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30 August 2021
Manor Man Sentenced to over 13 Years in Prison for Armed RobberyRead the Press Release
AUSTIN – A Manor man was sentenced on Friday to 161 months in prison for robbing a pawn store at gunpoint.
According to court documents, Joe Quinonez Jr., 32, was charged with one count of violating the Hobbs Act or interfering with commerce by threats of violence. On January 2, 2021, Quinonez entered a Cash America Pawn store in Austin and brandished a firearm at two persons in the store while robbing the store of firearms. In addition, Quinonez was charged with discharging a firearm during the robbery. Quinonez pleaded guilty to the charges on June 15, 2021.
Quinonez was arrested by officers of the Austin Police Department on January 6, 2021 and has remained in custody since his arrest.
“Violent conduct like the armed robbery in this case will not be tolerated in our community,” said U.S. Attorney Ashley C. Hoff. “When there is federal jurisdiction, our office will continue to vigorously prosecute such conduct in order to protect the public and bring justice for innocent victims.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division said, “ATF is committed to relentlessly pursuing those that commit violent acts with firearms against our communities. This criminal was an extremely dangerous trigger puller who will now be in a place where he cannot cause harm to the public. The sentencing shows what can result when federal and local law enforcement work together to tackle crime.”
ATF investigated the case. Assistant U.S. Attorney Keith Henneke prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lincoln County Woman Sentenced to Serve More Than 21 Years in Federal Prison for Second-Degree Murder in Connection with a House FireRead the Press Release
OKLAHOMA CITY - Today, DESMA VALDEZ, 20, of Lincoln County, was sentenced to more than 21 years in federal prison for second-degree murder in connection with a house fire in Indian Country, announced Acting U.S. Attorney Robert J. Troester.
On January 21, 2020, a federal grand jury returned a six-count Indictment charging Valdez with two counts of first-degree murder, two counts of second-degree murder, arson, and using fire and explosives to commit a felony. On March 10, 2021, Valdez pleaded guilty to the two counts of second-degree murder.
The case stemmed from a fire on December 28, 2019, at a trailer home on tribal land of the Kickapoo Tribe of Oklahoma. Public records reflect that Valdez deliberately set fire to the trailer home in which her sister and her sister’s boyfriend slept. Both victims died in the fire. The case was charged in federal court because the crime took place in Indian Country and Valdez is an Indian.
Today, U.S. District Judge Bernard M. Jones sentenced Valdez to serve 262 months in federal prison, followed by five years of supervised release. In imposing the sentence, Judge Jones noted the seriousness of the offense, including the impact to both the victims and the families of the victims. Valdez has been in federal custody since her arrest on January 1, 2020.
This case is a result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division, the Kickapoo Tribal Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bureau of Indian Affairs. Assistant U.S. Attorneys Mark Stoneman and Thomas B. Snyder prosecuted the case.
Reference is made to public filings for more information.
Justice Department and Office of the Comptroller of the Currency Announce Actions to Resolve Lending Discrimination Claims Against Cadence BankRead the Press Release
The Justice Department and the Office of the Comptroller of the Currency (OCC) today announced coordinated actions to address allegations of lending discrimination by Cadence Bank N.A.
The department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, metro area. Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. “Redlining” is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race, color or national origin of the people who live in those communities.
Additionally, Cadence’s prudential regulator, the OCC, announced today that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint. The department opened its investigation after the OCC referred the matter.
The Justice Department’s settlement will resolve a lawsuit filed today in the U.S. District Court for the Northern District of Georgia. In its complaint, the department alleges that Cadence Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending services. Specifically, the complaint alleges that, from 2013 to 2017, Cadence engaged in unlawful redlining in the Houston area by avoiding predominantly Black and Hispanic neighborhoods because of the race, color and national origin of the people living in those neighborhoods. The department also alleges that Cadence’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods and that the bank’s outreach and marketing avoided those neighborhoods.
“When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Redlining is an illegal practice that has far-reaching consequences for people of color, their families and for the neighborhoods where they live. The Civil Rights Division will continue to enforce our nation’s fair lending laws to ensure that qualified applicants and borrowers can access credit and invest in their financial futures without facing unlawful barriers.”
“There is no place for discrimination in the federal banking system,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”
“The Fair Housing Act and Equal Credit Opportunity Act are intended to provide equal treatment for all people in their pursuit of home ownership and financing,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “This case highlights the need for vigilance in addressing practices which treat certain communities unfairly and has led to an agreement with Cadence Bank intended to improve the fairness of its business practices and to make remedial financial investments in the negatively impacted communities. This office will continue in its efforts to eliminate housing and credit discrimination.”
Under the department’s settlement, which was approved by the District Court on Aug. 31, 2021, Cadence will invest $4.17 million in a loan subsidy fund for residents of predominantly Black and Hispanic neighborhoods in the Houston area, $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods, and at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives. The bank will dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods. Cadence will employ a director of community lending and development who will oversee these efforts and work in close consultation with the bank’s leadership. The bank will take these steps in addition to other fair lending measures it has already put in place.
Cadence Bank’s assets total over $18 billion. In addition to Texas, the bank has branches in Alabama, Florida, Georgia, Mississippi and Tennessee. Its mortgage lending in the Houston area accounts for approximately 40 percent of its total home mortgage business.
The department’s Civil Rights Division and the OCC have long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin, and regardless of the neighborhood where they live. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.” See Memorandum on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, The White House (Jan. 26, 2021).
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Justice Department and Office of the Comptroller of the Currency Announce Actions to Resolve Lending Discrimination Claims Against Cadence BankRead the Press Release
ATLANTA – The Justice Department and the Office of the Comptroller of the Currency (OCC) announced coordinated actions to address allegations of lending discrimination by Cadence Bank, N.A. The Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, Georgia, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, Texas, metro area. Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. “Redlining” is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race, color, or national origin of the people who live in those communities.
“The Fair Housing Act and Equal Credit Opportunity Act are intended to provide equal treatment for all people in their pursuit of home ownership and financing. This case highlights the need for vigilance in addressing practices which treat certain communities unfairly, and has led to an agreement with Cadence Bank intended to improve the fairness of its business practices and to make remedial financial investments in the negatively impacted communities,” said Acting U.S. Attorney Kurt R. Erskine. “This office will continue in its efforts to eliminate housing and credit discrimination.”
“When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Redlining is an illegal practice that has far-reaching consequences for people of color, their families and for the neighborhoods where they live. The Civil Rights Division will continue to enforce our nation’s fair lending laws to ensure that qualified applicants and borrowers can access credit and invest in their financial futures without facing unlawful barriers.”
“There is no place for discrimination in the federal banking system,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”
Additionally, Cadence’s prudential regulator, the OCC, announced today that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint. The department opened its investigation after the OCC referred the matter.
The Justice Department’s settlement will resolve a lawsuit filed today in the U.S. District Court for the Northern District of Georgia. In its complaint, the department alleges that Cadence Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services. Specifically, the complaint alleges that, from 2013 to 2017, Cadence engaged in unlawful redlining in the Houston area by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in those neighborhoods. The department also alleges that Cadence’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, and that the bank’s outreach and marketing avoided those neighborhoods.
Under the department’s settlement, which is subject to approval by the District Court, Cadence will invest $4.17 million in a loan subsidy fund for residents of predominantly Black and Hispanic neighborhoods in the Houston area, $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods, and at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives. The bank will dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods. Cadence will employ a director of community lending and development who will oversee these efforts and work in close consultation with the bank’s leadership. The bank will take these steps in addition to other fair lending measures it has already put in place.
Cadence Bank’s assets total over $18 billion. In addition to Texas, the bank has branches in Georgia, Alabama, Florida, Mississippi, and Tennessee. Its mortgage lending in the Houston area accounts for approximately 40 percent of its total home mortgage business.
The department’s Civil Rights Division and the OCC have long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin, and regardless of the neighborhood where they live. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.” See Memorandum on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, The White House (Jan. 26, 2021).
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Assistant U.S. Attorney Y. Soo Jo is handling this matter for the Northern District of Georgia.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department and EPA Reach Clean Air Act Settlement with Gear Box Z for Selling Defeat DevicesRead the Press Release
Arizona-based Gear Box Z (GBZ) has agreed to stop manufacturing and selling aftermarket automotive products widely known as “defeat devices,” that, when installed, bypass, defeat or render inoperative Environmental Protection Agency (EPA)-certified emission controls on motor vehicles thereby increasing emissions and harming air quality.
In January 2020, the United States sued GBZ, which manufactured and sold thousands of defeat devices, alleging that these devices violated the Clean Air Act (CAA). In March 2021, the court found that the United States would likely prevail on the merits of its case that GBZ’s products are defeat devices, and issued a preliminary injunction ordering GBZ to immediately halt the illegal sale of the devices. In its decision, the court found that the continued selling of these defeat devices would cause irreparable harm by increasing motor vehicle emissions that impair human health and the environment.
“This lawsuit and settlement show that the United States will vigorously enforce the Clean Air Act, including its prohibition of illegal devices that disable emission controls and harm the environment and public health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD).
“Defeat devices in automobiles and trucks can significantly increase emissions of hazardous air pollutants,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Businesses manufacturing and selling illegal aftermarket defeat devices should take note that this is a priority enforcement focus for EPA and we will continue to actively investigate these violations of the Clean Air Act.”
The settlement prohibits GBZ from manufacturing and selling any defeat devices; it also bars GBZ and its owners from selling or transferring any intellectual property associated with these products, providing technical support for these products, and investing in or obtaining revenue from other companies’ manufacture and sales of defeat devices. Under the settlement, GBZ and its owners will pay a civil penalty of $10,000, which was based on their financial situation.
Tampering with diesel-powered vehicles by installing defeat devices can cause large amounts of nitrogen oxide (NOx) and particulate matter emissions, both of which contribute to serious public health problems. EPA expects that GBZ’s defeat devices will cause excess NOx and particulate matter emissions over the anticipated remaining life of the diesel pickup trucks equipped with them. By stopping the manufacture and sale of these products, this settlement will prevent harmful emissions from diesel trucks that, if outfitted with GBZ’s products, would pollute far more than the regulations allow. Such emissions can cause premature death, aggravation of respiratory and cardiovascular disease, aggravation of existing asthma, acute respiratory symptoms, chronic bronchitis, and decreased lung function. Numerous studies also link diesel exhaust to increased incidence of lung cancer. Respiratory issues disproportionately affect families, especially children, living in underserved communities overburdened by pollution. Stopping the sale and use of defeat devices will help prevent harmful air pollution that exacerbates the health effects of pollutant exposures.
Stopping the manufacture, sale, and installation of defeat devices on vehicles and engines used on public roads as well as on nonroad vehicles and engines is a priority for EPA. To learn more, visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The consent decree for this settlement was lodged in the U.S. District Court for the District of Arizona and is subject to a 30-day public comment period and final court approval. A copy of the decree, and information on submitting comments will be available on the Department of Justice website at: www.justice.gov/enrd/consent-decrees.
For more information on this settlement: https://www.epa.gov/enforcement/gear-box-z-inc-clean-air-act-settlement.
If you suspect someone is manufacturing, selling, or installing illegal defeat devices, or is tampering with emission controls, tell the EPA by writing to [email protected]
Greenwich Resident Admits Defrauding Investors of Nearly $1.5 MillionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that SAMUEL KLEIN, 65, of Greenwich, pleaded guilty today to fraud and money laundering offenses stemming from an investment fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, Klein controlled several different entities, including Visual Group LLC; O.S. Management, LLC; KF Pecksland LLC; Four Pines Holdings, LLC; and Payton Lane NH, Inc. In 2018, Klein made false representations to a victim investor, including that the victim’s funds would be invested in distressed debt, when Klein knew that all of the investment funds would not be used for the stated purposes. Based on these false representations, the victim investor wrote a check in the amount of $200,000 to Visual Group LLC for the purpose of making a purported investment in distressed debt. Klein caused the check to be transported from New York to Connecticut and deposited into a bank account in the name of Visual Group LLC. Klein subsequently solicited and received approximately $50,000 in additional funds from the victim investor.
The investigation further revealed that, from approximately July 2016 through at least June 2019, Klein defrauded three additional victim investors of a total of more than $1.2 million by making multiple false statements and misrepresentations.
Klein knew that all of the funds solicited from the victim investors would not be used for his stated purposes, and instead would be utilized by Klein for personal and other expenditures.
Klein pleaded guilty to one count of interstate transportation of property taken by fraud and one count of money laundering. Each offense carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 22, 2021, in New Haven.
Klein has agreed to pay restitution in the amount of $1,497,797.52.
Klein is released on a $500,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and David T. Huang.
Former Netflix engineer pleads guilty to insider tradingRead the Press Release
Seattle – A former Netflix software engineer, and his brother pleaded guilty today in U.S. District Court in Seattle to securities fraud for their roles in an insider trading ring that generated more than $1 million in illegal proceeds, announced Acting U.S. Attorney Tessa M. Gorman. Sung Mo Jun, 49, of Bellevue, Washington, and his brother, Joon Jun, 45, of Issaquah, Washington, were charged along with two others earlier this month with insider trading in Netflix securities. The Jun brothers are scheduled to be sentenced by U.S. District Judge Richard A. Jones on December 3, 2021.
According to the plea agreement, from July 2016 to February 2017, Sung Mo Jun was employed by Netflix as a software engineer. He had access to subscriber data and had been trained by the company that such data was material, non-public information. Nevertheless, Jun disclosed that information to his brother Joon Jun, and his close friend, Junwoo Chon, 50, of Bellevue, Washington, with the knowledge that the two intended to use the information to profit on the purchase and sale of Netflix securities. After Chon made significant profits on the securities, he secretly provided Sung Mo Jun with $60,000 in cash as Sung Mo Jun’s share of the profits.
After Sung Mo Jun left Netflix, he obtained additional non-public information about subscriber data from another Netflix employee, software engineer Ayden Lee, 33, of San Jose, California. Jun not only passed that information on to his brother and Chon, he also used it to make his own trades. Between April 2017 and July 2019, Sung Mo Jun made a profit of $434,086 by trading in Netflix stock and options with this inside information. Between July 2016 and April 2017, Jun’s brother, Joon Jun, made $215,419 and co-conspirator Junwon Chon made $521,400. All told, the insider trading attributable to Sun Mo Jun in Netflix securities resulted in an illicit gain of $1,170,905.
Sung Mo Jun also obtained insider information from a “tipper” he knew at another tech company, and shared this information with his brother and Chon. Their profits from trading on that inside information was less than $2,000.
Joon Jun is responsible for illicit profits of $1,106.208. Chon is responsible for illicit profits of $1,642,855, and Lee is connected to illicit profits of $453,465.
Chon pleaded guilty August 18, 2021. Lee is the last to have a plea hearing, which is not yet scheduled.
Insider trading is punishable by up to 20 years in prison and a $5 million fine. The judge will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Securities and Exchange Commission (SEC) has filed a separate civil enforcement action against the defendants who have each entered into settlements with the SEC.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Justin Arnold.
Former Federal Protective Service Commander Pleads Guilty to Conspiracy and Wire Fraud ChargesRead the Press Release
SACRAMENTO, Calif. — Joshua Bilal George, 38, of San Diego, pleaded guilty today to conspiracy to defraud the United States and wire fraud, Acting U.S. Attorney Phillip A. Talbert announced.
This is the third and final defendant to plead guilty in this case involving a conspiracy and scheme to defraud the Social Security Administration (SSA). Co-defendants Eric Lemoyne Willis and Darron Dimitri Ross pleaded guilty to similar charges in June 2019 and February 2020, respectively.
According to court documents, George worked for the Federal Protective Service (FPS) in Sacramento between 2011 and 2015, and in San Diego thereafter where he was promoted to the position of Area Commander. Willis worked as an SSA Operations Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. George met Willis through his work at FPS in Sacramento and knew Ross from his childhood in North Carolina.
Between January 2016 and October 2018, George, Willis, and Ross conspired to steal public money from the SSA. Willis used his authority as an SSA employee to access the confidential Social Security records of numerous beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Additionally, Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. He then transferred this information to Ross in North Carolina, who in turn transferred it to George.
Ross and George’s roles in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 70 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims and caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. Before the fraud could be detected, the SSA deposited the benefit payments into the fraudulent accounts. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.
SSA has identified over 200 beneficiaries nationwide who were targeted by these crimes, and the total loss has exceeded $695,000. The defendants spent the proceeds of their crimes on trips to Las Vegas, luxury items such as Rolex watches, and other things.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security – Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
George is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 15, 2021. Willis and Ross are scheduled to be sentenced on Dec. 6, 2021, and Jan. 31, 2022, respectively. George faces a maximum statutory penalty of 25 years in prison and a $500,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Department of Unemployment Assistance Employee Pleads Guilty to Fraud and Identity Theft Charges Related to COVID-19 PandemicRead the Press Release
BOSTON – A former employee of the Massachusetts Department of Unemployment Assistance (DUA) pleaded guilty today to fraud and identity theft charges arising from her claims for Pandemic Unemployment Assistance (PUA) funds.
Tiffany Pacheco, a/k/a Tiffany Tavery, 35, formerly of New Bedford, pleaded guilty to six counts of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 12, 2022. She was indicted in January 2021 along with her husband, Arthur Pacheco, who pleaded guilty in July 2021 and is scheduled to be sentenced on Nov. 18, 2021.
Tiffany Pacheco was hired by the DUA in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany Pacheco misused her position to submit fraudulent PUA claim information on behalf of herself and Arthur Pacheco, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.
Specifically, in June 2020, PUA claims submitted for Tiffany Pacheco and her husband reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA, Tiffany Pacheco obtained access to the PUA computer system, and later changed claim information for herself and Arthur Pacheco in order to increase the amount of PUA funds they would receive. For example, Tiffany Pacheco increased the amount of 2019 income for her and Arthur Pacheco to more than $240,000 and increased the number of their dependents to seven. Tiffany Pacheco further used her access to the PUA system to verify the increased 2019 income on both claims without the required income verification documents.
In November 2020, Arthur Pacheco called DUA and falsely denied that he had been incarcerated during the timeframe leading up to September 2020, and that he was only incarcerated for approximately one month. Tiffany Pacheco also spoke with DUA and misrepresented the period of time in which Arthur Pacheco had been incarcerated.
A search of the New Bedford apartment where Tiffany and Arthur Pacheco resided uncovered various tools of identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately $17,000 cash and a notebook that appeared to contain the personal identifying information of various individuals. In addition, a driver’s license recovered during the search matched the name of a victim Tiffany Pacheco used to submit another fraudulent PUA claim. On Sept. 23, 2020, DUA terminated Tiffany Pacheco’s employment.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division and Assistant U.S. Attorney Dustin Chao, Chief of Mendell’s Public Corruption and Special Prosecutions Unit, are prosecuting the case.
Former Chiropractor Sentenced to Federal Prison for Distribution of OxycodoneRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man was sentenced to federal prison today for distributing oxycodone pills acquired from dozens of fraudulent prescriptions, one of which led to the overdose death of Starlin Swan, a 26-year-old woman.
Mark Steven Gardner, 33, was sentenced by the Honorable Michael W. Mosman to 50 months in federal prison followed by 3 years of supervised release.
“The opioid epidemic has cost more than 500,000 American lives. The death toll in this country is staggering and the tragic loss that surviving family members must endure is devastating. This prosecution represents our office’s firm commitment to hold those accountable who unlawfully distribute controlled substances that results in death.” said Acting United States Attorney, Scott Erik Asphaug.
In November 2015, Gardner, a chiropractor, stole a prescription pad from a physician with whom he shared his Portland office building. Over the next four months, Gardner used the doctor’s name to forge fraudulent oxycodone prescriptions. Gardner instructed others to fill the prescriptions at times when he knew the doctor’s office, to which he had access, was closed. Gardner would then enter the doctor’s office, answer the doctor’s office phone, and pose as the doctor to verify the authenticity of the prescriptions when contacted by pharmacies. The individuals filling the prescriptions would typically give Gardner half of the pills received.
On January 8, 2016, Gardner called 911 to report finding a female friend unresponsive. Paramedics arrived on scene and found Ms. Swan deceased. A subsequent autopsy and toxicology examination revealed that Ms. Swan had died of an oxycodone overdose.
On the afternoon before Ms. Swan’s death, Gardner forged a prescription for Ms. Swan for 90 30mg pills of oxycodone. The prescription was filled the same day, although the pharmacy only filled it for 60 oxycodone pills.
In total, Gardner forged 48 prescriptions for 25 different recipients, including some scripts that were written after the overdose death of Ms. Swan. A total of 2,352 30mg oxycodone pills were fraudulently dispersed because of Gardner’s scheme. Following the discovery of the script forgeries, Gardner was stripped of his chiropractic license.
On May 15, 2019, a federal grand jury in Portland returned a three-count indictment charging Gardner with distribution of oxycodone resulting in death; distribution of oxycodone; and acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. On April 19, 2021, he pleaded guilty to unlawful distribution of oxycodone.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement. This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Clackamas County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
Former Big Sandy Prison Employee Sentenced for Methamphetamine Trafficking and Bribery ChargesRead the Press Release
LEXINGTON, Ky. — A former Cook Supervisor at United States Penitentiary Big Sandy, Hank Williams, 56, of Weeksbury, Kentucky, was sentenced Monday to 210 months in federal prison, by Senior U.S. District Judge Joseph M. Hood, following his convictions for conspiracy to distribute 50 grams or more of methamphetamine, accepting a bribe by a public official, and using a communication device to facilitate a felony offense.
According to Williams’ plea agreement, he admitted to conspiring with an inmate, Librado Navarette, 34, and others, to distribute 50 grams or more of methamphetamine. Williams, a public official, also accepted bribes from Navarette, and others, and used the U.S. mail to possess and distribute the controlled substances.
Williams pleaded guilty in June 2021. Navarette pleaded guilty in July 2021 and is scheduled to be sentenced in October.
Under federal law, Williams must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; William Hannah, Special Agent in Charge, Department of Justice- Office of Inspector General, Chicago Field Office, Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, announced the sentence.
The investigation was conducted by the Department of Justice’s Office of the Inspector General, the FBI, the United States Postal Inspection Service, and the Georgetown Police Department. The United States was represented by Assistant U.S. Attorney Ron Walker.
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Florida Man Sentenced for Stealing FirearmsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Sandra J. Stewart announced that a Florida man has been sentenced for stealing guns from a licensed firearms dealer in Dothan, Alabama. On August 24, 2021, 30-year-old Tevin Michael Coffman was sentenced to 72 months in prison for unlawfully taking a firearm from a federal firearms licensee, possession of stolen firearms, and being a felon in possession of a firearm. Following his prison sentence, Coffman will serve three years of supervised release. There is no parole in the federal system. Coffman pleaded guilty to all three charges on March 3, 2021.
According to court records and statements made in court, on March 22, 2020, Gander Outdoors, a business authorized to sell firearms in Dothan, Alabama, was burglarized and multiple guns were stolen. Surveillance footage showed someone entering the store, smashing the glass casing of a firearm display counter, and removing thirteen handguns. The suspect then placed the guns into a black bag and left the store. The Dothan Police Department began an investigation and, after reviewing video footage along with other evidence, developed Coffman as a suspect. Shortly afterwards, Coffman was spotted driving a recreational vehicle (RV) that had also been stolen from Gander Outdoors. Officers conducted a traffic stop of the RV and took him into custody. When they searched the vehicle, officers discovered the stolen firearms and other items used during the burglary. Coffman has previous felony convictions and is prohibited from possessing a firearm.
This case was investigated by the Dothan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Mark E. Andreu prosecuted the case.
Federal Charges Filed in Deadly East St. Louis Bank RobberyRead the Press Release
EAST ST. LOUIS, Ill. – Two East St. Louis men are facing federal charges today for a deadly bank robbery over the weekend. Jaylan D. Quinn, 22, and Andrew R. Brinkley, 19, have been charged in a two-count criminal complaint for the August 27 armed robbery of the First Bank in East St. Louis that resulted in the murder of security guard Ted Horn.
“The shooter rightly faces life in federal prison. Armed violence is intolerable in any civilized society, and we are resolved that a firm and definite measure of justice will be imposed in this case,” said U.S. Attorney Steven D. Weinhoeft. “The public should be reassured by the professional work led by the FBI, with outstanding support from the Illinois State Police Public Safety
Enforcement Group and the East St. Louis Police Department. These officers worked around the clock from the moment of the killing to ensure that the suspects will face a swift and certain outcome in the federal system.”“The FBI offers our deepest condolences to the family of security guard Ted Horn, whose life was senselessly taken in a vicious act of violence,” said FBI-Springfield’s Acting Special Agent in
Charge Timothy Ferguson. “This case demonstrates the tenacity of the FBI and our law enforcement partners in investigating and identifying the subjects swiftly. We thank the public for their vigilance, as well as our media partners who provided critical details to the communities. The
FBI’s commitment to justice remains at the forefront of every investigation, and we remain dedicated to ensuring those responsible are held accountable for their actions.”The federal complaint filed this afternoon alleges that at approximately 4:00 pm on August 27, two masked men entered the First Bank located at 350 River Park Drive in East St. Louis. After they approached the tellers, one of the men, who was wearing a white face mask, put a demand note on the counter which read, “I GOT A BOMB STRAPPED TO MY CHEST PUT ALL THE MONEY IN OR EVERYONE DIE.” The bank teller gave the man some money, and the two robbers turned away from the counter and headed toward the doors.
Ted Horn, 56, of St. Libory, Illinois, was working at the bank that day as a uniformed security guard. Horn moved to intercept the two men before they could leave. The man wearing the white face mask pushed past Horn and ran out of the bank. The second man, who was wearing a black face mask, drew a semi-automatic handgun and shot Horn in the head. The robbers then fled in a white Lexus sedan.
Horn was pronounced dead at the scene. He is survived by his wife, two adult sons, and three grandchildren. A memorial service will be held at noon on September 4 at
Wenneman Park in Marissa, Illinois.The release of photos from the bank surveillance video quickly led to the identification of Andrew
R. Brinkley as a suspect. By 2:00 p.m. the following day, FBI surveillance of Brinkley’s residence on North 13ᵗʰ Street in St. Louis resulted in the arrest of Brinkley and Quinn. Agents executed a search warrant at the residence and recovered a loaded 9mm handgun, two marked bills that were taken during the First Bank robbery, and clothing that matched what the robbers wore. A white Lexus sedan was found parked outside the residence.The complaint identifies Quinn as the man who shot Horn and charges him with armed bank robbery resulting in death. By law, he could receive life in prison or possibly even the death penalty.
Brinkley is charged with bank robbery, which carries up to 20 years in prison, a $250,000 fine, and up to 3 years of supervised release.A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
A date for the defendants’ initial appearance in federal court has not been set.
The case is being investigated by FBI-Springfield, with assistance from the Illinois State Police and the East St. Louis Police Department.
Faribault Man Sentenced to 75 Months in Prison for Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Faribault man was sentenced today to 75 months in prison followed by two years of supervised release for possessing a firearm as a felon.
According to court documents, on June 15, 2020, multiple law enforcement agencies executed a search warrant at a Faribault residence belonging to Andrew Albert Comeaux, 38. During the search, law enforcement found a Mossberg 702 Plinkster .22 caliber rifle, a Mosin-Nagant 7.62x54R rifle, several boxes of .223 caliber ammunition, methamphetamine, psilocybin mushrooms, and numerous items of drug paraphernalia. Comeaux also admitted to possessing an unserialized AR-15 style pistol with a large capacity magazine and a homemade silencer. Because Comeaux has prior felony convictions in Blue Earth County and in Le Sueur County, he is prohibited under federal law from possessing firearms or ammunition.
On February 3, 2021, Comeaux pleaded guilty to one count of possessing a firearm as a felon.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, the South Central Drug Task Force, the Cannon River Drug Task Force, Rice and Steel County Sheriff’s Offices, the Faribault and Owatonna Police Departments, Metro SWAT, and the St. Paul Bomb Squad, with coordination from the Rice County Attorney’s Office.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Ex-Chairman of Los Angeles-Based Church Sentenced to More Than 10 Years in Federal Prison for Stealing $11 Million in Church FundsRead the Press Release
LOS ANGELES – The former chairman of the board of the Fifth Church of Christ, Scientist, of Los Angeles was sentenced today to 130 months in federal prison for stealing more than $11 million in church funds.
Charles Thomas Sebesta, 56, of Huntington Beach, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $11,438,213 in restitution. Sebesta pleaded guilty in February 2020 to one count of wire fraud and one count of bank fraud. He has been in federal custody since his arrest in August 2019.
The church hired Sebesta in 2001 as its facilities manager. He joined the church four years later and ultimately served as its chairman, giving him control over the church branch’s financial assets and operations, including some of its bank accounts.
From at least August 2006 through December 2016, Sebesta caused the church to make checks and other payments to banks accounts in the name of fictitious companies he created, as well as to bank accounts he held in his own name and in the names of his family members and a female companion. To further conceal these payments, Sebesta forged a church member’s signature on numerous checks drawn against the church’s bank accounts.
In the fall of 2008, Sebesta oversaw the sale of church property in Hollywood for approximately $12.8 million. Sebesta stole a significant majority of the proceeds for his personal use, including purchasing a home with more than $2 million in cashier’s checks drawn from church bank accounts. The checks were falsely recorded in church records as “donations” and environmental remediation payments to a fictitious “Sky Blue Environmental” company.
In 2009 and 2010, Sebesta used church money to wire $1.86 million and $309,622 to be credited to his own personal tax accounts to generate overpayment refunds from the U.S. Treasury and the California Franchise Tax Board, respectively.
To conceal his crimes, Sebesta impersonated a real estate developer by creating an email account in the executive’s name. Posing as the developer, Sebesta sent emails to church members in which he fraudulently represented that the real estate developer held Sebesta in high esteem and was making donations to the church and paying the rent for the church’s new location.
In total, Sebesta stole at least $11,438,213 of church assets.
“Having wrested operational and financial control of the Church from its elderly members by 2006, [Sebesta] began a 10-year spree in which he treated the Church and its considerable assets as his own personal piggy bank,” prosecutors wrote in a sentencing memorandum. “[Sebesta] stole $11,438,213 and destroyed a venerable church, its congregation, and the faith its congregants had in one another by employing sophisticated means to abuse his position of trust and cause the Church not only substantial, but ruinous, financial hardship.”
Sebesta also defrauded another former employer – a private high school in Los Angeles County – out of $34,032 and embezzled $36,282 that a donor’s estate had donated to the church.
The United States Secret Service investigated this matter.
Assistant United States Attorneys Adam P. Schleifer and Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.
El Departamento de Justicia y la Oficina del Controlador de la Moneda anuncian medidas para resolver reclamaciones de discriminación en el ámbito crediticio contra el banco Cadence BankRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia y la Oficina del Controlador de la Moneda (OCC, por sus siglas en inglés) anunciaron hoy una serie de medidas coordinadas para hacer frente a alegaciones de discriminación en el ámbito crediticio por parte del banco Cadence Bank, N.A. La División de Derechos Civiles del Departamento y la Fiscalía Federal para el Distrito Norte de Georgia anunciaron un acuerdo para la resolución de alegaciones de que Cadence Bank, con sede en Atlanta, Georgia, discriminó en el ámbito crediticio al «excluir» a barrios cuyos residentes son principalmente negros e hispanos en la zona metropolitana de Houston, Texas. Conforme la conciliación del Departamento, Cadence invertirá más de $5.5 millones para aumentar el número de oportunidades crediticias de residentes de aquellos barrios. La «exclusión» es una práctica ilegal en la que prestamistas evitan la prestación de servicios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de las personas que viven en tales comunidades.
Además, el regulador prudencial de Cadence, la OCC, anunció hoy que ha aplicado una sanción al banco por un importe que asciende a $3 millones, en conexión con las infracciones alegadas en la demanda del Departamento. Después de que la OCC refirió el asunto, el Departamento inició su investigación.
El acuerdo del Departamento de Justicia resolverá un pleito entablado hoy ante el Tribunal Federal de Distrito para el Distrito Norte de Georgia. En su demanda, el Departamento alega que Cadence Bank vulneró la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, las que prohíben que las instituciones financieras discriminen a los individuos por motivos de su raza, color de piel u origen nacional en sus servicios de financiación hipotecaria. En concreto, la denuncia alega que, entre el 2013 y el 2017, Cadence empleó medidas ilegales de exclusión en la zona de Houston al evitar barrios cuyos residentes eran principalmente negros o hispanos, por motivos de la raza, el color de piel o el origen nacional de las personas que vivían en tales barrios. Asimismo, el Departamento alega que las sucursales de Cadence estaban concentradas en barrios donde la mayoría eran blancos, que los oficiales de crédito del banco no satisfacían las necesidades de barrios donde la mayoría eran negros o hispanos y que el alcance y mercadeo del banco evitaban esos barrios.
«Cuando los bancos no facilitan la igualdad de acceso al crédito en comunidades de color, están vulnerando nuestras leyes de derechos civiles y privando a la gente en esas comunidades de la oportunidad de generar riqueza», afirmó Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La exclusión es una práctica ilegal que tiene consecuencias de gran alcance para personas de color, sus familias y los barrios en los que viven. La División de Derechos Civiles seguirá haciendo cumplir las leyes de préstamos justos para asegurar que solicitantes y prestatarios cualificados puedan acceder al crédito e invertir en sus futuros financieros sin enfrentarse a barreras ilegales».
«No hay lugar para la discriminación en el sistema bancario federal», declaró el Controlador Interino de la Moneda, Michael J. Hsu. «La OCC empleará toda la fuerza de nuestra autoridad para corregir infracciones de las leyes de préstamos justos mediante nuestras herramientas de supervisión y aplicación, entre ellas sanciones civiles monetarias, ordenes de cese y requerir restitución para consumidores perjudicados como resultado de cualquier práctica discriminatoria que hubiese».
«El propósito de ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito es tratar por igual a todo individuo durante el proceso de comprar y financiar una casa», dijo el Fiscal Federal Interino para el Distrito Norte de Georgia, Kurt R. Erskine. «Este caso resalta la necesidad de vigilancia a la hora de abordar prácticas que tratan a ciertas comunidades de una forma injusta y ha llevado a un acuerdo con Cadence Bank, el propósito del cual es mejorar la justicia de sus prácticas empresariales y realizar inversiones financieras correctivas en las comunidades impactadas. Esta oficina seguirá luchando por eliminar la discriminación en la vivienda y el ámbito crediticio».
Conforme la conciliación del Departamento, que fue aprobada por el Tribunal Federal de Distrito el 31 de agosto del 2021, Cadence invertirá $4.17 millones en un fondo de préstamos subsidiados para residentes de barrios en la zona de Houston cuyos residentes son principalmente negros o hispanos, $750,000 en la formación de alianzas comunitarias para la prestación de servicios que mejoran el acceso a créditos hipotecarios residenciales en esos barrios y al menos $625,000 en iniciativas de publicidad, alcance comunitario, educación financiero para el consumidor y reparaciones de crédito. El banco dedicará al menos cuatro oficiales de crédito hipotecario a barrios de mayoría negra o hispana en Houston y abrirá una nueva sucursal en uno de esos barrios. Cadence empleará a un director de desarrollo y préstamos comunitarios que supervisará estos esfuerzos y trabajará en estrecha consulta con el liderazgo del banco. El banco tomará estas medidas, además de otras medidas de préstamos justos que ya ha implementado.
Los activos de Cadence Bank ascienden a más de $18 mil millones. Además de Texas, el banco tiene sucursales en Alabama, Florida, Georgia, Mississippi y Tennessee. Sus préstamos hipotecarios en la zona de Houston representan aproximadamente el 40 por ciento de sus negocios hipotecarios residenciales.
La División de Derechos Civiles del Departamento y la OCC han trabajado durante mucho tiempo para hacer que todo estadounidense pueda acceder al crédito hipotecario bajo las mismas condiciones, independientemente de su raza u origen nacional o del barrio en que vive. En enero del 2021, el presidente Biden reafirmó el papel crítico del gobierno federal en enfrentar legados de segregación y discriminación en la vivienda y declaró que su gobierno tiene la política de eliminar «sesgos racionales y otros tipos de discriminación en todas las fases del alquiler y la compra de una vivienda». Véase el Memorando sobre la Reparación de la historia de nuestro país y gobierno federal de prácticas y políticas discriminatorias en la vivienda, la Casa Blanca (26 de enero del 2021).
La aplicación del Departamento de Justicia de las leyes de préstamos justos la dirige la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Para más información sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos, vaya a www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregando un informe en línea.
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Dennis Port Man Sentenced for Receiving and Possessing Child PornographyRead the Press Release
BOSTON – A Dennis Port man was sentenced today for receipt and possession of child pornography.
Sean Gleason, 36, was sentenced by U.S. District Court Judge Denise J. Casper to 68 months in prison and five years of supervised release. In August 2020, Gleason pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
Following an investigation into the use of a messaging application in the exchange of child pornography, a search of Gleason’s cell phone on Sept. 10, 2019 revealed hundreds of images of child pornography. A full forensic review of the phone revealed at least 498 images and at least one video of child pornography. The cache of child pornography included images depicting the abuse of infants, toddlers and prepubescent minors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Adam W. Deitch of Mendell’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IOWA -- On August 27, 2021, a Council Bluffs man, John Allen Lindeman, Jr., age 26, was sentenced by United States District Court Chief Judge John A. Jarvey to 78 months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment is to be followed by three years of supervised release.
On November 19, 2020, Lindeman eluded law enforcement by driving back and forth between Nebraska and Iowa. Deputies with the Pottawattamie County Sheriff’s Office eventually spotted Lindeman’s vehicle in a parking lot in Council Bluffs. Lindeman refused to exit his vehicle and instead reversed his car at a high rate of speed. He continued to resist until law enforcement was able to arrest him. Lindeman was found in possession of a pistol at the time of his arrest.
According to court documents, Lindeman pleaded guilty to Prohibited Person in Possession of a Firearm in April of 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Pottawattamie County Sheriff’s Office, Council Bluffs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Commercial Flooring Company Pleads Guilty to Antitrust and Money Laundering ChargesRead the Press Release
Mr. David’s Flooring International LLC (Mr. David’s), a Chicago-based commercial flooring contractor, pleaded guilty after being charged for its role in a long-running conspiracy to rig bids and fix prices for commercial flooring products and services, and for its role in a money laundering conspiracy involving kickbacks.
Mr. David’s agreed to pay at least a $1.2 million criminal fine for its role in the conspiracies. Mr. David’s is the third corporation charged in the ongoing investigation; five individuals have also been charged to date.
“We remain committed to prosecuting those who choose to subvert the competitive process and eliminate competition,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Today’s guilty plea — the eighth charge to date in the ongoing investigation — demonstrates our commitment to protect consumers and ensure they benefit from a competitive marketplace.”
“Price fixing has no place in a fair and open marketplace,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Division. “This guilty plea is another example of our firm commitment to safeguarding American citizens and businesses.”
According to a two-count felony charge filed in the U.S. District Court in Chicago, Illinois, Mr. David’s conspired with other companies to rig bids for commercial flooring by agreeing which company would win the bid, and which would submit a complementary, intentionally-losing bid. Mr. David’s participated in the conspiracy from at least as early as 2009 until at least June 22, 2017.
The second count charges Mr. David’s with conspiring to launder money to conceal kickback payments the company made to Carter Brett, an account executive for a large flooring manufacturer, in exchange for unauthorized discounts. According to the charge, Mr. David’s issued checks to a shell corporation established by Brett for the sole purpose of receiving the illegal kickback payments, and Mr. David’s and its co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 13, 2018.
A violation of the Sherman Act carries a statutory maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. Conspiring to commit money laundering carries a statutory maximum penalty of $500,000. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing and other anticompetitive conduct in the commercial flooring industry conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Cincinnati man pleads guilty to creating fake ID documents claiming he was federal employee & agentRead the Press Release
CINCINNATI – A Cincinnati man pleaded guilty in federal court this morning to making fake IDs claiming he was a Special Agent with Homeland Security and an employee of the Defense Logistics Agency, which is the Department of Defense’s combat logistics support agency.
David Lomache, 61, was indicted by a grand jury and arrested by federal agents on April 16, 2021.
According to the court documents, Lomache fraudulently obtained a United States Federal Contractor badge in order to impersonate a civilian contractor technician for the Defense Logistics Agency.
In January of 2021, Lomache produced fake identification documents for both the Defense Logistics Agency and for Homeland Security Investigations (“HSI”). He listed his titles on the fraudulent documents as “Civilian Contractor Technician” and “Homeland Security Special Agent.”
Fraud in connection with identification documents is a federal crime punishable by up to 15 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations; and Hamilton County Sheriff Charmaine McGuffey announced the plea entered into today before U.S. District Judge Matthew McFarland. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case.
Anyone who believes they may be a victim of fraud in relation to this investigation is asked to call 866-347-2423 (TTY for hearing impaired: 802-872-6196) or visit the website at https://www.ice.gov/webform/ice-tip-form.
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Chicago Man Charged in Federal Court with Making False Statements While Acquiring FirearmsRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with making materially false statements in the acquisition of more than 20 firearms.
In 2019 and 2020 STOVALL BUCHANAN acquired 23 handguns and a rifle from suburban Chicago firearms dealers, falsely certifying on federal forms that he resided at a certain address in Chicago and, in connection with some of the purchases, that he was the actual buyer of the guns, according to a criminal complaint unsealed today in U.S. District Court in Chicago. In reality, Buchanan resided at a different Chicago address at the time of the purchases, and within months of the sales all but one of the 23 guns were no longer in his possession, the complaint states. Four of the firearms were later discovered in the possession of other individuals, including one felon who was prohibited by federal law from possessing a gun, the complaint states.
Buchanan, 23, of Chicago, is charged with making a false statement in connection with the acquisition of a firearm. The charge is punishable by a maximum sentence of ten years in federal prison. Buchanan made an initial court appearance today before U.S. Magistrate Judge Maria Valdez in Chicago.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Shy Jackson.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Ceramic Art Concealed 3.4 Kilograms of MethamphetamineRead the Press Release
PECOS – A federal jury convicted a Dallas man last Thursday for possessing methamphetamine.
According to court documents and evidence presented at trial, Oscar Santiago Garcia Sanchez, 32, drove a vehicle with a trailer filled with ceramic art pieces into the Presidio Port of Entry. During inspection, Customs and Border Protection officers discovered a crystal substance inside the art pieces. The substance turned out to be 3.4 kilograms of methamphetamine.
Sanchez faces up to life in prison. His sentencing date has been set for November 23, 2021. Sanchez has remained in federal custody since his arrest on February 2, 2021.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Department of Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division; Customs and Border Protection (CBP), Director of Field Operations Hector A. Mancha, Jr.; CBP Presidio Port Director Jesus Chavez; and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division, made the announcement.
The HSI, CBP, and DEA are investigating the case.
Assistant U.S. Attorney Andrew Weber is prosecuting the case.
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Boston Man Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty on Friday, Aug. 27, 2021 to his role in a drug trafficking conspiracy.
Carlos Monteiro, 44, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 10, 2022. Monteiro was indicted in September 2020.
Monteiro was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area. In 2017, Monteiro participated in the drug trafficking conspiracy including distributing fentanyl on behalf of a co-conspirator.
The charge of conspiracy to distribute and possess with intent to distribute a controlled substance provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and John Mulcahy of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bolton Man Pleads Guilty to Fraud and Tax OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that MARK PAGANI, 60, of Bolton, waived his right to be indicted and pleaded guilty today in New Haven federal court to fraud and tax evasion offenses.
According to court documents and statements made in court, from 2013 to at least August 2015, Pagani conspired with another person (“K.S.”), who is now deceased, to defraud a victim investor of more than $1 million. K.S. arranged investment deals with the victim, including the purported acquisition of mortgages on properties. Pagani drafted documents to memorialize certain investment deals, accepted funds from the victim and held the funds in accounts he controlled, and he transferred funds to entities controlled by K.S. and others. By the time the victim investor made a third investment, which was to acquire mortgages on properties in Springfield, Massachusetts, and Middletown, Connecticut, Pagani knew that the first two investments had not occurred, and that the third investment was not legitimate. In association with the third investment, the victim wired more than $1.3 million to an account Pagani controlled. These funds were comingled with other funds, which Pagani sent a portion of to an entity for the benefit of K.S. In order to conceal the fraud and to create the appearance that it was a legitimate investment, Pagani wired false interest payments to the victim.
In addition, for the 2014 through 2017 tax years, Pagani paid for personal and other expenses using his law firm account and underreported his income on his federal tax returns, resulting in a tax loss of $181,702. Pagani was previously a practicing attorney with a law office in Wethersfield.
Pagani pleaded guilty to one count of conspiracy to commit wire fraud, and one count of tax evasion. Each offense carries a maximum term of imprisonment of five years. Pagani is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 15, 2021, in Hartford.
Pagani has agreed to pay restitution of $1,055,092.50 to the victim investor, and $181,702 in tax to the IRS.
This is Pagani’s third federal conviction.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Jennifer R. Laraia.
Belmond Man Sentenced to a Decade in Federal Prison for Meth TraffickingRead the Press Release
A man who received methamphetamine by mail from Mexico to redistribute was sentenced August 27, 2021 to ten years in federal prison.
Rafael Perez-Mercado, 29, from Belmond, Iowa, pled guilty in federal court on April 16, 2021, to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. During the investigation, it was also determined that Perez-Mercado was in the United States illegally.
Evidence at the plea and sentencing hearings showed that between September 2020 and October 22, 2020, Perez-Mercado and others were responsible for the distribution of over ten pounds of methamphetamine in the Wright County, Iowa, area. On October 8, 2020, law enforcement intercepted a package mailed from Mexico. The package had two pounds of methamphetamine concealed inside, destined to be delivered to Perez-Mercado. On October 22, 2020, law enforcement, using a confidential informant, made a controlled delivery of the package to Perez-Mercado at his home. Thereafter, one law enforcement agent captured Perez-Mercado exiting the rear door of his house as another agent attempted to make contact with him at the front door. Law enforcement agents seized nine packages of methamphetamine, each weighing one pound, from a bag Perez-Mercado was carrying as he exited the residence. Later that same day, during the execution of a search warrant at Perez-Mercado’s residence, law enforcement seized two more one-pound packages of methamphetamine that had been hidden inside a statue which was inside the package delivered to Perez-Mercado. Law enforcement also found other evidence of methamphetamine smuggling, including inside motor vehicle components, in Perez-Mercado’s garage.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Perez-Mercado remains in custody of the United States Marshal until he can be transported to a federal prison. Perez-Mercado was sentenced to 120 months’ imprisonment and must serve a five-year term of supervised release following the imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, the Wright County Sheriff’s Office, the Iowa Division of Criminal Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the Eagle Grove Police Department, and the Dows Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3047. Follow us on Twitter @USAO_NDIA.
Attorney General Garland Issues Statement on 2020 FBI Hate Crimes in the United States StatisticsRead the Press Release
Attorney General Merrick B. Garland issued the following statement on the FBI’s announcement of the 2020 Hate Crimes Statistics:
“Preventing and responding to hate crimes and hate incidents is one of the Justice Department’s highest priorities. The FBI Hate Crime Statistics for 2020 demonstrates the urgent need for a comprehensive response.
“Last year saw a 6.1% increase in hate crime reports, and in particular, hate crimes motivated by race, ethnicity and ancestry, and by gender identity. These numbers confirm what we have already seen and heard from communities, advocates and law enforcement agencies around the country. And these numbers do not account for the many hate crimes that go unreported.
“These statistics show a rise in hate crimes committed against Black and African-Americans, already the group most often victimized. Notably, they show a rise in hate crimes committed against members of the Asian-American Pacific Islander community. This also confirms what we have seen and heard through our work and from our partners.
“These hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands. All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love or how they worship.
“Our commitment to investigating and prosecuting hate crimes is deeply rooted in the department’s founding. At my direction, the department has rededicated itself to combating unlawful acts of hate, including by improving incident reporting, increasing law enforcement training and coordination at all levels of government, prioritizing community outreach and making better use of civil enforcement mechanisms. All of these steps share common objectives: deterring hate crimes and bias-related incidents, addressing them when they occur, supporting those victimized by them and reducing the pernicious effects these incidents have on our society.”
More information about the department’s response to hate crimes is available at https://www.justice.gov/hatecrimes. For more information on the department’s actions to combat hate crimes, click here.
Anchorage Drug Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by Chief U.S. District Judge Timothy M. Burgess to 15 years in federal prison followed by 10 years of supervised released for selling more than 500 grams or approximately 5,000 doses of methamphetamine.
According to court documents, Dorian Topps, 28, pleaded guilty in October 2020 to five counts of trafficking a controlled substance. Topps was involved in selling large amounts of methamphetamine to an undercover agent on five separate occasions, between October 2019 and January 2020. On three of the occasions, Topps personally completed the sale with the agent and on two other occasions, he provided other individuals with the methamphetamine to sell to the undercover agent.
In 2016 Topps was convicted and sentenced to four years in federal prison on a drug trafficking charge. He was still on federal supervised release for that conviction when he sold the methamphetamine to the undercover agent.
Topps’ accomplices, Isaiah Cross, 28, and Kevin Glover, 38, each pleaded guilty to one count of trafficking a controlled substance. In separate hearings Cross was sentenced to 10 years in federal prison followed by five years of supervised release and Glover was sentenced to six years and six months in federal prison followed by four years of supervised release.
“The trail of destruction caused by the distribution of methamphetamine and other illicit drugs is devastating in our communities,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “These sentences demonstrate that the Department of Justice will use every weapon in its arsenal to stop methamphetamine from reaching our neighborhoods and harming our citizens.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Alaska State Troopers and the Anchorage Police Department investigated the case.
Assistant U.S. Attorney Allison O’ Leary prosecuted the case.
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28 August 2021
Colorado Nurses Held Accountable for Taking Controlled Substances from PatientsRead the Press Release
DENVER – In two separate cases, the U.S. Attorney’s Office for the District of Colorado held nurses accountable after they stole controlled substances from their patients.
- Katie Muhs, age 34, of Littleton, CO, was sentenced for her felony conviction for illegally obtaining fentanyl through fraud and deception while on the job as a Registered Nurse in a hospital’s Intensive Care Unit.
- Alicia Nickel-Tangeman, age 44, formerly of Woodland Park, Colorado, entered guilty pleas to four counts of obtaining controlled substances using fraud and deception while she was on the job as a Registered Nurse at a hospital in Colorado.
Ms. Muhs was employed as a registered nurse in the Intensive Care Unit at a hospital in Colorado in 2019 when she used her position to divert fentanyl, a schedule II controlled substance, for her own personal use. The defendant admitted that between June 2019 and September 2019, she stole fentanyl by removing it from the IV bags of ventilated patients using a sterile syringe. She also admitted to stealing fentanyl remaining in vials of the drug after patient administration. The defendant stated she would remove the excess drug from the vials and replace the stolen drug with saline, then have a fellow nurse witness her “waste,” or dispose of, the saline. In pleading guilty to the single-count Information in the case, charging a violation of 21 U.S.C. § 843(a)(3), the defendant specifically admitted that on September 8, 2019, she removed a bag of fentanyl from the automated medication control machine at the hospital under a different nurse’s login credentials. She then removed fentanyl from the IV bag for personal use.
Ms. Nickel-Tangeman used her position as Registered Nurse to access the rooms of patients she was not assigned to care for in a separate unit of a Colorado hospital. The defendant falsely and fraudulently told patients that she was conducting a “study” on the effectiveness of Patient-Controlled Analgesia (PCA) pumps, which deliver controlled substances to hospital patients to relieve pain on-demand when the patient pushes a button. The defendant then used a key to open the machine that secured the syringe of hydromorphone that was to be dispensed to the patient. The defendant removed a portion of the drug from the syringe, which she kept, then returned the syringe to the patient’s PCA. The defendant illegally obtained controlled substances in this way from three patients on four occasions. When confronted by law enforcement regarding her actions, the defendant lied about the diversions and persisted in her false story that she was engaged in a study with a well-known university. The defendant engaged in obstructionist conduct by producing to law enforcement a false e-mail that she stated came from a friend who asked her to participate in the research. The defendant created the false e-mail herself using a fictitious e-mail account she created in the name of this alleged friend.
“We cannot allow health care professionals to feed their own addictions by diverting critical pain medications from patients,” said Acting United States Attorney Matt Kirsch. “Thanks to the hard work of our office, the FDA Office of Criminal Investigations, and the DEA, the theft of medications from suffering patients in these cases has been stopped.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those health care professionals who fraudulently obtain needed medicines from patients put those patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “Today’s announcement should serve as a reminder that such conduct will not be tolerated.”
“The DEA applauds the efforts of our Diversion Investigators that investigated this alongside the FDA and USAO,” said DEA Denver Field Division Special Agent in Charge Deanne Reuter. “We want it to be known that healthcare professionals who take advantage of patients in need by stealing their medications will be held accountable to the law.”
On August 27, 2021, U.S. District Judge Raymond Moore sentenced Ms. Muhs to three years of probation. The government agreed to recommend a probationary sentence in consideration of the defendant’s confession and her cooperation in disclosing full information on her diversion, which is a matter potentially affecting the public health and the integrity of the health care system. The felony offense is punishable by up to four years of imprisonment and a fine of $250,000, per count. The case number is 20-cr-00388-RM.
On August 26, 2021, Ms. Nickel-Tangemen pleaded guilty before U.S. District Court Judge Christine M. Arguello. Ms. Nickel-Tangemen will be sentenced on November 30, 2021. The case number is 21-cr-00214-CMA.
The investigations in these cases were conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Agency.
Assistant United States Attorney Anna Edgar is prosecuting both of these matters.
CASE NUMBERS: 21-cr-00214-CMA, 20-cr-00388-RM
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27 August 2021
William T. Mantanona Sentenced to 6 months Imprisonment for False Statement to a Federal AgentRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands announced that defendant William Topasna Mantanona, age 65, from Chalan Pago, Guam was sentenced in the United States District Court of the Guam to six months imprisonment for False Statement in violation of 18 U.S.C. §§ 1001(a)(2) and 2. The Court also ordered two years of supervised release following imprisonment, a mandatory $5,000 fine, and $100 special assessment fee.
During November 2018, the matter of United States v. Raymond John Martinez and Juanita Marie Quitugua Moser, Criminal Case No. 15-00031, went to trial before the United States District Court for the District of Guam. William T. Mantanona contacted a juror in an effort to affect the outcome of the trial. Federal agents recorded conversations of this activity between Mantanona and a third party. A mistrial was later declared after jurors were unable to reach an agreement on a verdict. Agents then questioned Mantanona, who provided a false statement concerning the juror interference. Mantanona stated that he never discussed a not guilty vote with a specific juror in the ongoing trial knowing full well that this statement was false. The United States Attorney’s Office referred the case involving Martinez and Moser to the Central District of California for prosecution, which resulted in convictions.
United States Attorney Anderson stated, “The United States Constitution provides for a speedy and public trial by an impartial jury. Although this Sixth Amendment right protects criminal defendants, the public also has an interest in fair and impartial court proceedings. Mantanona’s conduct was an affront to this basic concept of the rule of law. Such conduct taints our well-placed faith in trial by jury. This matter was therefore worthy of aggressive prosecution. Our office applauds the great work by the FBI and HSI, as well as the Court’s strong message of accountability.”
FBI Honolulu Division Special Agent in Charge Steven Merrill stated that, "Today's sentencing of William Mantanona sends a message that any attempt to corrupt the system of justice, will be met with severe consequences. Mantanona's participation in a scheme to influence a juror threatened the integrity of court proceedings which are the foundation of our justice system. The FBI takes its mission of protecting the American public seriously. We are dedicated to conducting thorough investigations and are committed to ensuring the subjects of our investigations get a fair trial before a truly impartial jury."
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney in the District of Guam.
Wilkes-Barre Man Convicted of Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tysheen Gott, a/k/a “LB”, age 45, of Wilkes-Barre, Pennsylvania, was found guilty of conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine, crack, and tramadol, after a seven-day trial before United States District Court Judge Malachy E. Mannion.
According to Acting United States Attorney Bruce D. Brandler, the jury found Gott guilty for having conspired to distribute more than one kilogram of heroin and more than 400 grams of fentanyl during the conspiracy. The jury also found Gott guilty on eight additional counts of unlawfully distributing fentanyl and/or crack between the time period beginning April 10, 2019 through March 5, 2020.
The Government presented testimony from five of Gott’s co-conspirators, as well as testimony from ten of Gott’s former drug customers, which spanned the conspiracy beginning in 2013 until the time of Gott’s arrest in June 2020. Federal law enforcement agents from the Federal Bureau of Investigation and police officers from the Wilkes-Barre and Scranton Police Departments also testified.
Gott was one of eleven defendants indicted in May 2020. All other co-conspirators have pleaded guilty and are awaiting sentencing.
This case was the result of a year-long investigation, in part driven by multiple federal wiretaps conducted by the Federal Bureau of Investigation, the Wilkes-Barre Police Department, the Scranton Police Department, the Pittston City Police Department, the Plymouth Police Department, the Pennsylvania State Police, the Luzerne County District Attorney’s Office, the Wyoming County District Attorney’s Office and the Office of Pennsylvania Attorney General. Assistant U.S. Attorneys Michelle Olshefski and Robert O’Hara prosecuted the case.
This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for the offenses is life in prison, 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.
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Wetzel County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christian Iversen, of New Martinsville, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Iversen, 34, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin.” Iversen admitted to having heroin in August 2019 in Marshall County.
Iversen faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. Marshall County Drug Task Force, a HIDTA-funded initiative, and the Marshall County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterbury Man Guilty of Cocaine Trafficking OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal jury in Bridgeport has found LUIS CASTRO, 33, of Waterbury, guilty of possession with intent to distribute 500 grams or more of cocaine.
The trial before U.S. District Judge Stefan R. Underhill began on August 24 and the jury returned its verdict yesterday.
According to the evidence and testimony at trial, a DEA Task Force investigation identified Castro as being involved in cocaine trafficking activity. On September 10, 2018, a court-authorized search of Castro’s residence on Delaware Avenue in Waterbury revealed approximately 566 grams of cocaine, a large kilogram press, narcotics paraphernalia, and $8,292 in cash.
Judge Underhill scheduled sentencing for November 19, 2021, at which time Castro faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Castro is released on a $200,000 bond pending sentencing.
This is Castro’s second federal conviction. In March 2011, he was sentenced in the Southern District of New York to 18 months of imprisonment for distributing cocaine and crack cocaine, and illegally dealing firearms.
This matter has been investigated by the DEA Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Tara Levens.
Walton County Man Faces Federal Indictment for Participation in Nationwide Child Exploitation EnterpriseRead the Press Release
PENSACOLA, FLORIDA – Michael J. McClure, 43, of DeFuniak Springs, has been indicted by a federal grand jury on criminal offenses related to his activity on Kik Messenger, a mobile device application, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida. McClure will make his appearance in federal court in Pensacola on August 31, 2021, at 2:00 pm before United States Magistrate Judge Hope T. Cannon.
The indictment alleges that McClure was part of an ongoing child exploitation enterprise to produce, distribute, receive, and possess child pornography. McClure is also charged with the production of child pornography as well as its distribution, receipt, and possession.
McClure faces a mandatory minimum 20 years up to a maximum of life imprisonment if convicted.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by the Federal Bureau of Investigation, the Escambia County Sheriff’s Office, the Walton County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Jennifer H. Callahan.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two South Florida Lawyers and Former Chief Operating Officer Sentenced for Roles in Massive 1 Global Capital Investment SchemeRead the Press Release
Miami, Florida – Two south Florida securities lawyers and the former Chief Operating Officer of 1 Global Capital LLC (“1 Global”) were sentenced for their roles in a sprawling fraud scheme that affected more than 3,600 investors in 42 states.
Andrew Dale Ledbetter, 79, of Fort Lauderdale, Florida, pled guilty to a single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60103), and was sentenced today to 60 months in prison by U.S. District Judge Roy K. Altman. Ledbetter was also ordered to pay over $148,976,248 million in restitution to the victims of the scheme.
Steven Allen Schwartz, 76, of Delray Beach, Florida, pled guilty to a single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60003), and on July 9, 2021, U.S. District Court Judge Roy K. Altman sentenced Schwartz to a term of imprisonment of 24 months. Schwartz was also ordered to pay over $36 million in restitution to the victims of the scheme.
Jan Douglas Atlas, 76, of Fort Lauderdale, Florida, pled guilty to a single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 19-CR-60258), and on August 20, 2021, U.S. District Court Judge Roy K. Altman sentenced Atlas to a term of imprisonment of 8 months. Atlas was also ordered to pay over $29 million in restitution to the victims of the scheme.
According to court documents, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials. Ledbetter was an attorney licensed in the State of Florida who had an of counsel position at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015. Atlas was a partner at Law Firm #1 and acted as outside counsel for 1 Global.
Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Ledbetter and Atlas knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.
At the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Ledbetter used and relied on Atlas’s opinion letters to continue to raise money illegally, in numerous pitches and communications to investment advisors and investors.
According to court documents, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global. Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was for commissions. Atlas received approximately $627,000 from Ledbetter’s commissions. Neither attorney disclosed these commissions to Law Firm #1. Ledbetter routinely held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials, without disclosing his extravagant commissions.
In addition, in order to attract investments, Individual #1 (the de facto owner of 1 Global), Schwartz, Ledbetter, and others, made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements.
Alan G. Heide, the former 1 Global Chief Financial Officer, was previously charged via information and sentenced to 60 months (Case No. 19-CR-60231). Information about the related cases can be found here: https://www.justice.gov/usao-sdfl/1Global-Capital.
Juan Antonio Gonzalez, Acting United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (“FBI”) Miami Field Office, Matthew D. Line, Special Acting Agent in Charge, Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation (“FDIC”) Office of Inspector General, made the announcement.
FBI Miami, IRS-CI, Miami Field Office, and FDIC-OIG investigated the case. This case is being prosecuted by Assistant U.S. Attorney Elizabeth Young. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 20-cr-60103.
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Traffic Stops Lead to Three Years in Federal Prison for Cedar Rapids Man Who Possessed Numerous Types of DrugsRead the Press Release
A Cedar Rapids man who possessed methamphetamine, cocaine, crack cocaine, heroin, and fentanyl was sentenced on August 25, 2021, to three years in federal prison.
Troy Allen Walton, age 45, from Cedar Rapids, Iowa, received the prison term after a February 18, 2021 jury verdict finding him guilty of seven counts of possession of a controlled substance.
Evidence at trial showed that law enforcement recovered methamphetamine, cocaine, crack cocaine, heroin, and fentanyl from Walton during a December 6, 2019 traffic stop. Law enforcement also seized methamphetamine, cocaine, crack cocaine, and a heroin/fentanyl mixture from Walton during a March 9, 2020 traffic stop.
Walton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Walton was sentenced to 36 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Walton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00047.
Follow us on Twitter @USAO_NDIA.
Three Sentenced for Violent Shooting in Aid of RacketeeringRead the Press Release
FORT WAYNE – United States District Court Judge Damon R. Leichty sentenced three individuals, members of “2500,” a Fort Wayne street gang who engaged in drug and firearms trafficking with “Grit Gang,” a street gang based in Bloomington, Indiana, for committing a violent crime in aid of racketeering announced Acting U.S. Attorney Tina L. Nommay.
William D. Beamon, aka “Lil’ Will,” 28, of Fort Wayne, Indiana, was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
Kyombe D. Bolden, “aka Pudge,” 30, of Bloomington, Indiana, was sentenced to a total of 324 months (27 years) in prison, followed by 2 years of supervised release.
Ronnie D. Burrus, “aka Ronnie Robinson, Ronnie Burris and Yung Ron,” 28, of Fort Wayne and Bloomington, Indiana, was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
In 2020, all three of these defendants entered pleas of guilty to two counts of attempted assault with a dangerous weapon in aid of racketeering; one count of assault with a dangerous weapon in aid of racketeering; and three counts of discharging a firearm during and in relation to a crime of violence. A fourth defendant, Demetri D. Beachem, has also pled guilty and is currently scheduled for sentencing on November 12, 2021.
“We will use all the tools we have as federal prosecutors to hold those involved in criminal activity accountable for their actions, including racketeering statutes. Our goal, along with our federal, state and local partners, is to protect our communities from violent activity perpetuated by groups of individuals, especially those involved in closely associated street gangs or other criminal organizations. We wish to thank our law enforcement partners for their investigative efforts to bring to justice those individuals involved in criminal acts of violence in our community,” said Acting United States Attorney Tina L. Nommay.
“This case was the first use of the federal racketeering statutes against street gangs in the Fort Wayne area and it will not be the last. Today’s sentences should send a strong message that criminal organizations such as the one the defendants were members of will not be tolerated in our communities, and the FBI and our law enforcement partners will continue our efforts to remove those who participate in this violent activity from our streets,” said FBI Indianapolis Special Agent in Charge Paul Keenan.
According to documents in this case, gang members of 2500 and Grit Gang were engaged in drug and firearms trafficking and were responsible for violent criminal gang activity. On October 4, 2014, the defendants received an insulting social media video from rival gang members, and they reacted by hunting down these rival gang members, locating them at a residence at the intersection of Caroline and Suttenfield Streets in Fort Wayne, Indiana. Upon seeing the rivals exit the house, the defendants began shooting, striking the house and a neighboring house with gunfire. These individuals fired approximately 50 shots, exposing people in both houses to significant danger. One victim suffered only a minor wound, but the dangerous actions of the defendants risked the lives of many innocent bystanders and children in both houses.
This multi-agency investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Gang Task Force in Fort Wayne, which includes the Federal Bureau of Investigation, the Allen County Police Department, the Fort Wayne Police Department, and the Indiana State Police. Also assisting with this investigation were the Bloomington Police Department, the Indiana State Police Laboratory Division, and the Fort Wayne Police Department’s Detective Bureau and Gang and Violent Crimes Unit. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
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Three Maryland Residents Facing Federal Indictment for Attempting to Illegally Export Arms and Ammunition to NigeriaRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging three Maryland men for the federal charges of conspiracy, violation of the Arms Export Control Act and the Export Reform Control Act, related to the export of firearms and ammunition from the United States to Nigeria. Charged in the indictment, which was returned late yesterday, are:
Wilson Nuyila Tita, age 45, of Owings Mills, Maryland; Eric Fru Nji, age 40, of Fort Washington, Maryland; and
Wilson Che Fonguh, age 39, of Bowie, Maryland.The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to the four-count indictment, from at least November 2017 through July 19, 2019, the defendants conspired with each other and with others to export from the United States to Nigeria defense articles and items identified on the United States Munitions List (“USML”) and the Commerce Control List (“CCL”) without first obtaining export licenses. The defendants also allegedly conspired to conceal from the United States that those items were being shipped from the Port of Baltimore in Maryland to Nigeria and at least one other location in Africa. The defendants and their co-conspirators allegedly contributed funds for the purchase of firearms, ammunition, reloading materials and other equipment for shipping overseas. The indictment alleges that the defendants and their co-conspirators communicated about their efforts and plans to ship weapons and ammunitions using an on-line encrypted messaging application and code words in order to conceal their activities.
As detailed in the indictment, the defendants and other conspirators concealed the firearms, ammunition, rifle scopes, and other items in heavily wrapped packages and duffle bags, and inside sealed compressor units, placing those items into a shipping container destined for Nigeria without obtaining the requisite licenses from the U.S. Department of State and the U.S. Department of Commerce. Further, as part of the conspiracy, one of the co-conspirators allegedly caused the submission of electronic export information to the U.S. government for the container which listed materially false information as to the identity of the exporter and the intermediate and ultimate consignee, as well as the ultimate destination of the container’s contents.
Specifically, the indictment alleges that on January 17, 2019, the defendants and their co-conspirators exported, attempted to export, or caused to be exported to Nigeria articles on the USML the export of which was controlled under the Arms Export Control Act, without first having obtained the required license or written approval from the U.S. Department of State, specifically: 38 firearms; over 35,000 rounds of ammunition; and 44 magazines. On that same day, the defendants allegedly exported to Nigeria one Bushnell Trophy Rifle Optic and one Burris AR Rifle Scope, the export of which were controlled under the Commerce Control List, without first having obtained the required license or written approval from the U.S. Department of Commerce. Finally, the indictment alleges that the defendants transported 28 firearms with obliterated serial numbers.
If convicted, the defendants each face a mandatory sentence of five years in federal prison for the conspiracy; a maximum of 20 years in federal prison each for violating the Arms Export Control Act and for violating the Export Control Reform Act; and a maximum of five years in federal prison for transportation of a firearm with an obliterated serial number. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. The defendants are each expected to have an initial appearance this afternoon in U.S. District Court in Baltimore, before U.S. Magistrate Judge Thomas M. DiGirolamo beginning at 3:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Seven defendants have been charged in related cases and of those six have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the ATF for their work in the investigation. Mr. Lenzner recognized the U.S. Department of Commerce, Office of Export Enforcement; U.S. Department of State Diplomatic Security Service; Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation. Acting U.S. Attorney Lenzner thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Sunland Park man sentenced to 15 years in prison for hostage taking and harboring aliensRead the Press Release
ALBUQUERQUE, N.M. – Adrian Acevedo, 37, of Sunland Park, New Mexico, was sentenced on Aug. 24 to 15 years in federal prison. Acevedo pleaded guilty on Feb. 11, 2020, to conspiracy to take a hostage and conspiracy to harbor illegal aliens.
According to court records, on Oct. 4, 2019, Acevedo and his co-conspirators detained two sisters, both Cuban nationals, at Acevedo’s home in Sunland Park. Acevedo and the co-conspirators contacted the sisters’ brother and demanded money for their release. Later that day, co-conspirator Willie Espinoza took the sisters to another house where they were held by Espinoza, Judith Clouser and David Diaz. The conspirators continued to demand money from the brother until they received $1,500 on Oct. 5. The sisters were left in the house until they were rescued by Sunland Park Police.
On Nov. 15, 2019, Acevedo transported an undocumented alien to his home. Acevedo continued to harbor the alien in his home until the alien was transported to another residence on Nov. 17. Federal agents arrested Acevedo on Nov. 19. In his plea agreement, Acevedo admitted that he harbored the alien “for commercial advantage and personal financial gain,” and that he knew what he was doing was illegal.
Upon his release from prison, Acevedo will be subject to three years of supervised release.
On Feb. 6, 2020, Espinoza pleaded guilty to conspiracy to take a hostage, and on Oct. 27, 2020, was sentenced to nine years in prison. On March 11, 2020, Diaz pleaded guilty to conspiracy to take a hostage, and on Oct. 28 was sentenced to 11 years and three months in prison. On Jan. 7, Diaz’s sentence was amended to five years and three months. On Jan. 17, 2020, Clouser pleaded guilty to conspiracy to take a hostage.
Homeland Security Investigation investigated this case with assistance from U.S. Border Patrol, the Hatch Police Department and the Sunland Park Police Department. Assistant U.S. Attorney Luis A. Martinez prosecuted the case.
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St. Francis Woman Sentenced for Involuntary ManslaughterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a St. Francis, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Diana Swift, age 32, was sentenced to 34 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Swift was indicted by a federal grand jury on November 10, 2020. She pled guilty on June 1, 2021.
The conviction stemmed from an incident that occurred on September 14, 2020, in Todd County, South Dakota. On that date, Swift had been consuming alcohol, and was driving a car westbound on US Highway 18 west of Mission, South Dakota. Swift was traveling at a high rate of speed when she drifted on the eastbound shoulder, overcorrected and then veered into oncoming traffic, striking an eastbound vehicle driven by the victim, an adult female. The victim died as a result of injuries suffered in the wreck.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Swift was immediately turned over to the custody of the U.S. Marshals Service.
Second Man Charged in Deaths of Smuggled Chinese MigrantsRead the Press Release
SAN DIEGO – Saad Ali Awan, a U.S. citizen living in El Centro, appeared in federal court today to face charges that he was part of a conspiracy to illegally transport three Chinese nationals into the U.S. from Mexico who were later found dead in the trunk of a smuggler’s BMW.
According to a federal complaint unsealed today, Awan placed help-wanted ads on Craigslist to recruit human smugglers. Neil Edwin Valera responded to one of those ads and as a result became the smuggler of the Chinese nationals who perished due to heat and asphyxiation in the trunk.
Valera was the first to be charged in this case; Awan is the second. Valera pleaded guilty and was sentenced to five years in prison in connection with the deaths. Awan was arrested yesterday at his home in El Centro. He was charged with Conspiracy to Encourage Aliens to Enter Resulting in Death and Bringing in Aliens without Presentation for Financial Gain.
According to the complaint charging Awan, agents and officers investigating the deaths of the Chinese nationals tracked cell phone and email activity to Awan and found that he was associated with at least 14 smuggling incidents that occurred in the Southern District of California from July 4, 2019 to July 11, 2020.
According to court documents, San Diego police received an emergency 911 call on August 11, 2019 from a person reporting a foul odor and blood dripping from a suspicious vehicle with Texas license plates parked near the 2100 block of Jaime Avenue in San Diego.
San Diego police officers discovered a 1999 silver BMW with a Texas license plate. The officers lifted the trunk and found what initially appeared to be two deceased Asian females. Homicide detectives found an additional victim, an Asian male, pressed up against the rear wall of the trunk. A witness said the car was first noticed two days earlier and no one was seen coming or going.
Video recordings show the same car crossing into the United States from Mexico on August 9, 2019, at the San Ysidro port of entry at 3:14 p.m. Valera was the registered owner of the vehicle. Valera was arrested soon after. According to the complaint charging Awan, Valera told federal agents during his post-arrest interview that he became a human smuggler after responding to a Craigslist ad.
That ad was later traced back to Awan. Valera ultimately agreed to smuggle an unknown number of Chinese women into the U.S. in the trunk of his BMW for $6,000. Valera’s cell phone records indicated he had hundreds of contacts that were traced back to Awan and another conspirator.
“Human smugglers do not act alone, and we will continue to prosecute offenders who participate at all levels of the criminal organizations responsible for these dangerous crimes,” said Acting U.S. Attorney Randy Grossman. “We are determined to prevent more tragic and senseless deaths.” Grossman commended AUSA Michael Wheat and the agents who diligently investigated this case.
“This is a tragic event that could have been avoided if people were more aware of the dangers of being smuggled into the U.S. by criminal organizations that value profit over human life,” said Homeland Security Investigations (HSI) San Diego Acting Special Agent in Charge Chad Plantz. “HSI and its law enforcement partners will continue to arrest, prosecute and bring these unscrupulous smugglers and criminal organization to justice.
San Diego Sector Border Patrol's Chief Patrol Agent, Aaron Heitke affirms, "We are grateful for the tenacity, persistence, and hard work that our law enforcement partners have demonstrated over the past several months. Their collaborative efforts with the United States Attorney's office have resulted in the arrest of Saad Ali Awan, who is alleged to be a prolific smuggler within our area of responsibility."
“We appreciate the opportunity to work jointly with our investigative partners to help bring individuals to justice, identifying and arresting those involved in this tragic case,” said Pete Flores, Director of Field Operations for U.S. Customs and Border Protection in San Diego.
Awan will next appear in federal court on August 31, 2021 for a detention hearing before U.S. Magistrate Judge Montenegro in El Centro.
DEFENDANT Case Number: 21MJ3202-LL
Saad Ali Awan Age: 23 El Centro, California
SUMMARY OF CHARGES
Conspiracy to Encourage Aliens to Enter Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(iv)(v)(I)(II) and (B)(iv)
Maximum penalty: Death or life in prison and $250,000 fine
Bringing in Aliens without Presentation for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Mandatory minimum three years, up to 15 years in prison
INVESTIGATING AGENCIES
San Diego Police Department
U.S. Customs and Border Protection, Office of Field Operations
U.S. Customs and Border Protection, U.S. Border Patrol
Homeland Security Investigations
Rosebud Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Lloyd Jacob One Star, a/k/a Lloyd One Star, III, age 31, was sentenced to 48 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Star was indicted by a federal grand jury on February 8, 2021. He pled guilty on June 3, 2021.
The conviction stemmed from an incident that occurred on December 14, 2021, in Todd County. On that date, One Star got into a verbal confrontation with his long-term girlfriend, the victim, at their residence. One Star became angry and punched the victim in the face, permanently injuring her left eye. One Star also kicked the victim and hit her with a chair. One Star fled the residence after a family member intervened.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Retired Crane Navel Employee Charged with Possessing Stolen U.S. Government Property and Possessing Child PornographyRead the Press Release
EVANSVILLE – A federal grand jury in Evansville returned an indictment yesterday charging a Loogootee, Indiana man with possession of a firearm by a felon, possession of stolen U.S. government property, and possession of child pornography.
According to court documents, Timothy L. Guy, 74, of Loogootee, retired from Crane Navel in 2004 after working 38 years at the facility. During that time, Guy was an explosive handler at the Army Ammunition Activity Center and had access to ammunition and munitions.
The Indiana State Police and Martin County Sheriff’s Office began investigating Guy for his involvement with child pornography. Guy was arrested April 30, 2021 for possessing child pornography, and while at Guy’s property, an investigator discovered a vast amount of ammunition in a cellar. Law enforcement investigators secured the area and requested the assistance of the NSA Crane’s EOD, and the ATF. A search warrant was executed and over 10,000 various rounds of ammunition, several firearms, and a large amount of child pornography was discovered. Guy had a previous convection for possession of child pornography in April 2021 from Martin County. He is being held on state charges for probation violation and possession of child pornography.
Guy has been charged with one count of possession of a firearm by a felon, and one count of possession of stolen U.S. property. If convicted, he faces up to 10 years imprisonment, up to a $250,000 fine and up to 3 years supervised release on each count. He is also charged with one count of possession of child pornography. If convicted, he faces up to 20 years imprisonment, up to a $250,000 fine, and a term of up to life of supervised release. The penalty is increased to a mandatory minimum of 10 years imprisonment for a qualifying prior conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Department of Defense Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Indiana State Police, and the Martin County Sheriff’s Office.
Assistant United States Attorney Todd S. Shellenbarger is prosecuting the case.
Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Kameron Lamont Jackson, age 29, was sentenced to 21 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jackson was indicted by a federal grand jury on March 9, 2021. He pled guilty on June 3, 2021.
The conviction stemmed from an incident that occurred between December 12, 2020, and March 9, 2021, in Rapid City. Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, knowingly failed to properly register as a sex offender and update his registration when he changed his place of residence.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Jackson was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
David Marrowbone, age 58, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marrowbone was indicted for Failure to Register as a Sex Offender by a federal grand jury on March 9, 2020. He pled guilty on May 21, 2021.
Marrowbone was convicted of Assault with the Intent to Commit Rape in March 1982. As a result of this conviction, he is required to register as a sex offender. Marrowbone was convicted of Failure to Register as a Sex Offender in 1998, 2015, and 2018. On March February 15, 2019, Marrowbone began his term of supervised release but failed to update his sex offender registration between December 25, 2020, and April 21, 2021.
This case was investigated by U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service.
Quincy Man Sentenced to 151 Months for Methamphetamine ChargeRead the Press Release
DAVENPORT, IOWA – On August 25, 2021, United States District Court Chief Judge John A. Jarvey sentenced Michael Rees, age 40, of Quincy, Illinois, to 151 months in prison for his involvement in a methamphetamine conspiracy operating out of Burlington. Rees was also found to have possessed a firearm related to his drug trafficking activities and he was under criminal justice supervision at the time of this offense.
Rees was one of eight defendants who faced federal charges in the Southern District of Iowa after a multi-year joint federal and state investigation which culminated in the execution of search warrants in various locations, including Burlington, on November 19, 2019.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Federal Bureau of Investigation; West Central Illinois Taskforce; Quincy, Illinois Police Department; Southeast Iowa Narcotics Taskforce; Burlington Police Department; and the Des Moines County Sheriff’s Office. The United States Attorney’s Office for the Southern District of Iowa prosecuted this matter.
This case is 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 safter for everyone.
Portsmouth Woman Sentenced for Fraud Schemes Targeting VeteransRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman was sentenced today to 9.5 years in prison for wire fraud and aggravated identity theft in connection with a scheme to defraud veterans.
“What is most egregious about the defendant’s conduct is that she used her own status as a former veteran to defraud and take advantage of other veterans,” said Raj Parekh, Acting U.S. Attorney in the Eastern District of Virginia. “The sentence imposed in this case reflects the serious nature of these fraud schemes and the potential consequences that those who victimize veterans, who have sacrificed so much for our country, could face in the Eastern District of Virginia.”
According to court documents, Rita Copeland, 59, operated an entity known as “Veteran Services of the Commonwealth.” From 2016 through 2020, Copeland purported to provide caregiving, contracting, and rental assistance services to various veterans. Copeland caused a number of victims to apply for Home Improvements and Structural Alterations (HISA) grants through the U.S. Department of Veterans Affairs. Such grant payments are to be used for certain designated improvements to the residences of veterans. Copeland failed to perform all of the promised work and used a portion of these payments to her own benefit, contrary to the designated purposes of the funds.
Copeland also diverted the income and retirement fund payments of another veteran to a bank account that she had opened. In addition, Copeland fraudulently obtained and diverted loan funds and used the credit and debit cards of this elderly victim. Finally, Copeland engaged in a rental fraud scheme, purporting to link veterans and others with landlords, but then diverted rental and security deposit payments to her own benefit. In total, from at least 2017-2020, Copeland’s fraud schemes impacted at least 29 victims, resulting in a combined loss of approximately $430,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Brian Samuels prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 4:20-cr-63.
Peoria Drug Dealer Sentenced to over Thirteen Years in PrisonRead the Press Release
PEORIA, Ill. –John M. Henigan, 36, of Peoria, Illinois, was sentenced on August 26, 2021, to just over thirteen years (158 months) in federal prison, to be followed by five years of supervised release, for distribution of heroin.
Henigan, who pleaded guilty to three counts of distribution of heroin last year, sold the drugs to a police informant in the fall of 2017. According to testimony at sentencing, investigators had learned Henigan was a significant heroin dealer in the Peoria area earlier that year. Through testimony and other evidence provided at sentencing, the district court also determined that Henigan caused the overdose death of a Washington, Illinois, man in April 2016.
According to court documents, after Henigan’s arrest in 2019, he admitted he was a heroin dealer and provided a list of various crack cocaine and heroin customers he sold drugs to throughout the years, some of whom have since overdosed and died. Evidence collected from Henigan’s phone showed that he also brokered sales of stolen firearms, in addition to his drug trafficking. Numerous images of guns and drugs were found on his phone. Evidence established that Henigan was not a drug user and earned hundreds of dollars a day dealing.
Henigan’s heroin trafficking dated back to 2015 and involved over 880 grams of heroin, as well as crack cocaine. During sentencing, U.S. District Court Judge Joe Billy McDade emphasized Henigan’s “conscious and deliberate” decision to traffic drugs “that kill people.” Judge McDade also described Henigan’s involvement with trafficking stolen firearms as unjustifiable.
“This case starkly demonstrates what drug dealers can expect when they choose to sell poisonous drugs into our communities,” said Acting U.S. Attorney Douglas J. Quivey. “Our office commends the Pekin Police Department’s dedication and perseverance in working up the chain to target high-level drug dealers in our community. Their collaboration with DEA is a successful example of leveraging the strengths of federal, state, and local law enforcement agencies against drug dealers who profit off other people’s serious and tragic additions.”
“The Pekin Police Department appreciates the working relationship that we have with the DOJ,” said Pekin Police Chief John Dossey. “This case is a clear example of ‘team work’ between local and federal agencies in an effort to make a difference not only in our community, but in society as a whole. I would like to recognize the Pekin detectives who worked tirelessly on this matter solely to better our community. I would also like to thank the DOJ prosecution team who worked with our detectives to successfully prosecute this case to remove a dangerous individual from our streets.”
Henigan has remained in the custody of the U.S. Marshals since his arrest.
The Drug Enforcement Administration and Pekin Police Department investigated the case with the assistance of the Tazewell County Sheriff’s Office and Morton Police Department. Assistant U.S. Attorney Katherine Legge represented the government in the prosecution.
Owner of Jet Charter Company Settles False Claims Act Allegations Regarding Misappropriation of Payment Protection Program LoanRead the Press Release
Miami, Florida – Seth A. Bernstein, the owner of jet charter company All in Jets LLC dba JetReady, located in Florida, has agreed to pay $287,055 to settle allegations that he misappropriated Payment Protection Program (PPP) loan proceeds for his personal expenses. JetReady is a jet charter operator with its principal place of business in Fort Lauderdale, Florida.
The United States alleged that Bernstein, on behalf of JetReady, applied for and received a PPP loan totaling $1,173,382 in April 2020. Within a day of receiving the loan proceeds, Bernstein allegedly diverted $98,929 of the funds to pay for personal, non-company related expenses. JetReady has since filed for bankruptcy in the Southern District of New York.
“The Paycheck Protection Program was enacted over a year ago to help small businesses and their employees financially survive the COVID-19 pandemic,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Since this and other programs under the CARES Act were initiated, our Office has prioritized investigating and bringing to justice those who illegally seek to benefit from the global health crisis and the programs put in place to help those in need.”
“Paycheck Protection Program loans were intended to provide critical relief to small businesses so that they could retain employees and keep their doors open,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will ensure that those who misused these taxpayer-funded loans and denied other eligible businesses access to such assistance are held accountable.”
“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG). “OIG will aggressively investigate allegations of wrongdoing in SBA’s pandemic response programs. I want to thank the Department of Justice for its dedication to achieving this settlement.”
“The result in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working with Department of Justice and other federal law enforcement agencies, to detect Paycheck Protection Program abuses, pursue individuals and companies that engage in such abuses and protect the integrity of the PPP program,” said SBA General Counsel Peggy Delinois Hamilton.
Congress enacted the PPP on March 29, 2020, as part of the CARES Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions in loans to small businesses struggling to pay employees and other business expenses. Under the PPP, eligible businesses could obtain loans guaranteed by the Small Business Administration (SBA). Businesses were required to spend loan proceeds for employee compensation, rent or mortgage, and other specified expenses and, depending on their use of the loan proceeds, could qualify for loan forgiveness, up to the full amount of the loan.
Today’s civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Victoria Hablitzel, a former JetReady employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Ms. Hablitzel will receive $57,411. The case is captioned U.S. ex rel. Hablitzel v. All in Jets, LLC and Seth A. Bernstein, No. 20-cv-61410 (S.D. Fla.).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from the SBA’s Office of General Counsel and OIG.
This matter was handled by Assistant U.S. Attorney James A. Weinkle of the Southern District of Florida and Trial Attorney Jonathan Gold of the Civil Division.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Orange County Man Pleads Guilty to Cocaine ChargeRead the Press Release
ALBANY, NEW YORK – Peter Mami, age 43, of Orange County, New York, pled guilty today to possessing and intending to distribute more than 500 grams of cocaine. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge, United States Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Mami admitted that on March 2, 2020, he and his co-defendant possessed with the intent to distribute approximately two kilograms of cocaine.
Mami faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life, when Chief United States District Judge Glenn T. Suddaby sentences him on January 6, 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 the DEA, and is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Joshua R. Rosenthal.
Omaha Man Sentenced for Role in Sex Trafficking of a MinorRead the Press Release
Acting United States Attorney Jan Sharp announced that Darien T. Brewer, 30, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to engage in sex trafficking of a minor. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Brewer to 180 months’ imprisonment. There is no parole in the federal system. After his release from prison, Brewer will begin a five-year term of supervised release.
An investigation conducted by Homeland Security Investigations and the Nebraska Attorney General’s Office determined that from January 2016 and continuing through January 2019, in the District of Nebraska and elsewhere, Brewer (also known as “BD”) and a co-defendant, Lauryn Besta, conspired and agreed to recruit, transport, and entice four minor females, under the age of 18 years old, to engage in commercial sex. The victims were introduced into the lifestyle of prostitution through the use of drugs and alcohol provided by Brewer and Besta. Brewer and Besta often referred to the minors as “the Bunny Gang.”
Investigators determined that Brewer and Besta would instruct the minors how to advertise, solicit, and charge for commercial sex acts in the District of Nebraska and elsewhere. Brewer and Besta obtained commercial sex customers for the minors by purchasing and posting advertisements on internet sites such as www.backpage.com. Sex customers responded to the advertisements via telephone and text message and commercial sex acts were coordinated to occur at various hotels, motels, and other locations. Brewer and Besta used vehicles and public highways to drive the minors to various hotels, motels, and other locations for commercial sex acts, including Omaha, Nebraska; Lincoln, Nebraska; Iowa; and Houston, Texas. The minors paid a portion or all of the payments received for commercial sex acts to Brewer and Besta.
On June 4, 2021, Besta pleaded guilty to conspiracy to engage in sex trafficking of a minor. Sentencing is scheduled for September 3, 2021
This case was investigated by Homeland Security Investigations and the Nebraska Attorney General’s Office.