Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
15 September 2021
Four Men Federally Charged in Transnational Wire Fraud and Identity Theft ConspiracyRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of two indictments charging Olufemi Odedeyi (40, London, UK), Ibrahim Davies (40, London, UK), Adetunji Adejumo (43, Oklahoma City, OK), and Ibrahim Jinadu (34, Atlanta, GA) with conspiracy to commit wire fraud, theft of public money or property, and aggravated identity theft. Odedeyi, Davies, and Jinadu were arrested on September 9, 2021 and Adejumo was arrested on September 13, 2021. Officers from the UK National Extradition Unit apprehended Odedeyi and Davies in London, United Kingdom, where they have been detained pending extradition to the United States. Agents from Internal Revenue Service – Criminal Investigation (IRS-CI) apprehended Jinadu and Adejumo in the United States.
If convicted, Odedeyi, Davies, Adejumo, and Jinadu each face a maximum penalty of 20 years in federal prison for the wire fraud count, as well as additional penalties for the remaining counts. The indictment also notifies the defendants that the United States intends to forfeit assets that are alleged to be traceable to proceeds of the offense.
According to the indictments, while residing in the United Kingdom, Odedeyi and Davies obtained unauthorized access to computer servers of United States businesses and participated in stealing the personally identifying information (PII) of United States residents from those servers. Odedeyi and Davies then used that information to file with the IRS false and fraudulent U.S. Department of Treasury IRS Form 1040, U.S. Individual Income Tax Returns seeking income tax refunds. Adejumo and Jinadu, while residing in the United States, collected the fraudulent refund proceeds, which were directed to prepaid debit cards in their possession or to addresses or bank accounts that they controlled or to which they had access. Adejumo and Jinadu then transferred a share of the fraud proceeds to Odedeyi, Davies, and other conspirators.
Odedeyi and Davies used various means to obtain unauthorized access to the computer servers, including a website that was operated for years and sold access to compromised computers worldwide and also to the PII of U.S. residents. The site’s administrators strategically maintained servers throughout the world to facilitate the website’s operation.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The investigation was led by the IRS-CI Tampa Field Office and the Tampa Division of the FBI, with assistance from the IRS-CI Cyber Crimes Unit (Washington, D.C.). Substantial assistance was also provided by the Department of Justice’s Office of International Affairs, IRS-CI and FBI International Operations at Mission UK, the United Kingdom’s National Extradition Unit, the International Crime Coordination Centre and the Eastern Region Special Operations Unit in the United Kingdom, IRS-CI Dallas and Atlanta Field Offices, Department of Homeland Security – Homeland Security Investigations Tampa Field Office, and the United States Attorney’s Offices for the Northern District of Georgia and the Northern District of Texas. The cases will be prosecuted by Assistant United States Attorney Rachel Jones.
Founder of $90 Million Cryptocurrency Hedge Fund Sentenced to More Than Seven Years in PrisonRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that STEFAN HE QIN, the founder of the Virgil Sigma Fund LP (“Virgil Sigma”) and the VQR Multistrategy Fund LP (“VQR”), a pair of cryptocurrency hedge funds in New York which claimed to have over $100 million dollars in investments, was sentenced today to 90 months in prison. On February 4, 2021, QIN pled guilty to one count of securities fraud before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “According to Stefan He Qin, founder of Virgil Sigma and VQR, a pair of cryptocurrency hedge funds in New York, Virgil had a stated market strategy of ‘market neutral,’ safe investments. Qin’s investors soon discovered that his strategies weren’t much more than a disguised means for him to embezzle and make unauthorized investments with client funds. When faced with redemption requests he couldn’t fulfill, Qin doubled down on his scheme by attempting to plunder funds from VQR to satisfy his victim investors’ demands. Qin’s brazen and wide-ranging scheme left his beleaguered investors in the lurch for over $54 million, and he has now been handed the appropriately lengthy sentence of over seven years in federal prison.”
According to the Information and statements made in open court:
Background
STEFAN HE QIN is a 24-year old Australian national. Between 2017 through 2020, QIN owned and controlled two cryptocurrency investment funds, Virgil Sigma and VQR, both of which were located in New York, New York. Since its creation, Virgil Sigma purported to employ a strategy to earn profits from arbitrage opportunities in the cryptocurrency market. This strategy was touted by QIN to the investing public as “market-neutral,” meaning the fund was not exposed to any risk from the price of cryptocurrency moving up or down and therefore provided a relatively safe and liquid investment. Until recently, Virgil Sigma purported to have over $90 million under management from dozens of investors, including many in the United States. According to its public marketing materials, Virgil Sigma has been profitable in every month from August 2016 to the present, with the sole exception of March 2017. QIN also regularly participated in calls with Virgil Sigma investors and other forms of public communication where he touted the growth and success of Virgil Sigma. For example, in February 2018, QIN and his fund were profiled in the Wall Street Journal.
In or about February 2020, QIN founded VQR. VQR employed a variety of trading strategies and was poised to make or lose money based on the fluctuations in the value of cryptocurrency and was not market neutral. QIN was the sole owner of VQR’s general partner, but was not involved in VQR’s day-to-day operations. Instead, VQR had its own trading staff, including a head trader (the “Head Trader”) and other investment professionals. Until recently, VQR had at least approximately $24 million under management from investors.
Qin’s Scheme to Steal Assets from Virgil Sigma
Since 2017, QIN engaged in a scheme to steal assets from Virgil Sigma and defraud its investors. Rather than investing the fund’s assets in a cryptocurrency arbitrage trading strategy as advertised, QIN embezzled investor capital from Virgil Sigma and used the funds for purposes other than the purported arbitrage trading strategy, including: (a) using a substantial portion of investor capital stolen from Virgil Sigma to pay for personal expenses such as food, services, and rent for a penthouse apartment in New York City; (b) using a substantial portion of investor capital from Virgil Sigma to make personal, often illiquid investments in other entities that had nothing to do with cryptocurrencies. For example, in or about October 2018, QIN invested hundreds of thousands of dollars stolen from Virgil Sigma into a real estate investment; and (c) using a substantial portion of investor capital from Virgil Sigma to invest in crypto-assets that had nothing to do with the fund’s stated arbitrage strategy. For example, in or about 2018, QIN invested funds from Virgil Sigma into certain initial coin offerings, a speculative form of investing in new issues of cryptocurrency. As a result of these and other fraudulent activities, QIN dissipated nearly all of the investor capital in Virgil Sigma. QIN also regularly lied to the fund’s investors about the value, location, and status of their investment capital, including through false account statements that QIN prepared and bogus tax documents that he circulated to his investors.
Qin Attempts to Steal Assets From VQR to pay Virgil Sigma Investors
In or about December 2020, faced with redemption requests from the Virgil Sigma fund that he could not meet, QIN demanded that the Head Trader at VQR wind down all trading positions at VQR and transfer a portion of the funds to QIN so that QIN could use that money to pay off these redemptions to Virgil Sigma investors. QIN issued the demand even though the Head Trader advised QIN that closing out VQR’s then-current trading positions, rather than holding those positions in accordance with VQR’s directional trading strategy, would result in losses to VQR’s investors. At QIN’s direction, the Head Trader accordingly closed out VQR’s positions and turned over access to VQR’s trading accounts to QIN. QIN subsequently attempted to take control of VQR’s assets in order to enable QIN to meet certain Virgil Sigma investor redemption requests.
The Virgil Sigma fund and VQR have ceased operations and the liquidation and distribution of assets is being handled by a court-appointed receiver in the matter of S.E.C. v. Qin, 20 Civ. 10849.
* * *
QIN, 24, was also sentenced to three years of supervised release, and ordered to forfeit $54,793,532.
Ms. Strauss praised the work of the Department of Homeland Security, Homeland Security Investigations. She further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel Tracer is in charge of the prosecution.
Former Treasurer and Comptroller of the Universal Ballet Foundation Sentenced to 42 Months in Prison for Bank FraudRead the Press Release
WASHINGTON – Sophia Kim, the former Treasurer and Comptroller for the Universal Ballet Foundation, which operated the Kirov Academy of Ballet, was sentenced today to 42 months in prison for embezzling more than $1.5 million from the organization.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Special Agent in Charge of the FBI Washington Field Office Criminal Division Wayne A. Jacobs.
Kim, a/k/a “Sophia Kim Sebold” and “Sookyeong Kim Sebold,” pleaded guilty in May 2021 in the U.S. District Court for the District of Columbia to a charge of bank fraud. She was sentenced by the Honorable Rudolph Contreras. In addition to the prison term, Kim 60, of Temple Hills, Md., was ordered to pay more than $1.5 million in restitution and an identical amount in a forfeiture money judgment. Following completion of her prison term, she will be placed on four years of supervised release.
The Kirov Academy of Ballet is a non-profit organization located in the District of Columbia. According to court documents, between approximately January 2018 and September 2018, Kim misappropriated approximately $1.5 million from the organization’s bank accounts through unauthorized check, debit, and credit card transactions.
This consisted of 68 unauthorized checks to “Cash” or to “Sophia Kim,” in whole-dollar amounts ranging from $500 to $12,000, totaling approximately $377,200, 197 unauthorized debits and cash withdrawals, totaling approximately $479,283, and 139 unauthorized credit card transactions, totaling approximately $681,751. More than $1 million of unauthorized debits and withdrawals and credit card charges were at MGM National Harbor Casino in Oxon Hill, MD, totaling approximately $1,068,026.
At the time that Kim began committing these offenses, she had just completed a period of supervised release for an earlier conviction stemming from her work as a bookkeeper and treasurer of another non-profit. In that case, she was convicted in 2012 in the U.S. District Court for the Eastern District of Virginia on charges of filing a false tax return and tax evasion and sentenced to two years in prison, to be followed by three years of supervised release.
In announcing the sentence, Acting U.S. Attorney Phillips and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Angeline Thekkumthala, as well as Assistant U.S. Attorneys Joshua Rothstein and David Kent, who investigated and prosecuted this matter.
Former Paraprofessional at Blue Springs High School Sentenced to 22 Years in Prison for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former paraprofessional at Blue Springs High School was sentenced in federal court today for producing and distributing child pornography.
Steven B. Allen, 46, of Independence, Missouri, was sentenced by U.S. District Judge Roseann Ketchmark to 22 years in federal prison without parole. The court also sentenced Allen to spend the rest of his life on supervised release following incarceration. The court ordered Allen to pay $5,000 to each of the 11 victims who have petitioned for restitution from every person who received or possessed pictures of their sexual abuse, or $3,000 if he can pay restitution within 30 days of his sentencing.
Allen, who has been in federal custody since his arrest on Nov. 25, 2019, was remanded to the custody of the U.S. Marshal immediately following today’s hearing.
On May 4, 2021, Allen pleaded guilty to two counts of producing child pornography and one count of distributing child pornography over the internet. At the time of the offenses, Allen worked as a paraprofessional teacher at Blue Springs High School.
Allen admitted that he used two minor victims to produce child pornography and distributed those images, and others, to individuals over the internet. Allen also admitted he had been sharing images of child pornography over the internet every couple of days for the past five to six years.
Allen began communicating over the internet with an undercover officer in the United Kingdom in June 2019. The undercover officer purported to be the father of a 10-year-old girl. Allen sent the undercover officer numerous images of one of the minor victims. He also discussed participating in and fantasizing about sexually abusing the undercover officer’s daughter.
On Oct. 7, 2019, law enforcement officers executed a search warrant at Allen’s residence and seized numerous electronic devices that contained more than 9,200 images and 89 videos of child pornography, including more than 800 images of infants and toddlers being sexually assaulted, 65 images of violent sexual acts, and two images of bestiality.
Allen also produced a number of images and videos of prepubescent girls using a waterproof camera at a community swimming pool.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Massachusetts State Representative Sentenced to Prison for Embezzling Campaign Funds, Bank Fraud and Tax FraudRead the Press Release
BOSTON – Former Massachusetts State Representative David M. Nangle was sentenced today for illegally using campaign funds to pay for his personal expenses, defrauding a bank to obtain loans to purchase his home and repay his personal debts, and collecting income that he failed to report to the Internal Revenue Service.
Nangle, 60, of Lowell, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 15 months in prison and two years of supervised release. Nangle was also ordered to pay restitution of $33,347 to the IRS and forfeiture of $15,650. On Feb. 24, 2021, Nangle pleaded guilty to 10 counts of wire fraud, four counts of bank fraud, four counts of making false statements to a bank and five counts of filing false tax returns.
“Former Representative Nangle was a 22-year veteran of the Massachusetts State House and former Chairman of the Ethics Committee when he illegally used campaign funds for private golf club dues, trips to casinos and expensive dinners,” said Acting United States Attorney Nathaniel R. Mendell. “He broke the law and violated his duty to the voters – as Chairman of the Ethics Committee, no less. This case is the latest proof that this office is intent on holding corrupt public officials accountable.”
“State lawmakers are elected by the people, to serve the people, not to serve their own financial interests like David Nangle did. Mr. Nangle betrayed his constituents’ trust and broke the law, knowing full well what he was doing was wrong. Today’s sentence shows there are serious consequences for corrupt public officials who try to undermine the integrity of our government,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “Citizens expect and deserve their elected officials to serve them honestly, and the FBI will not hesitate to go after others like him who willfully and maliciously abuse their office.”
“As a state lawmaker, David Nangle was less concerned about his constituents and more interested in his own personal and financial gain,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division. “Today’s sentencing sends a clear message that elected office is not for sale, and those who doubt this will be held accountable for their actions. Cases involving betrayal of the public’s trust are of utmost importance and IRS-CI will continue to be a partner in these efforts.”
From 1999 to 2020, Nangle was the elected member of the Massachusetts House of Representatives for the 17th Middlesex District. Nangle, who previously served as a House Ethics Committee Chairman, used his campaign committee’s debit card to make personal purchases, including thousands of dollars in gift cards for his personal use, among other things.
During the period of the charged offenses, Nangle was heavily in debt and gambled extensively at area casinos and online, and then used thousands of dollars in campaign funds to pay for various personal expenses such as dues at a local golf club, rental cars to travel to casinos, flowers for his girlfriend, gas, hotels and restaurants. Nangle knew that using campaign funds for personal use was prohibited and subject to oversight by an independent state agency and concealed his theft by filing false reports that disguised the personal nature of the spending.
In addition, from at least 2015 to 2018, Nangle devised a scheme to fraudulently obtain loans from a bank in order to finance the purchase of his home, fund his gambling activities and repay his personal debts. Nangle did so by making false statements on multiple loan applications, misstating his income and understating his debt.
Upon learning of the investigation into his embezzlement and fraud, Nangle also obstructed justice by entering into a sham consulting agreement with a local business owner designed to make payments he received appear legitimate. In reality, Nangle never provided any legitimate services in exchange for receiving $27,000 from that business owner. Instead, Nangle helped the business owner curry favor with an important client by sponsoring legislation that benefited the business owner’s client.
Separately, Nangle filed false tax returns for tax years 2014 to 2018 by reporting fictitious business deductions for purported “consulting” work that he did for a Billerica company. Nangle also double dipped on deductible expenses arising from his work as a state legislator, fraudulently claiming thousands of dollars in false deductions for alleged charitable donations and misleading his tax preparer. Further, Nangle concealed the income he received through goods and services from business owners and other sources. This included $7,000 in kitchen and bathroom work done in Nangle’s home and $7,000 in check payments from a contractor; gambling income from a Connecticut casino; and thousands of dollars that he stole from his campaign account.
Acting U.S. Attorney Mendell, FBI Boston SAC Bonavolonta and IRS-CI SAC Simpson made the announcement today. Assistant U.S. Attorney Dustin Chao, Chief of Mendell’s Public Corruption & Special Prosecutions Unit, and Assistant U.S. Attorney Kunal Pasricha prosecuted the case.
Former Georgetown Head Tennis Coach Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – The former head coach of men and women’s tennis at Georgetown University has agreed to plead guilty in connection with soliciting and accepting bribes to facilitate the admission of prospective Georgetown applicants and failing to report a significant portion of those bribe payments on his federal income taxes.
Gordon Ernst, 54, of Chevy Chase, Md. and Falmouth, Mass., will plead guilty to one count of conspiracy to commit federal programs bribery, three counts of federal programs bribery and one count of filing a false tax return. A plea hearing has not yet been scheduled.
According to the terms of the plea agreement, the parties have agreed to a sentence of at least one year and up to four years in prison, two years of supervised release and forfeiture of $3,435,053.
As set forth in the charging document, Ernst solicited and received bribe payments from William “Rick” Singer and prospective Georgetown applicants to facilitate their admission to Georgetown as student athletes. Ernst then failed to report a significant portion of those bribe payments on his federal income tax returns.
The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Case information, including the status of each defendant, charging documents, and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Leslie A. Wright, Kristen A. Kearney and Kriss Basil of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Corporate Executive Sentenced for $30 Million Embezzlement SchemeRead the Press Release
BOSTON – The former Chief Financial Officer of Alden Shoe Co. was sentenced today for embezzling approximately $30 million from the company as part of a long-running scheme.
Richard Hajjar, 64, of Duxbury, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison and three years of supervised release. Hajjar was also ordered to pay restitution of $33,962,880 and forfeiture of $27,300,552. On May 5, 2021, Hajjar pleaded guilty to one count each of wire fraud, unlawful monetary transactions and filing a false tax return.
From at least 2011 through October 2019, when he was terminated by Alden Shoe Co., Hajjar embezzled money by writing checks to himself from company bank accounts and transferring funds from company accounts to his personal accounts and to another individual. In total, Hajjar embezzled approximately $30 million which he used to enrich himself and to buy gifts and luxury travel for others close to him, including private flights to the Caribbean and diamond jewelry.
In addition, between approximately 2014 and 2019, Hajjar failed to report the proceeds of his embezzlement as income on his tax returns, thereby failing to pay approximately $5,112,822 in taxes to the Internal Revenue Service.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol E. Head of Mendell’s Asset Recovery Unit prosecuted the case.
Fayette County Woman Pleads Guilty to Child Sex Trafficking ChargeRead the Press Release
CHARLESTON, W.Va. – A woman from Fayette County pleaded guilty today to an offense related to sex trafficking a 17-year-old minor female. Kristen Naylor-Legg, 28, pleaded guilty to conspiracy to engage in sex trafficking of a minor under the age of 18.
According to court documents and statements made in court, on two separate occasions in June 2020, Naylor-Legg entered into an agreement with her co-defendant, Larry Allen Clay, Jr., to provide him with her 17-year-old minor female relative and Clay would pay Naylor-Legg to engage in sexual intercourse with the minor. At the time, Clay was an employee of the Fayette County Sheriff’s Department and the Chief of Police for the Gauley Bridge Police Department. Naylor-Legg admitted that on the first occasion she was paid $100 by Clay. On the second occasion, Naylor-Legg indicated that Clay had agreed to pay her $50 in exchange for sexual intercourse with the minor but ultimately did not give her the money.
Naylor-Legg faces up to life in prison when she is sentenced on December 9, 2021. She will also be required to register as a sex offender.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Homeland Security Investigations (HSI), the West Virginia State Police, and the Fayette County Sheriff’s Department.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
Co-defendant Larry Allen Clay, Jr., is charged with conspiracy to engage in sex trafficking of a minor via coercion and sex trafficking of a minor via coercion. Clay’s trial is set for November 9, 2021. Note: Charges contained in indictments are allegations and defendants are presumed innocent unless and until proven guilty.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00062.
###
Essex County Man Sentenced to Three Years in Prison for Illegally Possessing Firearm and NarcoticsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for illegal possession of a firearm and possession of methamphetamine and marijuana, Acting U.S. Attorney Rachael Honig announced.
Kevon A. Anderson, 25, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden, who imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On Sept. 10, 2019, while investigating a shooting from the previous evening near Hawthorn Avenue, Newark police officers approached a group of men sitting in an adjacent park to ask them whether they had any information about the shooting. Officers detected the smell of marijuana, and one of the men, later identified as Anderson, abruptly stood up and walked away from the officers. One of the officers saw a bulge in Anderson’s front pants pocket, which the officer believed could be a weapon, and asked Anderson to sit back down. Anderson disregarded the officer and ran across the park. The officers pursued Anderson and caught up with him. As the officers approached him to pat him down, Anderson told them he had a gun on him. In addition to the gun, the officers recovered ecstasy pills and large quantities of marijuana packaged for sale from a fanny pack around Anderson’s waist, as well as a black bag he was carrying. There were also additional live rounds of ammunition in the fanny pack.
In addition to the prison term, Judge Hayden sentenced Anderson to three years of supervised release.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
Essex County Man Admits Firearms and Narcotics OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted firearms and marijuana distribution offenses, Acting U.S. Attorney Rachael A. Honig announced.
Shatuwan McCall, 20, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty by videoconference to an information charging him with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute marijuana, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On Dec. 4, 2020, at approximately 11:00 p.m., law enforcement officers were patrolling locations that had been the site of recent shootings and homicides while conducting a narcotics investigation in the vicinity of South 17th Street in Newark. They observed a vehicle, occupied by McCall and another individual, engaged in traffic violations. As the officers approached the vehicle and illuminated the occupants with their flashlights, they observed a large plastic bag containing a green leafy substance, suspected to be marijuana, on McCall’s lap. Law enforcement officers also observed McCall moving his right arm and hand as though adjusting something in the vicinity of the passenger-side floorboard and noticed a handgun in McCall’s right hand. Law enforcement ultimately recovered approximately 15 bags of suspected marijuana, narcotics proceeds, and a .22 caliber Llama revolver loaded with six rounds of ammunition.
The count of being a felon in possession of a firearm is punishable by a maximum of 10 years in prison and a fine of up to $250,000. The count of possession with intent to distribute marijuana is punishable by a maximum of five years in prison and a fine of up to $250,000. The count of possessing a firearm in furtherance of the narcotics trafficking offense carries a mandatory minimum prison term of five years and a maximum of life in prison, and a fine of up to $250,000, which must run consecutively to any other term of imprisonment imposed on the other two counts. Sentencing is scheduled for Jan. 24, 2022.
Acting U.S. Attorney Honig credited members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.
Essex County Man Admits Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, Acting U.S. Attorney Rachael A. Honig announced
Jeffrey Bennett, 27, of Irvington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Bennett conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds before the financial institutions identified the fraudulent checks and blocked further withdrawals. Bennett and his conspirators arranged for U.S. Postal Service (USPS) employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Bennett and his conspirators, who forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, who had given Bennett and his conspirators access to their accounts, also in exchange for cash. Bennett and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
Two of Bennett’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, and Jahaad Flip, 22, of Newark, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing. Charges are still pending against another conspirator, USPS employee Janel Blackman, 42, of Newark. The charges against Blackman are merely accusations, and he is presumed innocent unless and until proven guilty.
The conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
El Departamento de Justicia llega a un acuerdo con una compañía que fabrica materiales médicos que resuelve unas denuncias de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con DC Precision Machining, Inc., una compañía que fabrica partes para dispositivos médicos radicado en Morgan Hill, California. El acuerdo resuelve las acusaciones de que la compañía había discriminado a trabajadores al requerir, dependiendo del estatus de ciudadanía de cada trabajador, que presentasen documentos específicos de autorización para trabajar. Asimismo, el acuerdo resuelve una acusación de que la compañía había retirado una oferta de trabajo de una trabajadora cuando ella se había negado a presentar un documento adicional para demostrar que podía trabajar legalmente en los Estados Unidos, a pesar de haber ya presentado suficiente documentación.
La investigación del Departamento comenzó después de que una ciudadana de los EE. UU. presentó una demanda de discriminación contra DC Precision Machining ante la División de Derechos Civiles. Con base en su investigación, el Departamento determinó que la compañía había rechazado la tarjeta de seguro social sin restricciones de la trabajadora, la obligó a presentar un documento adicional innecesario antes de poder comenzar a trabajar y, posteriormente, retiró la oferta de trabajo cuando ella no estaba dispuesta a cumplir con la solicitud de la compañía. La investigación del Departamento también halló que la compañía, de forma rutinaria, pedía documentos de autorización para trabajar innecesarios y específicos de todo empleado nuevo y restringía la selección de documentos para cada empleado recién contratado según el estatus de ciudadanía del trabajador. En concreto, se requería que ciudadanos estadounidenses presentasen un pasaporte estadounidense o acta de nacimiento, mientras que a los no ciudadanos estadounidenses se les requería presentar un documento migratorio para demostrar su autorización para trabajar, incluso cuando la recién contratada empleada ya había entregado otro documento aceptable a DC Precision Machining que demostraba su autorización para trabajar.
«Los empleadores deben dar a los trabajadores la oportunidad de presentar cualquier documento aceptable que quieran a la hora de verificar que cuentan con la debida autorización para trabajar en los Estados Unidos. Un empleador que requiere que sus empleados nuevos presenten documentos particulares con base en su estatus migratorio o de ciudadanía ha cometido un acto ilegal de discriminación», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles. «El Departamento de Justicia está deseando trabajar con DC Precision Machining para garantizar que cumpla con sus obligaciones para evitar futuros incidentes de discriminación en el empleo».
Las leyes federales permiten a todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su autorización para trabajar en los Estados Unidos. La ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios o que restrinjan la selección de documentos que un empleado puede mostrar para probar que tiene autorización para trabajar, con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen.
Conforme los términos del acuerdo conciliatorio, DC Precision Machining pagará una sanción civil a los Estados Unidos que asciende a $13,400 y $21,360.55 al trabajador afectado. Asimismo, DC Precision Machining capacitará a sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA, incluyendo una capacitación dirigida por la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), y será supervisado durante un período de dos años para garantizar que la compañía esté cumpliendo con el acuerdo.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1‑800‑237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Des Moines Shooter Found Guilty of Federal Robbery and Gun ChargesRead the Press Release
Federal Charges Brought Following Probationary Sentence in Polk County Court
DES MOINES, IA – Yesterday a federal jury convicted Darreon Earl Wright, age 25, of Des Moines, for conspiracy to interfere with commerce through robbery; interference and attempted interference with commerce through robbery; and possessing, brandishing, and discharging a firearm in furtherance of a crime of violence. Wright faces a sentence of up to 20 years on each of the robbery charges and a mandatory minimum term of consecutive imprisonment of 10 years, and up to life, on the firearm count. Wright was ordered to remain detained pending his sentencing in federal court.
According to court documents and evidence presented at the two-day trial, shortly before 9:00 p.m. on February 19, 2020, Wright and his co-conspirator lured the victim to an apartment complex in Des Moines under the false promise of selling the victim marijuana; however, Wright and his co-conspirator did not intend to sell the victim marijuana and, instead, planned to rob him. Upon the victim’s arrival at the apartment complex, Wright’s co-conspirator led the victim to an enclosed stairwell within the apartment complex, where Wright was waiting with a loaded gun to ambush and rob the victim of the $6,900 in cash he brought to purchase the marijuana. When the victim entered the enclosed stairwell, Wright’s co-conspirator grabbed the victim, and Wright shot the victim two times—once in the arm, and once in the chest. Wright fled the shooting scene with his pistol. The victim survived.
Wright was indicted in federal court in November 2020. The federal indictment followed a prosecution by the Polk County Attorney’s Office where Wright entered an Alford plea in Polk County District Court to Willful Injury, a Class D Felony. In September 2020, a Polk County judge sentenced Wright to a deferred judgment and three years’ probation.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by the Des Moines Police Department’s Crimes Against Persons Section. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Federal Prison for Conspiracy to Advertise Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Eric Eoin Marques, age 36, of Dublin, Ireland, to 27 years in federal prison, followed lifetime supervised release, for conspiracy to advertise child pornography on the dark web. Marques, a dual national citizen of the United States and Ireland, pleaded guilty to that charge on February 6, 2020, after he was extradited by Irish authorities. Marques arrived in the United States on March 23, 2019, to face federal criminal charges filed in Maryland on August 8, 2013.
According to his plea agreement, between July 24, 2008 and July 29, 2013, Marques conspired to advertise child pornography by operating a free, anonymous web hosting service (AHS) located on the “dark web”, an area of the Internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The defendant’s hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors, violent sexual abuse, and bestiality. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos involved victims that were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers to include bondage, bestiality and humiliation to include urination, defecation and vomit.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division.
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting United States Attorney for the District of Maryland Jonathan F. Lenzner. “This is an egregious case where one individual facilitated the abuse of more than a million new child victims and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the Internet to perpetuate the cruel and heartless business of the sexual abuse of children for personal gain, in order to keep our children safe.”
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said FBI Assistant Director Calvin Shivers. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
During 2012 and 2013, FBI special agents and employees using computers in Maryland downloaded more than one million files from that website. As part of the investigation, those files were reviewed and nearly all of the files depict children who are engaging in sexually explicit conduct with adults or other children, posed nude and/or in such a manner as to expose their genitals, in various state of undress, or depict child erotica. A substantial majority of the images downloaded by the FBI depict prepubescent minor children who are fully or partially nude or engaged in sexually explicit conduct.
Marques admitted in his guilty plea that this offense also involved the distribution of child pornography, which involved minors who were less than twelve years old, to include infants and toddlers, and sadistic or masochistic material or depictions of violence. Marques further admits that he willfully obstructed or impeded the administration of justice with respect to the investigation into this offense.
The Marques prosecution was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), FBI, and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries who deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
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.
United States Attorney Jonathan F. Lenzner and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI’s Violent Crime Section, Child Exploitation Operational Unit and Violent Crimes Against Children International Task Force with significant assistance from the Legal Attaché London Office, Irish law enforcement authorities, An Garda Síochána and EUROPOL. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Thomas M. Sullivan, and Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of the Justice Department’s Criminal Division’s Child Exploitation and Obscenity Section, 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.
# # #
Council Bluffs Man Sentenced to Prison for Crop Insurance FraudRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man, Andrew J. Fischer, age 55, was sentenced on September 10, 2021, by United States District Court Judge Stephanie M. Rose to five months in prison for False Statements in Connection with Federal Crop Insurance. His term of imprisonment is to be followed by five years of supervised release. Fischer was ordered to pay $399,725 in restitution.
Fischer obtained crop insurance for the crop years 2012, 2014, and 2017 through the United States Department of Agriculture Risk Management Agency’s Federal Crop Insurance Program. Fisher then submitted fraudulent insurance claims which resulted in indemnity payments of approximately $399,725 to which he was not entitled. According to court documents, Fischer pleaded guilty to False Statements in Connection with Federal Crop Insurance in May of 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Department of Agriculture Office of Inspector General and the Risk Management Agency Special Investigations investigated the case.
Corbin Man Sentenced to 25 Years for Production of Child PornographyRead the Press Release
LONDON, Ky. — A Corbin, Ky., man, Andrew J. Kerr, 32, was sentenced on Tuesday, to 25 years in federal prison, by U.S. District Judge Claria Horn Boom, for production of child pornography.
From August 2020 through November 2020, Kerr recorded multiple videos of himself engaging in sexual acts with a minor victim. Kerr further transmitted the explicit images of the victim on Snapchat, a social media platform. Finally, Kerr saved and stored images and videos of the minor victim on his cell phone. In 2008, Kerr was convicted by the Commonwealth of Kentucky of Criminal Abuse in the First Degree for abusing a 12-year-old child.
Kerr pleaded guilty in June 2021.
Under federal law, Kerr must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for Life.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet Jr., Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentence.
The investigation was conducted by the Department of Homeland Security-HSI and Kentucky State Police Electronic Crimes Branch. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
– END –
Convicted Felon Sentenced to Prison Resulting from Family Pet Finding Meth BagRead the Press Release
VALDOSTA, Ga. – A Thomas County, Georgia, dog found a bag containing a large quantity of methamphetamine, sparking a chain of events resulting in a Southwest Georgia resident with a lengthy criminal history being sentenced to prison after admitting the methamphetamine belonged to him and that he intended to distribute the drug.
Timothy Bernard Reese, 44, of Meigs, Georgia, was sentenced to serve 75 months in prison to be followed by three years of supervised release by U.S. District Judge Hugh Lawson after Reese pleaded guilty to possession with intent to distribute methamphetamine. There is no parole in the federal system.
“The unusual facts in this case do not diminish the serious consequences repeat offenders face when caught trafficking methamphetamine in the Middle District of Georgia,” said Acting U.S. Attorney Peter D. Leary. “Our office, working alongside our law enforcement partners, will work to bring to justice those who repeatedly break the law and endanger citizens by their criminal actions.”
According to facts admitted by Reese in open court, a resident of Ochlocknee (Thomas County), Georgia, called authorities on December 13, 2019, regarding a suspicious brown satchel found by his dog. The dog’s owner reported that his dog had come home that day carrying the bag. When the owner opened the bag to check for identification, he found what appeared to be large quantities of illegal narcotics and immediately called the Thomas County Sheriff’s Office. The contents tested positive for 154.78 grams of methamphetamine. Lottery tickets were also found inside of the bag.
Thomas County-Thomasville Narcotics/Vice agents were able to pinpoint the exact location and time that the lottery tickets had been purchased. Pulling surveillance video from the Susie Q's Foods in Meigs, officers observed Reese purchasing the lottery tickets; on December 16, 2019, the police obtained an arrest warrant for Reese. The next day, a woman filed a report with the Cairo Police Department alleging that on December 13, 2019, Reese came into her room at the Grady Lodge and punched her in the face, fracturing her eye socket, and demanded to know where his methamphetamine was located. Reese was taken into custody on December 19, 2019, and he subsequently admitted that the brown bag belonged to him, and he planned to distribute the methamphetamine.
Reese has prior felony convictions for burglary and possession of firearm by a convicted felon, both in the Superior Court of Tift County.
The case was investigated by the Thomas County-Thomasville Narcotics & Vice Unit.
Assistant U.S. Attorney Sonja Profit prosecuted the case.
Convicted Felon Sentenced for Possession with Intent to Distribute Kilogram of CocaineRead the Press Release
BOSTON – A Clinton man previously convicted in federal court of cocaine conspiracy was sentenced yesterday for cocaine offenses.
Emmanuelli Rojas-Moraza, 40, was sentenced by U.S. District Court Judge Timothy S. Hillman to 87 months in prison and four years of supervised release. On May 26, 2021, Rojas-Moraza pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and one count of use of a communications facility in connection with a narcotics offense.
In January 2020, agents seized approximately one kilogram of cocaine inside a package sent from Puerto Rico and addressed to Rojas-Moraza’s residence in Clinton. After picking up the package from the local post office, Rojas-Moraza was arrested and taken into federal custody. During a search of Rojas-Moraza’s residence following his arrest, agents recovered drug packaging tools and materials. In addition, in April 2019, agents seized another package addressed to the Rojas-Moraza that contained approximately one kilogram of cocaine.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Clinton Police Chief Bryan W. Coyne made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Claremore Man Pleads Guilty to Involuntary Manslaughter after Causing a Collision that Killed a WomanRead the Press Release
A Claremore man pleaded guilty today in federal court for driving recklessly and under the influence of alcohol when he caused an accident that killed a passenger in his vehicle, announced Acting U.S. Attorney Clint Johnson.
Billy Shane Hemphill, 48, pleaded guilty to involuntary manslaughter.
“Billy Hemphill’s series of irresponsible choices resulted in a collision that took one life and injured two others,” said Acting U.S. Attorney Clint Johnson. “The victim’s family and friends have endured a tremendous loss because of Hemphill’s criminal actions. Today, he has been held responsible for his conduct.”
In a blind plea, Hemphill admitted that on Aug. 11, 2019, he was driving recklessly while impaired and caused an accident that took the life a passenger.
The accident occurred at 11:30 pm on South 4210 Road, just south of 410 Road. The investigation revealed that Hemphill was traveling north at a high rate of speed when the passenger side of the vehicle veered off the road into a steep ditch. Hemphill eventually crashed into three trees, and the pick-up came to a rest. Witnesses stated that Hemphill was drinking alcohol and driving recklessly before the accident. First responders observed beer cans at the scene and noted the defendant smelled of alcohol. The passenger died at the scene. Hemphill and two other passenger were transported to hospitals in Tulsa and Claremore.
Hemphill will be sentenced on Jan. 20, 2022.
The FBI, Oklahoma Highway Patrol, and Oklahoma State Bureau of Investigation conducted the investigation. The Foyil Fire Department was the first to responded to the scene of the accident. Assistant U.S. Attorney Stacey P. Todd prosecuted the case.
Charleston Woman Sentenced to Prison for Defrauding Local BusinessesRead the Press Release
CHARLESTON, W.Va. – Misty Brotherton-Tanner, 41, of Charleston, was sentenced to 33 months in prison for the felony offenses of wire fraud and money laundering and was also ordered to pay restitution in the amount of $537,173. Brotherton-Tanner pleaded guilty to the charges in April 2021.
According to court documents and statements made in court, Brotherton-Tanner provided bookkeeping and accounting services for several local businesses in the Charleston area. From at least 2014 until 2020, Brotherton-Tanner devised a scheme to defraud these businesses. Brotherton-Tanner would electronically transfer money and move the electronic transactions between accounts in such a way so as to hide her fraud under the guise of legitimate transactions Brotherton-Tanner was not permitted to pay herself from these business accounts. Brotherton-Tanner’s fraud scheme included listing herself as an employee for the various businesses, setting up fraudulent accounts in the name of fictional workers that she would then add to the business accounting software, and even misrepresenting that she had paid state and federal taxes for the businesses when she had not done so. Throughout the scheme, Brotherton-Tanner moved the transferred money into her personal checking accounts. In total, Brotherton-Tanner defrauded various businesses of $537,173.
Brotherton-Tanner also stole money on behalf of and at the request of her mother, Lois Brotherton, who also pleaded guilty in connection with her role in the scheme and was sentenced to a period of probation.
Acting United States Attorney Lisa G. Johnston thanked the Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations (IRS-CI), the United States Postal Inspection Service (USPIS) and the West Virginia State Tax Department-Criminal Investigation Division for their excellent work in this case.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Erik S. Goes and Kathleen Robeson handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00146.
###
Boise Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – Michael Henry Cunningham, 36, of Boise, pleaded guilty to distribution of methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Cunningham was indicted by a federal grand jury in Boise on April 13, 2021.
According to court records, on November 18, 2020, Cunningham, sold five grams of actual methamphetamine to another individual in a parking lot in Boise.
Sentencing is set for December 1, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise. Cunningham faces a statutory mandatory minimum sentence of at least five years and up to forty years in federal prison, a $5,000,000 fine, and at least four years of supervised release. The federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Gonzalez credited the efforts of the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
# # #
Berwick Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Harrisburg indicted Cody Drumheller, 28, of Berwick, Pennsylvania, on firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that in July 2021, Drumheller, who is prohibited from possessing firearms based on prior convictions, possessed a handgun and two sawed-off shotguns.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
###
Australian Citizen Pleads Guilty to Visa FraudRead the Press Release
ALBANY, NEW YORK – Paul J. Carter, also known as Paul Hamilton, and formerly known as Paul Cristallo, pled guilty today to making false statements in a 2018 U.S. visa application.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Carter, age 55, an Australian citizen residing in Watervliet, New York, admitted to lying about his criminal history when he sought to renew his E-2 visa in 2018. E-2 visas admit certain foreign nationals who have invested a substantial amount of money in a U.S. business. Carter obtained an E-2 visa, and began residing in the United States, in 2014.
Carter faces up to 10 years in prison, as well as a maximum $250,000 fine, when Senior United States District Judge Thomas J. McAvoy sentences him on January 12, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, with assistance from the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Asheville Man Pleads Guilty to Illegal Gun Possession, After Using A Straw Buyer to Obtain A FirearmRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Travis Shaqwann Fair, 31, of Asheville, has pleaded guilty to illegal possession of a firearm.Fair’s trial was scheduled to begin today before Chief U.S. District Judge Martin Reidinger. Just prior to jury selection, Fair elected instead to enter a guilty plea which was accepted by Judge Reidinger.
Fair’s girlfriend and co-defendant, Kourtney Nichelle Shivers, 29, of Asheville, has already pleaded guilty to making a false statement in connection with the acquisition of a firearm.
According to filed plea documents and today’s court hearing, on June 10, 2019, Fair visited a licensed firearms dealer in Asheville. Fair, who has a prior criminal conviction and is prohibiting from purchasing or possessing firearms, consulted with a store employee about purchasing a “cheap” firearm. The store employee showed Fair several firearms, including a 9mm firearm. Fair left the store shortly thereafter. According to court documents, a short while later, Shivers entered the same store and purchased the same firearm Fair had recently examined. As she previously admitted in court, over the course of the transaction, Shivers falsely certified on the required forms that she was the actual buyer of the firearm, when, in reality, she was a straw purchaser who bought the handgun at Fair’s request and for his use. Court records show that Fair provided Shivers with the funds to purchase the firearm, which she agreed to do, even though Shivers was aware that Fair was prohibited from possessing a firearm. Shivers later transferred the firearm to Fair.
Fair is currently in federal custody. The charge to which Fair has pleaded guilty carries a maximum penalty of ten years in prison. The statutory maximum penalty for Shivers’ offense is five years in prison. Both defendants are awating sentencing.
* * *
Charges are also pending against three other individuals on charges related to the straw purchase of firearms.
In July 2021, a federal grand jury indicted Margaret Amanda Garmon, 36, of Charlotte, in connection with the straw purchase of a firearm from a federally licensed dealer of firearms. The indictment alleges that Garmon purchased the firearm for her co-defendant, Caleb Tharon Jefferson, 32, also Charlotte. The same indictment also charges Jefferson with possession of a firearm by a felon.
On August 17, 2021, Nyema Nakuay Cropper, 30, of Charlotte, was charged for allegedly straw purchasing a firearm from a licensed firearms dealer, falsely certifying on federal forms that Cropper was the actual buyer of the firearm, a statement she allegedly knew to be false.
“Straw purchasing firearms is a violation of our federal gun laws,” said Acting U.S. Attorney Stetzer. “We must stop the flow of illegal guns in our communities, and that includes prosecuting straw purchasers who knowingly buy firearms for individuals prohibited from possessing them in the first place.”
“Purchasing a firearm for someone prohibited from possessing a firearm is illegal and can be a serious threat to public safety,” said ATF Special Agent in Charge Vince Pallozzi. “Straw purchases put firearms in the wrong hands. ATF, along with our law enforcement partners, is committed to preventing illegal firearms purchases and holding those who endanger our communities accountable.”
In making today’s announcement, Acting U.S. Attorney Stetzer commended the ATF for their investigative efforts into straw firearms buyers, and thanked the Asheville Police Department for their invaluable assistance in Fair and Shivers’ case.
The charges against Garmon, Jefferson, and Cropper are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The U.S. Attorney’s Office in Asheville is in charge of Fair and Shivers’ prosecution.
Armed Loxley Meth Dealer Sentenced to Fifteen YearsRead the Press Release
MOBILE, AL – A Loxley, Alabama, man was sentenced today to 15 years in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice and possession of a firearm in furtherance of the drug trafficking crime.
According to court documents, Jonathon Howard Beck, 39, was identified during an investigation in which investigators used a confidential informant to make controlled purchases of methamphetamine ice from him. The informant was equipped with audio and video devices to record the transactions with Beck, and during the buy, Beck is seen handling a firearm as the drug deal was taking place. A search warrant was obtained for Beck’s residence and investigators discovered and seized additional methamphetamine ice and two pistols. After the federal indictment was returned, an arrest warrant was issued for Beck. When investigators arrived at Beck’s residence to arrest him, they observed drug paraphernalia in plain view in the residence, and they obtained another search warrant. The execution of the second warrant yielded more methamphetamine, drug proceeds and several firearms, including two guns with obliterated serial numbers.
United States District Court Judge Callie V.S. Granade imposed the 15-year sentence, consisting of 10 years on the drug charge and five years on the gun charge, which will run consecutively. The judge further ordered that Beck would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Beck will also undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Beck pay $200 in special assessments. All the firearms used during the commission of the offenses were ordered forfeited to the United States.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Armed Drug Trafficker Receives More Than 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Markel Brown, 20, of Maple Hill North Carolina, was sentenced yesterday to 126 months in prison for 1) Conspiracy to Possess with intent to distribute and distribute of 100 Grams or more of Heroin and 500 grams or more of Cocaine, 2) Possession with intent distribute 500 grams or more of Cocaine and 3) Possession of a firearm in furtherance of drug trafficking.
According to court documents, evidence presented in court and other documents, on August 13, 2019 law enforcement received information that Brown was returning from Atlanta, Georgia after having obtained a large amount of narcotics to be distributed in Eastern North Carolina. On August 13th, a Robeson County Sheriff’s Officer conducted a traffic stop on a car in which Brown was a passenger. Law enforcement officers searched the car and found more than a kilogram of cocaine and a .22 caliber handgun with altered serial numbers. Brown had $8,992 on his person. During the subsequent investigation, law enforcement uncovered that Brown was providing cocaine, heroin, and fentanyl to the Maple Hill area. Brown was responsible for distributing more than one and half kilograms of cocaine, 380 grams of heroin, 79 grams of a heroin/fentanyl mixture, and 70 grams of methamphetamine between December 2018 and September 2019. On October 24, 2020, while detained, a detention officer observed Brown in possession of homemade alcohol in his cell. When the officer attempted to retrieve the contraband, Brown struck the officer several times with a closed fist in the face and head area injuring the officer.
This is part of operation Ahab’s Harpoon which is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, Jacksonville Police Department and the Roberson and Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorneys Timothy Severo and Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00191-FL-3.
Arkansas Landscaper Pleads Guilty to Tax FraudRead the Press Release
An Arkansas resident pleaded guilty today to filing a false corporate tax return.
According to court documents, Pedro Garcia owned and operated Garcia Lawn Care, a landscaping business located in Rogers, Arkansas. From 2014 through 2020, Garcia underreported the true gross receipts from his lawn care business. Garcia’s customers mainly paid Garcia by check for his services. Garcia cashed most of these checks, rather than depositing them into his business accounts. Garcia used the cash to pay himself, his workers and other expenses. In total, Garcia did not report over $1 million in gross receipts, causing a tax loss of $208,844.
Garcia is scheduled to be sentenced at a later date and faces a maximum penalty of three years in prison. Garcia also faces a period of supervised release, restitution, and monetary penalties. 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 David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Nicholas Schilling of the Justice Department’s Tax Division are prosecuting the case.
Another extradition lands third ELN member on U.S. soil for international cocaine distributionRead the Press Release
HOUSTON – Another alleged associate of one of the most serious transnational criminal organizations has arrived from Colombia and is set to make his initial appearance in Houston federal court.
Jose Gabriel Alvarez Ortiz, 26, landed in Houston just moments ago. He is set to appear before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.
Ortiz is charged with distributing cocaine with other alleged members of the National Liberation Army (Ejército de Liberación Nacional aka ELN), two of whom - Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited last month. They are facing narco-terrorism and drug trafficking charges.
ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.
A federal grand jury returned an indictment against Ortiz, Picon-Rodriguez and Trigos-Celon and others on Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.
Ortiz is charged with international cocaine distribution. In early 2019, Ortiz and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.
Ortiz’s co-defendants are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).
According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.
Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.
The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.
The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alexandria Man Sentenced to 66 Months for Methamphetamine Trafficking and Firearm ChargesRead the Press Release
CONCORD - Robert Adkins, 34, of Alexandria, was sentenced on Tuesday to 66 months in federal prison for possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 25, 2019, the Andover Police Department was investigating the theft of logging equipment. While at the suspect’s home, the suspect arrived home in his truck with Adkins as his passenger. While executing a search warrant for the suspect’s truck, they located a backpack belonging to Adkins. Inside the backpack they located identification for Adkins, a digital scale and a locked case.
After obtaining another search warrant for the backpack and locked case, investigators found a handgun, a loaded magazine, 36 grams of methamphetamine, and drug packaging materials. The handgun had been reported stolen from Ashland, New Hampshire.
Adkins previously pleaded guilty on May 3, 2021.
“Methamphetamine is a dangerous drug that has been appearing with disturbing frequency in New Hampshire,” said Acting U.S. Attorney Farley. “Armed drug dealers who sell methamphetamine present an even greater threat to public safety. This substantial sentence sends a message that armed drug traffickers will face significant penalties for their unlawful conduct.”
This matter was investigated by the Andover Police Department, Danbury Police Department, and Alexandria Police Department. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
###
Albany Husband and Wife Charged with Social Security FraudRead the Press Release
ALBANY, NEW YORK – Denise Mitchell, age 57, and John Mitchell, age 61, of Albany, were arraigned today on a federal indictment charging them with knowingly concealing Denise Mitchell’s work history and making a false statement in order to deceive the Social Security Administration (SSA) into paying disability benefits to Denise Mitchell when she was not entitled to those benefits.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
The indictment alleges that from at least June 2015 until June 2017, Denise Mitchell and her husband John Mitchell, who acted as her representative payee, knowingly failed to disclose that Denise Mitchell was working in order to deceive SSA into continuing to pay disability benefits to Denise Mitchell when she was otherwise ineligible to receive such benefits. The indictment also alleges that on June 8, 2017, Denise Mitchell knowingly made a false statement in a form filed with the SSA regarding her work activity between August 2012 and June 2017. The charges contained in the indictment are merely allegations, and the defendants are presumed innocent until and unless proven guilty.
The charges filed against Denise Mitchell and John Mitchell carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Acting U.S. Attorney announces almost half-million-dollar grant to serve victims of Oregon District shootingRead the Press Release
DAYTON, Ohio – Acting U.S. Attorney Vipal J. Patel today announced that the U.S. Department of Justice Office for Victims of Crime has awarded the State of Ohio $488,054 to serve victims and survivors of the August 4, 2019 shooting in Dayton, Ohio’s Oregon District.
“This money will support necessary and ongoing trauma-informed, evidence-based healing and resiliency services to direct and indirect victims of the shooting,” Acting U.S. Attorney Patel said. “Ohio Attorney General Dave Yost’s office will coordinate and administer the grant that will help pay for four additional mental health counselors and related costs at two mental health facilities to help those affected by the shooting.”
Nine people were killed and dozens were wounded in the 2019 mass shooting. The U.S. Attorney’s Office for the Southern District of Ohio federally charged a friend of the shooter, who has been sentenced in U.S. District Court to 32 months in prison on firearms violations.
Patel also announced almost $2.2 million in grants from the Justice Department’s Office on Violence Against Women (OVW) for the following agencies in the 48-county Southern District of Ohio:
- Legal Assistance for Victims (LAV) grants of $600,000 to the Legal Aid Society of Cincinnati and $600,000 to the Ohio Domestic Violence Network to support increases in the availability of legal assistance for adult and youth victims of domestic violence, dating violence, sexual assault, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence.
- $449,999 from the Outreach and Services to Underserved Population program to Equitas Health to develop and implement outreach strategies targeted at adult or youth victims of domestic violence, dating violence, sexual assault, or stalking in underserved populations, and to provide victim services to meet the needs of such populations, and
- $549,998 to Fairfield County from the Grants to Support Families in the Justice System program which is designed to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault, and stalking or in cases involving allegations of child sexual abuse.
“I want to thank all of these important agencies for the ongoing work they do to help victims in our community and also congratulate them on successfully earning these grants,” Patel said.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
# # #
14 September 2021
West L.A. Man Pleads Guilty to Fraudulently Obtaining Approximately $9 Million in COVID-Relief Loans, Some of Which Was Gambled AwayRead the Press Release
LOS ANGELES – A West Los Angeles man pleaded guilty today to federal charges stemming from a scheme that used a series of corporations he controlled to fraudulently obtain approximately $9 million in loans from COVID-relief programs, some of which he used on gambling excursions to Las Vegas and transferred to his stock trading accounts.
Andrew Marnell, 41, who resides in the Beverly Grove neighborhood, pleaded guilty to one count of bank fraud and one count of money laundering.
Marnell admitted that he fraudulently obtained Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Marnell obtained seven PPP loans from financial institutions for corporations he controlled that brought him just under $9 million.
Marnell submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ business operations and payroll expenses. Marnell, often using aliases, submitted fake and altered documents, including bogus federal tax filings and employee payroll records.
The PPP program was implemented by the CARES Act, which was signed into law in March 2020 and was designed to provide relief to businesses affected by the coronavirus pandemic. The CARES Act also provided funding to The Economic Injury Disaster Loan Program (EIDL) administered by the SBA. Marnell admitted that he fraudulently obtained $170,000 in EIDL loans.
Once the loans were funded, Marnell transferred millions of dollars from the fraudulently obtained loan proceeds to his brokerage accounts to make risky stock market bets, according to court documents, which note that Marnell spent hundreds of thousands of dollars in fraudulently obtained loan proceeds at various gambling establishments.
As part of the plea agreement, Marnell agreed to forfeit items related to the pilfered PPP loan funds, including more than $1.54 million seized from several brokerage accounts, $319,298 in cash recovered from his residence, numerous electronic devices, a Rolex Oyster watch, a Range Rover and a Ducati motorcycle.
As a result of his guilty pleas, Marnell will face a statutory maximum sentence of 40 years in federal prison when he is sentenced by United States District Judge R. Gary Klausner on February 14, 2022. In addition to any prison sentence he receives, Marnell has agreed to pay restitution to the victim lenders to compensate the losses this case, an amount believed to be $7,341,376.
Marnell has been in custody since his arrest in this matter on July 16, 2020.
The Federal Housing Finance Agency’s Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation’s Office of Inspector General, IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General investigated this matter. The California Department of Justice’s Bureau of Gambling Control provided valuable assistance.
Assistant United States Attorney Kerry Quinn of the Major Frauds Section and Justice Department Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting this case.
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.
WDLA News Round-Up for September 14, 2021Read the Press Release
MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of four cases today in United States District Court in the Western District of Louisiana. United States District Judge Terry A. Doughty sentenced the following individuals today:
Devonte Oshay Gater, 29, of West Monroe, Louisiana, was sentenced 70 months in prison, followed by 3 years of supervised release, for illegal possession of a firearm. On April 6, 2020, officers with the Monroe Police Department responded to a 911 call complaining that an unknown person jumped into someone’s car threatening to rob someone nearby and shoot up the street. When officer arrived, they found Gater sitting in the backseat of the car. When ordered to get out of the car, Gater told officers he could not walk due to wounds suffered in a shooting a few days prior. Officers opened the door and Gater inched his way down to the ground. During a search of the vehicle, officers recovered a loaded revolver in the front passenger seat under a t-shirt. The female vehicle owner told officers the gun was not hers and that she had seen Gater brandishing the weapon prior to the arrival of the officers.
Gater has previous felony convictions for simple robbery (2011); theft of a motor vehicle and simple burglary (2015); and simple burglary (2018). As a convicted felon, Gater is prohibited from possessing a firearm.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Rayyun Derrell Sledge, 43, of Winnsboro, Louisiana, was sentenced 12 months and 1 day in prison, followed by 3 years of supervised release, for making a false statement during the purchase of a firearm. Sledge was convicted of a misdemeanor crime of domestic violence in June 1999 and signed documentation acknowledging the waiver of his rights at that time. On May 8, 2020, Sledge went to Mike’s Gun Shop in Winnsboro to purchase a firearm. When completing ATF Form 4473 in connection with his attempted purchase of a pistol, Sledge signed the form certifying that his answers were true, correct and complete. A question on the form asked, “[h]ave you ever been convicted in any court of a misdemeanor crime of domestic violence?” Sledge checked “no” to the question and signed his name, knowing that his answer was false. This false response from Sledge misled and deceived Mike’s Gun shop into making the sale of the firearm to him. Sledge was charged and pled guilty on May 28, 2021.
The ATF conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
John Edward McIntyre, 37, of West Monroe, Louisiana, was sentenced 180 months in prison, followed by 3 years of supervised release, for illegal possession of drugs and a firearm. On January 12, 2020, deputies with the Ouachita Parish Sheriff’s Office conducted a traffic stop on McIntyre for multiple traffic violations. Deputies noticed a digital scale in the cup holder of the vehicle. A K-9 officer alerted to the odor of illegal drugs coming from the Tahoe that McIntyre was driving, and deputies conducted a search of the vehicle. Inside the Tahoe, deputies found a backpack which contained a magnetic box with approximately 120 grams of methamphetamine, Clonazepam, Xanax and Concerta tablets, a hydrocodone tablet, 10 grams of marijuana, a large amount of cash, and a loaded semi-automatic pistol. At one point, law enforcement officers learned that McIntyre was distributing illegal drugs from a house located across the street from the West Monroe High School stadium. McIntyre was charged in this case with possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking and he pled guilty to the charges on May 25, 2021.
The DEA, ATF, and Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
Benjamin Strong, 39, Mangham, Louisiana, was sentenced to 125 months in prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute methamphetamine. The vehicle Strong was driving was stopped by Ouachita Parish Sheriff’s Office deputies on January 17, 2020. Strong gave deputies consent to search the vehicle and they found methamphetamine and three handguns inside. Strong admitted to driving his co-defendant around the Monroe in exchange for money and methamphetamine. He further admitted to meeting with multiple people to sell narcotics and to taking his co-defendant to a supplier to purchase more methamphetamine. Strong was charged with conspiracy to possess with intent to distribute methamphetamine and pled guilty to the charge on May 25, 2021.
The DEA, ATF, and Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
# # #
Virginia Beach Couple Sentenced for $31 Million Coupon Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to 12 years in prison, following last month’s sentencing of her husband to over 7 years in prison, for perpetrating a counterfeit coupon fraud scheme that cost retailers and manufacturers over $31 million in losses.
“These two defendants have been sentenced and held accountable for operating one of the largest coupon fraud schemes ever discovered in the United States, resulting in over $31 million in losses to victims across the country,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This massive counterfeit coupon scheme harmed consumers, retailers, and manufacturers nationwide, and the economy at large. The sentences imposed in this case illustrate the serious consequences that criminals can face in EDVA for carrying out these sham get-rich-quick schemes.”
“Protecting American consumers and businesses from individuals who seek to take advantage of the U.S. Mail by distributing counterfeit, illegal, and improper items remains a priority to Postal Inspectors,” said Inspector in Charge Daniel A. Adame, Washington Division of the U.S. Postal Inspection Service. “We will continue to pursue these individuals to bring them to justice. We are committed to safeguarding the public’s trust in our nation’s mail system.”
“Coupon fraud is not a harmless crime. Lori Ann Talens and her husband operated an audacious fraud scheme that stole more than $31 million directly from retailers and manufacturers,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI investigates these matters aggressively because this kind of fraud ripples through the economy, and unfortunately it is the innocent consumer that ultimately pays the price.”
According to court documents, from approximately April 2017 through May 2020, Lori Ann Talens, a/k/a "Lori Ann Villanueva Talens," 41, operated a complex scheme using social media sites and apps such as Facebook and Telegram to find groups of coupon enthusiasts and sell them counterfeit coupons. Lori Ann Talens, who operated online under the moniker “MasterChef,” used a computer to design, create, and produce a wide variety of counterfeit coupons in her Virginia Beach home. These counterfeit coupons were virtually indistinguishable from authentic coupons and were often created with inflated values, far in excess of what an authentic coupon would offer, in order to receive items from retail for free or for a greatly reduced price.
As part of the scheme, Lori Ann Talens would ship the counterfeit coupons throughout the United States using the U.S. Postal Service and other commercial parcel delivery services. She accepted payment for the counterfeit coupons through a variety of online payment methods, including Bitcoin and Paypal. Lori Ann’s husband, Pacifico Talens, Jr., 43, was aware of the counterfeit coupon scheme, profited from it, and assisted in the operation by shipping packages of counterfeit coupons and performing other administrative tasks at the direction of his wife.
The scheme was discovered when one of the Talens’s customers reported them to the Coupon Information Center (CIC), a coalition of consumer product manufacturers dedicated to coupon integrity. The CIC purchased coupons from the Talens, confirmed they were counterfeit, and contacted the U.S. Postal Inspection Service for further investigation.
After identifying the defendants as the source of the counterfeit coupons, federal law enforcement executed a search warrant on their residence. During the search, agents seized nearly $1 million worth of counterfeit coupons from the residence. Furthermore, a review of the Talens’s computer revealed images for over 13,000 separate and distinct counterfeit coupon designs. The CIC reviewed these images and compared them to the known counterfeit coupons in circulation. The analysis concluded that coupon redemptions using the 13,000 counterfeit designs on the couple’s computer had caused approximately $31,817,997 million in losses to retailers and manufacturers.
In a separate scheme, from approximately November 2015 through February 2020, Lori Ann Talens defrauded Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Lori Ann Talens applied for benefits for each of these programs and failed to disclose either her husband Pacifico’s legitimate employment income, or their own illegitimate counterfeit coupon income. Had she disclosed this income, the Talens would not have been eligible for these benefits. The total loss to Medicaid and SNAP was approximately $43,000.
Both defendants pleaded guilty to mail fraud in April. Lori Ann Talens also pleaded guilty to wire fraud and health care fraud. Pacifico Talens, Jr. was sentenced to 87 months in prison on August 19.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-39.
United States Intervenes and Files Complaint in False Claims Act Suit Against Health Insurer for Submitting Unsupported Diagnoses to the Medicare Advantage ProgramRead the Press Release
The United States has intervened and filed a complaint in the U.S. District Court for the Western District of New York under the False Claims Act against Independent Health Association, Independent Health Corporation (Independent Health), DxID LLC (DxID) and Betsy Gaffney, former CEO of DxID. The government alleges that Independent Health, DxID and Gaffney violated the False Claims Act by submitting or causing the submission of inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans in order to increase Independent Health’s reimbursement. Independent Health is headquartered in Buffalo, New York. DxID was headquartered in Buffalo until it ceased operations in August.
“The Medicare Advantage Program relies on accurate information about the health status of enrollees to ensure that they receive appropriate treatment and that participating health plans receive proper compensation for the services they actually provide,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “The department will continue to hold accountable health plans or providers that report unsupported diagnoses to inflate risk adjustment payments.”
“The defendants are alleged to have submitted unsupported diagnosis codes to inflate reimbursements, which enabled them to receive payments from Medicare that were greater than they were entitled,” said U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Defrauding taxpayer funded health care programs such as Medicare hurts not only taxpayers but our nation’s entire healthcare system.”
Under Medicare Advantage, also known as Medicare Part C, Medicare beneficiaries have the option to enroll in managed healthcare insurance plans called Medicare Advantage Plans (MA Plans) that are owned and operated by private Medicare Advantage Organizations (MAOs). MA Plans are paid a fixed amount per enrollee to provide benefits covered by traditional Medicare to beneficiaries who enroll in their MA Plan. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, make upward payment adjustments to MA Plans based on demographic information and the health status of each plan beneficiary. The adjustments are made using what are commonly referred to as “risk scores.” In general, a beneficiary with more severe diagnoses will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.
Independent Health offers two MA Plans in New York State. Its wholly-owned subsidiary, DxID, provided retrospective chart review and addenda services to Independent Health and other MA Plans.
The United States alleges that DxID coded conditions that were not documented in the patient’s medical record during a visit or encounter. The government further alleges that DxID also asked health care providers to sign addenda forms up to a year after a visit or an encounter and subsequently used the addenda as substantiation for adding risk-adjusting diagnoses that were not documented during the patient encounter, in violation of Medicare requirements. DxID operated on a contingency fee of up to 20% of the additional recovery that the MA Plans received based on diagnoses captured by DxID.
The complaint alleges that these unsupported diagnoses inflated the risk scores of beneficiaries, resulting in inflated payments to Independent Health and other MA Plans. The lawsuit further alleges that once Independent Health became aware of these unsupported diagnosis codes, it failed to take corrective action to identify and delete the unsupported codes.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits. Although the United States initially advised the court that it was not intervening in this case, the court subsequently granted the United States’ motion to intervene for good cause. The whistleblower, Teresa Ross, is a former employee of Group Health Cooperative (GHC). GHC was an MAO that offered MA Plans in Washington State. From 2011 to 2012, GHC used DxID’s chart review services. In November 2020, GHC entered into a settlement with the United States and Ross to resolve the claims against it arising out of this matter.
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Western District of New York, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The case is captioned United States ex rel. Ross v. Independent Health Association et al., No. 12-CV-0299(S) (W.D.N.Y.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
U.S. Justice Department announces investigation into conditions in Georgia prisonsRead the Press Release
WASHINGTON: The U.S. Justice Department announced today that it has opened a statewide civil investigation into conditions of confinement of prisoners held in Georgia’s prisons.
The investigation will examine whether Georgia provides prisoners reasonable protection from physical harm at the hands of other prisoners. The department also will continue its existing investigation into whether Georgia provides lesbian, gay, bisexual, transgender, and intersex prisoners reasonable protection from sexual abuse by other prisoners and by staff.
“This investigation is an example of our office’s commitment to stamping out violence in our district, no matter where it is found, no matter who the victim is,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “We look forward to working with the State of Georgia, the Georgia Department of Corrections, the Civil Rights Division of the Department of Justice, and our counterparts in the U.S. Attorney's Offices for the Northern and Middle Districts of Georgia to further our shared mission to keep correctional facilities safe for the sake of our community, the prisoners housed there, and the dedicated staff who work there.”
“Ensuring the inherent human dignity and worth of everyone, including people who are incarcerated inside our nation’s jails and prisons, is a top priority,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department’s investigations into prison conditions have been successful at identifying systemic constitutional violations and their causes, fixing those causes and stopping the violations. We are investigating prison violence and abuse in Georgia’s prisons to determine whether Constitutional violations exist, and if so, how to stop them.”
“Individuals sentenced to prison in Georgia Department of Corrections facilities deserve to be treated humanely,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “Our office is committed to ensuring state prisoners are safe while serving their sentences. We look forward to working cooperatively with the Georgia Department of Corrections to ensure the safety of all individuals in its prisons.”
“Prison conditions that enable inmates to engage in dangerous and even deadly activity are an injustice, jeopardizing the lives of detainees, staff members and other corrections personnel,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our local law enforcement and corrections partners, with whom we work with closely each and every day, are indispensable to our united goal of achieving a safer Georgia for all. Under the leadership of the department’s Civil Rights Division, we look forward to collaborating with our state partners to address our mutual concern for safety in the corrections system.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the department has the authority to investigate whether any violations of prisoners’ constitutional rights result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Special Litigation Section of the Department of Justice Civil Rights Division is conducting this investigation jointly with the U.S. Attorney’s Offices for the Northern, Middle and Southern Districts of Georgia. Assistant U.S. Attorney and Deputy Civil Division Chief Bradford C. Patrick is coordinating the investigation in the Southern District of Georgia. Individuals with relevant information are encouraged to contact the U.S. Department of Justice via phone at (844) 401-3736 or by email at [email protected].
Additional information about the Civil Rights Division’s CRIPA investigations related to prisons and jails can be found here: https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
Three Former U.S. Intelligence Community and Military Personnel Agree to Pay More Than $1.68 Million to Resolve Criminal Charges Arising from Their Provision of Hacking-Related Services to a Foreign GovernmentRead the Press Release
WASHINGTON – On Sept. 7, U.S. citizens, Marc Baier, 49, and Ryan Adams, 34, and a former U.S. citizen, Daniel Gericke, 40, all former employees of the U.S. Intelligence Community (USIC) or the U.S. military, entered into a deferred prosecution agreement (DPA) that restricts their future activities and employment and requires the payment of $1,685,000 in penalties to resolve a Department of Justice investigation regarding violations of U.S. export control, computer fraud and access device fraud laws. The Department filed the DPA today, along with a criminal information alleging that the defendants conspired to violate such laws.
According to court documents, the defendants worked as senior managers at a United Arab Emirates (U.A.E.)-based company (U.A.E. CO) that supported and carried out computer network exploitation (CNE) operations (i.e., “hacking”) for the benefit of the U.A.E government between 2016 and 2019. Despite being informed on several occasions that their work for U.A.E. CO, under the International Traffic in Arms Regulations (ITAR), constituted a “defense service” requiring a license from the State Department’s Directorate of Defense Trade Controls (DDTC), the defendants proceeded to provide such services without a license.
These services included the provision of support, direction and supervision in the creation of sophisticated “zero-click” computer hacking and intelligence gathering systems – i.e., one that could compromise a device without any action by the target. U.A.E. CO employees whose activities were supervised by and known to the defendants thereafter leveraged these zero-click exploits to illegally obtain and use access credentials for online accounts issued by U.S. companies, and to obtain unauthorized access to computers, like mobile phones, around the world, including in the United States.
“This agreement is the first-of-its-kind resolution of an investigation into two distinct types of criminal activity: providing unlicensed export-controlled defense services in support of computer network exploitation, and a commercial company creating, supporting and operating systems specifically designed to allow others to access data without authorization from computers worldwide, including in the United States,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Hackers-for-hire and those who otherwise support such activities in violation of U.S. law should fully expect to be prosecuted for their criminal conduct.”
“Left unregulated, the proliferation of offensive cyber capabilities undermines privacy and security worldwide. Under our International Traffic in Arms Regulations, the United States will ensure that U.S. persons only provide defense services in support of such capabilities pursuant to proper licenses and oversight,” said Acting U.S. Attorney Channing D. Phillips of the District of Columbia. “A U.S. person’s status as a former U.S. government employee certainly does not provide them with a free pass in that regard.”
“The FBI will fully investigate individuals and companies that profit from illegal criminal cyber activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “This is a clear message to anybody, including former U.S. government employees, who had considered using cyberspace to leverage export-controlled information for the benefit of a foreign government or a foreign commercial company – there is risk, and there will be consequences.”
“Today’s announcement shines a light on the unlawful activity of three former members of the U.S. Intelligence Community and military,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These individuals chose to ignore warnings and to leverage their years of experience to support and enhance a foreign government’s offensive cyber operations. These charges and the associated penalties make clear that the FBI will continue to investigate such violations.”
The Defendants’ Applicable Conduct
After leaving U.S. government employment, Baier, Adams and Gericke worked for a U.S. Company (U.S. Company One) that provided cyber services to a U.A.E. government agency in compliance with the ITAR pursuant to a DDTC-issued Technical Assistance Agreement (TAA) signed by U.S. Company One, the U.A.E. government, and its relevant intelligence agency. U.S. Company One’s TAA specifically required the parties to abide by U.S. export control laws; obtain preapproval from a U.S. government agency prior to releasing information regarding “cryptographic analysis and/or computer network exploitation or attack,” and; not “target or exploit U.S. Persons (i.e., U.S. citizens, permanent resident aliens, or U.S. companies or entities, or other persons in the United States) . . .” While employed by U.S. Company One, the defendants received periodic ITAR and TAA training.
In January 2016, after receiving an offer for higher compensation and an expanded budget, the defendants joined U.A.E. CO as senior managers of a team known as Cyber Intelligence-Operations (CIO). Prior to their departure, U.S. Company One repeatedly informed its employees, including the defendants, that the services they were providing constituted “defense services” under the ITAR, and that U.S. persons could not lawfully provide such services to U.A.E. CO without obtaining a separate TAA. After joining U.A.E. CO, the defendants sought continued access to U.S. Company One’s ITAR-controlled information, including from U.S. Company One employees, in violation of the TAA and the ITAR.
Between January 2016 and November 2019, the defendants and other U.A.E. CO CIO employees expanded the breadth and increased the sophistication of the CNE operations that CIO was providing to the U.A.E. government. For example, over an 18-month period, CIO employees, with defendants’ support, direction and supervision, created two similar “zero-click” computer hacking and intelligence gathering systems that leveraged servers in the United States belonging to a U.S. technology company (U.S. Company Two) to obtain remote, unauthorized access to any of the tens of millions of smartphones and mobile devices utilizing a U.S. Company Two-provided operating system. The defendants and other CIO employees colloquially referred to these two systems as “KARMA” and “KARMA 2.”
CIO employees whose activities were supervised by and/or known to the defendants used the KARMA systems to obtain, without authorization, targeted individuals’ login credentials and other authentication tokens (i.e., unique digital codes issued to authorized users) issued by U.S. companies, including email providers, cloud storage providers, and social media companies. CIO employees then used these access devices to, again without authorization, log into the target’s accounts to steal data, including from servers within the United States.
U.S. Company Two updated the operating system for its smartphones and other mobile devices in September 2016, undercutting the usefulness of KARMA. Accordingly, CIO created KARMA 2, which relied on a different exploit. In the summer of 2017, the FBI informed U.S. Company Two that its devices were vulnerable to the exploit used by KARMA 2. In August 2017, U.S. Company Two updated the operating system for its smartphones and other mobile devices, limiting KARMA 2’s functionality. However, both KARMA and KARMA 2 remained effective against U.S. Company Two devices that used older versions of its operating system.
The DPA’s Terms
Under the terms of the DPA, Baier, Adams and Gericke agreed to pay $750,000, $600,000, and $335,000 respectively, over a three-year term, which they may not be reimbursed for without the express approval of the U.S. government. In addition to the financial penalties, as part of the DPA, the defendants agreed to full cooperation with the relevant Department and FBI components; the immediate relinquishment of any foreign or U.S. security clearances; a lifetime ban on future U.S. security clearances; and certain future employment restrictions, including a prohibition on employment that involves CNE activity or exporting defense articles or providing defense services under the ITAR (e.g., CNE techniques), and restrictions on employment for certain U.A.E. organizations.
The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the Justice Department’s National Security Division (NSD), and the FBI’s Washington Field Office.
Assistant U.S. Attorneys Demian Ahn and Tejpal Chawla of the U.S. Attorney’s Office for the District of Columbia and Counsel for Cyber Investigations Ali Ahmad and Trial Attorney Scott Claffee of NSD’s Counterintelligence and Export Control Section led the investigation for the government.
Three Former U.S. Intelligence Community and Military Personnel Agree to Pay More Than $1.68 Million to Resolve Criminal Charges Arising from Their Provision of Hacking-Related Services to a Foreign GovernmentRead the Press Release
On Sept. 7, U.S. citizens, Marc Baier, 49, and Ryan Adams, 34, and a former U.S. citizen, Daniel Gericke, 40, all former employees of the U.S. Intelligence Community (USIC) or the U.S. military, entered into a deferred prosecution agreement (DPA) that restricts their future activities and employment and requires the payment of $1,685,000 in penalties to resolve a Department of Justice investigation regarding violations of U.S. export control, computer fraud and access device fraud laws. The Department filed the DPA today, along with a criminal information alleging that the defendants conspired to violate such laws.
According to court documents, the defendants worked as senior managers at a United Arab Emirates (U.A.E.)-based company (U.A.E. CO) that supported and carried out computer network exploitation (CNE) operations (i.e., “hacking”) for the benefit of the U.A.E government between 2016 and 2019. Despite being informed on several occasions that their work for U.A.E. CO, under the International Traffic in Arms Regulations (ITAR), constituted a “defense service” requiring a license from the State Department’s Directorate of Defense Trade Controls (DDTC), the defendants proceeded to provide such services without a license.
These services included the provision of support, direction and supervision in the creation of sophisticated “zero-click” computer hacking and intelligence gathering systems – i.e., one that could compromise a device without any action by the target. U.A.E. CO employees whose activities were supervised by and known to the defendants thereafter leveraged these zero-click exploits to illegally obtain and use access credentials for online accounts issued by U.S. companies, and to obtain unauthorized access to computers, like mobile phones, around the world, including in the United States.
“This agreement is the first-of-its-kind resolution of an investigation into two distinct types of criminal activity: providing unlicensed export-controlled defense services in support of computer network exploitation, and a commercial company creating, supporting and operating systems specifically designed to allow others to access data without authorization from computers worldwide, including in the United States,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Hackers-for-hire and those who otherwise support such activities in violation of U.S. law should fully expect to be prosecuted for their criminal conduct.”
“Left unregulated, the proliferation of offensive cyber capabilities undermines privacy and security worldwide. Under our International Traffic in Arms Regulations, the United States will ensure that U.S. persons only provide defense services in support of such capabilities pursuant to proper licenses and oversight,” said Acting U.S. Attorney Channing D. Phillips of the District of Columbia. “A U.S. person’s status as a former U.S. government employee certainly does not provide them with a free pass in that regard.”
“The FBI will fully investigate individuals and companies that profit from illegal criminal cyber activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “This is a clear message to anybody, including former U.S. government employees, who had considered using cyberspace to leverage export-controlled information for the benefit of a foreign government or a foreign commercial company – there is risk, and there will be consequences.”
“Today’s announcement shines a light on the unlawful activity of three former members of the U.S. Intelligence Community and military,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These individuals chose to ignore warnings and to leverage their years of experience to support and enhance a foreign government’s offensive cyber operations. These charges and the associated penalties make clear that the FBI will continue to investigate such violations.”
The Defendants’ Applicable Conduct
After leaving U.S. government employment, Baier, Adams and Gericke worked for a U.S. Company (U.S. Company One) that provided cyber services to a U.A.E. government agency in compliance with the ITAR pursuant to a DDTC-issued Technical Assistance Agreement (TAA) signed by U.S. Company One, the U.A.E. government, and its relevant intelligence agency. U.S. Company One’s TAA specifically required the parties to abide by U.S. export control laws; obtain preapproval from a U.S. government agency prior to releasing information regarding “cryptographic analysis and/or computer network exploitation or attack,” and; not “target or exploit U.S. Persons (i.e., U.S. citizens, permanent resident aliens, or U.S. companies or entities, or other persons in the United States) . . .” While employed by U.S. Company One, the defendants received periodic ITAR and TAA training.
In January 2016, after receiving an offer for higher compensation and an expanded budget, the defendants joined U.A.E. CO as senior managers of a team known as Cyber Intelligence-Operations (CIO). Prior to their departure, U.S. Company One repeatedly informed its employees, including the defendants, that the services they were providing constituted “defense services” under the ITAR, and that U.S. persons could not lawfully provide such services to U.A.E. CO without obtaining a separate TAA. After joining U.A.E. CO, the defendants sought continued access to U.S. Company One’s ITAR-controlled information, including from U.S. Company One employees, in violation of the TAA and the ITAR.
Between January 2016 and November 2019, the defendants and other U.A.E. CO CIO employees expanded the breadth and increased the sophistication of the CNE operations that CIO was providing to the U.A.E. government. For example, over an 18-month period, CIO employees, with defendants’ support, direction and supervision, created two similar “zero-click” computer hacking and intelligence gathering systems that leveraged servers in the United States belonging to a U.S. technology company (U.S. Company Two) to obtain remote, unauthorized access to any of the tens of millions of smartphones and mobile devices utilizing a U.S. Company Two-provided operating system. The defendants and other CIO employees colloquially referred to these two systems as “KARMA” and “KARMA 2.”
CIO employees whose activities were supervised by and/or known to the defendants used the KARMA systems to obtain, without authorization, targeted individuals’ login credentials and other authentication tokens (i.e., unique digital codes issued to authorized users) issued by U.S. companies, including email providers, cloud storage providers, and social media companies. CIO employees then used these access devices to, again without authorization, log into the target’s accounts to steal data, including from servers within the United States.
U.S. Company Two updated the operating system for its smartphones and other mobile devices in September 2016, undercutting the usefulness of KARMA. Accordingly, CIO created KARMA 2, which relied on a different exploit. In the summer of 2017, the FBI informed U.S. Company Two that its devices were vulnerable to the exploit used by KARMA 2. In August 2017, U.S. Company Two updated the operating system for its smartphones and other mobile devices, limiting KARMA 2’s functionality. However, both KARMA and KARMA 2 remained effective against U.S. Company Two devices that used older versions of its operating system.
The DPA’s Terms
Under the terms of the DPA, Baier, Adams and Gericke agreed to pay $750,000, $600,000, and $335,000 respectively, over a three-year term, which they may not be reimbursed for without the express approval of the U.S. government. In addition to the financial penalties, as part of the DPA, the defendants agreed to full cooperation with the relevant Department and FBI components; the immediate relinquishment of any foreign or U.S. security clearances; a lifetime ban on future U.S. security clearances; and certain future employment restrictions, including a prohibition on employment that involves CNE activity or exporting defense articles or providing defense services under the ITAR (e.g., CNE techniques), and restrictions on employment for certain U.A.E. organizations.
The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the Justice Department’s National Security Division (NSD), and the FBI’s Washington Field Office.
Assistant U.S. Attorneys Demian Ahn and Tejpal Chawla of the U.S. Attorney’s Office for the District of Columbia and Counsel for Cyber Investigations Ali Ahmad and Trial Attorney Scott Claffee of NSD’s Counterintelligence and Export Control Section led the investigation for the government.
Tennessee Doctor Pleads Guilty to Maintaining an Illegal Drug PremisesRead the Press Release
A Tennessee doctor pleaded guilty yesterday in the Eastern District of Tennessee to maintaining his Knoxville, Tennessee, pain clinic as an illegal drug premises.
According to court documents, Dr. David Newman, 61, of Maryville, owned, operated, and was Medical Director of Tennessee Valley Pain Specialists (TVPS), a non-insurance, cash-equivalent pain clinic. Newman owned this clinic with Dr. Steven Mynatt. Newman continued to operate and serve as Medical Director of TVPS, despite knowing that Mynatt was prescribing opioids to patients outside professional practice and for no legitimate medical purpose. Newman and Mynatt were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strick Force Surge. Mynatt entered a guilty plea related to his distribution of controlled substances at TVPS in February 2020 and will be sentenced on Feb. 9, 2022.
Newman pleaded guilty to unlawfully maintaining a drug premises. He is scheduled to be sentenced on Feb. 9, 2022, and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA); Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG); and Special Agent in Charge Andy Corbitt of the Tennessee Bureau of Investigation (TBI) made the announcement.
The DEA, FBI, HHS-OIG, and TBI are investigating the case.
Trial Attorney Louis Manzo and Assistant Chief Jillian Willis of the Justice Department’s Fraud Section and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 federal districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.
Tennessee Doctor Pleads Guilty to Maintaining an Illegal Drug PremisesRead the Press Release
KNOXVILLE, Tenn. – On September 13, 2021, Dr. David Newman, 61, of Maryville, Tenn. entered a guilty plea to maintaining his pain clinic as an illegal drug premises in the Eastern District of Tennessee.
Sentencing has been set for February 9, 2022, at 3:00 pm, before the Honorable Thomas Varlan, U.S. District Judge, in the United States District Court at Knoxville. Newman faces a maximum sentence of 20 years in prison.
According to court documents, Newman owned, operated, and was Medical Director of Tennessee Valley Pain Specialists (TVPS), a non-insurance, cash-equivalent pain clinic. Newman owned this clinic with Dr. Steven Mynatt. Newman continued to operate and serve as Medical Director of TVPS, despite knowing that Mynatt was prescribing opioids to patients outside professional practice and for no legitimate medical purpose. Newman and Mynatt were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strick Force Surge; Mynatt entered a guilty plea related to his distribution of controlled substances at TVPS in February 2020.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA); Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jackson of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG); and Special Agent in Charge Andy Corbitt of the Tennessee Bureau of Investigation (TBI) made the announcement.
The investigation was conducted by the DEA, FBI, HHS-OIG, and TBI.
Trial Attorney Louis Manzo, Assistant Chief Jillian Willis of the Justice Department’s Fraud Section, and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.
###
Swampscott Financial Advisor Sentenced for Stealing Former Client's Retirement AssetsRead the Press Release
BOSTON – A Swampscott financial advisor was sentenced today in federal court in Boston for defrauding an elderly victim and her bank by stealing the victim’s retirement assets.
Felix Gorovodsky, 29, was sentenced by U.S. District Court Judge Denise J. Casper to 33 months in prison and two years of supervised release. Gorovodsky was also ordered to pay restitution of $310,492. On May 11, 2021, Gorovodsky pleaded guilty to one count of bank fraud.
Gorovodsky served as a financial advisor for the victim. In or about July 2019, the victim terminated that advisor relationship and revoked the power of attorney she had previously granted Gorovodsky. Approximately nine months later, Gorovodsky accessed and liquidated the victim’s bank account, transferring more than $250,000 into his own bank account. Gorovodsky then used the victim’s stolen retirement funds for personal expenses, including paying off more than $100,000 in federal student loans. As part of the scheme, Gorovodsky forged the victim’s signature on a purported “gift letter,” which he sent to the bank in an attempt to legitimize the fraudulent transfer.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Department of Education, Office of Inspector General provided valuable assistance with the investigation. Assistant U.S. Attorneys Ian J. Stearns and Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Southwest Virginia Nonprofit Receives Federal Funding to Assist VictimsRead the Press Release
ROANOKE, Va. – A Southwest Virginia nonprofit legal aid society will receive more than $585,000 from the Legal Assistance for Victims (LAV) Program of the Department of Justice’s Office on Violence Against Women, Acting U.S. Attorney Daniel P. Bubar announced. Nationally, the LAV Program is awarding nearly $36 million in victim legal assistance funding to organizations across the country.
The Southwest Virginia Legal Aid Society will receive $585,631 to provide legal services under the grant program.
“Aiding victims of crime is an essential function of the Department of Justice,” Acting United States Attorney Daniel P. Bubar said today. “I am pleased to announce this significant grant, which will assist the Southwest Virginia Legal Aid Society in continuing to bring much-needed resources to the residents of Southwest Virginia.”
The awards announced today are part of more than $475.5 million that OVW is distributing in 2021 to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold offenders accountable, and build a coordinated community response to violence against women.
“The awards we make this year will touch the lives of millions of survivors of violence and help our nation end these devastating crimes,” said Allison Randall, OVW Acting Director. “OVW is proud to be the leading federal voice in the country’s fight against sexual and domestic violence.”
The LAV Program is intended to increase the availability of civil and criminal legal assistance needed to effectively aid adult and youth victims of sexual assault, domestic violence, dating violence, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence. Comprehensive legal services extend beyond representation in emergency and non-emergency protection order hearings to address the broad spectrum of legal issues that victims encounter, including family matters such as divorce, child custody or child support, immigration, administrative agency proceedings, and consumer or housing matters.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Shooting in Henderson Lands Man in Federal Prison for More Than 19 YearsRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 235 months in prison for two counts of Felon in Possession of Ammunition. On June 10, 2021, Caleb Malik Batchelor, pled guilty to the charges.
According to court documents and other information presented in court, on October 18, 2020, Batchelor, age 23, shot a female victim multiple times at the Highland Green Apartment Complex in Henderson, North Carolina. Batchelor and the victim had been involved in a domestic dispute. The victim sustained life-threatening injuries from the shooting but survived. Law enforcement recovered spent shell casings from the scene. About a month later, on November 16, 2020, Batchelor purchased additional ammunition from a gun store in Henderson. He is a convicted felon, having previous felony drug convictions, and was on probation from those convictions when he possessed the ammunition used to shoot the victim on October 18 and when he purchased additional ammunition on November 16, 2020.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Henderson Police Department, and the Vance County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-541-D.
Rusk County Man Sentenced for Christmas Postal Crime SpreeRead the Press Release
TYLER, Texas – A Henderson man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Paul Wayne Kennedy, 39, pleaded guilty on April 19, 2021, to burglary of a United States Post Office, possession of stolen mail, possession of stolen money orders, damage to government property, theft of government property, and access device fraud. Kennedy was sentenced to 33 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“Americans should know that their postal items and post office boxes are protected by the dedicated men and women of the Department of Justice and the United States Postal Inspection Service,” said Acting U.S. Attorney Nicholas J. Ganjei. “When you send a letter or package, or order an item, have confidence that your mail is secure, and that any would-be thieves, like Mr. Kennedy, will be prosecuted to the fullest extent of the law.”
“Securing Postal Service facilities and safeguarding the U.S. Mail are top priorities for the Postal Inspection Service,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Suspects thinking they can target the U.S. Postal Service and avoid capture are committing an egregious error in judgment. We will commit all available resources to investigations of this nature, relentlessly pursue offenders and bring them to justice. Both suspects in this investigation have now been sentenced, made possible by the many hours of work and cumulative efforts of U.S. Postal Inspectors, multiple local law enforcement agencies and the U.S. Attorney’s Office in the Eastern District of Texas.”
According to information presented in court, between the afternoon of Dec. 23, 2019 and the morning of Dec. 26, 2019, Kennedy burglarized post offices in Price, Texas; Bronson, Texas; Bon Wier, Texas; and Evans, Louisiana and attempted to burglarize post offices in Newton, Texas, and Singer, Louisiana. At each location he burglarized, Kennedy stole mail, packages, and property belonging to the U.S. Postal Service. At the Price, Texas, and Bronson, Texas, post offices, Kennedy was able to gain access to the safes and steal money and U.S. money orders. His accomplice, Angela Moore, 37, of Longview, accompanied Kennedy during the Price burglary and the Newton attempted burglary. Later, on Dec. 27, 2019, Kennedy attempted to use a debit card that he stole during the Evans burglary at the Margaritaville Casino in Shreveport, Louisiana.
Kennedy and Moore were indicted by a federal grand jury in the Eastern District of Texas on June 18, 2020. Kennedy was also indicted by a federal grand jury in the Western District of Louisiana on June 17, 2020.
Moore pleaded guilty to possession of stolen mail and was sentenced to 6 months in federal prison on May 13, 2021.
This case was investigated by the U.S. Postal Inspection Service with the assistance of the Louisiana State Police, the Rusk County Sheriff's Office, the Sabine County Sheriff's Office, the Vernon Parish Sheriff's Office, and the Henderson Police Department, and was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld for the Eastern District of Texas and Assistant U.S. Attorney John W. Nickel for the Western District of Louisiana.
###
Robertsdale Meth Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Robertsdale, Alabama, man was sentenced today to 72 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Brandon Kayne Love, 37, distributed methamphetamine ice he obtained from various suppliers in both Baldwin County, Alabama, and Pensacola, Florida. Love was distributing the drugs from various places in Baldwin County.
United States District Court Judge William H. Steele imposed the 72-month sentence. The judge further ordered that Love would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Love will also undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Love pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Recidivist Delaware County Drug Trafficker Sentenced for Attempting to Purchase 20 Kilos of Cocaine During Undercover Sting OperationRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Romel Bolger, 41, of Drexel Hill, PA, was sentenced to ten years and four months in prison, and five years of supervised release by United States District Court Judge Mark A. Kearney for his illegal attempt to traffic approximately 20 kilograms of cocaine, which he was prepared to purchase with hundreds of thousands of dollars in cash at a hotel in Delaware County.
In May 2021, the defendant pleaded guilty to a Superseding Indictment charging him with attempting to possess with intent to distribute a controlled substance. According to court documents, in August 2020, just five years after his release from a nearly ten-year prison sentence for drug trafficking, Bolger negotiated the purchase of 20 kilograms of cocaine from an undercover Pennsylvania State Police Trooper in exchange for $700,000. On the date of the purported transaction, Bolger met with the undercover officer and inspected a kilogram of cocaine. After expressing his satisfaction with the drugs, he and his co-defendant, Kasib Parham, each carried a duffel bag full of cash to the scene of the purported transaction, a hotel in Delaware County. As they were about to make the deal, Bolger and Parham were arrested. In addition to the $700,000 contained in the two duffel bags, Parham had a bag containing various items of drug trafficking paraphernalia, and Bolger had an additional $10,440 in cash on his person. At Bolger’s residence, law enforcement recovered an additional $181,073 in cash. A search of Parham’s residence revealed additional cash, a money counter, and various items of drug trafficking paraphernalia with cocaine base (“crack”) residue.
“Drug trafficking is inherently dangerous for all touched by it, from those struggling with addiction, to residents of the neighborhoods where this behavior occurs, and of course for the distributors themselves,” said Acting U.S. Attorney Williams. “The federal government is aggressively prosecuting recidivist drug dealers like Bolger to ensure that those seeking to make a profit off the vulnerable face the consequences of their criminal acts. We want to thank our law enforcement partners in this case, the DEA and the PA State Police, for their hard work and dedication.”
“Bolger negotiated with an undercover officer for the purchase of twenty kilograms of cocaine and put together over $700,000 in cash, which demonstrated his intent in completing this deal,” said Thomas Hodnett, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The fact that Bolger was previously convicted of drug trafficking and had an additional $181,000 in drug proceeds at his residence is indicative of the threat he posed to our community. I want to thank our partners at the Pennsylvania State Police for our collaboration in this investigation.”
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Erica Kivitz.
Rantoul Man Sentenced to 10 Years in Prison for Enticement of a MinorRead the Press Release
URBANA, Ill. – Michael D. Turner, 36, of the 1500 block of Hobson Drive in Rantoul, Ill., was sentenced today to 10 years in federal prison, to be followed by 10 years of supervised release, for enticement of a minor.
In April 2021, Turner entered a guilty plea to one count of enticement of a minor. According to court documents, the case arose when the Illinois State Police learned that Turner was engaging in sexually explicit online communications with a 16-year-old girl in an effort to entice her into a sexual relationship.
In November 2020, a federal grand jury returned the indictment charging Turner with enticement of a minor, following his October 2020 arrest pursuant to a criminal complaint. Also in October 2020, U.S. Magistrate Judge Eric I. Long ordered that Turner be detained pending trial. He has remained in the custody of the U.S. Marshals Service since his arrest.
Turner was arrested following an investigation by the Illinois State Police, which is a member of the Internet Crimes Against Children Task Force. Special Assistant U.S. Attorney Shannon O’Brien – who also is the Deputy Bureau Chief with the Illinois Attorney General’s Office, Internet Crimes Against Children Task Force – represented the government in this case.
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.
Penn North Fentanyl Dealer Sentenced to Nine Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jerold Gilliam, age 40, of Baltimore, Maryland to nine years in federal prison, followed by three years of supervised release, for conspiracy to distribute a substance containing fentanyl and possession with the intent to distribute a substance containing fentanyl.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“The defendant was dealing the deadly narcotic fentanyl in the Penn North area of Baltimore, which is a neighborhood that our Strike Force has prioritized in its enforcement efforts,” said Acting United States Attorney Jonathan F. Lenzner. “Jerold Gilliam was a narcotics trafficker who polluted our communities with deadly narcotics, and as a result he will spend nearly a decade in federal prison.”
According to his plea agreement, in July 2019, investigators from Drug Enforcement Administration’s Strike Force Group 1 initiated an investigation into the area surrounding the intersection of Pennsylvania and North avenues in Baltimore City.
Over the course of the investigation, investigators intercepted electronic and wire communications involving Gilliam and drug trafficking activities including the supply, cost, and proceeds of drug transactions. Visual surveillance corroborated calls between co-conspirators including Gilliam retrieving packages and engaging in hand-to-hand narcotics retail sales. On some occasions, Gilliam met other co-conspirators to provide narcotics for co-conspirators to sell to customers. As a result of the investigation, investigators identified Gilliam as an associate of the Bullseye Drug Trafficking Organization (DTO).
Between July 2019 and October 2019, investigators conducted controlled purchases from co-conspirators who had discussed drug trafficking with Gilliam. Chemical analysis of these purchases identified the presence of fentanyl.
As stated in his plea agreement, investigators executed a search warrant on November 21, 2019 for Gillam’s person. Law enforcement recovered 50 gelatin capsules containing approximately 18 grams of fentanyl.
In addition, law enforcement executed a search warrant at various locations associated with the Bullseye DTO and suspected residences acting as narcotics and packing and storage locations. As a result of two executed search and seizure warrants, law enforcement recovered a total of 138 grams of a fentanyl and quinine mixture, 19 grams of fentanyl, a bag containing 268 grams of a fentanyl and acetylfentanyl mixture, cutting agents used in preparing controlled substances, paraphernalia, and packaging materials for drug distribution.
Throughout the course of his involvement, Gilliam agrees that it is reasonably foreseeable that he or other members of the conspiracy distributed at least 400 grams of a mixture containing fentanyl during the conspiracy.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner praised the DEA their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Charles Austin, who prosecuted the case.
# # #
Panamanian Attorney General Visits Eastern District of TexasRead the Press Release
COPPELL, Texas – Attorney General Javier Caraballo, of the Republic of Panama, joined Acting U.S. Attorney Nicholas J. Ganjei; Drug Enforcement Administration Special Agent in Charge of the Dallas Field Division Eduardo Chavez; Special Agent in Charge Ryan L. Spradlin of Homeland Security Investigations, Dallas Field Office; Federal Bureau of Investigation Special Agent in Charge Matthew J. DeSarno; Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Special Agent in Charge Jamey Van Vliet; U.S. Postal Inspection Service Inspector in Charge Tom Noyes and Coppell Police Chief Danny Barton in the Eastern District of Texas to discuss investigations and advancements in joint efforts to curtail transnational criminal organizations operating between the United States and Panama.
During the meeting, officials discussed significant cases involving the encroachment of the Colombian Cartel, “Clan del Golfo,” into Panama. The Clan del Golfo is a drug trafficking organization responsible for multi-ton cocaine shipments originating from Colombia, Ecuador, Panama, Costa Rica, Guatemala, and Mexico for further distribution to the United States. The organization airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles to transport the majority of its cocaine shipments.
Federal prosecutors and law enforcement agencies in the Eastern District of Texas have worked tirelessly with Latin American countries, including Panama, to extradite and prosecute drug traffickers who continue to target the United States as a final destination for their drug trafficking enterprises. The partnership between EDTX and Panama in particular has generated tremendous results, with anti-narcotics operations resulting in the seizure of over 145 tons of cocaine and 75 defendants extradited to the Eastern District.
“Protecting our communities, fighting the scourge of drug and human trafficking, and combating money laundering and fraud requires a strong relationship and effective communication between national partners with shared values including a commitment to the rule of law,” said Acting U.S. Attorney Nicholas J. Ganjei. “That is why the United States is grateful for the cooperation of the Republic of Panama, and in particular the support of today’s guest, Attorney General for the Republic of Panama, Javier Caraballo Salazar. Panama is a vital partner to the United States in fighting transnational organized crime, counter-narcotics, and border security. And since taking office earlier this year, Attorney General Caraballo has continued and strengthened that partnership.”
“We appreciate the participation and support of the Republic of Panama and the Attorney General for the Republic of Panama Javier Caraballo Salazar in sending a unified message to those, who without remorse, intend to gain profits by peddling their poisons into our communities, that they will be found and held accountable no matter where they attempt to hide”, said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “Recent successes were possible because of the cooperation of national and international partners like the Republic of Panama and the Attorney General for the Republic of Panama Javier Caraballo Salazar. DEA Dallas remains resolute on dismantling local and transnational criminal organizations who are trafficking drugs, creating drug violence, and causing drug related deaths within our communities. Together, we will make safe neighborhoods.”
“HSI’s long standing relationship with Panama has led to the arrests of dozens of transnational criminal organization members, the seizure of thousands of pounds of narcotics and millions of dollars in illicit proceeds,” said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations Dallas. “Our law enforcement partnership with Panama is even more critical now as we work together to ensure that our transnational public safety threats are eliminated and the vulnerable protected in our communities.”
These cases are the result of extensive joint investigations by the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF agents and prosecutors handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States.
PWSA Sentenced for Violating Federal Clean Water ActRead the Press Release
PITTSBURGH, PA - The Pittsburgh Water and Sewer (PWSA) Authority has been sentenced in federal court to three years’ probation, ordered to pay a monetary judgment in the amount of $500,000, and to implement a comprehensive environmental compliance program after being convicted of violating the federal Clean Water Act, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on the PWSA.
According to information presented to the court, PWSA violated its National Pollutant Discharge Elimination System (NPDES) permit when it discharged a substance known as clarifier sludge into the Allegheny River on a number of occasions between 2010 and 2017. Under the terms of its NPDES permit, PWSA was not permitted to discharge sludge into the river. PWSA also violated its Industrial User permit by supplying ALCOSAN with false information about the amount of sludge it was shipping to ALCOSAN’s waste treatment facility. After the meters measuring the flow of sludge to the waste treatment facility became inoperable, the Authority used estimated numbers instead actual numbers. These numbers were included in reports and were certified as truthful and accurate. PWSA replaced the monitors five years after they became inoperable and federal investigators learned of their inoperability. Under the terms of its plea agreement, PWSA agreed to be placed on probation for three years and pay $500,000 into a self-funded compliance fund to be used to establish a comprehensive environmental compliance program. PWSA also agreed to hire an environmental compliance manager and take additional steps to ensure that it will follow state and federal environmental laws, rules, and regulations. PWSA is prohibited from using the cost of the fund as a basis for seeking a rate increase.
In imposing sentence, Judge Stickman observed that the purpose of the monetary judgment served productive as opposed to punitive ends and the PWSA had learned it lesson and was cleaning up its act.
Acting United States Attorney Kaufman commented that the plea agreement reached with the PWSA is intended to “ensure future compliance with federal environmental laws, rules, and regulations and to change the corporate culture at the Aspinwall plant that enabled this criminality to occur. The plea agreement, which precludes the Authority from passing the cost of the required compliance program to its ratepayers, will deter the Authority from engaging in future criminal conduct. The importance of PWSA to the Pittsburgh region cannot be underestimated. Nevertheless, public institutions must and will be held accountable for breaking the law.”
According to Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement programs in Pennsylvania, “This sentence reinforces that governmental entities providing environmental services such as drinking water must develop and implement compliance programs that will prevent and detect violations of the law, just as ‘for profit’ organizations must.”
Assistant United States Attorney Michael Leo Ivory and Special Assistant U.S. Attorney Martin Harrell, an attorney with the Environmental Protection Agency, prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Environmental Protection Agency, Criminal Investigation Division for the investigation leading to the successful prosecution of the Pittsburgh Water and Sewer Authority.