal sentence after he is released from the South Carolina Department of Corrections in February 2030.
The case was investigated by agents of the Drug Enforcement Administration and Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon prosecuted the case.
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Rochester Music Teacher Going to Prison for 50 Years After Being Convicted of 74 Charges, Including 61 Counts of Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Philip M. Close, 43, of Rochester, NY, who pleaded guilty to a 74-count indictment, including 61 counts of production of child pornography and 13 counts of possession of material containing child pornography involving prepubescent minors, was sentenced to serve 50 years in prison by U.S. District Judge Charles A. Siragusa.
“As a result of this sentence, this defendant will likely spend most or all of the rest of his life behind bars,” stated U.S. Attorney Kennedy. “Let this case serve as an example to any individual in a position of trust with children—if you seek to exploit children to satisfy your own perverse interests, be prepared to be prosecuted to the fullest extent of the law and potentially to lose your freedom forever.”
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that from 2016 to 2019, the defendant owned the Close School of Music on West Ridge Road in the Town of Parma and provided private music lessons to children of all ages. During that time, Close hid spy cameras throughout the school and secretly recorded the students, parents, and other teachers. Some of those cameras captured videos of the defendant inappropriately touching his students and himself during lessons. Close also placed two spy cameras in the school’s only bathroom: one under the toilet and one hidden in a watercooler facing the toilet. The defendant intentionally positioned these cameras to record the naked genitals of young girls when they stood up from the toilet. Prior to opening the Close School of Music in 2016, the defendant worked at a different music school. Between 2012 and 2016, he also placed a spy camera in the bathroom of that school and intentionally recorded the naked genitals of young girls when they went to the bathroom.
Between 2012 and 2019, Close produced hundreds of videos of child pornography involving 61 identified minor victims. The youngest victim was four years old. While executing search warrants at the Close School of Music, investigators also discovered 13 devices that contained other images and videos of child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Ringleader of Schemes to Steal and Sell Construction Equipment, Recreation Vehicles SentencedRead the Press Release
PROVIDENCE, R.I. – A Cranston man who organized and executed schemes to steal and sell nearly $700,000 worth of excavators, sport boats, jet skis, all-terrain vehicles, and trailers from dealerships and marinas in four New England states was sentenced today to five years in federal prison, announced Acting United States Attorney Richard B. Myrus.
From November 2019 through July 2020, Jose A. Montes, aka Jose Rivera, aka “Tuto”, 37, led one or more individuals under the cover of darkness to break into business and steal three Bobcat excavators, ten jet skis, four boats, eight all-terrain vehicles, and ten trailers. Some of the equipment was subsequently recovered by police; several of the items were hauled to Florida and sold; some items remain unaccounted for.
Montes previously admitted to the court that:
- On October 22, 2019, Montes and a person he recruited forcibly entered a locked Rehoboth, MA, business and stole four jet skis and two double trailers valued at a total of nearly $52,000. Two of the watercrafts were later recovered in Cranston by the Cranston Police.
- On November 18, 2019, Montes and another person cut the lock off a gate leading to a marina in South Kingstown and stole a 22-foot sport boat sitting atop a trailer, with a combined value at $30,000. The boat and trailer were later recovered by law enforcement in Sarasota, FL.
- On December 28, 2019, Montes and two others forcibly entered a marina in Tiverton and stole two sport fishing boats sitting atop trailers, worth a total of nearly $201,000. The boats were towed to a property in Johnston. Montes later removed the engine from one boat in Scituate. The vessel was recovered by police. The second boat was towed to Sarasota, FL, where it was to be sold. It was located and seized by law enforcement.
- Twice on the evening of April 10, 2020, and once the next evening, Montes forcibly entered a Bobcat dealership in Auburn, MA and loaded a Bobcat machine onto a trailer previously reported stolen in Massachusetts. The machines stolen on April 10, 2020, were taken to a property in North Scituate. The machine stolen on April 11, 2020 was brought to a property in Glocester. All three of the machines, valued at a total of $195,000, were recovered by law enforcement.
- On April 12, 2020, Montes and another person forcibly entered a Vernon, CT, business where they pushed an all-terrain vehicle and three-wheeled street motor vehicle onto a trailer. Their attempt to steal the vehicles was interrupted, and the men fled as police responded to the area for an unrelated matter. Undeterred, the two men then traveled to a nearby business where they stole an all-terrain vehicle, a jet ski, and two trailers, valued at a total of $22,700.
- On July 20, 2020, Montes and two men he recruited unlawfully entered a business in Easton, MA, and stole three jet skis and three trailers valued at a total of more than $17,500. One of the trailers was recovered by Easton Police in Providence.
- On July 29, Montes and others stole from a Hampstead, NH, business four all-terrain vehicles, two jet skis, and two trailers, valued in total at $77,098. One of the all-terrain vehicles was located on August 2, 2020 but was subsequently stolen again after being towed by Providence Police. A week later Hampstead Police recovered one of the stolen all-terrain vehicles.
Montes pleaded guilty on May 12, 2021, to eight counts of interstate transportation of stolen property and three counts of conspiracy to commit interstate transportation of stolen property. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 60 months in federal prison to be followed by three years of federal supervised release.
Eight additional defendants have been charged in this matter.
The cases are being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
The investigation was launched by the Johnston and North Providence Police Departments, and later joined by the FBI Safe Streets Task Force. The investigation merged with a parallel investigation being conducted by Rhode Island and Connecticut State Police, and the Easton, Mass., and the Hampstead, N.H., Police Departments.
Acting United States Attorney Myrus thanks the Tiverton, South Kingstown, Scituate, Cranston and Providence, R.I., and Auburn, Mass., Police Departments and the Manatee County Sheriff’s Office in Sarasota, FL, for their assistance in the investigations.
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Previously Convicted Sex Offender Sentenced to 20 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Christopher Russell Fox, age 42, of Brooklyn, Maryland, today to 20 years in federal prison, followed by lifetime supervised release, for distribution of child pornography. Judge Bennett also ordered that Fox must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Fox is already a registered sex offender, previously convicted of a third-degree sex offense in 2016, in Howard County Circuit Court.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, between March and May of 2018, a technology company sent numerous CyberTip Reports regarding child pornography incidents occurring on its video conference platform. Files submitted with the reports depicted prepubescent males engaged in sexually explicit conduct.
As detailed in his plea agreement, investigation revealed that Fox repeatedly used a video conferencing platform to pose as a minor male, in order to communicate with other users. Fox routinely sought out minor males on the video conferencing platform, engaged them in sexual conversation, asked them to trade sexually explicit images and videos, and asked them to stream live images. While he was on probation for his 2016 sex offense conviction, Fox used three separate accounts on the video conferencing platform in order to trade images and videos of minor males engaged in sex acts on at least eleven occasions between December 10, 2017 and May 19, 2018. For example, on March 24, 2018, Fox posed as an 8th grade male and engaged in sexually explicit conversation with a user who stated he was in the 10th grade. During the conversation Fox sent the user a video of three prepubescent males engaging in sexual acts.
On May 10, 2019, investigators executed a federal search warrant at Fox’s residence and seized digital items including Fox’s computer and a mini thumb drive. A forensic review of those items revealed that Fox possessed over 158 images of child pornography on the digital devices. These images, along with the videos Fox traded online, demonstrate that Fox distributed, received, and possessed over 600 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christine L. Duey and Matthew Maddox, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Pittsburgh Man Sentenced to 7 Years for Distributing Heroin and Fentanyl to Canonsburg Resident who Died of an OverdoseRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, PA, pleaded guilty and was sentenced in federal court to serve 84 months of imprisonment for a violation of the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
William Jamar Saunders, 31, formerly of Clairtonica Street, pleaded guilty to distributing a quantity of heroin and fentanyl on August 21, 2018, before United States District Judge Cathy Bissoon. In connection with the guilty plea, the court was advised that Saunders distributed a quantity of heroin and fentanyl to agents working with the Drug Enforcement Administration and the Federal Bureau of Investigation, who began investigating Saunders following a fatal overdose on June 13, 2018, in Canonsburg, Washington County, PA. As part of the guilty plea, Saunders admitted that he distributed a mixture containing heroin, fentanyl, and acetyl fentanyl, packaged in stamp bags called “Super Mario,” which resulted in the death of a Canonsburg resident.
Following his 84-month term of imprisonment, Saunders will be under the supervision of the United States Probation Office for six years. The Court directed Saunders to pay restitution to the victim’s family for funeral expenses.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Stephen R. Kaufman commended the Drug Enforcement Administration and the Federal Bureau of Investigation, which conducted the investigation in partnership with the Canonsburg Borough Police Department and the Washington County District Attorney’s Office, for the successful prosecution of Saunders.
Pittsburgh Felon Indicted for Violating Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Eugene Key, age 26, formerly of the Elliott neighborhood of Pittsburgh, as the sole defendant.
According to the Indictment, Key was arrested on July 2, 2021, in possession of 100 grams or more of a mixture of heroin and fentanyl and two handguns, one of which had an obliterated serial number. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police conducted a joint investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria Man Sentenced to 240 Months for Attempted Enticement of a MinorRead the Press Release
Peoria, Ill. – A Peoria, Ill. man, Jimmy Deffenbaugh, 71, has been sentenced to 240 months in prison, to be followed by lifetime supervised release, for attempted enticement of a minor.
According to court documents in April 2020, Deffenbaugh, using a cellular device, responded to a solicitation ad in Peoria, Ill. and did knowingly attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years to engage in sexual activity.
Deffenbaugh was arrested on April 9, 2020, following an investigation by the Federal Bureau of Investigation and the Illinois State Police. Deffenbaugh has remained in the custody of the U.S. Marshals since that time.
On March 18, 2021, Deffenbaugh entered a plea of guilty to one count of attempted enticement of a minor.
Assistant U.S. Attorneys Paul B. Morris and Douglas F. McMeyer represented the government in the prosecution and sentencing.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.projectsafechildhood.gov.
Navajo man sentenced to twelve years in prison for sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Copey Ferlin Henderson, 27, an enrolled member of the Navajo Nation, was sentenced in federal court on Aug. 2 to twelve years in prison following a conviction for sexually abusing a minor in Indian Country. Henderson pleaded guilty on Nov. 30, 2020.
According to the plea agreement and other court records, on or about May 16, 2019, Henderson texted the victim and the two met in Ramah, New Mexico, on the Ramah Navajo Nation in Cibola County. After drinking alcohol together, Henderson took the victim to a tent where he was staying near Yucca Village. Henderson admitted to knowingly engaging in a sexual act with the victim, who at the time of the offense was older than 12 but younger than 16.
Henderson will be required to register as a sex offender and will be subject to supervised release for 15 years upon his release from prison.
The Ramah Navajo Police Department investigated this case. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Monongalia County man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Andrew Benson, of Morgantown, West Virginia, was sentenced today to 16 months of incarceration for his role in a drug trafficking conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Benson, 35, pled guilty in April 2021 to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Benson admitted to working with others to distribute the drugs from March 2018 to September 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Senior U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Mississippi Man Pleads Guilty to 4 Business RobberiesRead the Press Release
Memphis, TN – Jacobly Whitehead, 27, of Greenwood, Mississippi, has pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the plea today.
According to information presented in court, on February 10, 2020, Whitehead, an unknown suspect at the time, entered Cricket Wireless on S. Third Street at approximately 5:50 p.m., pointed a black handgun at employees, and demanded money from the cash registers. Taking approximately $1,700, he then fled the scene.
On February 22, 2020, Whitehead, an unknown suspect at the time, entered the Metro PCS on S. Third Street at approximately 6:30 p.m., where he struck an employee with a black handgun and demanded money from the cash registers. He stole a firearm from an employee and approximately $2,000 and fled on foot. The suspect matched the description of the suspect of the robbery on February 10, 2020. The businesses were located within walking distance.
On March 17, 2020, Whitehead, an unknown suspect at the time, entered the Cricket Wireless on S. Third Street at approximately 9:30 a.m., pointed a black handgun at employees, and demanded cash from the register. While leaving the store, Whitehead struck an employee in the head with his pistol. He fled in a red Chevrolet Equinox which had several unique markings and visible features.
On March 31, 2020, Whitehead, an unknown suspect at the time, entered the Metro PCS on E. Shelby Drive at approximately 4:00 p.m., wearing a facemask and the same clothing as the suspect in the March 17, 2020 robbery. He pointed a black handgun at the employees, took approximately $800 from the register, and fled the scene in a red Chevrolet Equinox, with several similar unique markings. Prior to the robbery, the suspect entered the Dollar General behind the Metro PCS with his face uncovered and was captured on surveillance video.
Officers with MPD's Safe Streets Task Force located a possible suspect vehicle owned by a woman who lived on Court Street. This address was within walking distance of the first two robberies. Investigators researched the woman’s husband, identified as Jacolby Whitehead who also matched the description given by many of the robbery victims.
Surveillance conducted at their residence showed Whitehead driving the red Equinox. Further, law enforcement executed a search warrant for the vehicle and the residence. They recovered clothing similar to that described by the witnesses and seen on surveillance video. Whitehead was Mirandized and admitted to all four of the robberies.
Whitehead pled guilty on July 21, 2021.
Sentencing is scheduled on October 28, 2021, before U.S. District Judge Sheryl H. Lipman, where Whitehead faces a mandatory minimum sentence of 7 years on each of the firearms counts and up to 20 years on the robbery counts. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and the FBI Safe Streets Task Force.
Special Assistant U.S. Attorney Samuel D. Winnig is prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Minton Man Sentenced to Prison for Distributing Child PornographyRead the Press Release
DAVENPORT – On Wednesday, July 28, 2021, a Minton man was sentenced by United States District Court Chief Judge John A. Jarvey to 80 months in federal prison for distributing child pornography.
According to court documents, Joshua Emil Sullivan, age 46, admitted to distributing child pornography over the internet. After Sullivan’s term of imprisonment, he will be required to serve a term of supervised release of five years and register as a sex offender.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Manhattan U.S. Attorney Announces Agreement with Bermudian Bank to Resolve Criminal Tax InvestigationRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that Bank of N.T. Butterfield & Son Limited (“BUTTERFIELD”) entered into a non-prosecution agreement (“NPA”) with the U.S. Attorney’s Office and agreed to pay $5.6 million to the United States for assisting U.S. taxpayer-clients in opening and maintaining undeclared foreign bank accounts from 2001 through 2013. The NPA was based on BUTTERFIELD’s extraordinary cooperation, including its efforts in providing 386 client files for non-compliant U.S. taxpayer-clients, and provides that BUTTERFIELD will not be criminally prosecuted. The NPA requires BUTTERFIELD to forfeit $4.896 million to the United States, representing certain fees that it earned by assisting its U.S. taxpayer-clients in opening and maintaining these undeclared accounts, and to pay $704,000 in restitution to the IRS, representing the approximate unpaid taxes arising from the tax evasion by BUTTERFIELD’s U.S. taxpayer-clients.
Manhattan U.S. Attorney Audrey Strauss said: “Butterfield admits to helping its clients conceal their ownership of foreign bank accounts to avoid their U.S. tax obligations. Butterfield allowed its U.S. clients to use sham entities that assisted those U.S. clients in funneling money between U.S.- and Cayman Islands-based accounts. The resolution of this matter through a non-prosecution agreement, along with forfeiture and restitution, reflects Butterfield’s cooperation in our investigation and demonstrates that cooperation, including assistance in providing U.S. taxpayer client files, has tangible benefits. We will continue to pursue financial services firms around the world that help their clients evade U.S. taxes.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “As part of the resolution announced today, Butterfield has facilitated the production of approximately 386 unredacted client files. Taxpayers contemplating hiding money offshore and those who would facilitate their fraud should take note – nothing remains hidden forever.”
IRS-CI Chief James C. Lee said: “As a result of the successful resolution of this investigation, Butterfield has agreed to turn over account files relating to U.S. taxpayer-clients who maintained undeclared assets overseas. This agreement marks yet another significant step forward in combating offshore tax evasion. Anyone who is hiding money or assets offshore with the intent of committing tax evasion will be found and prosecuted. It’s not a matter of ‘if,’ it’s a matter of ‘when.’”
As part of the NPA, BUTTERFIELD admitted various facts concerning its wrongful conduct and the remedial measures that it took to cease that conduct. Specifically, BUTTERFIELD admitted that it knew or should have known certain U.S. taxpayers were using their BUTTERFIELD accounts to evade their U.S. tax obligations, in violation of U.S. law. BUTTERFIELD acknowledged that it helped certain U.S. taxpayer-clients conceal from the IRS their beneficial ownership of undeclared assets maintained in foreign bank accounts by: (i) maintaining undeclared accounts for U.S. taxpayer-clients that were held by sham entities – structures that had no legitimate business purpose – even though Bank personnel knew, or should have known, that the entities were being used to conceal the identities of the true account owners; and (ii) opening accounts and facilitating the transfer of funds for U.S. taxpayer-clients despite obvious red flags that the U.S. clients were using the accounts to maintain undeclared assets or commit tax evasion.
The NPA recognizes that, in 2013, BUTTERFIELD implemented a series of remedial measures to stop assisting U.S. taxpayers evading federal income taxes. The NPA further recognizes BUTTERFIELD’s cooperation, including its efforts to facilitate the production of approximately 386 client files for non-compliant U.S. taxpayers, which included the identities of those U.S. taxpayers.
As part of the NPA, BUTTERFIELD has agreed to forfeit $4.896 million to the United States, representing the gross revenues from services that it provided to U.S. taxpayers with undeclared foreign bank accounts from 2001 through 2013. In connection with this forfeiture, BUTTERFIELD has agreed not to contest a civil forfeiture action filed by the United States.
The NPA requires BUTTERFIELD to continue to cooperate with the United States for at least three years from the date of the agreement. In the event that BUTTERFIELD violates the NPA, the U.S. Attorney’s Office may prosecute BUTTERFIELD.
Ms. Strauss thanked the IRS for its outstanding work in the investigation of this matter and thanked the Tax Division of the Department of Justice for its assistance in the investigation.
This investigation is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the matter.
Man found guilty of sexual abuse in incident on Kirtland Air Force BaseRead the Press Release
ALBUQUERQUE, N.M. – A federal jury on July 30 found Zechariah Freemen, 45, guilty of sexual abuse. Freemen will remain in custody pending sentencing, which has not been scheduled.
Freeman was indicted on Jan. 9, 2020. According to the indictment and other court records, on the evening of June 15, 2019, Freeman, a civilian, attended a gathering at a house on Kirtland Air Force Base in Albuquerque, where the victim was also present. In the early morning hours of June 16, 2019, Freeman sexually abused the victim while she was physically incapable of declining or communicating her unwillingness to participate.
Freeman faces up to life in prison, up to five years of supervised released, up to a $250,000 fine and restitution. Freeman will be required to register as a sex offender.
The United States Air Force Office of Special Investigations investigated this case with assistance from the Albuquerque Police Department and the U.S. Marshals Service. Assistant U.S. Attorneys Letitia Simms and Sarah Mease are prosecuting the case.
Man Sentenced for COVID-19 Relief FraudRead the Press Release
Miami, Florida -- A Florida man has been sentenced to 33 months in prison for fraudulently seeking over $7,263,564 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Andre Clark, 48, of Miramar, pleaded guilty to one count of conspiracy to commit wire fraud on May 14. Clark admitted that he obtained a PPP loan of $488,565 on behalf of his company, Top Choice LLC, based on falsified information and documents that a co-conspirator, James Stote, submitted on his behalf. Clark also admitted to recruiting friends and associates whom he referred to Stote for the purpose of submitting additional fraudulent PPP loan applications, sometimes in exchange for kickbacks. Clark admitted to seeking $6,774,999 in fraudulent PPP loans through other conspirators that he referred to the scheme. In addition to the prison sentence, Clark was ordered to pay $2,975,086 in restitution.
Additionally, two other co-conspirators were recently sentenced for their roles in the scheme. On July 29, Tonye Johnson, 29, of Philadelphia, Pennsylvania, was sentenced to 18 months in prison. Johnson admitted to obtaining a fraudulent PPP loan of $389,627 for his company, Synergy Towing & Transport LLC, based on falsified information and documents. And, on July 13, Tiara Walker, 38, of Miami Gardens, Florida, was sentenced to 12 months and a day in prison. Walker admitted to obtaining a fraudulent PPP loan of $258,575 for her company, Utilization Review Pros LLC, based on falsified information and documents. Both Johnson and Walker falsely inflated the number of employees and monthly payroll for their companies, and they worked with Stote and other co-conspirators to obtain their fraudulent loans.
James Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud, and his case remains pending. A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
The IRS-CI, FBI, and SBA-OIG investigated the cases.
Assistant U.S. Attorneys David Turken and David Snider of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section prosecuted the cases.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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-60029, 21-cr-60017, and 20-cr-60159.
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Man Facing Federal Charge for Conspiracy to Commit Wire Fraud in Relation to an Elder Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Michael Odell Anderson, age 63, of Dunn Lorring, Virginia, for the federal charge of conspiracy to commit wire fraud in relation to an elder fraud scam.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the one-count indictment, from April 2020 to December 2020, Anderson conspired with others to defraud elderly victims by posing as a bail bondsman, lawyer, or relative on phone calls and convincing the victim to send money for the purported legal expenses of a loved one, generally a grandchild. Further, the indictment alleges that in addition to requesting funds by phone, Anderson and other conspirators posed as bail bondsmen or couriers and received cash directly from the victims. As part of the conspiracy, Anderson recruited additional participants to join the conspiracy and assist in retrieving cash from the victims. Anderson allegedly required the recruited conspirators to pay him a percentage of their earnings from the fraud scheme. Additionally, conspirators allegedly told the victims the money they sent would be returned to them at a later date.
The indictment also alleges that if victims sent cash as directed by conspirators, conspirators fabricated additional reasons for them to send more money. For example, conspirators allegedly claimed the additional funds were necessary for their grandchild’s legal expenses, bail costs, fines, or to pay damages. Conspiracy members allegedly obtained tens of thousands of dollars from the retirement savings of victims.
As stated in the indictment, the conspiracy directed at least 49 different victims to pay at least $800,000 through materially false pretenses, representation, and promises.
If convicted, Anderson faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also has a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney and Matthew J. Maddox, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Los Lunas man charged with federal firearms violationRead the Press Release
ALBUQUERQUE, N.M. – Russell Wheeler, 49, of Los Lunas, New Mexico, appeared in federal court today for a detention hearing, charged with being a felon in possession of a firearm and ammunition. Wheeler will remain in custody pending trial.
According to a criminal complaint and other court records, in Los Lunas on May 22, Wheeler and another man allegedly argued briefly when Wheeler shot the victim in the face with a revolver. Wheeler allegedly fled the scene on a motorcycle, leaving the victim bleeding from his face and mouth. The victim was taken to an urgent care clinic and later to the University of New Mexico Hospital for treatment.
Wheeler was convicted of possession of a controlled substance in 2005 and aggravated fleeing from law enforcement in 2007, both felonies. As a previously convicted felon, Wheeler cannot legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Wheeler faces up to 10 years in prison
The FBI Violent Crime Task Force investigated this case with assistance from the Valencia County Sheriff’s Office and New Mexico State Police. Assistant United States Attorneys Jaymie L. Roybal and Alexander Uballez are prosecuting the case.
Local man who attempted to smuggle 13,000 rounds of ammunition sent to prisonRead the Press Release
LAREDO, Texas – A 40-year old Laredo man has been ordered to federal prison following his conviction for attempting to smuggle ammunition out of the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Obed Rafael Cuevas-Serratos pleaded guilty Oct. 28, 2020.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 30-month sentence to be immediately followed by three years of supervised release.
“One of our top enforcement priorities is preventing ammunition from falling into the hands of those who might seek to harm innocent people,” said Deputy Special Agent in Charge Timothy Tubbs of Homeland Security Investigations (HSI). “HSI will continue to work closely with our law enforcement partners to combat this threat and hold the perpetrators accountable for putting our communities at risk.”
Cuevas-Serratos admitted that on Aug. 24, 2020, he purchased 13,000 rounds of 7.62x39 millimeter ammunition in San Antonio. The following day, his car attempted to cross into Mexico.
As part of his plea, he admitted he hired a juvenile to cross the ammunition into Mexico for him.
Cuevas-Serratos was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Michael Makens and April Ayers-Perez prosecuted the case.
Local Felon Charged with Illegally Possessing 3 FirearmsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dasean Lee, age 28, formerly of the 800 block of Citadel Street in Pittsburgh, as the sole defendant.
According to the Indictment, on February 11, 2021, Lee was arrested subsequent to a search warrant at his residence in which three firearms, including a stolen handgun, were recovered. Lee, who is a convicted felon, admitted the weapons were his.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of up to $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police conducted a joint investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of Transnational Money-Laundering Network Pleads Guilty to Aiding Drug-Trafficking Organizations, While Co-Conspirator is SentencedRead the Press Release
A Chinese national and naturalized U.S. citizen pleaded guilty yesterday to his involvement in a conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug-trafficking organizations. Another Chinese national was sentenced to seven years in prison today for his role in the same conspiracy.
According to court documents, Xizhi Li, 48, played a leadership role within a years-long conspiracy to use a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports and other false identification documents to launder money on behalf of transnational drug-trafficking organizations, whose main drug-trafficking activities involved cocaine. The defendant dealt directly with members of drug-trafficking organizations or their representatives to obtain and service “contracts” to move their drug proceeds. Once the defendant and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.
“The defendants laundered millions of dollars on behalf of drug traffickers through the global financial system in a manner that concealed the source and nature of the illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Global money-laundering networks enable drug cartels to profit from their deadly trade, and yesterday’s guilty plea and today’s sentence underscore the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations to take the profit out of crime. This plea and sentence would not have been possible without the tireless efforts of our federal law enforcement partners and the United States Attorney’s Office for the Eastern District of Virginia.”
“This prosecution demonstrates the enormous value of collaborating with agencies across the government and with our international partners to dismantle and hold accountable transnational criminal organizations that pose a significant danger to the public,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The far-reaching conspiracy in this case involved the laundering of millions of dollars of illegal proceeds on behalf of transnational drug-trafficking organizations through the use of a casino, front companies, foreign and domestic bank accounts, false identification documents, and bulk cash smuggling. We greatly appreciate the essential and innumerable contributions from our partner agencies, all of whom worked closely together to thoroughly follow the facts and evidence that led to the unraveling of this multimillion-dollar money-laundering scheme.”
“DEA’s mission is to make our communities safer and healthier, which means bringing to justice the most dangerous individuals and organizations that traffic drugs in the United States and around the world,” said Administrator Anne Milgram of the Drug Enforcement Administration. “Through the collective efforts of the DEA and our law enforcement partners, we relentlessly pursue individuals, like the one here, who allegedly laundered more than $30 million in drug profits.”
“The successful outcome of this complex, multi-year investigation is owed to dogged determination by the dedicated men and women of the Drug Enforcement Administration, working closely with our federal law enforcement partners,” said Special Agent in Charge J. Todd Scott of DEA’s Louisville Division. “We will continue to be relentless in our efforts to stop transnational criminal organizations from operating within our borders, and we will use every tool available in our mission to protect the American people.”
Co-defendant Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of Xizhi Li, which he later deposited into bank accounts that Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
Li pleaded guilty to conspiracy to launder money. He is scheduled to be sentenced on Oct. 26 and faces a maximum penalty of 20 years in prison as well as a $10-million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Liu pleaded guilty to his role in the conspiracy and a separate bribery charge on April 14 and was sentenced today to seven years in prison.
On April 14, co-defendants Jiayu Chen, 46, of Brooklyn, New York, and Jingyuan Li, 49, of San Gabriel, California, pleaded guilty to their roles in the conspiracy. On July 20, Chen was sentenced to 60 months’ imprisonment and ordered to forfeit $2.8 million dollars.
Additionally, on June 16, Eric Yong Woo, 43, of Alhambra, California, also pleaded guilty to his role in the money-laundering conspiracy. He is scheduled to be sentenced on Sept. 21 and faces a maximum penalty of 20 years in prison.
Finally, Jianxing Chen, 40, of Belize, was charged in the superseding indictment for his alleged involvement in this money-laundering and drug-trafficking conspiracy. He is pending extradition following his arrest in Lima, Peru. Chen was captured with significant assistance from The International Criminal Police Organization (INTERPOL).
The DEA’s Louisville Division and the DEA’s Special Operations Division–Bilateral Investigations Unit are investigating this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland, Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection National Targeting Center (CBP – National Targeting Center) were partners in the investigation of this case.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Australian Criminal Intelligence Commission, the Australian Federal Police, the Australia Department of Home Affairs, the Mexican Federal Police, the Guatemalan National Civil Police and the New Zealand Police also provided significant assistance.
This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Leader of Transnational Money Laundering Network Pleads Guilty to Aiding Drug Trafficking Organizations, While Co-Conspirator is SentencedRead the Press Release
ALEXANDRIA, Va. – A Chinese national and naturalized U.S. citizen pleaded guilty yesterday to his involvement in a conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug trafficking organizations. Another Chinese national was sentenced to 7 years in prison today for his role in the same conspiracy.
According to court documents, Xizhi Li, 48, played a leadership role within a years’ long conspiracy to use a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports and other false identification documents, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main drug trafficking activities involved cocaine. The defendant dealt directly with members of drug trafficking organizations or their representatives to obtain and service “contracts” to move their drug proceeds. Once the defendant and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.
“This prosecution demonstrates the enormous value of collaborating with agencies across the government and with our international partners to dismantle and hold accountable transnational criminal organizations that pose a significant danger to the public,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The far-reaching conspiracy in this case involved the laundering of millions of dollars of illegal proceeds on behalf of transnational drug trafficking organizations through the use of a casinos, front companies, foreign and domestic bank accounts, false identification documents, and bulk cash smuggling. We greatly appreciate the essential and innumerable contributions from our partner agencies, all of whom worked closely together to thoroughly follow the facts and evidence that led to the unraveling of this multimillion-dollar money laundering scheme.”
“The defendant laundered millions of dollars on behalf of drug traffickers through the global financial system in a manner that concealed the source and nature of the illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. “Global money laundering networks enable drug cartels to profit from their deadly trade, and yesterday’s guilty plea and today’s sentence underscores the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations to take the profit out of crime. This plea and sentence would not have been possible without the tireless efforts of our federal law enforcement partners and the United States Attorney’s Office for the Eastern District of Virginia.”
“DEA’s mission is to make our communities safer and healthier, which means bringing to justice the most dangerous individuals and organizations that traffic drugs in the United States and around the world,” said Anne Milgram, Drug Enforcement Administration Administrator. “Through the collective efforts of the DEA and our law enforcement partners, we relentlessly pursue individuals, like the one here, who admitted to laundering more than $30 million in drug profits.”
Co-defendant, Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of Xizhi Li, which he later deposited into bank accounts that Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
Li pleaded guilty to conspiracy to launder money. He is scheduled to be sentenced on October 26 and faces a maximum penalty of 20 years in prison as well as a $10 million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Liu pleaded guilty to his role in the conspiracy and a separate bribery charge on April 14 and was sentenced today to 7 years in prison.
On April 14, co-defendants Jiayu Chen, 46, of Brooklyn, New York, and Jingyuan Li, 49, of San Gabriel, California, pleaded guilty to their roles in the conspiracy. On July 20, Chen was sentenced to 60 months’ imprisonment and ordered to forfeit $2.8 million dollars.
Additionally, on June 16, Eric Yong Woo, 43, of Alhambra, California, also pleaded guilty to his role in the money laundering conspiracy. He is scheduled to be sentenced on September 21 and faces a maximum penalty of 20 years in prison.
Finally, Jianxing Chen, 40, of Belize, was charged in the superseding indictment for his alleged involvement in this money laundering and drug trafficking conspiracy. He is pending extradition following his arrest in Lima, Peru. Chen was captured with significant assistance from The International Criminal Police Organization (INTERPOL).
The DEA’s Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit are investigating this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, INTERPOL, and U.S. Customs and Border Protection (CBP – National Targeting Center) were partners in the investigation of this case.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Australian Criminal Intelligence Commission, the Australian Federal Police, the Australia Department of Home Affairs, the Mexican Federal Police, the Guatemalan National Civil Police, and the New Zealand Police also provided significant assistance.
This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations known as Operation Dark Castle and Operation Taishan Triangle. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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. 1:19-cr-334.
Las Vegas Couple Indicted for Tax Evasion SchemeRead the Press Release
A federal grand jury in Las Vegas, Nevada, returned an indictment today charging a Las Vegas husband and wife with conspiring to defraud the IRS, tax evasion, filing a false tax return, assisting in the filing of false tax returns, and failing to file tax returns and pay federal income taxes.
According to allegations in the indictment, from at least 2005 through at least 2020, Scott H. Lawrence, a real estate professional, and Debra R. Lawrence, an owner of an interior design business, conspired to conceal their income and true financial condition from the IRS and to obstruct the IRS’s efforts to collect their unpaid tax liabilities. As part of the scheme, Scott and Debra Lawrence allegedly submitted to the IRS false documents, including false tax returns and collection information statements, that understated their true income. The indictment further alleges that Scott and Debra Lawrence sought to evade the payment of taxes owed for tax years 2005 to 2010 by cashing substantial portions of paychecks, thereby thwarting IRS levies and collection actions, and that they willfully failed to pay taxes for tax years 2014 to 2018. In total, Scott and Debra Lawrence are alleged to have caused a tax loss to the IRS of approximately $1,758,128.
Scott and Debra Lawrence are scheduled to make their initial court appearances on August 11, 2021, before U.S. Magistrate Judge Youchah of the U.S. District Court for the District of Nevada. If convicted, each defendant faces a maximum penalty of five years in prison for conspiracy to defraud the United States and for each count of tax evasion; three years in prison for each count of filing a false tax return and assisting in the filing of false tax returns; and one year in prison for each count of failing to file a tax return and failing to pay income taxes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
The IRS-Criminal Investigation is investigating this case.
Trial Attorneys Valerie Preiss and Patrick Burns of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Couple Indicted for Tax Evasion SchemeRead the Press Release
LAS VEGAS, Nev. – A federal grand jury in Las Vegas, Nevada, returned an indictment today charging a Las Vegas husband and wife with conspiring to defraud the IRS, tax evasion, filing a false tax return, assisting in the filing of false tax returns, and failing to file tax returns and pay federal income taxes.
According to allegations in the indictment, from at least 2005 through at least 2020, Scott H. Lawrence, a real estate professional, and Debra R. Lawrence, an owner of an interior design business, conspired to conceal their income and true financial condition from the IRS and to obstruct the IRS’s efforts to collect their unpaid tax liabilities. As part of the scheme, Scott and Debra Lawrence allegedly submitted to the IRS false documents, including false tax returns and collection information statements, that understated their true income. The indictment further alleges that Scott and Debra Lawrence sought to evade the payment of taxes owed for tax years 2005 to 2010 by cashing substantial portions of paychecks, thereby thwarting IRS levies and collection actions, and that they willfully failed to pay taxes for tax years 2014 to 2018. In total, Scott and Debra Lawrence are alleged to have caused a tax loss to the IRS of approximately $1,758,128.
Scott and Debra Lawrence are scheduled to make their initial court appearances on August 11, 2021, before U.S. Magistrate Judge Youchah of the U.S. District Court for the District of Nevada. If convicted, each defendant faces a maximum penalty of five years in prison for conspiracy to defraud the United States and for each count of tax evasion; three years in prison for each count of filing a false tax return and assisting in the filing of false tax returns; and one year in prison for each count of failing to file a tax return and failing to pay income taxes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
The IRS-Criminal Investigation is investigating this case.
Trial Attorneys Valerie Preiss and Patrick Burns of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department Settles with Florida’s Volusia County School District to Protect Students with Disabilities from Classroom Removals and Other DiscriminationRead the Press Release
The Justice Department announced today a settlement agreement with Florida’s Volusia County School District (VCS) to address the district’s systemic and discriminatory practices that punish students with disabilities for their disability-related behavior and deny them equal access to VCS’s programs and services.
The department conducted an investigation under Title II of the Americans with Disabilities Act (ADA) after the U.S. Attorney’s Office for the Middle District of Florida received a complaint from a local legal aid organization on behalf of several students, many of whom have Autism Spectrum Disorder. The complaint alleged that VCS unnecessarily excluded students with disabilities from the school’s education programs and services by regularly: (1) requiring parents or guardians to pick up their children with disabilities from school or to keep them home; (2) disciplining students for behavior resulting from their disability; and (3) engaging with law enforcement to remove students with disabilities, one as young as kindergarten age, from school.
The department’s investigation substantiated the allegations in the complaint, confirming that VCS had excluded students with disabilities from its programs and services through unnecessary removals from the classroom. It also found that VCS staff often failed to implement necessary behavioral supports and lacked training on how to properly respond to students’ disability-related behavior. These issues led to the exclusion of students with disabilities from VCS’s programs and services and, at times, resulted in calls to law enforcement to remove students with disabilities from school, including through the misuse of Florida’s Baker Act procedures. The Baker Act permits the involuntary admission of a person with a mental illness to a psychiatric facility for up to 72 hours if certain criteria are met.
“Students should never be denied their education on the basis of disability, and we will not yield until the full measure of rights guaranteed by the ADA is a reality for all,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to enforcing the law to make sure schools meet the needs and respect the rights of all their students.”
“We are appreciative that VCS cooperated with our investigation, recognized the opportunity to improve, and has committed to the successful implementation of our agreement,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We look forward to working with the district to improve educational opportunities for all students.”
The U.S. Attorney’s Office for the Middle District of Florida worked in collaboration with the Civil Rights Division’s Disability Rights Section (DRS) to investigate this case.
The enforcement of Title II of the ADA in schools is a top priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the DRS is available at https://www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Information about the Civil Rights Unit of the United States Attorney’s Office for the Middle District of Florida and a complaint form for the unit can be found at https://www.justice.gov/usao-mdfl/civil-rights.
Justice Department Settles with Florida’s Volusia County School District to Protect Students with Disabilities from Classroom Removals and Other DiscriminationRead the Press Release
WASHINGTON – The Justice Department announced today a settlement agreement with Florida’s Volusia County School District (VCS) to address the district’s systemic and discriminatory practices that punish students with disabilities for their disability-related behavior and deny them equal access to VCS’s programs and services.
The department conducted an investigation under Title II of the Americans with Disabilities Act (ADA) after the U.S. Attorney’s Office for the Middle District of Florida received a complaint from a local legal aid organization on behalf of several students, many of whom have Autism Spectrum Disorder. The complaint alleged that VCS unnecessarily excluded students with disabilities from the school’s education programs and services by regularly: (1) requiring parents or guardians to pick up their children with disabilities from school or to keep them home; (2) disciplining students for behavior resulting from their disability; and (3) engaging with law enforcement to remove students with disabilities, one as young as kindergarten age, from school.
The department’s investigation substantiated the allegations in the complaint, confirming that VCS had excluded students with disabilities from its programs and services through unnecessary removals from the classroom. It also found that VCS staff often failed to implement necessary behavioral supports and lacked training on how to properly respond to students’ disability-related behavior. These issues led to the exclusion of students with disabilities from VCS’s programs and services and, at times, resulted in calls to law enforcement to remove students with disabilities from school, including through the misuse of Florida’s Baker Act procedures. The Baker Act permits the involuntary admission of a person with a mental illness to a psychiatric facility for up to 72 hours if certain criteria are met.
The settlement agreement requires VCS to revise its policies and practices, particularly those concerning attendance and removals, discipline, law enforcement involvement, and behavioral interventions and supports, to ensure that students with disabilities receive the protections to which they are entitled under the ADA. VCS also must provide staff training regarding the ADA and establish an ADA complaint procedure and tracking system. Finally, the settlement requires VCS to retain an outside consultant and create a new, internal position responsible for evaluating VCS’s disciplinary practices and ensuring compliance with the settlement agreement.
“Students should never be denied their education on the basis of disability, and we will not yield until the full measure of rights guaranteed by the ADA is a reality for all,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to enforcing the law to make sure schools meet the needs and respect the rights of all their students.”
“We are appreciative that VCS cooperated with our investigation, recognized the opportunity to improve, and has committed to the successful implementation of our agreement,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We look forward to working with the district to improve educational opportunities for all students.”
The U.S. Attorney’s Office for the Middle District of Florida worked in collaboration with the Civil Rights Division’s Disability Rights Section (DRS) to investigate this case.
The enforcement of Title II of the ADA in schools is a top priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the DRS is available at https://www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Information about the Civil Rights Unit of the United States Attorney’s Office for the Middle District of Florida and a complaint form for the unit can be found at https://www.justice.gov/usao-mdfl/civil-rights.
Jury Convicts Leader of Nevada City-Based Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, a federal jury found James Christopher Castle, 57, formerly of Petaluma, guilty of 35 counts in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, Acting U.S. Attorney Phillip A. Talbert announced. This was the first jury trial in the Eastern District of California since the onset of the COVID-19 pandemic in March 2020.
“Castle decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed,” said Acting U.S. Attorney Talbert. “We are gratified by the jury’s verdict for this significant fraud scheme.”
“Mortgage fraud is not a victimless crime. Identifying and investigating those who abuse the system for their own personal gain ensures the mortgage system is safer and fairer for everyone. The FBI affirms our commitment to pursuing those who leverage false statements made to financial institutions to enrich themselves while threatening the stability of the banking system and taking advantage of distressed homeowners desperate to retain their homes or start anew without significant losses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We thank our domestic and international law enforcement partners for their continued efforts to ensure fugitives will face justice regardless of the distance traveled or time that has elapsed.”
According to court documents, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.
“The U.S. Marshals Service successfully conducted this extradition during the height of the pandemic,” said Acting U.S. Marshal Lasha R. Boyden for the Eastern District of California. “To minimize exposure, the extradition was conducted expeditiously with minimal time on the ground. All safety precautions were implemented, and Mr. Castle was extradited back to the United States without incident.”
Between April 22, 2010, and Nov. 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.
Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Tanya B. Syed are prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy. On July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations.
In related cases, on Sept. 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges.
Two other co-defendants, George B. Larsen and Larry Todt, were convicted of conspiracy and bank fraud following a jury trial in December 2017.
Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.
Castle is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 28, 2021, at which time he faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, 10 years in prison and a $250,000 fine for falsely making documents of a lending association, and five years in prison and a $250,000 fine for conspiracy. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jackson County Man Pleads Guilty to Possession of a Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
Gulfport, Mississippi – A Jackson County man pleaded guilty to possession of a short-barreled shotgun in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on November 18, 2020, Shawn Wayne Ethridge, 37, of Jackson County, sold methamphetamine and a short-barreled shotgun to an individual in Jackson County.
Ethridge is scheduled to be sentenced on November 4, 2021. He faces a minimum sentence of 10 years imprisonment and a maximum sentence of life imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
Indian National Arrested for $2.3 Million Elder Fraud SchemeRead the Press Release
NEWARK, N.J. – An Indian national was arrested today in connection with a scheme to fraudulently obtain at least $2.3 million from elderly victims by impersonating fraud prevention representatives from United States banks, Acting U.S. Attorney Rachael A. Honig announced.
Ashish Bajaj, 28, of India, is charged by complaint with conspiracy to commit wire fraud. He appeared this afternoon before U.S. Magistrate Judge Joe L. Webster in federal court in the Middle District of North Carolina and was detained pending his initial appearance in the District of New Jersey.
“As alleged in the complaint, this defendant and his co-conspirators took advantage of elderly victims by posing as trusted bank employees who could help the victims catch fraudsters. In fact, the defendant and his co-conspirators were the fraudsters,” Acting U.S. Attorney Honig stated. “Detecting and preventing elder fraud continues to be a priority for this Office, whether the defendants reside in the United States or operate out of call centers located overseas. Together with our law enforcement partners, we will track them down and bring them to justice.”
“Unfortunately, it has become a regular occurrence for our citizens to be duped into giving up their hard-earned money by someone pretending to work for a bank, a fraud detection company, or even a law enforcement agency,” Special Agent in Charge George M. Crouch Jr. said. “These unscrupulous schemers keep evolving and push every button until they hit the one that will earn them the confidence of their victims or one that they can use to scare and intimidate. While the FBI will continue its relentless pursuit of scammers, the public’s best defense is to remain aware and take extra precautions before handing over money, such as by checking, first, with the supposed entity on the other end of the line. If you have an elderly loved one, educate them so they won’t become the next victim.”
According to documents filed in this case and statements made in court:
From at least as early as in or around April 2020 through in or around July 2021, Bajaj and his co-conspirators received at least $2.3 million in fraudulently obtained funds by impersonating fraud prevention representatives from banks located in the United States. Bajaj and his co-conspirators targeted elderly victims. They told the victims that they worked at a “hub” for multiple financial institutions’ fraud departments and they were reaching out because the victims’ bank accounts had been hacked.
Bajaj and the co-conspirators then asked the victims to assist with their fraud prevention efforts by setting up “sting” operations to catch the fraudsters who had allegedly hacked the victims’ bank accounts. The requested assistance included initiating various wire transactions to various bank accounts, including bank accounts in India, ultimately resulting in a loss to the victims. Over the course of the investigation, law enforcement has identified multiple victims of this scheme, including victims in New Jersey and California.
The count of wire fraud conspiracy is punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark. She also thanked the FBI Charlotte Field Office, under the direction of Special Agent in Charge Robert R. Wells, for its assistance leading to Bajaj’s arrest.
Additional victims associated with Bajaj’s conduct may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Huntington Man Pleads Guilty to Federal Fentanyl OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with fentanyl earlier this year pleaded guilty to a federal drug crime. James Lennon Pace, 32, pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl.
According to court documents, law enforcement officers executed a search warrant on March 16, 2021 at Pace’s residence located on Charleston Avenue in Huntington. Pace was present just prior to the search and arrested on an unrelated warrant. During the search, officers seized fentanyl, three firearms, and items used to prepare fentanyl for distribution. Pace admitted that he possessed the firearms and that he intended to distribute the fentanyl.
Pace faces a mandatory minimum of five years and up to 40 years in federal prison when he is sentenced on November 1, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00104.
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Hudson County Man Admits Drug Distribution ChargesRead the Press Release
NEWARK, N.J. - A Hudson County, New Jersey, man today admitted possessing with intent to distribute heroin, cocaine and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Hason Armfield, 43, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with possessing with intent to distribute heroin, cocaine and cocaine base.
According to documents filed in this case and statements made in court:
Armfield’s residence was searched as part of an investigation by the Drug Enforcement Administration (DEA) and the Jersey City Police Department. Law enforcement officers found heroin, cocaine, cocaine base, drug paraphernalia, and U.S. currency.
The charge to which Armfield pleaded guilty carries a maximum sentence of 20 years imprisonment and a $1 million fine. Sentencing is scheduled for Dec. 6, 2021.
Acting U.S. Attorney Honig credited agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in the U.S. Attorney’s Office in Newark.
Hamburg Man Pleads Guilty to Stalking A Local News ReporterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Paul E. Lubienecki, 63, of Hamburg, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to stalking. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango and Charles M. Kruly, who is handling the case, stated that the defendant harassed and intimidated Victim 1, a local television reporter, causing the victim to be in reasonable fear of death and serious bodily injury, and causing substantial emotional distress. Specifically, on six separate occasions between August 20, 2019, and February 4, 2020, Lubienecki left harassing and threatening voicemails for Victim 1 relating to the victim’s reporting on the Catholic Diocese of Buffalo, which appeared on Channel 7 WKBW. The defendant left these voicemails with the intent to harass and intimidate Victim 1. Lubienecki used a TracFone cellular telephone with a phone number that appeared as “unknown” when he left these voicemails.
“While the First Amendment guarantees freedoms regarding both religion and expression,” stated U.S. Attorney Kennedy, “it does not protect a pattern of conduct—such as that admitted to by this defendant—which causes substantial emotional distress or creates a reasonable fear of the death or serious bodily injury to another.”
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the East Aurora Police Department, under the direction of Chief Shane Krieger.
Sentencing is scheduled for November 9, 2021, at 12:30 p.m. before Judge Arcara.
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Gaithersburg Man Pleads Guilty to Laundering More Than $6 Million Taken from Victims of Elder Romance SchemeRead the Press Release
Greenbelt, Maryland – Lesley Annor, age 23, of Gaithersburg, Maryland, pleaded guilty today to conspiracy to commit money laundering, in connection with a romance scheme in which conspiracy members induced elderly and isolated victims to send money to co-conspirators based on romantic assertions and other misrepresentations. Annor and his co-conspirators received and laundered the payments from the victims.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office (FBI); Postal Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office (USSS).
According to his guilty plea, between May 2017 and October 2020, Annor participated in a romance scheme in which his co-conspirators targeted elderly victims online, typically through social media, dating websites, e-mail, and online applications. Once the conspiracy members convinced the victims to trust them, the conspiracy members would instruct the victims to send money to bank accounts and physical addresses linked to Annor and conspiracy members. Conspirators often received 10 percent of the victim’s money and sent the remainder of the money to co-conspirators located in Ghana.
For example, in June 2019, Victim 4, a man born in 1962, met a woman on a popular dating website whom he thought to be named “Anita”. According to Victim 4, after a week of communicating on the dating website, Anita confessed her love for Victim 4 and told him that she would relocate from Germany to the United States to be with Victim 4. Anita then informed Victim 4 that as a result of her parents’ death, she was to receive an inheritance. However, there were various fees that needed to be paid in order to obtain the inheritance. Anita further told Victim 4 that her grandfather was helping her with the inheritance. According to Victim 4, Anita also told Victim 4 that two conspiracy members were accountants for Anita's grandfather and that Victim 4 should send money to the addresses linked to the two co-conspirators.
In September 2019, Victim 4 cashed out his 401 (k) retirement account, purchased two cashier's checks totaling approximately $201,000, and mailed the cashier's checks to conspiracy members at Annor’s residence. According to the plea agreement, bank records show that multiple cashier's checks and money orders totaling $206,500 from Victim 4 were deposited into three different bank accounts that conspiracy members opened in their own names.
Over the course of the scheme, Annor and his co-conspirators laundered over $6,200,000 through approximately 34 bank accounts at 11 different financial institutions. At least $447,872 in victim payments were made into personal bank accounts controlled by Annor.
Annor has been in custody since his arrest on November 16, 2020.
Annor faces a maximum sentence of 20 years in federal prison followed by three years of supervised release for money laundering. U.S. District Judge George J. Hazel has scheduled sentencing for October 29, 2021 at 10:00 a.m.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, USPIS, and the USSS for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Thomas P. Windom and Special Assistant United States Attorney Jessica C. Harvey from the Department of Justice’s Public Integrity Section, who are prosecuting the case.
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Former Nike Marketing Manager Sentenced in Scheme to Defraud CompanyRead the Press Release
PORTLAND, Ore.—A former marketing manager at Nike, Inc. was sentenced to more than two-and-a-half years in federal prison today for perpetrating a scheme to defraud his former employer and a childhood friend.
Errol Andam, 47, formerly of Beaverton, Oregon, was sentenced to 31 months in federal prison and 3 years of supervised release. Andam was also ordered to pay more than $1.6 million in restitution. The Internal Revenue Service had already seized $212,838 in criminally-derived proceeds from Andam, and those were forfeited as well.
According to court documents, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton. Most recently, Andam worked as a manager in the company’s North American Retail Brand Marketing division wherein he managed the design, build-out, and operation of “pop-up” retail venues, temporary Nike shops situated near and tailored to sports competitions and other special events around the U.S.
In the summer of 2016, Andam recruited a childhood friend to establish a company to design and build the pop-up venues as an independent contractor for Nike. Andam used his authority as a manager at Nike to ensure that his friend’s company was consistently awarded the contracts for these jobs. Though he had no formal role in his friend’s company, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing invoices to Nike.
To conceal his role in the scheme, Andam used an alter ego, “Frank Little,” to invoice Nike and manage the contract company’s account with Square, Inc., a California-based provider of mobile credit-card-processing services. In 2016, Andam also renewed the lapsed registration of an Oregon-based limited liability corporation (LLC) he owned so that he could use the defunct entity as a shell company to funnel the proceeds diverted from Nike and his friend’s company to accounts under his personal control.
Beginning in September 2016, Andam caused credit-card sales at various pop-up venues around the U.S. to be run through card readers associated with a Square account owned by his friend’s company. These proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon. Andam represented to both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed to his friend’s company. In truth, Andam simply pocketed the proceeds and, as “Frank Little,” invoiced Nike for the full cost of the contracted services.
From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use. In July 2018, Andam submitted a fake financial statement from his LLC in support of a residential mortgage loan application. The financial statement falsely reflected as revenue checks for $194,000 drawn on a bank account owned by his friend’s business. Andam forged his friend’s signature on one of the checks and withdrew much of that money without his friend’s knowledge.
On February 4, 2021, Andam was charged by criminal information with wire fraud, money laundering, and making false statements on a loan application. On April 12, 2021, he pleaded guilty to all three charges.
This case was investigated by IRS Criminal Investigation and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Former Georgia deputy sentenced to prison for possessing unregistered firearms resulting from FBI-led violent extremist group investigationRead the Press Release
MACON, Ga. – A former Georgia Sheriff’s deputy was sentenced to prison for possessing unregistered firearms resulting from an FBI-led investigation into a violent extremist group.
Cody Richard Griggers, 28, of Montrose, Georgia, was sentenced to serve 44 months in federal prison to be followed by one year of supervised release by U.S. District Judge Tilman “Tripp” Self after pleading guilty to possession of an unregistered firearm. There is no parole in the federal system.
“Law enforcement officers should be above reproach, and the vast majority of them are. Cody Griggers disgraced that trust by espousing violent extremism and possessing a cache of unregistered weapons while on duty, including a machine gun with a silencer and obliterated serial number,” said Acting U.S. Attorney Peter D. Leary. “Officers are never above the laws they swear to uphold, and I thank our law enforcement partners for helping us hold this disgraced former deputy accountable.”
“This former law enforcement officer violated his oath of office in many ways, the most egregious was by threatening the very citizens he was sworn to protect with his words of racially motivated violence,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now he is being held accountable by serving time in prison and never being able to wear the blue again.”
“Investigating and prosecuting the illegal possession of unregistered machineguns is a key part of ATF’s mission to protect communities from the illegal use of such firearms,” said Assistant Special Agent in Charge John Schmidt, ATF Atlanta Field Division. “This successful prosecution is the culmination of the joint investigation by ATF, the Wilkinson County Sheriff’s Office and FBI and restores the public’s confidence in those who are entrusted to serve and protect our communities.”
According to court documents, FBI agents discovered a group text with Griggers, who was a Deputy with the Wilkinson County Sheriff’s Office, as part of a California investigation into a man making violent political statements on social media. In the group text, Griggers made statements that he was manufacturing and acquiring illegal firearms, explosives and suppressors. He also expressed viewpoints consistent with racially motivated violent extremism, including the use of racial slurs, slurs against homosexuals and making frequent positive references to the Nazi holocaust.
On November 19, 2020, agents executed a search warrant at Griggers’ residence and searched his Wilkinson County Sheriff’s Office duty vehicle. Inside his duty vehicle, officers found multiple firearms, including a machinegun with an obliterated serial number. The machinegun was not issued to the defendant, and he was not allowed to have the weapon in his law enforcement car. An unregistered short barrel shotgun was found in his home. In all, between the defendant’s residence and duty vehicle, officers found 11 illegal firearms.
The case was investigated by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Wilkinson County Sheriff’s Office.
Assistant U.S. Attorney Will R. Keyes prosecuted the case for the Government.
Former CEO of Comprehensive Pain Specialists Resolves Civil Lawsuit with United StatesRead the Press Release
NASHVILLE – John Davis, 43, of Franklin, Tennessee, and the former CEO of Anesthesia Services Associates, PLLC d/b/a Comprehensive Pain Specialists (“CPS”), agreed to a permanent voluntary exclusion from participation in federal procurement and non-procurement programs as part of an agreement to resolve the United States’ civil claims against him, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
CPS, which was based in Brentwood, Tennessee, at one point operated over 40 pain clinics and had operations in 12 states, until it shut down in 2018. On July 22, 2019, the United States filed a Consolidated Complaint in Intervention in the United States District Court for the Middle District of Tennessee against Davis, as well as CPS and other CPS executives, alleging, among other things, that Davis submitted false claims for medically unnecessary and/or non-reimbursable testing and acupuncture (the “Civil Action”).
As part of the settlement, Davis also agreed not to be employed in any industry or field in which he could, either directly or indirectly, submit claims seeking reimbursement from Medicare and other Federal health care programs.
In April 2019, Davis was convicted for his role in a $4 million Medicare Kickback scheme. After a seven-day trial, a jury convicted Davis of one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute as well as seven counts of violating the Anti-Kickback Statute. In July 2020, Davis was sentenced on the criminal charges to 42 months in prison. Earlier this year, Davis’ sentence was commuted by then-President Donald J. Trump.
The United States previously resolved its claims against CPS, its owners, and a former manager. This settlement resolves the remaining allegations against Davis and results in the dismissal of the Civil Action.
The Civil Action was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office. This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Kara F. Sweet represented the United States.
The Civil Action is captioned United States and the State of Tennessee ex. rel. Suzanne Alt, et al. v. Anesthesia Services Associates, PLLC, et al., Case No. 3:16-cv-00549 (M.D. Tenn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Federal Jury Convicts Minneapolis Felon of Illegal Possession of a Firearm, AmmunitionRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a Minneapolis man for illegal possession of a firearm and ammunition after a shooting incident that took place in broad daylight, announced Acting U.S. Attorney W. Anders Folk.
Following a four-day trial before Judge Wilhelmina M. Wright, Johnnie Lamar Haynes, 33, was convicted of one count of possessing a firearm as a felon and one count of possessing ammunition as a felon.
According to the evidence presented at trial, on August 5, 2019, Minneapolis police officers responded to a shots-fired call at a gas station near Lowry Avenue and Logan Avenue North in Minneapolis. Upon arrival, officers found 11 discharged cartridge casings on the street in front of the gas station. Video surveillance footage showed Haynes interacting with two men inside the gas station. After leaving the gas station the two other men got in a vehicle and drove off. Minutes later, the two men circled the block in their vehicle and returned to the gas station. Haynes then began shooting at the vehicle as it drove off. A nearby business was in the line of Haynes’s gunfire and was struck by multiple rounds. Surveillance video footage from the business captured the bullets entering the building, causing employees to duck and take shelter.
“This defendant discharged a firearm near a busy intersection in broad daylight, showing total disregard for human life,” said Acting U.S. Attorney W. Anders Folk. “This type of brazen gun violence is unacceptable in our communities and must be stopped.”
Because Haynes has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time. Haynes faces up to ten years in prison on each count. At sentencing, a federal district court judge will determine the sentence accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minneapolis Police Department.
This case was tried by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Essex County Man Admits Unlawfully Possessing Firearm and Conspiring to Defraud Banks of over $250,000 Using Stolen Credit Cards and Blank ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm and conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Tamir Duval, 22, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of illegal possession of a firearm, and to an information charging him with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
On July 27, 2020, Duval unlawfully possessed a Taurus PT740 semi-automatic handgun loaded with seven hollow nose rounds of ammunition. The firearm had been reported stolen from Gastonia, Georgia. Duval was previously convicted in Essex County Superior Court of receiving stolen property, a felony under state law.
From August 2018 through January 2020, Duval and others engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme.
The credit cards and blank checks were stolen from various New Jersey-based postal facilities and never reached their intended recipients. Duval and his conspirators use the credit cards and checks to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. Duval and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit and then fraudulently withdrew money at various ATMs from third-party account holders’ accounts.
Five of Duval’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, Allen Varice, and Qshaun Brown-Guinyard – previously pleaded guilty to their roles in the scheme and have been sentenced or are awaiting sentencing.
The charge of illegal possession of a firearm carries a maximum penalty of 10 years in prison and a fine of $250,000. The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 20, 2021.
Acting U.S. Attorney Honig credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the East Orange Police Department, under the direction of Chief Phyllis Bindi; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark; and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Essex County Man Admits Role in Armed CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael A. Honig announced.
Jared Walker, 24, of Newark, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to a three-count indictment charging him with carjacking, possession of a firearm by a convicted felon, and brandishing a firearm during and in relation to a crime of violence. Walker remains detained pending sentencing.
According to documents filed in this case and statements made in court:
On Jan. 6, 2020, the driver of a 2008 Ford E-350 van was carjacked at gunpoint in Newark. Walker approached the van, which was parked in Newark, and drove it away while the victim was still inside. Walker brandished a firearm during the carjacking. The victim ultimately escaped from the vehicle, and Walker was apprehended a short time later. When law enforcement recovered the gun, officers discovered that it was loaded with 13 rounds of ammunition. In 2015, Walker was convicted of unlawful possession of a handgun in New Jersey Superior Court – a felony offense – and is prohibited under federal law from possessing firearms and ammunition.
The carjacking charge carries a maximum potential sentence of 15 years in prison. The charge of possessing a firearm after having been convicted of a felony offense carries a maximum potential sentence of 10 years in prison. The brandishing of a firearm during a crime of violence charge carries a mandatory minimum prison sentence of seven years, and a maximum sentence of life imprisonment, which must run consecutively to any term of imprisonment imposed on the other charges. Each of the charged offenses also carries a maximum potential fine of $250,000. Sentencing is scheduled for Dec. 14, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Violent Crimes Unit.
East Bay Man is Sentenced to 18 Years in Prison for Conspiracy to Commit Arson in Connection with Scheme to Firebomb People on His Enemies ListRead the Press Release
SAN FRANCISCO – David Jah was sentenced today to 216 months in prison for conspiracy to commit arson, in connection with a scheme to firebomb the properties of several people on his enemies list, announced Acting United States Attorney Stephanie M. Hinds; United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge, San Francisco Division, Patrick T. Gorman; and Federal Bureau of Investigation (FBI) Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable William H. Alsup, U.S. District Judge.
"When Mr. Jah was unable to achieve his objectives in court, he turned to violence,” said Acting U.S Attorney Hinds. “That is never acceptable. Upholding the rule of law and the safety of the community is of the utmost importance, which is why we will continue to aggressively investigate and punish those who attempt to impede justice through violent intimidation.”
“Arson is a dangerous act of violence which poses a significant threat to the community,” said Special Agent in Charge Gorman. “ATF continuously works diligently toward securing public safety. The defendant in this case conspired to commit horrific acts of violence on unsuspecting members of this community. I am thankful that no one was seriously injured or killed as a result of these crimes. This sentencing will undoubtedly send a message to anyone who considers conducting these types of violent acts that they will not be tolerated. ATF will continue to work alongside our law enforcement partners to ensure crimes of this nature are investigated and prosecuted.”
"David Jah conspired to use extreme levels of violence to intimidate and retaliate against his perceived enemies. Thanks to the collaboration between the FBI, ATF, and our local law enforcement partners, we were able to put a stop to these violent attacks," said FBI Special Agent in Charge Craig Fair.
According to the evidence submitted at trial, Jah, 47, of Concord, conspired with Kristopher Alexis-Clark, 27, of Vallejo, and Dennis Williams, 41, of Fairfield, to conduct multiple firebombings targeting the residences of people on Jah's enemies list. The list contained the addresses of six individuals who Jah believed had wronged him, including the following:
• Two attorneys involved in the sale of his childhood home, to which Jah objected.
• The attorney who prosecuted the forcible detainer action removing Jah from his childhood home.
• The purchaser of Jah's childhood home.
• Jah's former neighbor at that home, with whom Jah had had several disagreements.
• A San Francisco Deputy City Attorney who represented the San Francisco Police Department in an excessive force lawsuit filed by Jah's son.The evidence at trial demonstrated that the charged conspiracy began in October 2018, when Jah met a prostitute on a mobile dating application, who put him in touch with Alexis-Clark. Jah then provided the enemies list to Alexis-Clark, who recruited Williams to join the scheme. Over the next three weeks, Alexis-Clark and Williams drove by three of the homes on Jah’s enemies list in the middle of the night and attempted to throw Molotov cocktails through their windows. According to text messages found on Jah’s phone, Jah offered them $800 to $5,000 to carry out these attacks.
Hours before the first attack, Jah instructed an associate of his to send a text message to Alexis-Clark that read: “Light it up, call when done completely.” Shortly thereafter, on October 21, 2018, Alexis-Clark and Williams mistakenly firebombed the next-door neighbor of one of the intended victims by throwing a lit Molotov cocktail through the front window of their home, setting the living room on fire.
Then, on October 31, 2018, all three co-conspirators met in a casino in Pacheco to discuss further attacks. A few days later, on November 3, 2018, Alexis-Clark and Williams firebombed the homes of two more victims.
Aside from the three arson attacks carried out by Alexis-Clark and Williams, the jury heard evidence of two additional prior Molotov cocktail attacks against individuals on Jah’s enemies list. In addition, in its sentencing memorandum, the government requested that the court also consider evidence that Jah had orchestrated four additional arson attacks (for a total nine arson attacks) as well as two drive-by shootings over the period from March 2016 through November 2018. The attacks occurred throughout the Bay Area at addresses in San Francisco, Lafayette, Danville, and Oakland. The government’s sentencing memorandum provides a description of each of Jah’s attacks. According to the government, no one was seriously hurt, but the absence of physical injuries was “solely due to the incompetence of the men [Jah] hired to carry out these attacks.”
The evidence showed that Jah orchestrated these attacks in an attempt to punish and intimidate those he held responsible for removing him from his childhood home in the Richmond District of San Francisco.
According to the memorandum, Jah explained in a social media post that, at least with respect to one of his victims, his intention was to “terrorize.” The sentencing memorandum also argues that, after arranging for the attacks, Jah took multiple steps to impede the administration of justice by, among other things, intimidating his co-defendants to give false testimony, and directing one co-defendant to sign a declaration falsely denying he conspired with Jah.
On October 29, 2020, a federal grand jury issued a second superseding indictment charging Jah with one count of conspiring to commit arson, in violation of 18 U.S.C. §§ 844(i) and (n). On May 13, 2021, after a week-long trial, a federal jury found Jah guilty of the charge.
In addition to the prison term, Judge Alsup also sentenced the defendant to a 3-year term of supervised release. The defendant has been in federal custody since January of 2019 and will begin serving the prison term immediately.
Alexis-Clark and Williams both have pleaded guilty to, but have not yet been sentenced for, crimes regarding their respective roles in the scheme.
Assistant U.S. Attorneys Kevin Rubino and Kevin Barry are prosecuting this case with assistance from Ralph Banchstubbs. The prosecution results from an investigation by the ATF and FBI with help from the police departments of San Francisco, Vallejo, Lafayette, Tiburon, and Danville.
EDVA to Participate in Community Events During National Night OutRead the Press Release
RICHMOND, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events this evening, August 3. During this year’s National Night Out, Acting U.S. Attorney Raj Parekh will attend community events in the Richmond area with Chief of Richmond Police, Gerald M. Smith.
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“Participating in community-based events and strengthening the bonds of trust and friendship with the residents we serve are essential to our crime reduction efforts across the Eastern District of Virginia,” said Acting U.S. Attorney Raj Parekh. “We are committed to working closely with our communities to keep our neighborhoods safe, eliminate injustices, and protect civil rights and civil liberties. When we stand united with our neighbors in looking out for each other, we can make meaningful, long-lasting improvements in the safety of our cities and streets.”
National Night Out is a community-building and crime prevention program that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
During National Night Out, community involvement in crime prevention is generated through a variety of local events that help strengthen neighborhood spirit and unity, such as block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
This year, National Night Out organizers are expecting over 16,000 communities and millions of people from all 50 states, U.S. territories, and military bases worldwide to take part in community events. The program concludes annually on the first Tuesday of August in most areas of the country.
EDVA staff members have been encouraged to participate in community events located in or around the Office’s Alexandria, Richmond, Norfolk, and Newport News Divisions. For more information, visit https://natw.org/ or click on each of the preceding links for examples of National Night Out Events taking place across the Eastern District of Virginia.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Downstate Corporate Secretary Pleads Guilty to Willfully Failing to Pay over $930,000 in Payroll Taxes Withheld from EmployeesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Harrington, Delaware woman pleaded guilty today to intentionally failing to pay employment taxes on behalf of a local business. U.S. District Court Judge Leonard P. Stark accepted the plea.
According to court documents, Sara Collins, 49, served as the Corporate Secretary of a plumbing, heating, and air conditioning business for over twenty years. Collins was responsible for overseeing payroll disbursement and filing tax documents on behalf of the business. Each pay period, the business withheld taxes from its employees’ paychecks, including federal income taxes and Medicare and Social security taxes. Beginning in the first quarter of 2013 through the last quarter of 2019, Collins failed to file quarterly forms with the Internal Revenue Service (“IRS”) and paid fewer than $37,000 in payroll taxes for that entire six-year period. In total, Collins failed to pay over $930,000 owed to the IRS by the business.
Collins pleaded guilty to five counts of willful failure to pay over tax and faces a maximum penalty of five years in federal prison for each count when sentenced on November 17, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. Judge Stark will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Ms. Collins abused her position of trust by diverting employee tax obligations to line her own pockets. In so doing, she put her employer and fellow employees at risk. My office is committed to working with IRS Criminal Investigation to prosecute those who evade legal responsibilities to their employees and the federal government by misdirecting paycheck withholdings for personal gain.”
“Ms. Collins was entrusted to file the company’s payroll tax returns and remit the relevant taxes and she purposely failed to do so,” said Joleen Simpson, Acting Special Agent in Charge of IRS-Criminal Investigation. “This is a serious offense that results in the loss of significant tax revenue to the United States government each year.”
This case is the result of an investigation conducted by the IRS Criminal Investigation and 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. 1:21-cr-00047-LPS.
Defendant Convicted in Federal Court of Heroin Trafficking OffensesRead the Press Release
Acting United States Attorney Richard Frohling of the Eastern District of Wisconsin announced that following a jury trial concluding on July 30, 2021, Royel Page, age 31, was convicted of conspiracy to possess with intent to distribute and to distribute more than 100 grams of heroin, as well as twelve counts of attempting to possess with intent to deliver heroin.
This case was part of a long-term federal drug investigation based out of Milwaukee. Page was one of twelve defendants charged in federal court with conspiracy related to the distribution of heroin, cocaine, and fentanyl. In September 2017, law enforcement officers executed 14 federal search warrants in Milwaukee targeting members of this organization. Law enforcement recovered approximately 25 ounces of heroin, some of which was mixed with fentanyl, cocaine, five firearms, in excess of $150,000 in United States currency, and two kilo presses. Approximately 250 federal, state, and local officers participated in these arrests and search warrants.
As a result of his conviction for conspiracy to distribute heroin, Page faces up to 40 years in prison, with a mandatory minimum sentence of five years in prison. Page is set to be sentenced in November 2021.
The investigating agencies in this case included the Drug Enforcement Administration, Wisconsin Department of Justice - Division of Criminal Investigation, North Central High Intensity Drug Trafficking Area, City of Milwaukee Police Department, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations, Bureau of Alcohol, Tobacco, and Firearms, Federal Bureau of Investigation, United States Marshals Service, U.S. Immigration and Customs Enforcement, Wisconsin State Patrol, Milwaukee County Sheriff’s Department, Racine County Sheriff’s Department, Waukesha County Sheriff’s Department, Waukesha County Metro Drug Enforcement Unit, Wauwatosa Police Department, Greenfield Police Department, West Allis Police Department, and the New Berlin Police Department.
This case was prosecuted by Assistant United States Attorneys Gail J. Hoffman and Elizabeth M. Monfils.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Davenport Man Sentenced to 210 Months in Prison for Production and Receipt of Child PornographyRead the Press Release
DAVENPORT, IOWA – A Davenport man was sentenced on Wednesday, July 28, 2021, by United States District Court Chief Judge John A. Jarvey to 210 months in federal prison for production and receipt of child pornography.
According to court documents, Keith Allen Shrum, age 32, admitted he sexually abused a child, produced child pornography related to that sexual abuse, and received child pornography over the internet. Shrum came to the attention of law enforcement after sexual text messages between Shrum and the minor victim were discovered. Shrum initially denied inappropriate contact with the child, but eventually admitted to law enforcement the sexual contact had been going on for approximately one year. During the execution of search warrants, Shrum was found in possession of thousands of images of child pornography dating back to 2016. Following Shrum’s prison sentence he will be required to serve a ten-year term of supervised release and register as a sex offender.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This matter was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.