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17 August 2021
Raleigh Felon Sentenced After Pulling a Firearm on Officers During a Drug InvestigationRead the Press Release
NEW BERN, N.C. – Rakim Royster of Raleigh was sentenced today to 57 months in prison for possession of ammunition by a convicted felon. Royster pled guilty to the charge on March 25, 2021.
According to court documents and statements made during hearings, in February 2020, the Raleigh Police Department received tips of drug activity at Royster’s Raleigh home. Law enforcement used a confidential source to make two controlled purchased of cocaine from Royster on February 25 and 28. The next day they obtained and executed a search warrant on Roster’s residence.
On February 29, 2020, prior to executing the search warrant, officers conducted a traffic stop to take Royster into custody. As they approached the car, Royster lifted his right hand from between the seats and pointed a handgun toward the approaching officers. But then he quickly dropped the gun and raised his hands to surrender. From the car’s floorboard, officers seized a Polymer80 9mm handgun with an extended magazine.
Officers then searched Royster’s home, where they found digital scales, baggies, and small amounts of cocaine and marijuana. They also recovered multiple 9mm magazines and bags of both 9mm and 40 caliber ammunition. Royster admitted to selling cocaine and heroin and stated that he carried the firearm for protection.
Even though the handgun Royster possessed was a Polymer80 handgun (sometimes referred to as a “ghost gun”), it was nevertheless a firearm under federal law, including for purposes of sentencing under the Federal Sentencing Guidelines, which led to the significant sentence Royster received.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorneys Daniel Smith, Jake D. Pugh, and Laura Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-0320-FL.
Pharmacist Arrested for Selling COVID Vaccination Cards OnlineRead the Press Release
A licensed pharmacist was arrested today in Chicago on charges related to his alleged sale of dozens of authentic Centers for Disease Control and Prevention (CDC) COVID-19 vaccination cards on eBay.
According to court documents, in March and April 2021, Tangtang Zhao, 34, of Chicago, sold 125 authentic CDC vaccination cards to 11 different buyers for approximately $10 per card. Zhao was a licensed pharmacist in Illinois and was employed at Company 1, a pharmacy which distributed and administered COVID-19 vaccines at its physical locations nationwide. As required by the CDC, Company 1 provided a CDC Vaccination Record Card to each vaccine recipient. Zhao, who worked at Company 1 as a pharmacist during that time, obtained and subsequently offered authentic CDC vaccination cards for sale online. The indictment charges Zhao with 12 counts of theft of government property.
“We take seriously, and will vigorously investigate, any criminal offense that contributes to the distrust around vaccines and vaccination status,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice and its law enforcement partners are committed to protecting the American people from these offenses during this national emergency.”
“Knowingly selling COVID vaccination cards to unvaccinated individuals puts millions of Americans at risk of serious injury or death,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “To put such a small price on the safety of our nation is not only an insult to those who are doing their part in the fight to stop COVID-19, but a federal crime with serious consequences.”
“Stealing and selling COVID-19 vaccination cards is inexcusable and will not be tolerated,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) – Chicago Region. “Fraudsters who engage in such unlawful conduct undermine efforts to address the pandemic and profit at the public’s expense. The health and safety of the public is our top priority, and we encourage people to obtain vaccination cards from their administering medical providers.”
Zhao is charged by indictment with 12 counts of theft of government property. Zhao made his initial court appearance on Aug. 17 before U.S. Magistrate Judge Sheila M. Finnegan of the U.S. District Court for the Northern District of Illinois. If convicted, he faces a sentence of 10 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owners/Managers of Florida Labor-Staffing Companies Indicted for Immigration Fraud and Money LaunderingRead the Press Release
An indictment was unsealed today charging three men who operated labor-staffing companies in Florida with conspiracy to harbor non-resident aliens and induce them to remain in the country and with conspiracy to commit money laundering.
According to the indictment, Mykhaylo Chugay, Oleksandr Morgunov, Volodymyr Ogorodnychuk and others owned and operated a series of labor-staffing companies in southern Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC, between August 2007 and July 2021. The indictment charges that the defendants, through these staffing companies, facilitated the employment in the hospitality industry of non-resident aliens who were not authorized to work in the United States.
If convicted, the defendants each face a maximum penalty of 10 years in prison on the conspiracy to harbor aliens and induce them to remain in the United States and a maximum penalty of 20 years in prison on the money laundering conspiracy. Each count also carries the possibility of a fine and supervised release upon completion of any sentence of incarceration. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
The U.S. Department of Homeland Security, Homeland Security Investigations and IRS-Criminal Investigation are investigating the case.
Trial Attorneys Sean Beaty and Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Chris Clark of the Southern District of Florida are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Orlando Sisters Sentenced in $25 Million Tax Fraud SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Petra Gomez to eight years in federal prison for conspiracy to defraud the government and tax evasion. She had pleaded guilty on November 16, 2020. Gomez’s sister, Jakeline Lumucso, previously pleaded guilty to conspiracy to defraud the government and was sentenced in April 2021 to four years in federal prison. The court also ordered Gomez and Lumucso to pay $24,940,495 in restitution to the IRS. Gomez was ordered to pay an additional $510,999 to the IRS for tax evasion.
According to court documents, from January 2012 to June 2016, Gomez and Lumucso conspired to defraud the IRS by submitting more than 16,000 false tax returns, which resulted in nearly $25 million in fraudulent tax refunds. To conceal the fraud, Gomez and Lumucso created five different tax preparation companies. In some instances, they opened the companies in the names of other people to conceal the fraud.
In addition, when filing her 2014 tax return, Gomez failed to declare more than $800,000 in income. Gomez claimed $213,434 in earnings when she actually had earned $1,110,508. This resulted in a tax liability of $510,999 for tax year 2014.
“Today’s substantial sentencing of Petra Gomez for her role in a conspiracy involving preparation of false tax returns, for both her clients and herself, is a triumph for all honest return preparers,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Putting abusive return preparers out of business is a top priority for IRS-CI. Let this be a reminder to others seeking to enrich themselves - tampering with the integrity of our nation's tax system will result in jail time."
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Shawn P. Napier and former Assistant United States Attorney Karen Gable.
Onondaga County Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Ryan Maher, 35, of Cicero, New York pled guilty today to receipt and possession of child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea before Chief United States District Court Judge Glenn T. Suddaby, Maher, who has a prior New York State conviction for Sexual Abuse in the Second Degree, admitted that he received child pornography in 2019 and 2020 using a peer-to-peer file sharing service on the internet. Maher also admitted that, on November 17, 2020, he possessed approximately 4,000 child pornography files on a thumb drive.
When Maher is sentenced on December 11, 2021, he faces at least 15 years and up to 40 years in prison for receiving child pornography and at least 10 years and up to 20 years in prison for possessing child pornography. In addition, Maher will be required to serve a term of supervised release of between five years and life after his term of incarceration and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and Computer Crimes Unit (CCU) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Oklahoma City Man Pleads Guilty to Making False Statement to Bank to Open Account for Marijuana BusinessRead the Press Release
OKLAHOMA CITY – Today, VICTOR NGO, 33, of Oklahoma City, and FRIENDLY MANAGEMENT GROUP, LLC (FMG), an Oklahoma business, pleaded guilty in connection with a scheme to open a bank account under false pretenses to launder proceeds from marijuana sales, announced Acting U.S. Attorney Robert J. Troester.
On August 2, 2021, the United States charged Ngo by Information with one count of making a false statement to a bank and FMG with one count of structured money laundering.
According to the Information, between May 29, 2019, and January 22, 2020, Ngo operated Cannabless, a leading medical marijuana company in Oklahoma. At the time, Cannabless was not in full compliance with Oklahoma’s medical marijuana laws.
Due to federal law, many banks in the United States are unwilling to accept deposits from the proceeds of marijuana sales. The Information alleges that Ngo used FMG to open a bank account by falsely stating that FMG was a wellness and fitness company, when in fact FMG engaged in a marijuana-related business. Based on this false statement, the bank opened an account it otherwise would have not opened. The Information alleges this fraudulent conduct allowed Ngo and FMG to illegally access the banking system and deposit proceeds generated by Cannabless’s sale of marijuana.
The Information further alleges that Ngo made cash deposits on nearly a daily basis, breaking up or structuring the transactions to amounts below $10,000 to avoid triggering the bank’s transaction reporting obligations under federal law. According to the Information, FMG laundered more than $770,000 in marijuana proceeds through the bank account during the scheme.
Today, Ngo pleaded guilty to making a false statement to a bank. As part of his plea, Ngo agreed to forfeit $621,570.00. At sentencing, Ngo faces up to 30 years and a potential fine of $1,000,000.00. FMG pleaded guilty to structured money laundering. As part of its plea, FMG admitted to laundering more than $770,000. At sentencing, FMG faces a potential fine of $770,000, or an amount equal to the value of the funds involved in the money laundering transactions.
This case is the result of an investigation by the Drug Enforcement Administration, the United States Marshal’s Service, and the Oklahoma Highway Patrol. Assistant U.S. Attorney Wilson D. McGarry prosecuted the case.
Reference is made to court filings for more information.
Ninth Defendant Pleads Guilty in TRICARE SchemeRead the Press Release
LITTLE ROCK—A ninth defendant has pleaded guilty in connection with a $12 million scheme to generate prescriptions for expensive compounded drugs paid for by TRICARE. Kenneth Myers Jr., 43, of Alpharetta, Georgia (formerly of Little Rock), pled guilty to conspiring to violate the Anti-Kickback Statute today before United States District Judge Kristine G. Baker.
Myers collected nearly $70,000 for recruiting TRICARE beneficiaries to receive expensive compounded drugs, for which TRICARE paid over $340,000. Myers acknowledged offering TRICARE beneficiaries money to receive the drugs and that medical providers, including co-defendant Joe David May a.k.a. Jay May, 40, of Alexander, rubber stamped prescriptions without consulting the TRICARE beneficiaries.
Upon learning a federal agent planned to interview a TRICARE beneficiary about his prescription, Myers instructed the man to lie by claiming he had been examined by a doctor before getting his prescription. When Myers was later interviewed, he lied to the FBI by claiming he played no role in securing prescriptions and instead directed beneficiaries to consult their own doctor.
In pleading guilty to the kickback conspiracy, Myers joins Albert Glenn Hudson, 40, of Sherwood; Derek Clifton, 39, of Alexander; Donna Crowder, 66, of North Little Rock; Jennifer Crowder (formerly Bracy), 38, of Little Rock; Keith Benson, 50, of North Little Rock; Keith Hunter, 52, of Little Rock; Angie Johnson, 50, of North Little Rock; and Blake Yoder, 40, of Scott.
Conspiring to violate the Anti-Kickback Statute is punishable by up to five years in federal prison, three years of supervised release, and a $250,000 fine.
Trial of the 10th and final defendant, May, is set for December 6, 2021, before Judge Baker. May faces charges of conspiracy, wire fraud, mail fraud, violating the anti-kickback statute, aggravated identity theft, lying to the FBI, and falsifying records in a federal investigation.
Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, James A. Dawson, Special Agent in Charge of the FBI Little Rock Field Office, and Miranda Bennett, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services announced the guilty plea.
The investigation was conducted by the FBI and HHS-OIG. The case is being prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Nine Men Arrested in Sex Trafficking OperationRead the Press Release
Acting United States Dennis R. Holmes announced that the South Dakota Division of Criminal Investigation (DCI), the South Dakota Internet Crimes Against Children Task Force (ICAC), and U.S. Homeland Security Investigations (HSI) conducted a joint sex trafficking operation during the 2021 Sturgis Motorcycle Rally. The operation began on August 6, 2021, and continued through August 12, 2021.
As a result, the following nine men were arrested and charged with a variety of offenses:
Alec Walker Daniel, 22, Rapid City, South Dakota: Attempted Enticement of a Minor Using the Internet
Alexander Wayne Basaldu, 35, Rapid City, South Dakota: Attempted Enticement of a Minor Using the Internet
Jesse James Young, 36, Rapid City, South Dakota: Attempted Enticement of a Minor Using the Internet
Joshua Robert Lehmann, 34, Rapid City, South Dakota: Attempted Enticement of a Minor Using the Internet
Christopher Thomas Dahl, 28, Wolcott, NY: Attempted Commercial Sex Trafficking of a Minor
Stephen Gregory Fontenot, 39, Black Hawk, South Dakota: Attempted Enticement of a Minor Using the Internet
Anthony James Kemp, 54, Spearfish, South Dakota: Attempted Enticement of a Minor Using the Internet
James Dean Hanapel, 20, Ellsworth AFB: Attempted Enticement of a Minor Using the Internet
Clayton John Paulson, 36, Spearfish, South Dakota: Attempted Enticement of a Minor Using the Internet
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years up to life in federal prison; any term of years, not less than five, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent. Restitution may also be ordered.
The mandatory minimum penalty upon conviction for Attempted Commercial Sex Trafficking of a Minor is 15 years up to life in federal prison; a $250,000 fine; any term of years, not less than five, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent. Restitution may also be ordered.
The charges are merely accusations and all nine defendants are presumed innocent until and unless proven guilty.
The agencies involved in the operation were DCI, ICAC, HSI, the U.S. Attorney’s Office, Ellsworth AFB Office of Special Investigations, Rapid City Police Department, and the Pennington County Sheriff’s Office.
The cases are being federally prosecuted by Assistant U.S. Attorney Sarah B. Collins.
The U.S. Attorney’s Office would like to extend its appreciation to all law enforcement partners involved in the investigations for their efforts and continued cooperation.
Niagara Falls Man Pleads Guilty for His Role in Marijuana ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samuel Zito, 31, of Niagara Falls, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiring to possess with intent to distribute, and distributing, 100 kilograms or more of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that sometime in August 2020, the defendant and co-conspirators Marquies McTyere and Alexander Schieppati, arranged for a shipment to be delivered to Freightboy Logistics in Niagara Falls, NY, from Canada. Unbeknownst to Zito and his co-conspirators, on August 6, 2020, the shipment, which contained approximately 600 pounds of marijuana packaged in vacuum sealed bags, had been intercepted by United States Customs and Border Protection (CBP) and was searched. The marijuana had been purchased by Zito and Schieppati from a source of supply in Canada and was intended to be distributed in the Niagara Falls and Buffalo areas. The shipment was tracked by investigators and a controlled delivery was conducted on August 7, 2020. Co-defendant Schieppati picked up the shipment and brought it to a motel in Niagara Falls. Zito, McTyere, and Schieppati were arrested, and investigators recovered $239,850 from a storage facility utilized by McTyere. The money was found in the vicinity of drug packaging materials and was packaged in vacuum sealed bags.
McTyere and Schieppati were previously convicted.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for December 27, 2021, before Judge Vilardo.
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Newburgh Man Charged with Transporting A Minor for Criminal Sexual ActivityRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and Bruce Campbell, Chief of the Town of Newburgh Police Department, announced that VERNON E. COPELAND III, was indicted today for transporting a minor from Bridgeport, Connecticut, to Newburgh, New York, with the intent to engage in criminal sexual activity with the minor. COPELAND was charged by criminal complaint on November 20, 2020, and arrested on August 3, 2021, in Tampa, Florida. COPELAND will be transported to the Southern District of New York for arraignment and prosecution.
U.S. Attorney Audrey Strauss said: “As alleged, Vernon Copeland preyed on a 13-year-old, whom he transported from Bridgeport to Newburgh to engage in sex. Thanks to the FBI and the Town of Newburgh Police, Copeland is in custody and facing this serious federal charge.”
FBI Assistant Director Michael J. Driscoll said: “A 13-year-old child should be spending time playing sports and going to school, not worrying about being used by an alleged criminal for his own sexual gratification. We must do better as adults in protecting these innocent children because even one being victimized by a predator is too many. A first step in helping someone who may be a victim - call 1-800-CALL-FBI if you have any information about Mr. Copeland.”
According to the allegations contained in the Indictment returned today[1]:
On or about February 7, 2020, COPELAND transported a 13-year-old minor (“Victim-1”) from Bridgeport, Connecticut, to Newburgh, New York, where he engaged, and attempted to engage, in illegal sexual activity with Victim-1.
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COPELAND 36, of Newburgh, New York, is charged with one count of transporting a minor with intent to engage in criminal sexual activity, which carries a minimum sentence of 10 years in prison and a maximum sentence of life in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the efforts of the FBI and the Town of Newburgh Police Department. She added that the investigation is ongoing.
Any individuals who believe they have information that may be relevant to this investigation should contact the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov/.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Lindsey Keenan is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Natchez Man Sentenced to 18 Months in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss – A Natchez man was sentenced today to 18 months in prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon, announced Acting United States Attorney Darren LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Albert Burnell Chatman, 26, possessed a firearm in his truck when he reported to his probation officer. Chatman had previously been convicted of house burglary and was sentenced to 7 years in the custody of the Mississippi Department of Corrections, but those 7 years were suspended, and Chatman was ordered to supervised probation.
Chatman was charged in a federal criminal indictment with possessing a firearm as a convicted felon. He pled guilty on April 29, 2021.
The Mississippi Department of Corrections, Natchez Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway 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.
Murfreesboro Man Sentenced After Armed Robbery of Conway Convenience StoreRead the Press Release
NEW BERN, N.C. – Eric Laneil Beale of Murfreesboro was sentenced today to 92 months in prison for interference with commerce by robbery and brandishing a firearm in connection with that crime. Beale pled guilty to the charges on March 9, 2021.
According to court documents and statements made during hearings, on January 10, 2019, at around 6:30 p.m., two men holding guns ran into the Park N Shop convenience store in Conway, North Carolina. One man—wearing all black with a black hood pulled over his face—went to an employee who was working behind a deli counter, grabbed her by her shirt, and pushed her to the front counter with the gun against her head. The other man—wearing bright blue pants and a burgundy hooded sweater with the hood down—went behind the front counter and grabbed the money from the cash register. Both men then fled on foot.
Law enforcement began searching the area, and one officer noticed a man, later identified as Beale, crouching behind a parked car. Beale, still crouching as if trying to not be seen, then walked over and got into the driver’s seat of another car that someone had just parked and stepped away from. The officer ordered Beale out of the car and detained him. A pat down uncovered twenty stacked $5 bills in Beale’s front pants pocket, and Beale admitted that he was involved in the robbery.
At the police station, Beale confessed to going into the store and committing the robbery, identifying himself as the man who had collected the money. He directed officers to an abandoned building near a cemetery, where officers recovered a .380 caliber Hi-Point handgun, a plastic bag containing the rest of the stolen money, and the blue pants and burgundy sweater that he had worn during the robbery.
Law enforcement later identified Beale’s accomplice as co-defendant Isaiah Vaughan based on a distinctive tattoo visible on the surveillance video. Vaughan pled guilty to the same charges on June 8, 2021, and is scheduled to be sentenced during the Court’s October 2021 term.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Conway Police Department and Northampton County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-cr-0049-FL.
Menomonie Felon Sentenced to 54 Months for Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Xavier Gentry, 33, Menomonie, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 54 months in prison for unlawfully possessing a loaded firearm as a convicted felon. This prison sentence will be followed by 3 years of supervised release. Gentry pleaded guilty to this charge on May 21, 2021.
On June 7, 2020, while outside of a bar in downtown Eau Claire, Wisconsin, Gentry pulled out a loaded firearm and displayed it during an altercation. He then ran from responding officers, who arrested him in a nearby parking lot. Notably, just seven days earlier, Gentry was sentenced to state probation in Eau Claire County Case No. 19CF1767. That case charged Gentry for various crimes after he shot and injured a person and injured a dog during a drug robbery.
The term of imprisonment in this case will run concurrently with a three-and-a-half-year prison sentence Gentry is currently serving in connection to Eau Claire County Case No. 20CF774. Gentry was convicted in that case for possessing cocaine with intent to distribute on the same night as this federal offense.
At sentencing, Judge Conley reasoned that additional prison time was warranted because of the great risk Gentry posed to the community when he chose to display a loaded handgun. Judge Conley also noted that Gentry’s extensive criminal history, which includes 13 prior convictions and crimes of violence, also shows that he has been unable or unwilling to take responsibility or his own actions up until this point.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Gentry were the result of an investigation conducted by the Eau Claire Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The Eau Claire Sheriff’s Department also provided assistance. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Martell Man Pleads Guilty to Illegally Possessing Gun After Traffic Stop Search Uncovers Meth and Loaded HandgunRead the Press Release
A man who illegally possessed a loaded handgun pled guilty today in federal court in Cedar Rapids.
Timothy James Hensley, age 44, from Martell, Iowa, was convicted of one count of being an unlawful drug user in possession of a firearm.
At the plea hearing, Hensley admitted that he unlawfully possessed a gun on October 19, 2020. Evidence at a prior hearing showed that Hensley was stopped by a Linn County Sheriff’s Deputy for driving a truck with a license plate that belonged to a different vehicle. During the stop, the Deputy learned that Hensley was barred from driving and had an outstanding warrant for failure to appear for court. During a search of Hensley’s person, the Deputy found a container with methamphetamine, and during a search of a backpack found on the passenger’s seat, officers found approximately 27 grams of methamphetamine and a loaded .45 caliber handgun.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Hensley remains in custody of the United States Marshal pending sentencing. Hensley faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case was investigated by the Linn County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑00036‑CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Marshall County woman sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Dannielle L. Young, of Moundsville, West Virginia, was sentenced today to three years of probation for a methamphetamine charge, Acting U.S. Attorney Randolph J. Bernard announced.
Young, 32, pleaded guilty in January 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Young admitted to working with others to distribute methamphetamine from August 2019 to August 2020 in Marshall County and elsewhere.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Market Owner Sentenced to 10 Years for Conspiring to Distribute Cocaine from His StoreRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 120 months’ imprisonment on his conviction of conspiracy to distribute cocaine, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Willie Harris, age 42, formerly of Bergman Street, Pittsburgh, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting extensive drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Willie Harris conspired to distribute 500 grams or more of cocaine out of the retail convenience store that he owned, Woogie’s Market, located at 3038 Chartiers Ave., in the West End of the City of Pittsburgh.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to comply with the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department for the investigation leading to the successful prosecution of Harris.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Manhattan U.S. Attorney Settles Fraud Suit Against Tower Maintenance Corp. for False Statements About Disadvantaged Business Participation on Two Federal Construction ProjectsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that the United States has settled civil fraud claims against TOWER MAINTENANCE CORP. (“TOWER”), a Long Island-based steel painting company. The settlement resolves the United States’ allegations that TOWER fraudulently obtained payments on two federally funded construction projects by causing misrepresentations of compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities. Specifically, the United States alleged that TOWER, a certified DBE, caused the prime contractors on the projects to misrepresent that TOWER, as a DBE, was solely performing work on the two projects, when in fact the work was managed and supervised by codefendant Spectrum Painting Corp. (“Spectrum”), a non-DBE.
Under the settlement approved by U.S. District Judge Analisa Torres, TOWER admits and accepts responsibility for conduct alleged in the Government’s amended complaint and agrees to pay $150,000 to the United States. The settlement amount is based on the Office’s assessment of TOWER’s ability to pay based on the financial information it provided. The Office previously reached settlements to resolve its fraud claims against the codefendants in the lawsuit, Spectrum and Ahern Painting Contractors Co. (“Ahern”), under which Spectrum and Ahern were required to pay a total of $3.4 million.
Manhattan U.S. Attorney Audrey Strauss said: “With this settlement, my Office paints a clear picture that we will pursue any contractor that participates in an unlawful scheme to exploit the Disadvantaged Business Enterprise program. All contractors are on notice that we are committed to rooting out public works contracting fraud.”
As alleged in the amended complaint filed in Manhattan federal court in August 2019, TOWER performed steel painting work on two federally funded projects to renovate the Brooklyn Bridge and Queens Plaza. Contracts for both projects required Ahern to hire DBEs to perform a percentage of the work and to adhere to the DBE regulations. The DBE regulations require DBEs to manage and supervise their own work. Yet TOWER hired Spectrum, a non-DBE painting subcontractor, to manage and supervise the DBE work that was supposed to be performed solely by TOWER. Further, to conceal this scheme, TOWER passed off Spectrum employees as its own in project documents.
As part of the settlement, TOWER admits, acknowledges, and accepts responsibility for the following conduct alleged in the amended complaint:
- In early 2010, TOWER knew that Ahern entered into an agreement with Skanska Koch Inc. (“Skanska”) for industrial painting and rehabilitation work on the Brooklyn Bridge Project. TOWER understood that as a subcontractor on the Brooklyn Bridge Project, Ahern was obligated to meet or exceed Ahern’s DBE participation goal on the project. TOWER also knew that Ahern expected to use TOWER, a certified DBE, to fulfill a substantial part of Ahern’s DBE participation goal for the Brooklyn Bridge Project. In mid-2010, TOWER in fact entered into a subcontract with Ahern to perform painting and blasting work on the Brooklyn Bridge Project, which TOWER expected would be counted toward Ahern’s DBE participation goal for the project.
- In connection with the Brooklyn Bridge Project, TOWER signed and submitted to Ahern various documents stating that the DBE work subcontracted to TOWER would be performed by TOWER alone.
- In mid-2011, TOWER knew that Ahern entered into a contract with the MTA to provide overcoat painting on the elevated structure at the Queens Plaza subway station, and that Ahern was obligated to meet or exceed its DBE participation goal for the Queens Plaza Project. TOWER also knew that Ahern was going to use TOWER as the DBE contractor on the Queens Plaza Project to meet Ahern’s DBE participation goal. In 2011, TOWER entered into a subcontract with Ahern to perform painting and blasting work on the Queens Plaza Project, which TOWER expected would be counted toward Ahern’s DBE participation goal for that project.
- In May and June 2011, TOWER and Spectrum memorialized two “consulting agreements” for painting and blasting work on the Brooklyn Bridge and Queens Plaza Projects. The key terms of the consulting agreements between TOWER and Spectrum – including TOWER’s agreement to pay Spectrum 50% of all of its profits from the two projects, Spectrum’s agreement to provide project management support, and Spectrum’s agreement to furnish equipment to TOWER for the projects – were not formally disclosed in writing to Ahern, nor were they disclosed in any way to Skanska, NYC-DOT, or MTA.
- Consistent with the consulting agreements, TOWER requested that Spectrum provide project management support for the DBE work that TOWER was retained to perform on the Brooklyn Bridge and Queens Plaza Projects.
- In addition to the Spectrum employee who assisted TOWER in preparing the bid TOWER submitted to Ahern for its anticipated work as a DBE subcontractor on the Brooklyn Bridge project (the “Spectrum Manager), Spectrum had two other employees providing project management support to TOWER for the DBE work subcontracted to TOWER on the Brooklyn Bridge and Queens Plaza Projects: a superintendent (the “Spectrum Superintendent”) and a health and safety supervisor (the “Spectrum Safety Supervisor”).
- In documents that TOWER submitted to Ahern in 2010, TOWER identified the Spectrum Manager as a “Tower VP” or as a TOWER employee working on the Brooklyn Bridge Project. And in documents TOWER submitted to Ahern in 2011 in connection with the Queens Plaza Project, TOWER identified the Spectrum Manager as a “Director” of TOWER. In addition, the Spectrum Manager, the Spectrum Superintendent, and the Spectrum Safety Supervisor identified themselves to others working on the Brooklyn Bridge and Queens Plaza Projects as TOWER employees.
- In addition to informing Ahern that Spectrum would perform work on the Brooklyn Bridge and Queens Plaza projects, TOWER should have disclosed Spectrum’s work to the NYC-DOT and MTA DBE officers designated on the projects, and it should have sought clarification from Ahern regarding whether Ahern disclosed Spectrum’s involvement in accordance with Ahern’s obligations.
- TOWER should have proactively disclosed to the relevant DBE officer the details of its financial arrangement with Spectrum relative to the Brooklyn Bridge and Queens Plaza Projects, including that TOWER and Spectrum’s agreements relative to the projects included profit sharing and provisions for Spectrum to provide TOWER financing for TOWER’s performance of work on the projects.
Ms. Strauss praised the outstanding investigative work of the United States Department of Transportation Office of Inspector General, the New York City Department of Investigation, and the Inspector General of the Metropolitan Transportation Authority.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Mónica P. Folch and David J. Kennedy are in charge of this case.
- In early 2010, TOWER knew that Ahern entered into an agreement with Skanska Koch Inc. (“Skanska”) for industrial painting and rehabilitation work on the Brooklyn Bridge Project. TOWER understood that as a subcontractor on the Brooklyn Bridge Project, Ahern was obligated to meet or exceed Ahern’s DBE participation goal on the project. TOWER also knew that Ahern expected to use TOWER, a certified DBE, to fulfill a substantial part of Ahern’s DBE participation goal for the Brooklyn Bridge Project. In mid-2010, TOWER in fact entered into a subcontract with Ahern to perform painting and blasting work on the Brooklyn Bridge Project, which TOWER expected would be counted toward Ahern’s DBE participation goal for the project.
Manchester Woman Sentenced to 18 Months for Possession of Ammunition by a Convicted FelonRead the Press Release
CONCORD - Robin Stephan, 43, of Manchester, was sentenced on Monday to 18 months in federal prison for possession of ammunition by a convicted felon, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 21, 2019, the Manchester Police Department responded to a call of a theft from a motor vehicle. After receiving a description of the suspect, police officers stopped and spoke with Stephan who denied involvement in the theft. As the officers spoke with Stephan, she rummaged through her backpack. The officers observed ammunition and a magazine within Stephan’s backpack. As a convicted felon, Stephan is prohibited from possessing ammunition under federal law.
Stephan previously pleaded guilty on April 5, 2021.
“Protecting our communities from violent crime is a high priority,” said Acting U.S. Attorney Farley. “In order to keep the public safe, we work closely with our law enforcement partners to identify and prosecute armed criminals, including those who unlawfully possess ammunition. As this case demonstrates, there are substantial penalties when convicted felons possess ammunition or firearms.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
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Manchester Man Sentenced to 10 Months for Access Device FraudRead the Press Release
CONCORD - Hayder Lefta, 25, of Manchester, received a 10-month sentence for access device fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, while working as a customer service representative at the Manchester Boston Regional Airport in 2018 and 2019, Lefta copied the credit card numbers of customers he served at the airport. He then used those credit card numbers, without authorization, to purchase airline flights and meals for himself and for friends, to pay for hotels for his personal leisure travel, and for other personal expenses.
Lefta previously pleaded guilty on April 28, 2021. Five months of his sentence will be spent in home confinement. Lefta was also ordered to pay restitution in the amount of $75,778.47 to the victims of the offense.
“Financial crimes can have serious impacts on their victims,” said Acting U.S. Attorney Farley. “This defendant’s theft and use of credit card numbers from airport customers was a brazen crime that allowed him to go on an undeserved spending spree. As a result of the hard work of our law enforcement partners, he is now a convicted felon who will serve prison time for his offenses and will need to pay restitution to his innocent victims.”
“With the recent increase in cyber and online crimimal activity, Homeland Security Investigations stands ready to track and pursue those who think they can victimize individuals with impunity and get away with it,” said Matthew B. Millhollin, Special Agent In Charge, Homeland Security Investigations (HSI), Boston. “Today’s sentence sends a strong message to cyber criminals like Lofta that they will be held accountable for their crimes. We are grateful for the support of our federal and local law enforcement partners and the Office of the U.S. Attorney for New Hampshire, who were critical to the successful apprehension and prosecution of this case.”
This matter was investigated by Homeland Security Investigations, the Federal Air Marshal Service, and the Londonderry Police Department. The case was prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald and Matthew T. Hunter.
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Man Sentenced to 33 Years in Federal Prison for Kidnapping and Assaulting his Ex-WifeRead the Press Release
TULSA, Okla. – A man who kidnapped and assaulted his ex-wife in April 2017 was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Randy Alan Hamett, 64, of Choctaw, to a total of 396 months in federal prison followed by five years of supervised release. She further ordered the defendant to pay $4,075 to the victim for medical costs incurred.
Judge Eagan called the crimes “harrowing and terrifying” and denied Hamett’s request for downward departure from the advisory sentencing guidelines range. She recommended the defendant be remanded to a maximum security facility and that the defendant’s out-going mail be monitored.
On April 21, 2021, a federal jury convicted Hamett on 12 counts including: kidnapping in Indian Country; carjacking; possessing and receiving a stolen firearm and stolen ammunition; possession of a firearm while subject to a domestic violence protective order; burglary in the second degree in Indian Country; assaults with a dangerous weapons (2 counts) in Indian Country; domestic violence in Indian Country; interstate violation of a protective Order (2 counts); carrying, using, and brandishing firearms during and in relation to a crime of violence (2 counts).
“The victim in this case exemplifies resilience and strength. Alisa survived a traumatic assault, faced Randy Hamett through two trials and is now an advocate for other victims of domestic violence. She, like so many other victims, is a survivor,” said Acting U.S. Attorney Clint Johnson. “I am thankful for the coordinated investigative work of the Broken Arrow and Siloam Springs Police Departments, Rogers State University Police, and the ATF. Their swift action helped bring Alisa home and ensured Hamett’s conviction.”
On April 25, 2017, Hamett parked his truck at a nearby Wal-Mart, walked to the victim’s home, and cut a hole in an outside wall to gain entry. When she returned home, Hamett tased her, pointed his own revolver at her, and bound her hands and feet. Hamett then forced the victim into a car, stole a revolver she had purchased after obtaining a protective order against him, then kidnapped her and sexually assaulted her. During the two-day ordeal, Hamett threatened to kill himself, the victim, and anyone who tried to help her.
Convinced that Hamett was going to kill her, the victim made every effort to prolong the trip and gain the defendant’s trust. She convinced Hamett they should get back together and remarry in Arkansas. The defendant eventually allowed her to text her parents and her boyfriend so they would not become suspicious concerning her whereabouts. Based on the nature of the text, the victim’s parents became worried that she was in danger and contacted the Broken Arrow Police Department. Through a concerted investigation by the Broken Arrow and Siloam Springs Police Departments, officers were able to locate Hamett and the victim at a hotel in Siloam Springs, Arkansas, where they determined Hamett was holding the victim against her will. When arrested, officers found Hamett in possession of a firearm and ammunition, along with Taser cartridges. Officers also discovered a murder preparation list in his pocket that included the words: taser, rope, zip ties, machete, and shovel.
In 2018, Hamett was convicted in federal court for the kidnapping, but he appealed the conviction. In June 2020, the 10th U.S. Circuit Court of Appeals reversed his conviction and ordered a new trial. In a 2-1 decision, the appellate court found that the trial judge had “erred in finding that Mr. Hamett knowingly and intelligently waived his right to counsel” at his 2018 trial.
Following his successful appeal, the U.S. Attorney’s Office charged Hamett in a superseding indictment in September 2020, several months after the Supreme Court’s ruling that recognized the Creek Nation reservation remained intact. Because Hamett is Cherokee and he committed his crimes within the Muscogee (Creek) Nation reservation, federal prosecutors were further able to charge Hamett with Indian Country crimes, which they were previously unable to charge in 2018.
In 2018, the defendant was sentenced to 20 years in federal prison. Today, he was sentenced to 33 years in prison due, in part, to the additional Indian Country convictions at trial.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police and Siloam Springs Police Departments, and the Rogers State University Police. Assistant U.S. Attorneys Jeffrey Gallant and Devon Lash prosecuted the case.
Man Admits Money Laundering Conspiracy in Connection with Stolen Mail SchemeRead the Press Release
NEWARK, N.J. – The first of 12 defendants charged in a stolen mail scheme has admitted responsibility for conspiring to launder money in connection with fraudulently deposited checks, Acting U.S. Attorney Rachael A. Honig announced.
Hans Pierre, 33, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of money laundering conspiracy.
According to documents filed in this case and statements made in court:
From January 2018 through October 2020, Pierre conspired to launder money obtained from bank fraud. Pierre and his conspirators obtained checks written on bank accounts belonging to residents in the Newark area by stealing mail containing the checks from U.S. Post Office collection boxes. The conspirators altered the stolen checks so they appeared to be written payable to a different recipient and for a larger amount. Pierre and other conspirators then deposited the checks into other bank accounts and then transferred the money to each other using web-based money transfer applications.
The count of money laundering conspiracy carries a maximum term of 20 years in prison and a maximum fine of $500,000, or twice the value of the property involved in the transaction, whichever is greatest. Sentencing is scheduled for Dec. 21, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Rodney M. Hopkins, and New York Division, under the direction of Inspector in Charge Philip Bartlett, with the investigation.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
Madison Man Charged with Gun CrimesRead the Press Release
MADISON, WIS. – A Madison, Wisconsin man is charged with gun crimes in an indictment returned on August 11, 2021 by a federal grand jury sitting in Madison. The charges are announced by Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin.
The indictment charges Randy X. Bond, 36, with being a felon in possession of a firearm. The indictment alleges that between April 10 and April 26, 2021, Bond possessed a Glock 43 caliber pistol. The second count of the indictment charges him with unlawfully possessing the firearm knowing that he was subject to a court order restraining him from harassing, stalking, and threatening an intimate partner.
The indictment was unsealed following Bond’s arrest by FBI agents on Friday, August 13 in Memphis, Tennessee. He made an initial appearance in U.S. District Court for the Western District of Tennessee yesterday and a detention hearing will be held on August 19. A date has not been set for his initial appearance in Wisconsin.
If convicted, Bond faces a maximum penalty of 10 years in federal prison on each charge. The charges against him are the result of an investigation by the Dane County Sheriff’s Office, Federal Bureau of Investigation, Madison Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Julie Pfluger is handling the prosecution. Kevin Whitmore, an Assistant U.S. Attorney for the Western District of Tennessee, handled the initial appearance in Memphis.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Justice Department Settles Claim Against Illinois-Based IT Recruiter for Discriminating Against U.S. WorkersRead the Press Release
The Department of Justice today announced that it signed a settlement agreement with Ameritech Global Inc., an IT staffing and recruiting company based in Illinois.
The settlement resolves claims that Ameritech discriminated against U.S. workers when it posted job advertisements specifying its preference for hiring applicants with temporary work visas, and failed to consider at least three U.S. worker applicants who nevertheless applied to the advertised positions.
The department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division against Ameritech. Based on its investigation, the department concluded that from at least Aug.1, 2019 to June 17, 2021, Ameritech posted at least three job advertisements announcing its preference to fill positions with non-U.S. citizens with immigration statuses associated with certain employment-based visas, and, in doing so, harmed U.S. workers (U.S. citizens, U.S. nationals, recent lawful permanent residents, asylees and refugees), by both unlawfully deterring many of them from applying and failing to fairly consider hiring those who nevertheless applied. Under the Immigration and Nationality Act (INA), employers are not generally allowed to discriminate in recruitment or hiring based on citizenship status.
“Employers who discourage and refuse to hire eligible job applicants based on their citizenship or immigration status must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will step in and vigorously enforce the law to ensure that workers are protected from such unlawful discrimination.”
Under the terms of the settlement agreement, Ameritech will pay $10,000 in civil penalties to the United States, revise its policies and procedures and train relevant employees and agents on the INA’s anti-discrimination provision.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status or immigration status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. More information about citizenship status discrimination under the INA is available in this flyer.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Files Suit to Stop Utah Physician from Issuing Opioid and Other Prescriptions in Violation of the Controlled Substances ActRead the Press Release
A federal judge entered a preliminary injunction today barring a Utah physician from issuing prescriptions for controlled substances during the pendency of a civil enforcement action filed by the government.
In a complaint filed in U.S. District Court for the District of Utah, the government alleges that Dr. Sean Ponce, a medical doctor licensed in Utah, unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act. The complaint alleges that Dr. Ponce catered to customer requests for opioid and other controlled substance prescriptions, at times using text messages to arrange the exchange of cash for prescriptions. The complaint alleges that Dr. Ponce used office space in Cottonwood Heights, Utah, to meet with cash-paying customers to maintain the guise of a medical practice despite the routine lack of legitimate examinations, medical findings supporting the prescriptions, or bona-fide doctor-patient relationships. U.S. District Judge David B. Barlow entered a stipulated preliminary injunction that the United States filed along with the complaint. The complaint seeks a permanent injunction and civil penalties.
“The opioid addiction epidemic devastates communities,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will take action against those who harm patients and their families by unlawfully distributing controlled substances behind a veneer of medical legitimacy.”
“The U.S. Attorney’s Office and the Department of Justice are committed to protecting Utahns from medical professionals who fuel the opioid epidemic and violate the public trust,” said Acting U.S. Attorney Andrea T. Martinez for the District of Utah. “We will employ every available resource to keep our communities safe and to maintain accountability in the medical community.”
“This investigation is a prime example of an unscrupulous physician furthering the opioid crisis in America,” said Special Agent in Charge Deanne Reuter with the Drug Enforcement Administration’s (DEA) Denver Field Division. “When a doctor cares more about lining his pockets than the health and welfare of his patients, the whole community suffers. Whether transnational drug traffickers selling fentanyl-laced pills or medical providers violating the Controlled Substances Act, DEA will not falter in our pursuit of those who contribute to the U.S. addiction problem.”
According to the complaint, Dr. Ponce prescribed excessive doses of powerful opioids, often in dangerous combination with other controlled substances. Some of those prescriptions allegedly went to multiple individuals purportedly residing together at the same addresses. The complaint alleges that Dr. Ponce routinely issued early refills for prescriptions, failed to make objectively legitimate diagnoses, did not provide meaningful evaluation or treatment, and engaged in a pattern of selling prescriptions for powerful opioids and other controlled substances. The complaint also alleges that Dr. Ponce violated the False Claims Act by causing claims to be submitted by customers who filled his prescriptions at pharmacies covered by federal health care programs.
The investigation is being conducted by the DEA’s Tactical Diversion Squad in the Salt Lake City District Office.
The case is being handled by Assistant U.S. Attorney Joel Ferre of the District of Utah and Trial Attorneys Yolanda D. McCray Jones and Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
Jury Convicts Registered Sex Offender for Using Facebook to Conspire to Produce Child PornographyRead the Press Release
WASHINGTON – A federal jury convicted an Indiana man yesterday for conspiring with multiple women to send him sexually explicit pictures of infants and young children.
According to court documents and evidence presented at trial, Lorenzo Johnson, 33, of Hammond, used a fake Facebook account to identify women with access to children who were experiencing financial difficulties. Johnson, a registered sex offender, offered those women money to take sexually explicit photos of minor children. Johnson succeeded in persuading three co-conspirators to send him photos depicting the sexual abuse of infants and young children whom the co-conspirators knew. Johnson gave an interview to FBI agents stating that he had solicited the production of child pornography from other Facebook users as a means of blackmail. Johnson’s co-conspirators have been indicted for conspiring to produce child pornography. Johnson was previously convicted in 2009 in Illinois for aggravated sexual abuse involving a minor.
“This verdict sends a strong message that people who sexually abuse young and helpless children — and those who memorialize and disseminate that abuse — will be held accountable,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to utilizing its resources to track down these offenders and rescue victims of pernicious sexual exploitation.”
“My office will not tolerate crimes against children, and we will continue to partner with federal, state and local agencies to investigate and prosecute individuals whose criminal conduct harms and exploits such vulnerable victims,” said Acting U.S. Attorney Tina L. Nommay for the Northern District of Indiana. “I wish to thank the attorneys with the Child Exploitation and Obscenity Section of the U.S. Department of Justice for their invaluable assistance in this case.”
“Child sexual abuse and exploitation is one of the FBI’s top investigative priorities and this conviction demonstrates our commitment to stopping these unthinkable offenses,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI will use every resource in its power to fully investigate and bring to justice those that prey on the most vulnerable of victims. As a result of the tireless work and close coordination with our state and local law enforcement partners, Johnson will be held accountable for his actions and will no longer be a threat to our community.”
“Sexual predators who prey on the most vulnerable members of our society and believe they can elude federal law enforcement will be investigated, identified and will find themselves in prison,” said Special Agent in Charge Paul Keenan of the FBI’s Indianapolis Field Office. “This verdict demonstrates the FBI’s commitment to investigating cases such as this with a sense of urgency to ensure there is one less predator victimizing our children.”
Johnson was convicted of three counts of conspiracy to produce child pornography, one count of distribution of child pornography, and one charge of being a felon in possession of a firearm. He is scheduled to be sentenced on Dec. 17, 2021 and faces a mandatory minimum sentence of 25 years and a maximum penalty of 180 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Indianapolis Field Office, the Cook County Sheriff’s Office, and the Cook County State’s Attorney’s Office investigated the case.
Trial Attorney Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Molly Kelley of the U.S. Attorney’s Office for the Northern District of Indiana are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Jury Convicts Registered Sex Offender for Using Facebook to Conspire to Produce Child PornographyRead the Press Release
A federal jury convicted an Indiana man yesterday for conspiring with multiple women to send him sexually explicit pictures of infants and young children.
According to court documents and evidence presented at trial, Lorenzo Johnson, 33, of Hammond, used a fake Facebook account to identify women with access to children who were experiencing financial difficulties. Johnson, a registered sex offender, offered those women money to take sexually explicit photos of minor children. Johnson succeeded in persuading three co-conspirators to send him photos depicting the sexual abuse of infants and young children whom the co-conspirators knew. Johnson gave an interview to FBI agents stating that he had solicited the production of child pornography from other Facebook users as a means of blackmail. Johnson’s co-conspirators have been indicted for conspiring to produce child pornography. Johnson was previously convicted in 2009 in Illinois for aggravated sexual abuse involving a minor.
“This verdict sends a strong message that people who sexually abuse young and helpless children — and those who memorialize and disseminate that abuse — will be held accountable,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to utilizing its resources to track down these offenders and rescue victims of pernicious sexual exploitation.”
“My office will not tolerate crimes against children, and we will continue to partner with federal, state and local agencies to investigate and prosecute individuals whose criminal conduct harms and exploits such vulnerable victims,” said Acting U.S. Attorney Tina L. Nommay for the Northern District of Indiana. “I wish to thank the attorneys with the Child Exploitation and Obscenity Section of the U.S. Department of Justice for their invaluable assistance in this case.”
“Child sexual abuse and exploitation is one of the FBI’s top investigative priorities and this conviction demonstrates our commitment to stopping these unthinkable offenses,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI will use every resource in its power to fully investigate and bring to justice those that prey on the most vulnerable of victims. As a result of the tireless work and close coordination with our state and local law enforcement partners, Johnson will be held accountable for his actions and will no longer be a threat to our community.”
“Sexual predators who prey on the most vulnerable members of our society and believe they can elude federal law enforcement will be investigated, identified and will find themselves in prison,” said Special Agent in Charge Paul Keenan of the FBI’s Indianapolis Field Office. “This verdict demonstrates the FBI’s commitment to investigating cases such as this with a sense of urgency to ensure there is one less predator victimizing our children.”
Johnson was convicted of three counts of conspiracy to produce child pornography, one count of distribution of child pornography, and one charge of being a felon in possession of a firearm. He is scheduled to be sentenced on Dec. 17, and faces a mandatory minimum sentence of 25 years and a maximum penalty of 180 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Indianapolis Field Office, the Cook County Sheriff’s Office and the Cook County State’s Attorney’s Office investigated the case.
Trial Attorney Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Molly Kelley of the U.S. Attorney’s Office for the Northern District of Indiana are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jury Convicts Jackson County Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Jackson County, Missouri, man was convicted at trial by a federal jury today of illegally possessing a firearm.
James Johnson, 75, was found guilty of being a felon in possession of a firearm.
Johnson was in possession of a Ruger .22-caliber semi-automatic handgun on Nov. 28, 2019. Law enforcement officers confronted Johnson after receiving a report that he was trespassing on Union Pacific Railroad property. Johnson, who told officers he was walking to St. Louis, was carrying the loaded firearm in a red and black fabric bag, with additional ammunition in a computer bag.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Johnson was on state parole for murder, robbery, and assault with intent to do great bodily harm at the time of the offense.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 30 minutes before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Aug. 16.
Under federal statutes, Johnson is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Sarah J. Rasalam. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jury Convicts Defendant of Double Murder on Indian ReservationRead the Press Release
RENO, Nev. – A federal jury convicted a Fort McDermitt Shoshone Paiute Tribe member today for murdering two women who were also members of the Tribe.
According to court documents and evidence presented during trial, on January 31, 2018, Stoney Prior (43) shot and killed two people on the Fort McDermitt Indian Reservation, at the home of one of the victims. Both victims were members of the Fort McDermitt Shoshone Paiute Tribe.
Prior was found guilty of two-counts of second-degree murder in Indian Country. U.S. District Judge Larry R. Hicks scheduled sentencing for November 16, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
This case was a joint investigation by the FBI and the Bureau of Indian Affairs, with assistance from the Humboldt County Sheriff’s Office. Assistant U.S. Attorneys Penelope Brady and Richard Casper are prosecuting the case.
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Judge sentences St. Louis man for his participation in store robberiesRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie L.White sentenced Kirk Torrence, a/k/a “Blue,” of St. Louis, Missouri, to a 10-year term of imprisonment on today’s date. Torrence pleaded guilty in September 2019 to gun and robbery-related charges.
Torrence, along with his partners in crime, conspired to rob multiple stores. On September 9, 2018, Torrence and his cohorts, who were armed with firearms, entered the Metro PCS store located on Debaliviere Avenue in the City of St. Louis and demanded money. In response to threats, a Metro PCS employee withdrew approximately three hundred dollars ($300) from the register and handed the money to one of the robbers. The robbers then fled the crime scene in vehicles, one of which was being operated by Torrence. Based on an assortment of leads, law enforcement officers arrested Torrence and his accomplices on robbery-related charges.
This case was investigated by the FBI and the St. Louis Metropolitan Police Department.
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Hiawatha Man Pleads Guilty to Ammunition and Methamphetamine ChargesRead the Press Release
A man who was found in a rental van with ammunition and methamphetamine in a syringe pled guilty today in federal court in Cedar Rapids.
Joshua James Feye, age 36, from Hiawatha, Iowa, was convicted of one count of being a felon in possession of ammunition, and one count of possessing methamphetamine after three prior convictions for drug or chemical crimes.
In a plea agreement, Feye admitted that on February 17, 2020, he was in a rental van parked in the front yard of a property in Marion, Iowa, when the Marion Police Department contacted him in connection to a report of the vehicle being used to transport a minor illegally. During the investigation, the officers found Feye had an outstanding arrest warrant. When they arrested him, they subsequently found methamphetamine, a syringe to inject methamphetamine, and ammunition. Feye had previously been convicted of possession of pseudoephedrine in 2015; possession of pseudoephedrine with intent to manufacture methamphetamine and manufacturing methamphetamine in 2009; theft in the second degree in 2006; and possession of anhydrous ammonia and lithium in 2018.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Feye remains in custody of the United States Marshal pending sentencing. Feye faces a mandatory minimum sentence of 90 days’ imprisonment and a possible maximum sentence of 13 years’ imprisonment, a $500,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the Marion, Iowa, Police Department in concert with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-00024. Follow us on Twitter @USAO_NDIA.
Hartford Man Sentenced to 5 Years in Federal Prison for Trafficking Heroin and FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ALEX SABO-SANTIAGO, also known as “Boricua,” 42, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking heroin and fentanyl.
According to court documents and statements made in court, in June 2019, the Drug Enforcement Administration’s Hartford Task Force learned that Sabo-Santiago was expecting a delivery of a kilogram of heroin. On June 6, 2021, Sabo-Santiago was arrested after he met a drug courier in Hartford and took possession of what he thought was a kilogram of heroin. A subsequent search of his residence revealed nearly one kilogram of fentanyl, items used to process and package narcotics for sale, and a 9mm firearm.
On December 7, 2020, Sabo-Santiago pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
Sabo-Santiago, who is released on a $100,000 bond, is required to report to prison on September 21.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Great Falls man admits to sexually exploiting minor girl in PennsylvaniaRead the Press Release
GREAT FALLS – A Great Falls man accused of inducing a minor girl in Pennsylvania to send him sexually explicit photographs of herself admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Andrew Donovan Carter, 38, pleaded guilty to sexual exploitation of a child. Carter faces a mandatory minimum 25 years to 50 years in prison, a $250,000 fine and five years to a lifetime of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 2. Carter was detained pending further proceedings.
The government alleged in court documents that in August 2020, a Pennsylvania law enforcement agency contacted Carter’s state probation officer regarding Carter using social media sites to engage in sexually explicit communications with a 14-year-old girl. The probation officer requested assistance from the Great Falls Police Department, which is a member of the Montana Internet Crimes Against Children Task Force (ICACTF). The girl told investigators that she met a boy she believed to be was 16 years old, communicated with him online and that he asked her to send him nude pictures of herself. The supposed 16-year-old boy was Carter. The girl took sexually explicit photographs of herself and sent them to Carter using a cell phone.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by Homeland Security Investigations, Internet Crimes Against Children Task Force, Great Falls Police Department and Montana Department of Corrections’ Probation and Parole.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Golden Valley Sex Offender Sentenced to More Than 22 Years in Prison for Transportation of Child PornographyRead the Press Release
ST. PAUL, Minn. – A Golden Valley man was sentenced yesterday to 270 months in prison followed by a lifetime of supervised release for transporting images and videos depicting the sexual abuse of minors.
According to court documents, in February 2020, Robert Lawrence Stace, 37, a registered sex offender, downloaded hundreds of images and videos depicting the sexual abuse of minors. Stace accessed the child exploitation files from the computer lab of a community center while on supervised release for his prior child sexual exploitation convictions. This conduct also violated the terms of Stace’s state supervised release and Stace is presently serving a Minnesota Department of Corrections sentence for these violations.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s 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.projectsafechildhood.gov.
This case was the result of an investigation conducted by the FBI and the Minneapolis Police Department, with assistance from Hennepin County Probation Officers.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
Ghana National Pleads Guilty to Conspiring to Export Stolen VehiclesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Victor Yao Apeletey, 40, of Ghana, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to export stolen motor vehicles. The charge carries a maximum penalty of five years in prison, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between January 31 and February 14, 2020, the defendant conspired with others to export stolen motor vehicles by purchasing the vehicles using stolen identities, and then having those vehicles driven to Canada under false pretenses to be ultimately exported to the country of Ghana. During the course of the scheme, Apeletey and others fraudulently obtained biographical information for individuals and then used that information to fraudulently obtain identification documents using the individuals’ names but the photographs of co-conspirators.
The stolen identities were used to purchase a 2020 Ford F-450 Super Duty for approximately $106,390.37, and a 2019 Mercedes AMG GLE 63 for approximately $116,835.00. On February 13, 2020, the defendant and others exported and attempted to export the vehicles to Canada under false pretenses, so that they could be shipped to Ghana.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for November 18, 2021, at 4:00 p.m. before Judge Sinatra.
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Fugitive Sex Offender Living Under Alias in Wilmington Sentenced to 52 Months for Failing to RegisterRead the Press Release
RALEIGH, N.C. – A man who was on the run for two years before being apprehended in New Hanover County was sentenced last Thursday to 52 months in prison for Failure to Register as a Sex Offender.
According to court documents, Henry Lewis Sisk, 48, was charged with one count of Failure to Register as a Sex Offender, in violation of 18 U.S.C. § 2250. Sisk pled guilty on May 11, 2021.
In 2008, Sisk was convicted of an offense involving sexual contact with a 5-year-old and his sentence included a lifetime registration requirement. After being released, Sisk moved to Michigan where he initially registered but by late 2017, Sisk had absconded and in January 2018, a warrant issued from Michigan for failure to register. Investigators learned that Sisk traveled to South Carolina in early 2019, where he allegedly had sexual contact with a 4-year-old, according to an April 2019 warrant that remains pending. By June 2019, Sisk had relocated to Wilmington, NC and was living under the alias of Johnny Osborne. In January 2020, Sisk was stopped at a checkpoint in New Hanover County and identified himself as Johnny Osborne but was unable to produce a license and eventually was identified as Sisk by the New Hanover County Sheriff’s Office through fingerprint analysis. Sisk did not, as required, register as a sex offender anywhere in North Carolina.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The U.S. Marshals Service, Eastern District of North Carolina, Carolinas Regional Fugitive Task Force, and New Hanover County Sherriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00185-BR.
Fort Lauderdale Man Pleads Guilty to Sextortion of Children, Other ExploitationRead the Press Release
Miami, Florida – A Fort Lauderdale man who blackmailed girls as young as 13 into having sex with him and other minor girls into sending him pornographic videos and images of themselves pled guilty today in federal district court in Ft. Lauderdale to child exploitation crimes.
Defendant Breshawn Hamilton, 21, admitted that from October 2019 through November 2020, he used Instagram and other social networking platforms to meet and communicate with at least seven girls between the ages of 11 and 15. During these conversations, Hamilton misrepresented his age, often pretending to be younger than he actually was in order to gain the minors’ trust. He would then convince the minors to send him sexually explicit images and videos of themselves. After obtaining the images and videos, Hamilton threatened to disseminate them unless the minors agreed to meet him for sexual intercourse or continue to provide him with additional videos and images. Even when the minors complied, Hamilton still disseminated the videos and images in question. Law enforcement confirmed that Hamilton met with some of the minor victims who resided in the Fort Lauderdale area in person and raped them, often in their own homes. At times, Hamilton recorded himself having sex with the minors.
Hamilton pled guilty to two counts of enticing a minor, four counts of production of child pornography, three counts of sending interstate extortionate threats, and one count of possession of child pornography. Hamilton is scheduled for sentencing at 9:00 a.m. on October 27, 2021, before U.S. District Judge Rodney Smith, who sits in Fort Lauderdale. He faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum of life imprisonment.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the guilty plea.
HSI Miami’s Ft. Lauderdale office investigated the case with assistance from the Florida Department of Law Enforcement, Broward Sheriff’s Office Special Victims Unit, and the South Florida Internet Crimes Against Children (ICAC) Task Force.
Assistant United States Attorney Ajay Alexander is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-60010.
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Former U.S. Golf Association Employee Charged with Embezzling over $3 Million in U.S. Open Tickets over Seven YearsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Fryer, 39, of Perkasie, PA, was charged by Information with one count of conspiracy to commit mail and wire fraud, four counts of mail fraud, and 10 counts of wire fraud related to a scheme to embezzle and pocket fraudulent proceeds from the unauthorized sale of United States Open Championship (“U.S. Open”) tickets, one of four major championships for golf.
The filed Information alleges that the defendant was employed by the United States Golf Association (“USGA”) in its Admissions Office. Beginning in advance of the 2013 U.S. Open held at the Merion Golf Club in Ardmore, PA, and continuing through the 2019 U.S. Open held at the Pebble Beach Golf Links in Pebble Beach, CA, Fryer abused his position in the USGA Admissions Office in order to steal more than 23,000 U.S. Open admission tickets, all without the knowledge and consent of the USGA. The defendant then sold those stolen tickets to third-party ticket brokers in return for payments totaling more than $1 million, which was paid to Fryer mostly in the form of cash and PayPal transfers. According to the Information, the face value of the tickets that the defendant stole was more the $3 million.
The Information further alleges that the ticket brokers to whom Fryer sold the tickets bought them in bulk to then turn around and resell them to their customers. In fact, the Information alleges that the USGA had a strict 20-ticket cap on the number of tickets that it would sell to any one person, but these ticket brokers were able to acquire thousands of tickets to each U.S. Open by buying stolen tickets from Fryer.
According to the Information, Fryer delivered the stolen U.S. Open tickets to the ticket brokers in a variety of ways: sometimes in person, and sometimes by sending them via Federal Express or UPS, either to the ticket brokers themselves or directly to the customers of the ticket brokers. The Information alleges that one of the ticket brokers regularly emailed the defendant prepaid UPS shipping labels that he then used to send the tickets to that broker and that broker’s customers.
“The defendant allegedly stole revenue from a legitimate business that pays taxes, employs many, supports a non-profit organization, and brings excitement and income to our district with U.S. Open events at courses like the Merion Golf Club,” said Acting U. S. Attorney Williams. “Criminals that conduct ticket schemes like this prey on the excitement surrounding big events; fans should remember that any item with a low price that seems ‘too good to be true’ should be cause for caution and concern.”
“Robert Fryer allegedly engaged in a years-long scheme to steal and sell thousands of U.S. Open tickets,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Fraud is simply not the answer, if you feel your paycheck isn’t up to par. The FBI takes seriously allegations of embezzlement and fraud and will investigate anyone engaged in this sort of criminal behavior.”
Fryer faces a maximum sentence 300 years in prison, three years of supervised release, a $3,750,000 fine, and a $1,500 special assessment. In addition, Fryer will be required to pay restitution to the USGA and forfeit the proceeds he obtained as a result of his fraud.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe. Investigators appreciate the cooperation of the USGA in connection with this investigation.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Newark High School Faculty Member Going to Prison for 50 Years for Producing and Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Holland, 29, of Newark, NY, who was convicted of production of child pornography and possession of child pornography involving prepubescent minors, was sentenced to serve 50 years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between 2016 and 2020, the defendant, who was formerly employed as a Teaching Assistant in the Newark, NY, Central School District, and a teacher/assistant at the Canandaigua, NY, YMCA, engaged in a series of child exploitation and child pornography crimes, including coercing minors both known and unknown to him to produce child pornography via social media; surreptitiously recording minors in states of undress in their homes, surreptitiously recording minors in states of undress at a YMCA where he was employed, surreptitiously recording minors and others in states of undress at his Newark photography studio “Illumination Images,” and downloading and possessing hundreds of images and videos of pre-existing child pornography via the internet.
The defendant posed as a 14-16 year-old male and used the Snapchat account “Tjohnson755” and the Instagram account “TimJ755,” to engage minors in sexually explicit conversations. Holland would begin in neutral conversation, then would send pictures of an attractive teenaged boy, before transitioning the conversation to sexual topics and demanding that the minors produce and send to him nude or semi-nude photographs – to include the minors’ faces. The defendant often played upon his victims’ insecurities, paying them compliments and promising that he would delete their photos and would not share them. In some cases, once he obtained nude or semi-nude photographs, Holland would ask for more sexually explicit photographs involving sex acts. If a minor declined, the defendant threatened to share their previous images over the Internet. Since the defendant knew many of the minors through his employment with the Newark Central School District, he sometimes made specific threats involving the minors actual addresses, relatives, and schools, causing the minors, most of whom were 13 to 16 years old, to suffer extreme anxiety and fear.
The defendant’s conduct was first discovered when a minor victim in Virginia reported to police that Holland had coerced her into sending him sexually explicit photographs and videos. An investigation by the Loudoun County, Virginia, Sheriff’s Office led to the discovery of dozens of victims in the Western District of New York, and coordination with the Newark Police Department, the Wayne County Sheriff’s Office, the Canandaigua Police Department, and the Department of Homeland Security.
In addition to coercing minors to produce child pornography via social media and the internet, Holland also engaged in the following conduct: • Between October 2019, and February 14, 2020, while employed as a teacher/assistant at the before and after school childcare program at the Canandaigua YMCA, the defendant was responsible for supervising children 3 to 12 years old. On at least one occasion, Holland entered the family locker room and photographed approximately 5 female children in his care as they were changing out of their swimsuits after swimming in the YMCA pool.
• Between February 18, 2019, and February 20, 2020, Holland surreptitiously recorded a 10-11 year-old girl in various stages of undress in the bathroom of her home in Newark.
• On April 17, 2016, the defendant surreptitiously recorded a 10 year-old female in various stages of undress in the bathroom of her home in Marion, NY.
• Prior to his arrest in May 2020, Holland was also the owner and operator of Illumination Images located in Newark. Using this business, the defendant surreptitiously recorded minors in various states of undress by placing a hidden recording device inside of the studio changing room.The defendant also possessed hundreds of images and videos of child pornography that he obtained via the Internet, including images and videos depicting the sexual abuse of prepubescent minors, to include toddlers, and children being subjected to violence.
The sentencing is the result of an investigation by the Loudoun County, VA, Sheriff’s Office, under the direction of Sheriff Michael L. Chapman; the Newark, NY Police Department, under the direction of Chief Mark Thoms; the Wayne County Sheriff’s Office, under the direction of Sheriff Berry Virts; the Canandaigua, NY Police Department, under the direction of Chief Stephen Hedworth; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Former Marshall University Student Pleads Guilty to Role in Fraud and Money Laundering SchemeRead the Press Release
CHARLESTON, W.Va. – One of eight individuals indicted in April 2021 in connection with a large fraud and money laundering scheme pleaded guilty to conspiracy to commit money laundering.
According to court documents and statements made in connection with the plea hearing, Romello Thorpe, 25, of Washington, D.C., was involved from at least September 2019 to January 2, 2020, with Kenneth Emeni, John Nassy, Kenneth Ogudu, Oluwagbenga Harrison, Ouluwabamishe Awolesi, and others in a money laundering conspiracy that took place in Huntington, West Virginia and elsewhere. Thorpe was a student at Marshall University and living in Huntington at the time he conspired to commit money laundering. As part of the scheme, co-conspirators created online false personas and contacted victims via email, text messaging or online dating and social media websites in order to induce the victims into believing they were in a romantic relationship, friendship or business relationship with various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas. Thorpe admitted that his role in the conspiracy was to let victims transfer money to his bank account and that he knew the funds being deposited into his account were from unlawful activity. Thorpe further admitted that after the victims’ funds were deposited into his account, he kept some of the money for himself and forwarded some of the money to his co-conspirators via wire transfers or Zelle. Thorpe admitted that he obtained funds from at least six different fraud victims during the money laundering conspiracy.
Thorpe faces up to 20 years in prison when he is sentenced on November 22, 2021. As part of his plea agreement, Thorpe agreed to pay $69,850 in restitution.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police, and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-0068 (Emeni, et al).
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Federal and State Authorities Reach Settlement with Blessing Hospital over Medicare and Medicaid Fraud ClaimsRead the Press Release
SPRINGFIELD, Ill. – Blessing Hospital in Quincy, Illinois, has agreed to pay approximately $2.82 million to resolve allegations that it violated the False Claims Act by submitting claims for medically unnecessary cardiac catheterization procedures performed by a physician who no longer practices in the Central District of Illinois. Today’s settlement resulted from a voluntary disclosure by Blessing Hospital.
The settlement will be apportioned as follows: the United States will receive nearly $2.59 million, the State of Illinois will receive approximately $225,000, and the States of Iowa and Missouri will receive the remainder. The settlement resolves allegations that Blessing Hospital obtained payments from Medicare and Medicaid for the facility component of cardiac catheterization procedures performed between August 1, 2012, and August 30, 2018, in which the physician implanted medically unnecessary coronary arterial stents.
“Blessing Hospital made the difficult and correct decision to come forward,” said Acting United States Attorney Douglas J. Quivey for the Central District of Illinois. “The U.S. Attorney’s Office will continue to vigorously investigate healthcare fraud and protect taxpayer dollars, and cooperation from healthcare providers like Blessing Hospital goes a long way in supporting that mission.”
“The physician performing these allegedly needless procedures exploited patients and the Medicare and Medicaid programs,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “Blessing Hospital assisted in identifying the harm to the programs by disclosing these facts. Our agency commends providers who defend Federal health care systems."
"The Illinois State Police is dedicated to investigating healthcare fraud and to ensuring that tax dollars are used appropriately for the care of patients," said Illinois State Police Director Brendan F. Kelly. "The cooperation of healthcare providers can aid our healthcare fraud investigations and help us accomplish this effort."
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Central District of Illinois, the Civil Division of the Department of Justice, the Inspector General’s Office of the Department of Health and Human Services, and the Illinois State Police Medicaid Fraud Control Unit. Assistant U.S. Attorney John Hoelzer and Department of Justice Senior Trial Counsel Laurie Oberembt represented the government during the settlement process. To learn more about the U.S. Attorney’s Office for the Central District of Illinois, please visit https://www.justice.gov/usao-cdil.
Federal Jury Finds Wauwatosa Nurse Practitioner and Business Partner Guilty of Distribution of Controlled SubstancesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on August 13, 2021, Lisa Hofschulz, a licensed nurse practitioner, and Robert Hofschulz, both owners and operators of Clinical Pain Consultants (“CPC”), were convicted of conspiracy to distribute controlled substances and unlawful distribution of controlled substances. Lisa Hofschulz also was convicted of unlawful distribution of controlled substances resulting in death.
The evidence presented at trial established Lisa and Robert Hofschulz ran CPC as a “pill mill” through which they distributed millions of opioids and other controlled substances throughout 2015 and 2016. The evidence showed that Lisa Hofschulz prescribed opioids and other dangerous controlled substances to 99% of patients, each of whom paid $200 per month for their prescriptions.
The evidence also established that Lisa and Robert Hofschulz distributed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including by mailing prescriptions to favored patients and prescribing to customers who were not seen by a medical provider. For at least one patient, Lisa Hofschulz’s prescriptions resulted in death. During 2015 and 2016, Lisa Hofschulz was the number one prescriber of oxycodone and methadone in Wisconsin, as compared to all Medicaid providers.
Both defendants are scheduled to be sentenced on November 2, 2021, by Chief United States District Court Judge Pamela Pepper. Lisa Hofschulz faces a maximum life term of imprisonment and a mandatory minimum of 20 years of imprisonment.
The Drug Enforcement Administration investigated the case with the assistance of the Internal Revenue Service, Division of Criminal Investigations. Assistant United States Attorneys Julie F. Stewart and Laura S. Kwaterski prosecuted the case.
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For further information contact: Public Information Officer Kenneth Gales
Federal Grand Jury Indicts Urbana Man on Child Pornography ChargesRead the Press Release
PEORIA, Ill. – A federal grand jury today returned an indictment charging Brandon M. Knoff, 32, of the 2002 block of Willow Rd., in Urbana, Illinois, with transportation and possession of child pornography.
The indictment charges Knoff with transportation of child pornography on June 3, 2020, and April 13, 2021, and possession of child pornography on July 26, 2021. According to court documents, the Urbana Police Department received five separate Cybertip referrals after three different social media and cloud storage applications reported to the National Center for Missing and Exploited Children (NCMEC) that an online social media user possessed and transmitted content believed to be child pornography onto their servers. The user’s internet addresses were connected to Knoff and included his home internet address in Urbana.
Knoff was previously arrested and charged by criminal complaint on July 27, 2021. Knoff has remained in the custody of the U.S. Marshals Service since his arrest.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution. The NCMEC referral was reported to the Illinois Attorney General’s Internet Crimes Against Children (ICAC) task force and referred to the Urbana Police Department. U.S Immigration and Customs Enforcement Homeland Security Investigations and the Urbana Police Department conducted the investigation.
If convicted, the offense of transportation of child pornography (two counts) carries a statutory penalty of at least five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts San Antonio Man on Sexual Exploitation ChargesRead the Press Release
PEORIA, Ill. – A federal grand jury today returned an indictment charging Corbett Eugene Hayes, 40, of San Antonio, Texas, with sexual exploitation of a minor.
The indictment charges Hayes with having used, persuaded, induced, enticed, and coerced a minor from about March 15, 2021, through the date of his arrest on August 11, 2021, to produce sexually explicit images.
According to court documents, the Federal Bureau of Investigation received a report from the father of a Central Illinois teen that an unknown male was engaging in sexually graphic messages with his daughter through social media platforms and text messages. The individual initially posed as a 16-year-old boy when he contacted the teen, but he later assumed the role of the fictitious 16-year-old’s uncle in their communications. Further investigation led the FBI to conclude that Hayes controlled the social media accounts for both identities.
Hayes also was identified in a separate investigation by the FBI Minneapolis field office for trading images of child pornography on a separate platform.
Hayes is scheduled to appear before U.S. Magistrate Judge Henry J. Bemporad in U.S. District Court in the Western District of Texas on August 18, 2021, for a detention hearing and identity hearing to determine his transfer to the Central District of Illinois. The U.S. District Court for the Central District of Illinois will schedule a date for his appearance in Urbana once he is transported by the U.S. Marshals from Texas.
Hayes was previously arrested and charged by criminal complaint on August 12, 2021, near his home in San Antonio. Hayes has remained in the custody of the U.S. Marshals Service since his arrest.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution. The Federal Bureau of Investigation, Springfield, San Antonio, and Minneapolis field offices conducted the investigation.
If convicted, the offense of sexual exploitation of a minor carries a penalty of no less than 15 years to up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
FCA US LLC Sentenced in Connection with Conspiracy to Make Illegal Payments to UAW OfficialsRead the Press Release
DETROIT – FCA US LLC (FCA), one of the big three American automobile manufacturers, was sentenced in federal court in Detroit today after pleading guilty in March 2021 to conspiracy to violate the Labor Management Relations Act, also known as the Taft-Hartley Act, announced Acting United States Attorney Saima S. Mohsin.
Mohsin was joined in the announcement by Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division, Acting Special Agent in Charge Brian Thomas, Internal Revenue Service-Criminal Investigations, Detroit Field Office and Thomas Murray, District Director, US Department of Labor, Office of Labor Management Standards.
FCA is the North American operating subsidiary of Stellantis.
Upon sentencing by United States District Judge Paul D. Borman, FCA stands convicted of participating in a conspiracy to violate the Taft-Hartley Act by making more than $3.5 million in illegal payments to officers of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) between 2009 and 2016.
The illegal payments to UAW officials took various forms, including extravagant meals, rounds of golf, lavish parties for the UAW International Executive Board, an Italian-made shotgun, clothing, designer shoes, and other personal items paid for with credit cards issued by the joint training center. FCA executives also paid off the $262,000 home mortgage of former UAW Vice President General Holiefield. Holiefield and his widow also received hundreds of thousands of dollars funneled through Holiefield’s purported charitable organization, as well as sham companies under Holiefield’s control that had lucrative contracts with the training center. In many instances, FCA passed the illegal Taft-Hartley payments through the UAW-Chrysler Skill Development & Training Program d/b/a the UAW-Chrysler National Training Center (NTC). Ostensibly, the NTC was supposed to provide training and health and safety protections for FCA workers.
FCA’s sentence requires payment of a $30 million fine, which represents a figure triple the base fine amount provided for the offense by the United States Sentencing Guidelines. In addition, FCA will serve a three-year term of probation and be subject to three years of oversight by an independent corporate compliance monitor. The United States has selected Frances McLeod as the independent compliance monitor. McLeod is a founding partner of Forensic Risk Alliance and head of its U.S. offices. She has recently served as the independent compliance monitor for IAV GmbH, a German company that was recently prosecuted in this district in connection with the Volkswagen emissions conspiracy. McLeod’s team includes experts in labor law and automotive regulatory compliance.
“The sentencing of FCA marks a significant milestone in this historic case,” said Acting United States Attorney Mohsin. “Congress enacted the Taft-Hartley Act to ensure that union members could have confidence in their union leaders. FCA violated these principles through corruption. By lavishing millions of dollars in gifts and cash upon UAW leaders, the FCA sought to improve its relationship with UAW leaders, and FCA thereby harmed the hardworking men and women of the UAW. A compliance monitor and a significant fine are important steps towards ending this type of systemic corruption and deterring future corporate malfeasance.”
“FCA conspired to make more than $3.5 million in illegal labor payments to officers of the UAW, who used the illicit funds for personal mortgage expenses and extravagant entertainment. Instead of negotiating in good faith, FCA corrupted the collective bargaining process and the UAW members’ rights to fair representation. We will continue to work with our law enforcement partners to root out systemic corruption and fraud involving unions," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“FCA bribed UAW officials in an attempt to ensure the outcome of negotiations was favorable to the corporation," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "This sweeping investigation and today's sentencing send a clear message that the FBI, working with our federal partners, will continue to hold corporations accountable when they violate federal laws.”
“Today’s sentence should serve as a reminder that IRS-CI and our law enforcement partners will aggressively investigate any company that violates federal law in an attempt to gain an unfair advantage in the marketplace”, stated Brian Thomas, Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Detroit Field Office. “A $30 million fine and oversight by an independent corporate compliance monitor is an important step in ending the systemic corruption at FCA.”
“Today’s sentencing shows that the Labor Department and our fellow law-enforcement agencies will not stand by when employers seek to sway union officials through illegal payments – whatever their form,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS will continue to work with its law enforcement partners to hold accountable any employer that unlawfully exploits its position in the collective bargaining process for personal or corporate financial gain without regard to the best interests of union members.”
Thus far, as part of this investigation of illegal payments by FCA to UAW officials, as well as fraud and embezzlement by other UAW officers, 14 individuals have been convicted of convicted of federal crimes, including three former FCA executives. They include former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former UAW Presidents Dennis Williams (21 months in prison) and Gary Jones (28 months in prison), former UAW Vice Presidents Norwood Jewell (15 months in prison) and Joseph Ashton (30 months in prison), former UAW Region 5 Director and UAW Board member Vance Pearson (12 months in prison), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Michael Grimes (28 months in prison), and Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison). Holiefield died in 2015.
Acting United States Attorney Mohsin again commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
This case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Erin S. Shaw.
Ex-Naval petty officer admits distributing child pornographyRead the Press Release
BRUNSWICK, GA: A former U.S. Navy petty officer stationed at Submarine Base Kings Bay awaits sentencing after admitting to distribution of child pornography.
Anthony Gabriel Ortiz, 23, of Kings Bay, Ga., pled guilty in U.S. District Court to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charge carries a mandatory minimum sentence of five years in prison, up to 40 years, along with substantial financial penalties and restitution, followed by up to life on supervised release and registration as a sex offender.
There is no parole in the federal system.
“The distribution of child pornography endlessly perpetuates the victimization of innocent children,” said Acting U.S. Attorney Estes. “By admitting to this charge, Anthony Ortiz will be held accountable for his despicable contributions to this exploitive trade.”
As described in court documents and testimony, Ortiz was in the U.S. Navy assigned to the Naval Nuclear Power Training Command, Naval Weapons Station in Charleston, S.C., when investigators with the Royal Canadian Mounted Police (RCMP) in early 2019 found online images of child pornography shared via a messaging application. RCMP alerted the Homeland Security Investigations (HSI) Cyber Crimes Center, and HSI contacted the Naval Criminal Investigative Service (NCIS).
Ortiz, a petty officer third class, transferred in April 2019 to Submarine Base Kings Bay in Kingsland, Ga., where he later was interviewed by HSI and NCIS investigators. He was taken into custody after admitting to possessing and distributing child pornography over the internet, and multiple images and videos of child sexual exploitation were found on electronic devices in his possession.
“Mr. Ortiz deserves to be held fully accountable for these truly reprehensible crimes,” said Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office. “NCIS exists to protect Department of the Navy personnel and their families from harm. We remain committed to working with our law enforcement partners to root out and fully investigate sexual predators who prey on and exploit vulnerable children.”
“Every time one of these disturbing images is shared or viewed the subject is revictimized, causing a cycle of never-ending trauma. That’s why finding and arresting the people involved in this exploitive behavior is so important for the safety of the children in our communities.,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “In order to stop these predators law enforcement, community partners, parents, family and friends must work together.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood, and was investigated by Homeland Security Investigations and the Naval Criminal Investigative Service. The case is being prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
El Departamento de Justicia resuelve una acusación contra un reclutador de informática radicado en Illinois por haber discriminado a trabajadores en este paísRead the Press Release
El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Ameritech Global, Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Illinois. El acuerdo resuelve acusaciones de que Ameritech había discriminado a trabajadores en este país cuando, al publicar anuncios de trabajo, especificó una preferencia por contratar a candidatos con visas temporales de trabajo y negarse a considerar al menos a tres candidatos que eran trabajadores en este país que, a pesar de ello, solicitaron los puestos publicados.
La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Ameritech ante la División de Derechos Civiles. Con base en la investigación, el Departamento concluyó que desde al menos el 1 de agosto del 2019 hasta el 17 de junio del 2021, Ameritech publicó al menos tres anuncios de trabajo que indicaban una preferencia por cubrir los puestos con individuos que no son ciudadanos estadounidenses con estatuses migratorios asociados con ciertas visas basadas en el empleo y, al hacerlo, perjudicaron a trabajadores en este país (ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales recientes, asilados y refugiados) tanto por disuadir ilegalmente a muchos de ellos de solicitar un puesto como por negarse a considerar, de manera justa, a contratar a aquellos personas que , a pesar de todo, solicitaron un puesto. En virtud de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a los empleadores, por lo general, no se les permite discriminar en los procesos de reclutamiento o contratación con base en el estatus de ciudadanía.
«Se debe hacer rendir cuentas a aquellos empleadores que desalientan y se niegan a contratar a candidatos laborales elegibles por motivos de su estatus migratorio o de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles intervendrá y hará cumplir, con firmeza, la ley para garantizar que los trabajadores queden protegidos de tal discriminación ilegal».
Conforme los términos del acuerdo conciliatorio, Ameritech pagará una sanción civil que asciende a 10.000 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Este folleto contiene más información sobre la discriminación con base en el estatus migratorio o de ciudadanía al amparo de la INA.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía o o bien por su nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
El Departamento de Justicia resuelve una acusación contra un reclutador de informática radicado en Illinois por haber discriminado a trabajadores en este paísRead the Press Release
El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Ameritech Global, Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Illinois. El acuerdo resuelve acusaciones de que Ameritech había discriminado a trabajadores en este país cuando, al publicar anuncios de trabajo, especificó una preferencia por contratar a candidatos con visas temporales de trabajo y negarse a considerar al menos a tres candidatos que eran trabajadores en este país que, a pesar de ello, solicitaron los puestos publicados.
La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Ameritech ante la División de Derechos Civiles. Con base en la investigación, el Departamento concluyó que desde al menos el 1 de agosto del 2019 hasta el 17 de junio del 2021, Ameritech publicó al menos tres anuncios de trabajo que indicaban una preferencia por cubrir los puestos con individuos que no son ciudadanos estadounidenses con estatuses migratorios asociados con ciertas visas basadas en el empleo y, al hacerlo, perjudicaron a trabajadores en este país (ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales recientes, asilados y refugiados) tanto por disuadir ilegalmente a muchos de ellos de solicitar un puesto como por negarse a considerar, de manera justa, a contratar a aquellos personas que , a pesar de todo, solicitaron un puesto. En virtud de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a los empleadores, por lo general, no se les permite discriminar en los procesos de reclutamiento o contratación con base en el estatus de ciudadanía.
«Se debe hacer rendir cuentas a aquellos empleadores que desalientan y se niegan a contratar a candidatos laborales elegibles por motivos de su estatus migratorio o de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles intervendrá y hará cumplir, con firmeza, la ley para garantizar que los trabajadores queden protegidos de tal discriminación ilegal».
Conforme los términos del acuerdo conciliatorio, Ameritech pagará una sanción civil que asciende a 10.000 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Este folleto contiene más información sobre la discriminación con base en el estatus migratorio o de ciudadanía al amparo de la INA.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía o o bien por su nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dover Man Indicted for Sex Trafficking and Production of Child PornographyRead the Press Release
CONCORD –Tyler Townsend, 27, of Dover, was indicted by a federal grand jury on Monday and charged with sex trafficking of a minor and production of child pornography, Acting United States Attorney John J. Farley announced today.
The indictment alleges that from approximately July of 2017 through approximately September of 2017, Townsend took various actions to cause a minor female to engage in commercial sex acts.
The indictment also alleges that on two occasions in August of 2017, Townsend used the same minor female to engage in sexually explicit conduct to produce a visual depiction of that conduct.
Townsend is currently in custody on unrelated state charges.
The case was investigated by Homeland Security Investigations, with assistance from the Dover Police Department and the New Hampshire Human Trafficking Collaborative Task Force. The case is being prosecuted by Assistant U.S. Attorneys Kasey Weiland and Anna Dronzek.
The New Hampshire Human Trafficking Collaborative Task Force is a multidisciplinary effort comprised of law enforcement as well as social, medical, and legal services for victims of human trafficking. The Task Force is funded by a grant from the United States Department of Justice, Office of Victims of Crime (OVC) and Bureau of Justice Programs (BJA).
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Dearborn Resident Pleads Guilty in Investment Fraud SchemeRead the Press Release
Dearborn resident Ali Rameh Bazzi pleaded guilty today to wire fraud and money laundering arising out of a $500,000 investment fraud scheme, announced acting United States Attorney Saima S. Mohsin.
Joining in the announcement were Special Agent in Charge Timothy Waters of the Federal Bureau of Investigation and Acting Special Agent in Charge Brian Thomas of the Internal Revenue Service-Criminal Investigations.
Ali Rameh Bazzi, 26, pleaded guilty to one count of wire fraud arising from his scheme to defraud investors out of approximately $500,000. Bazzi also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.
Acting United States Attorney Mohsin stated “Bazzi told his victims that he was investing their money in foreign exchange and commodity markets. In fact, he used their money to line his own pockets, and lied to his victims over and over again in order to sustain his fraud. Today’s guilty plea reflects my office’s commitment to hold accountable all those who fleece the public for personal gain.”
“Because seniors are a particularly vulnerable victim group and are often specifically targeted for financial fraud crimes, the FBI and our law enforcement partners have prioritized our efforts to address elder fraud,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “We encourage anyone who believes they are a victim of fraud or know a senior who may be, regardless of financial loss, to immediately report the incident to the FBI or another law enforcement agency.”
“Investment fraud schemes that entice investors with the false promise of significantly larger than average returns often result in the entire loss of investment. IRS CI is committed to investigating the ‘too good to be true’ investment scams,” stated Brian Thomas, Acting Special Agent in Charge of the Detroit Field Office, IRS Criminal Investigation.
According to the plea agreement, Bazzi owned and operated a purported investment company in Dearborn, Michigan known as Welther Oaks, LLC. Using the business name Welther Oaks, Bazzi solicited funds from individuals in various parts of the United States, including Michigan, Illinois and California, purportedly for investments. Bazzi represented to prospective investors that their funds would be invested primarily in foreign currency exchange markets; he also represented that the funds may be invested in certain commodities, including gold. Bazzi told the investors that Bazzi’s trading model would ensure that they earned high rates of return on their investment. Bazzi provided investors with written trading agreements and other materials. Bazzi also falsely represented that he was a licensed professional. Investors primarily funded their investments via checks mailed to Welther Oaks, or via wire transfers to bank accounts owned and controlled by Bazzi.
According to the plea documents, approximately 30 individuals invested funds with Bazzi over the course of his scheme, which ran from approximately March 2018 through March 2020. These investments totaled approximately $500,000. Contrary to his representations to the investors, Bazzi diverted most of the investors’ funds to his own personal uses and expenses. According to the plea documents, Bazzi spent investor funds on a sports car, other luxury vehicles, and expensive jewelry. To conceal the scheme. Bazzi provided investors with periodic investment account statements that listed fictitious trading activity and account balances.
The plea agreement further states that Bazzi engaged in financial transactions with the fraudulently obtained funds, including wiring some $28,429.20 to a business in Nevada for the lease of an exotic sports car.
Sentencing is set for November 30, 2021 at 4pm. before United States District Judge David M. Lawson.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the FBI and IRS-Criminal Investigations. The Chicago Office of the Commodity Futures Trading Commission provided substantial assistance in the investigation of this case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
Cut Bank man admits sexual abuse of minor on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS – A Cut Bank man accused of sexually abusing a minor in the Browning area, on the Blackfeet Indian Reservation, admitted charges on Monday, Acting U.S. Attorney Leif M. Johnson said today.
Wyitt Winston Williamson, 26, pleaded guilty to sexual abuse and to sexual abuse of a minor. Williamson faces a maximum life in prison, a $250,000 fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 2. Williamson was detained pending further proceedings.
The government alleged in court documents that on Nov. 1, 2017, Williamson sexually abused a 15-year-old girl who was passed out in the backseat of Williamson’s vehicle.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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