Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
10 August 2021
New Orleans Woman Pleads Guilty to Bank Larceny in Theft of over $200,000 Using Patient Information Stolen from Metairie Medical ClinicRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that ASHLEY GREEN, age 41, pled guilty as charged on August 4, 2021, to a one count Bank Larceny Bill of Information. Her co-defendants, Brandon Livas, age 34 and Royale Lassai, age 29, both from New Orleans, Louisiana pled guilty as charged in July 2019 to a one count Bill of Information with Bank Larceny, a violation of Title 18, United States Code, Section 2113(b).
In papers filed with the court signed by GREEN, she admitted that Lassai was employed in a Metairie, Louisiana medical clinic. Lassai, without authority, obtained personal information of patients including dates of birth, social security numbers and addresses. Lassai sold the information to her cousin, GREEN, who used this information to fraudulently obtain debit cards issued by the victim banks, Capital One and Whitney. These fraudulently obtained cards were mailed to an address controlled by GREEN. GREEN and Livas then used the cards to withdraw at least $200,000 from the victims’ accounts. Lassai was paid at least $1,000 to pilfer the patient’s information.
GREEN faces up to ten (10) years incarceration, a $250,000 fine, restitution and up to three (3) years supervised release. GREEN must pay a mandatory $100 special assessment cost. Sentencing is set for December 8, 2021.
U.S. Attorney Duane Evans praised the work of the Jefferson Parish Sheriff’s Office and the United States Postal Inspection Service, in investigating the matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
* * *
New Orleans Resident Pleads Guilty to Conspiring to Distribute Cocaine and Crack in the ‘Goose’ Area of New Orleans EastRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JOSEPH BROWN, age 45, a resident of Orleans Parish plead guilty today to conspiring to distribute 500 grams or more of cocaine and 28 grams or more of crack. BROWN is facing a sentence of five to forty years of imprisonment, a fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. BROWN also faces a $100 mandatory special assessment cost.
According to court records, BROWN and four others, Lionel Cooley, Kendrick Demourelle, Kevin Gray, and Blake Monroe, conspired to sell illegal narcotics in New Orleans, including using a broken-down yellow school bus in the ‘Goose’ neighborhood in New Orleans East as a stash house. All five were indicted in February 2020, and, according to court records, a seized GMC Sierra pickup truck used by a member of this conspiracy contained nearly two kilograms of cocaine and 430 grams of crack. The evidence against BROWN includes numerous intercepted communications, physical and video surveillance, seized drugs, and witness statements. U.S. District Judge Wendy Vitter will sentence BROWN on November 5, 2021.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
* * *
Muse Muse, the First of Three Lansing Men to Be Sentenced for Conspiring to Provide Material Support to Isis, Receives 78 Months in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Chief United States District Judge Robert J. Jonker sentenced Muse Muse, age 22, of Lansing, Michigan to serve 78 months in federal prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), a designated foreign terrorist organization. Following his release from prison, Muse Muse was ordered to serve 10 years of supervised release. The government sought a sentence of 178 months (nearly 15 years) in prison consistent with the sentence recommended by the United States Sentencing Guidelines.
On January 21, 2019, special agents of the Federal Bureau of Investigation and members of its Joint Terrorism Task Force arrested Muse Muse at the Gerald R. Ford International Airport in Grand Rapids, Michigan, after he checked in for a flight to the first of a series of destinations on his way to Mogadishu, Somalia, with the goal of joining ISIS. Shortly thereafter, his brother Mohamud Muse and cousin Mohamed Haji were arrested as co-conspirators. Immediately following his arrest, Muse Muse adopted a handwritten statement prepared for him by an FBI special agent that summarized his interest in ISIS and end goal regarding his support of ISIS. In part, Defendant admitted that he “wanted to join ISIS in Somalia so I wouldn’t have to do an attack in the United States.”
According to court documents, between December 2018 and January 2019, Muse Muse coordinated with an individual he believed to be a Somali ISIS fighter to wire funds to be used to purchase airline tickets for travel to Mogadishu, Somalia, where he believed he would meet an ISIS representative. All three defendants picked up money to provide Muse Muse the funds to travel to join ISIS, all three defendants pledged allegiance to ISIS in recorded videos, and all three submitted their videos to individuals they believed were associated with ISIS.
Additionally, records provided to the Court at sentencing demonstrated that throughout the conspiracy, all three defendants participated in numerous conversations during which they discussed traveling overseas to join ISIS and even adopted fighter aliases by which they would be known when fighting for ISIS. In one conversation between Muse Muse and Mohamed Haji on November 1, 2017, the two celebrated the deadly vehicle attack in New York City that occurred on October 31, 2017. Muse Muse sent the following image to Haji, who responded “Real civil war”:
Later, Haji and Defendant celebrated Defendant’s recent acquisition of a Michigan driver’s license. Haji began, “You’re a driver now” and “that’s good so you can drive that [martyrdom] car right.” Muse Muse responded, “Yes [God willing].” Muse Muse also said, “I’ve been thinking about getting a rifle and something” and “I’m starting to entertain these thoughts.” In March 2018, Muse Muse sent a message to a relative declaring: “I’m a terrorist” and “I’m going to Somalia [God willing].”
In January 2020, Muse Muse admitted that he: (1) agreed with one or more individuals to provide material support or resources (which includes personnel) to ISIS, a foreign terrorist organization; (2) knew that ISIS was a designated foreign terrorist organization or had engaged or engages in terrorist activity or terrorism; and (3) is a U.S. national and that part of the offense occurred in the United States. Muse Muse further admitted that the individuals he conspired with were his relatives and co-defendants, Mohamud Muse and Mohamed Haji. Mohamud Muse and Haji have each also pled guilty in connection with the plot and await sentencing.
In sentencing Muse Muse, the Court found that his age at the time of the offense, his lack of personal financial resources to finance overseas travel, and the potential for rehabilitation were among the factors considered by the Court in imposing the 78-month sentence. Due to the Court’s disagreement with the Sentencing Guidelines and because Muse Muse did not have a prior criminal history, the Court departed downward an additional 52 months from the applicable Sentencing Guideline sentence.
United States Attorney Andrew Birge stated, “Although we are disappointed and respectfully disagree with the sentence imposed by the Court, we applaud the FBI’s successful efforts to prevent this defendant from assisting a dangerous international terrorist organization to carry out attacks here or overseas. This sentence will ensure that, at least for the next six and one-half years, Muse Muse will not be able to join ISIS overseas to assist its members with committing violence. Detecting, preventing, and prosecuting terrorism offenses remains the highest priority for the Department of Justice and my office.”
“Muse Muse’s determination to join ISIS and harm Americans in Michigan and overseas was well documented during the investigation,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “The FBI’s Joint Terrorism Task Force works every day to prevent violence before it occurs, and once again I commend the outstanding work of our partners on the JTTF who work 24/7 to keep the citizens of Michigan safe.”
The FBI’s investigation was assisted by the Michigan State Police, Kent County Sheriff’s Office, Eaton County Sheriff’s Office, Michigan State University Police Department, Lansing Police Department, Grand Rapids Police Department, Gerald R. Ford Airport Police, the U.S. Marshals Service, and the Department of Homeland Security Transportation Security Administration, Federal Air Marshals, and Customs and Border Protection.
Assistant United States Attorneys Clay West and Christopher O’Connor are prosecuting the case with assistance from the National Security Division Counterterrorism Section.
###
Montz Woman Pleads Guilty to Theft of Social Security Retirement Survivor Insurance Program FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that IGEL CASANOVA GIBBINS (“GIBBINS”), age 44, of Montz, Louisiana, pled guilty today to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
The case against IGEL CASANOVA GIBBINS (“GIBBINS”) began after the State of Louisiana complied with a request from the Social Security Administration (“SSA”) to provide the SSA with death data of approximately 1.6 million Social Security number holders who had died in Louisiana from January 1, 1979, through December 31, 2019. As part of that data, the State of Louisiana disclosed that D.C., a participant in the SSA’s Retirement Survivor Insurance program (“RSI Program”), died on or about August 16, 2012.
Unaware of D.C.’s death, the SSA erroneously released approximately $202,417.00 in RSI Program funds from August 2012 through December 2020, via automatic wire transfers (i.e., direct deposit) to D.C.’s jointly held Capital One Bank (“Capital One”) account. GIBBINS, D.C.’s daughter, was a joint account holder of the Capital One account. D.C.’s RSI Program benefits were not transferrable to GIBBINS. Following the automatic deposit of RSI Program benefits, GIBBINS accessed the funds and wrongfully converted the funds to her own personal use, depleting nearly all account funds. The funds were used on purchase transactions or transfers out of the account to pay bills, for example, such as for mortgage payments and vehicle loan payments. GIBBINS never advised the SSA of D.C.’s death.
The SSA determined that GIBBINS fraudulently obtained $200,396 in SSA disability benefits from her father’s Capital One Bank account.
GIBBINS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment. Sentencing in this matter is scheduled for November 16, 2021, before United States District Judge Jay C. Zainey.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit and Assistant U.S. Attorney Paige O’Hale.
Montgomery Man Convicted of Illegally Possessing A FirearmRead the Press Release
Montgomery, Ala. – On Monday, August 9, 2021, Timothy Jerome Russell, 43, from Montgomery, Alabama, was convicted by a federal jury for being a felon in possession of a firearm, announced Acting U.S. Attorney Sandra J. Stewart.
According to court records and evidence presented at trial, on August 16, 2018, Montgomery police officers were patrolling an area near Ann Street when they saw a vehicle with a suspended tag. When the driver of the car pulled into a gas station, the officers followed and made contact with Russell, who was the driver and only person in the vehicle. When officers ran his driver’s license through dispatch, they learned that Russell had several outstanding arrest warrants. Officers then had Russell exit the car and he was detained. When officers asked if anything illegal was in the car, Russell said he had marijuana and a pistol in the center console. The car was searched, and they found a Smith & Wesson .40 caliber handgun, along with marijuana and other controlled substances. Russell has a previous felony conviction and is prohibited from possessing firearms. He was indicted for being a felon in possession of a firearm by a federal grand jury on February 12, 2020.
Russell’s sentencing hearing will be schedule in the next few months and he faces a sentence of up to ten years in prison.
This case was investigated by the Montgomery Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Brandon Bates and Brett Talley prosecuted the case.
Minneapolis Man Pleads Guilty to Armed Robbery Spree of Twin Cities BusinessesRead the Press Release
MINNEAPOLIS – A Minneapolis man pleaded guilty today to seven violent armed robberies of Twin Cities businesses, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on July 28, 2020, Derrick Lee Spillman, 40, robbed three Twin Cities businesses, including a Holiday gas station and two liquor stores. During the robberies, Spillman pointed handguns at employees and ordered them to the ground or physically assaulted them. On July 30, 2020, Spillman continued his crime spree by robbing two additional Holiday gas stations, a Speedway gas station, and a Subway restaurant. During these incidents, Spillman pointed a handgun at employees, racked the slide of the gun, and demanded cash from the registers.
Spillman pleaded guilty to seven counts of Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence.
“Working in tandem with our federal and local law enforcement partners, we will continue to pursue, arrest, and prosecute violent, armed criminals such as Mr. Spillman,” said Acting U.S. Attorney W. Anders Folk.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Fridley Police Department, the Brooklyn Center Police Department, the New Hope Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
Minneapolis Man Indicted for Violent Robbery of a Minneapolis BusinessRead the Press Release
MINNEAPOLIS – A Minneapolis man has been indicted by a federal grand jury for a Hobbs Act robbery that resulted in the shooting death of a store clerk, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on April 27, 2021, Marlow Ramsey Carson, 30, robbed Blue Sky Wireless and West Bend Furniture located in Minneapolis. During the robbery, Carson, armed with a 9mm semiautomatic handgun, used force, threats of force, violence, and injury, resulting in the victim’s death. Carson has prior felony convictions and is therefore prohibited from possessing firearms or ammunition at any time.
Carson is charged with one count of interference with commerce by robbery, one count of possession of a firearm as a felon, and one count of possession of ammunition as a felon. Carson made his initial appearance today in U.S. District Court before Magistrate Judge Becky R. Thorson.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department.
Assistant U.S. Attorneys Harry M. Jacobs and Samantha H. Bates 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.
Merrimack Man Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD - Kyle Mehlhorn, 28, of Merrimack, pleaded guilty on Friday in federal court to multiple drug trafficking and firearm charges, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 27, 2020, Manchester police officers observed a vehicle with wrongfully attached license plates and made a traffic stop. Mehlhorn was the driver and he had a female passenger. A records check of Mehlhorn revealed his license and registration were suspended and he was placed under arrest. The passenger was cooperative and identified her belongings in the vehicle. On November 2, 2020, after obtaining a search warrant, Manchester police officers searched the vehicle and found over 209 grams of methamphetamine, over 28 grams of fentanyl, various items used in drug packaging, $13,800 in cash, and two loaded firearms. At the time of his arrest, Mehlhorn was a previously convicted felon and was prohibited from possessing firearms.
In January of 2021, Mehlhorn was arrested in Boston on a complaint from the District of New Hampshire. Mehlhorn was armed with a 9 mm handgun and was carrying a backpack containing over 196 grams of methamphetamine and over 187 grams of fentanyl. A subsequent search warrant for the vehicle revealed an additional .22 caliber handgun.
Mehlhorn is scheduled to be sentenced on December 1, 2021. He will forfeit the firearms and cash seized in January of 2021. The money and firearms seized in October of 2020 have already been forfeited.
“Armed drug dealers present a clear threat to public safety,” said Acting U.S. Attorney Farley. “Given the deadly risks posed by fentanyl and methamphetamine, this defendant’s drug trafficking endangered the community. Because he was armed with multiple firearms, this defendant’s criminal conduct could have jeopardized many additional lives. As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute armed drug traffickers so we can protect residents of the Granite States from violent crime.”
“This case shows our unrelenting determination to eradicate the drug-fueled violence plaguing New Hampshire at the hands of previously convicted felons like Kyle Mehlhorn who continually demonstrate why they are a serious threat to public safety,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “In order to reduce violent crime, the FBI’s New Hampshire Safe Streets Task Force will continue to work with our law enforcement partners to do everything it can to stop the flow of illegal narcotics and firearms onto our streets.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hampshire State Police, the Manchester Police Department, the Concord Police Department, the Gorham Police Department, and the Boston (MA) Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles Rombeau. Assistant U.S. Attorney Robert Rabuck assisted with forfeiture aspects of this matter.
###
Mashpee Wampanoag Member Sentenced for Role in Heroin Trafficking OrganizationRead the Press Release
BOSTON – A member of the Mashpee Wampanoag tribe was sentenced today in federal court in Boston for his role in a wide-ranging heroin trafficking conspiracy.
Joshua Johnson, 34, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served plus an additional two weeks (for a total of approximately 13 months) in prison and three years of supervised release. On March 11, 2021, Johnson pleaded guilty to conspiracy to distribute heroin.
In May 2019, Johnson and 10 co-defendants were arrested and charged with various drug distribution offenses.
According to court documents, in 2019, law enforcement began investigating a Cape Cod drug trafficking organization, allegedly led by Edwin Otero. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod, including Hyannis, Mashpee, Centerville and Osterville as well as Pawtucket, R.I. Interceptions from Otero’s phone identified Johnson as a drug trafficker supplied by Otero. In addition to moving sizeable quantities of heroin, the investigation revealed that members of the Otero crew allegedly shot at a drug customer over an unpaid debt and videotaped themselves beating another man they incorrectly believed had provided information to the police.
Johnson is the second defendant to be sentenced in this case and the fourth to have pleaded guilty. The remaining defendants have pleaded not guilty and are pending trial.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew K. Sonnabend made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 20 Years in Prison after Committing Second Degree MurderRead the Press Release
A man was sentenced today in federal court for shooting and killing an acquaintance during a small gathering at a Tulsa hotel, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Johnny Little Cook, 43, to 20 years in federal prison. Cook was further ordered to pay $1,600 in restitution for the victim’s funeral expenses.
Cook pleaded guilty to second degree murder in Indian Country on May 5, 2021. In his plea agreement, Cook admitted to shooting and killing XZavior Frost on Feb. 24, 2021. Cook killed the victim at a Tulsa hotel during a small gathering in one of the rooms. His body was found by cleaning staff on Feb. 25, around noon.
During an investigation by the Tulsa Police Department Homicide Unit, witnesses stated that the victim entered the hotel room to join the group, and Cook, who was already there, pointed a gun at the victim and shot him. One witness who had just arrived at the hotel claimed he saw Cook run from the room and heard him say “either I killed him or he’s faking it.” Another witness said she witnessed Cook and the victim arguing the same day the victim was murdered.
Officers located and arrested Cook later on March 1. Cook stated in an interview that he felt threatened by the victim based on earlier incidents. He claimed that he thought the victim was reaching for a gun so he shot the victim. He then stated he thought the victim was reaching for another weapons so he shot him a second time. An individual who witnessed the crime stated that the victim possessed firearm in a holster but never drew the weapon.
Cook is a citizen of the Rosebud Sioux Nation, and the crime occurred on the Muscogee Nation reservation.
The Tulsa Police Department, FBI, and Muscogee Nation Lighthorse Police Department conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger prosecuted the case.
Man Sentenced for Covid-19 Relief Fraud SchemeRead the Press Release
A Washington State man was sentenced today to two years in prison for perpetrating a scheme to fraudulently obtain COVID-19 disaster relief loans guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Austin Hsu, 46, of Issaquah, pleaded guilty on Jan. 21. According to court documents, Hsu submitted nine fraudulent disaster loan applications seeking over $1.1 million. Hsu, the owner and CEO of a company named Blackrock Services P.S. dba Back 2 Health Bellevue (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of four other companies that he owned and controlled. In support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
Hsu also incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. In truth, Blueline had no business or operations.
Six of Hsu’s nine fraudulent loan applications were approved, and he fraudulently obtained more than $700,000 in COVID-19 relief funds.
In addition to the prison sentence, Hsu was ordered to pay a fine in the amount of $25,000 and $709,104.97 in restitution.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); Inspector General Gail S. Ennis of the Social Security Administration (SSA); Inspector General Hannibal “Mike” Ware of the SBA; and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) made the announcement.
This case was investigated by the TIGTA, SSA – Office of Inspector General (OIG), SBA – OIG, and HSI.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Macon Jury Convicts Armed Career Criminal on Gun, Heroin, Meth ChargesRead the Press Release
MACON, Ga. – A federal jury convicted a Macon resident with a lengthy criminal history of possession with intent to distribute methamphetamine, heroin and Tramadol, as well as illegally possessing a firearm and possessing a gun in furtherance of drug trafficking this afternoon.
Kelvin Henry, 56, of Macon, was found guilty of one count of possession with intent to distribute methamphetamine, one count possession with intent to distribute heroin, one count possession with intent to distribute Tramadol, one count possession of a firearm by a convicted felon and one count possession of a firearm in furtherance of a drug-trafficking crime following a two-day trial that began on Monday, August 9 in Macon federal court. Henry is facing a mandatory minimum of fifteen years up to a maximum of life in prison plus a maximum $10,000,000 fine for his crimes. Sentencing before U.S. District Judge Tilman (Tripp) Self is scheduled for November 2, 2021. There is no parole in the federal system.
“The U.S. Attorney’s Office will continue to do everything in our power to reduce violence and crime in the Middle District of Georgia, and armed career criminals who deal drugs and tote guns will be held accountable,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “I want to commend the Bibb County Sheriff’s Office and DEA for their work investigating this case and helping us bring the defendant to justice.”
“The conviction of the armed repeat offender in this case exemplifies the clear and present danger of drugs like ‘meth,’ heroin, and prescription pills such as tramadol, poses to our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the collective efforts between DEA and its law enforcement partners, this defendant will spend well-deserved time in prison when sentenced.”
According to court documents and evidence presented at trial, a confidential source (CS) informed agents in January 2019 that Henry was selling crystal methamphetamine, heroin and other illegal drugs from his Macon residence for the past eight years. Following an investigation, a search warrant was issued, and law enforcement searched Henry’s property on March 7, 2019, recovering a semi-automatic pistol, bundles of cash, and more than a kilogram of drugs, including methamphetamine, heroin and Tramadol. Henry is considered an armed career criminal due to his lengthy criminal record, which includes seven felony convictions, among them convictions for possession with intent to distribute methamphetamine and possession with intent to distribute cocaine in Peach County.
The case was investigated by the Bibb County Sheriff’s Office and DEA.
Assistant U.S. Attorney William Keyes and Paul McCommon are prosecuting the case.
Lumberton Man Pleads Guilty to ID TheftRead the Press Release
WILMINGTON, N.C. – A Lumberton man pleaded guilty today to the possession of another’s identification document with the intent to defraud the United States, in violation of 18 U.S.C. § 1028(a)(4).
According to court documents, Chad Hunt, 43, was working on a drywall contract for the United States Government in Fayetteville, North Carolina. Hunt unlawfully possessed and provided the valid driver’s license of another individual, cleared to work on the site, to one of his workers who had not received clearance to be on the job. Using the false identification, the worker accessed the work site in contravention to the security protocols in place on numerous occasions between June 4 and July 3, 2020.
Hunt pleaded guilty to the possession of the identification document and faces a maximum penalty of 12 months in prison. Sentencing is set to occur in December, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert B. Jones accepted the plea. The Federal Bureau of Investigation is investigating the case.
A copy of this press release is located on our website. 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. 5:21-cr-00235-FL.
Las Vegas Man Indicted for Carrying Eight Pounds of Meth Aboard BusRead the Press Release
KANSAS CITY, Mo. – A Las Vegas, Nevada, man was indicted by a federal grand jury today for possessing more than eight pounds of methamphetamine in his duffel bag aboard a bus passing through Kansas City, Missouri.
Reginald S. Thomas Sr., 52, was charged with possessing methamphetamine with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint that was filed against Thomas on July 28, 2021.
According to an affidavit filed in support of the original criminal complaint, a police service canine alerted to the presence of drugs in a duffel bag that was among the luggage of a bus from Los Angeles, California, that arrived at a bus station in Kansas City, Mo., on July 28, 2021. Thomas, the owner of the duffel bag, was questioned by law enforcement officers.
When officers searched the duffel bag, they found a grey denim backpack that contained seven bundles. Those bundles, the affidavit says, contained approximately 8.1 pounds (3.674 kilograms) of methamphetamine.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Drug Enforcement Administration and the Missouri Western Interdiction Narcotics (MOWIN) Task Force.
La Crosse Man Sentenced to 7 Years for Trafficking Fentanyl and CocaineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jesse J. Stringer, 33, La Crosse, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for possessing with intent to distribute 40 grams or more of fentanyl. This prison term will be followed by 4 years of supervised release. Stringer pleaded guilty to this charge on May 24, 2021.
On September 23, 2020, La Crosse Police Department officers purchased 6.3 grams of fentanyl from Stringer through a confidential informant in La Crosse. The next day, officers purchased 6 grams of fentanyl from Stringer, again through a confidential informant in La Crosse. On October 13, 2020, law enforcement officers obtained a search warrant for Stringer’s apartment in La Crosse, and found 86 grams of fentanyl, 81 grams of crack cocaine, 259 grams of powder cocaine, and $15,600 in cash.
In imposing sentence, Judge Peterson noted the particular danger posed by fentanyl, Stringer’s sustained involvement in this drug activity, his criminal history, and the fact that he committed these crimes while out on bond for multiple open state cases involving drug charges.
The charge against Stringer was the result of an investigation conducted by the La Crosse and Town of Campbell Police Departments, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office also provided assistance in this case. The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson.
Kent, Washington man who engaged in looting during downtown Seattle civil unrest sentenced for illegally possessing firearmRead the Press Release
Seattle —A 33-year-old Kent, Washington man was sentenced today in U.S. District Court in Seattle to two years in prison for being a felon in possession of a firearm during civil unrest and looting in downtown Seattle, announced Acting U.S. Attorney Tessa M. Gorman. Al M. Talaga was arrested in September 2020, following an investigation of events that began June 1, 2020. At the sentencing hearing today U.S. District Judge James L. Robart told him, “You can’t have guns. We’re talking about a phenomenon plaguing our city.”
“This defendant was one of a fairly small number of people who hijacked otherwise lawful protests, intended to highlight the issue of racial injustice, to vandalize and steal merchandise from a small business that had been closed for months due to COVID-19,” said Acting U.S. Attorney Gorman. “He chose to make the situation even more dangerous by bringing loaded firearms into the area.”
According to the criminal complaint, on June 1, 2020, Seattle Police officers responded to reports of a break-in and looting at the Sneaker City store on Pike Street in downtown Seattle. When police arrived, various suspects were running away from the store. Witnesses said some of the looters had loaded merchandise into a Dodge Magnum that was parked near the store. In checking the car for suspects, police officers noted a number of items that appeared to have been taken from the store, as well as a firearm in the driver’s side door panel of the car.
Police impounded the car and traced its ownership to Talaga. A court-authorized search of the car revealed that there were two firearms in the car. In addition to the loaded .40 caliber Glock in the side pocket of the door, investigators found a second loaded handgun under the floor mat on the passenger side of the car. A law enforcement database check verified that the .40 caliber pistol under the floor mat had been reported stolen in 2019 from a residence in Tacoma during a home invasion robbery.
Talaga is prohibited from possessing firearms due to a 2005 conviction in King County Superior Court for Second Degree Robbery.
In asking for a 30-month sentence Assistant United States Attorney Kate Crisham wrote in her sentencing memo, “In this case, Talaga had two easily accessible, loaded firearms in an unlocked car that he and others used as a receptacle for the stolen merchandise they looted from the store. A witness observed the looters make multiple trips to Talaga’s car with stolen merchandise. As the Probation Officer noted, if security or responding law enforcement officers had confronted the looters near the car, the firearms very well could have come in to play.”
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Kate Crisham.
KC Man Pleads Guilty to Illegal Firearm Used in Fatal ShootingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has pleaded guilty in federal court to illegally possessing the firearm he accidentally fired in a fatal shooting at the Kansas City Zoo.
Anthony R. Meneses, 28, pleaded guilty before U.S. District Judge Greg Kays on Monday, Aug. 9, to being a felon in possession of a firearm.
According to an affidavit filed in support of the federal criminal complaint, Kansas City police officers were called to the scene of an accidental shooting in a parking lot at 6800 Zoo Drive, Kansas City, Mo., on Aug. 9, 2020. The victim, identified in court documents as “J.S.,” had been shot while he was sitting in the driver’s seat of a 2005 Toyota Camry, which was occupied by three other persons.
Meneses was sitting behind the driver’s seat; there was another passenger in the back seat and in the front passenger seat. Meneses grabbed the gun, a Glock 9mm pistol, from the back pocket of the driver’s seat when the gun accidentally fired. The bullet traveled though the driver’s seat, striking J.S. in the chest.
J. S. was transported to Research Medical Center where he was later pronounced deceased.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Meneses has a prior felony conviction for tampering with a motor vehicle.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Justice Department Settles Claim Against Akal Security to Enforce Servicemember’s USERRA RightsRead the Press Release
The Justice Department announced today that it finalized the settlement of a claim against Akal Security to protect rights guaranteed to a military reservist, Chief Petty Officer Robert M. Diaz (Ret.), by the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
Since 2005, Diaz has worked as a full-time Court Security Officer (CSO) at the Moakley Federal Courthouse in Boston. He also served our country as a member of the Coast Guard Reserve, and from October 2012 to September 2015 was on an active duty military deployment. Akal Security managed the CSO contract in 2012, at the time Diaz left for military service. When he returned from service, Diaz returned to his CSO job, but his pension was not credited with the time he would have worked as a CSO but for his military duty, as required by USERRA. In the settlement agreement announced today, Akal will compensate Diaz for the pension credits and benefits he lost during this period in service to the country.
“We are grateful to Mr. Diaz and the other men and women of our Armed Forces for the sacrifices they make in service to this country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When our country calls servicemembers to duty, the Civil Rights Division will vigorously enforce the laws designed to protect them from discrimination in their civilian jobs, including ensuring that they receive proper pension benefits.”
“Our laws protect the civilian careers of the brave men and women who serve our country. The Department of Justice is committed to enforcing those laws when employers violate them,” said Acting U.S. Attorney Fred Federici for the District of New Mexico. “Members of the Reserves are often called away from their civilian jobs in order to provide the security upon which our nation depends. They should not have to fear losing their jobs or, as here, their pension benefits, when they answer that call.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. USERRA also requires pre-deployment employers to provide pension benefits when their employees are called to active duty. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the U.S. Department of Labor, at Diaz’s request, after an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by Jeffrey Morrison in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Manuel Lucero in the U.S. Attorney’s Office for the District of New Mexico.
Justice Department Seeks to Shut Down Washington Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Western District of Washington seeking to bar a Kent, Washington, tax return preparer from preparing federal tax returns for others. The parties have contemporaneously filed a joint motion for entry of a permanent injunction by consent.
The civil complaint filed against Soledad Rubio alleges that she owns and operates defendant GIG Universal Multi Servicios. According to the complaint, GIG Universal Multi Servicios prepared and filed thousands of federal tax returns from 2014 through 2019. The complaint alleges that Rubio prepared federal income tax returns that underreport tax due by fraudulently claiming fabricated and overstated itemized deductions, unreimbursed employee business expenses, Earned Income Tax Credits, Child Tax Credits and Additional Child Tax Credits.
According to the complaint, GIG prepared nearly 5,200 tax returns in aggregate for tax years 2016 and 2017 and of that total, Rubio prepared over 2,400 returns. The complaint alleges that the IRS interviewed certain customers of Rubio and GIG Universal Multi Servicios about their 2016 and 2017 tax returns and calculated, based on those interviews, that on average, returns prepared by GIG underreported tax due by $3,421 per return for those years. Of those, the complaint alleges, returns prepared specifically by Rubio on average underreported tax due by $3,055.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Reaches Proposed Consent Decree with the State of New Jersey to Resolve Claims that the Edna Mahan Correctional Facility for Women Violated the Constitution by Failing to Protect Prisoners from Sexual Abuse by StaffRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for New Jersey today filed a complaint and a proposed consent decree with the State of New Jersey and New Jersey Department of Corrections concerning the Edna Mahan Correctional Facility for Women.
The proposed consent decree, which must still be approved by the court, would resolve the United States’ claims that that the State and the Department of Corrections fails to protect prisoners at Edna Mahan from sexual abuse by the facility’s staff in violation of the U.S. Constitution.
Under the proposed consent decree, the New Jersey Department of Corrections will, among other things, implement policies and practices to ensure that prisoners are protected from harm due to sexual abuse through appropriate prisoner supervision; effective and confidential methods for reporting of sexual abuse; and protections against retaliation for reporting sexual abuse. The proposed consent decree includes improved measures to ensure staff are held accountable for misconduct. It also requires greater transparency, through public meetings with stakeholders, including former Edna Mahan prisoners, prisoner advocates and family members of current Edna Mahan prisoners. The proposed consent decree also appoints an independent monitor who will oversee and assess the State’s compliance with the terms of the proposed consent decree. If the State of New Jersey closes Edna Mahan, the consent decree applies to any facility that replaces the prison.
“Every prisoner deserves to be safe from sexual assault and other forms of sexual abuse by staff, and to be protected from retaliation for reporting abuse,” said Assistant Attorney General Kristen Clarke for the Justice Department's Civil Rights Division. “Our agreement addresses the systemic issues that have plagued the Edna Mahan facility, ensures that women incarcerated there will receive the basic protections they are entitled to under the Constitution, and requires accountability through public transparency. We will keep working to protect the civil rights, safety and human dignity of all prisoners held inside our jails and prisons, including women prisoners, many of whom have suffered physical and sexual abuse before their incarceration.”
“Our civil rights investigation revealed systemic and long-standing deficiencies in training, supervision, and reporting at Edna Mahan, deficiencies that allowed the sexual abuse of prisoners to occur unabated,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The State of New Jersey now has agreed to remediate these deficiencies by entering into this consent decree, and we look forward to continuing to work with the State and the Department of Corrections to ensure that no prisoner faces this kind of abuse in the future, whether at Edna Mahan or any other facility that might replace it.”
The Civil Rights Division and the U.S. Attorney’s Office for District of New Jersey initiated the investigation in April 2018 under the Civil Rights of Institutionalized Persons Act, known as CRIPA, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. In April 2020, the department provided the State written notice of the alleged unlawful conditions and remedial measures necessary to address them. Specifically, the department concluded that there is reasonable cause to believe that Edna Mahan violated the Eighth Amendment of the Constitution by failing to protect prisoners from sexual abuse by staff.
Individuals with information relevant to department’s investigation of Edna Mahan are encouraged to contact the Department of Justice via email at [email protected] or by phone at 833-341-4675. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. To learn more about civil rights enforcement at the U.S. Attorney’s Office in the District of New Jersey, additional information is available at https://www.justice.gov/usao-nj/civil-rights-enforcement.
Justice Department Reaches Proposed Consent Decree with New Jersey to Resolve Claims that Edna Mahan Correctional Facility for Women Violated Constitution by Failing to Protect Prisoners from Sexual Abuse by StaffRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division today filed a complaint and a proposed consent decree with the state of New Jersey and New Jersey Department of Corrections concerning the Edna Mahan Correctional Facility for Women.
The proposed consent decree, which must still be approved by the court, would resolve the United States’ claims that the state and the Department of Corrections fails to protect prisoners at Edna Mahan from sexual abuse by the facility’s staff in violation of the United States Constitution.
Under the proposed consent decree, the New Jersey Department of Corrections will implement policies and practices to ensure that prisoners are protected from harm due to sexual abuse through appropriate prisoner supervision; effective and confidential methods for reporting of sexual abuse; and protections against retaliation for reporting sexual abuse. The proposed consent decree includes improved measures to ensure staff are held accountable for misconduct. It also requires greater transparency through public meetings with stakeholders, including former Edna Mahan prisoners, prisoner advocates, and family members of current Edna Mahan prisoners. The proposed consent decree also appoints an independent monitor who will oversee and assess the state’s compliance with the terms of the proposed consent decree. If the state of New Jersey closes Edna Mahan, the consent decree applies to any facility that replaces the prison.
“Our civil rights investigation revealed systemic and long-standing deficiencies in training, supervision, and reporting at Edna Mahan, deficiencies that allowed the sexual abuse of prisoners to occur unabated,” Acting U.S. Attorney Rachael A. Honig said. “The state of New Jersey now has agreed to remediate these deficiencies by entering into this consent decree, and we look forward to continuing to work with the state and the Department of Corrections to ensure that no prisoner faces this kind of abuse in the future, whether at Edna Mahan or any other facility that might replace it.”
“Every prisoner deserves to be safe from sexual assault and other forms of sexual abuse by staff, and to be protected from retaliation for reporting abuse,” said Assistant Attorney General Kristen Clarke for the Justice Department's Civil Rights Division. “Our agreement addresses the systemic issues that have plagued the Edna Mahan facility, ensures that women incarcerated there will receive the basic protections they are entitled to under the Constitution, and requires accountability through public transparency. We will keep working to protect the civil rights, safety and human dignity of all prisoners held inside our jails and prisons, including women prisoners, many of whom have suffered physical and sexual abuse before their incarceration.”
The U.S. Attorney’s Office for District of New Jersey and the Civil Rights Division initiated the investigation in April 2018 under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the Department of Justice to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. In April 2020, the Department of Justice provided the state written notice of the alleged unlawful conditions and remedial measures necessary to address them. The department concluded that there is reasonable cause to believe that Edna Mahan violated the Eighth Amendment of the Constitution by failing to protect prisoners from sexual abuse by staff.
The United States is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the Civil Rights Unit; Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit; Kerry Krentler Dean, Deputy Chief of the Civil Rights Division’s Special Litigation Section; and Helen Vera, Trial Attorney, Special Litigation Section.
Individuals with information relevant to Department’s investigation of Edna Mahan are encouraged to contact the Department of Justice via email at [email protected] or by phone at 833-341-4675. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s reporting portal, available at www.civilrights.justice.gov. To learn more about civil rights enforcement at the U.S. Attorney’s Office in the District of New Jersey, additional information is available at https://www.justice.gov/usao-nj/civil-rights-enforcement.
Justice Department Reaches Agreement with Brown University to Ensure Equal Access for Students with Mental Health DisabilitiesRead the Press Release
The Justice Department and U.S Attorney’s Office for the District of Rhode Island today announced a settlement agreement with Brown University to ensure that students with mental health disabilities have equal access to educational programs.
The agreement resolves the department’s findings that Brown University violated Title III of the Americans with Disabilities Act (ADA) by not allowing students who took medical leave for mental health reasons to return to school even though they were ready to return to campus life.
The settlement agreement protects the rights of students with mental health disabilities to have equal access to Brown’s educational programs. The agreement also ensures that Brown will make reasonable modifications to its policies for students with mental health disabilities seeking to return from medical leave.
Title III of the ADA requires places of public accommodation like colleges and universities to provide individuals with disabilities, including mental health disabilities, with an equal opportunity to participate in their programs and services. The ADA also requires colleges and universities to make reasonable modifications to their policies for students with disabilities when needed.
The department’s investigation found that, between fall 2012 and spring 2017, dozens of undergraduate students were denied readmission to Brown after taking mental health-related medical leave. These students met the requirements for returning to Brown, and each of the students’ treatment providers reported to Brown that the students were ready to resume their studies and participate in campus life. Yet, the department found that Brown denied the students’ applications for readmission, depriving these students of the opportunity to participate in and benefit from Brown’s educational programs.
As a result of the agreement announced today, Brown will:
- revise its undergraduate leave policies and practices to be consistent with Title III of the ADA;
- provide training on Title III of the ADA to all faculty and staff responsible for evaluating or making decisions about requests to take or return from leaves of absence; and
- pay $684,000 to compensate the undergraduate students who were harmed.
“Students with disabilities deserve access to equal opportunity to help ensure that they can achieve their educational goals," said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that colleges and universities do not exclude students on the basis of their disability or because they took time to receive the treatment they needed to thrive. “We will keep fighting to ensure equal access for students with mental health disabilities at colleges and universities across our country.”
“Universities play a critical role in fulfilling the ADA’s promise of equal opportunity for individuals with disabilities,” said Acting United States Attorney Richard Myrus for the District of Rhode Island. “Instead of imposing extra barriers on students seeking to return to campus from medical leave, universities must reasonably accommodate students who are treating their mental health disabilities. I want to thank Brown University for its cooperation throughout our investigation and its willingness both to address the issues identified and to compensate the students who were wrongfully denied readmission. The policies that Brown has agreed to implement should serve as a timely reminder to other colleges and universities to ensure that their medical leave policies must not discriminate against students with mental health disabilities.”
This matter was handled jointly by Assistant U.S. Attorney Amy Romero of the U.S. Attorney’s Office for the District of Rhode Island and the Disability Rights Section of the Department’s Civil Rights Division. July 26, 2021 marked the 31st Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Additional information about the U.S. Attorney’s Office Civil Rights Programs is available at http://www.justice.gov/usao-ri.
Jury convicts trucker for human smugglingRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi federal jury has convicted a 44-year-old man from Missouri City for smuggling illegal aliens in the tractor and cab of his truck, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for 20 minutes before convicting Michael Dashun Howard following a two-day trial.
On Dec. 11, 2020, Howard drove his tractor-trailer to the primary inspection lane of the Javier Vega Jr. Border Patrol (BP) Checkpoint near Sarita. A K-9 named Gaz alerted to the vehicle, prompting authorities to send it to secondary inspection. There, law enforcement conducted a thorough inspection and located six people hidden between pallets of boxes. They also found four more in the cab. All were determined to be illegally present in the United States.
The jury heard from several agents who testified about their inspection of the vehicle and the discovery of the illegal citizens. They also heard recorded testimony of one of the smuggled individuals.
The defense attempted to convince the jury the aliens had assaulted and kidnapped Howard. However, he was the driver of the vehicle. The individuals held inside were restricted to compartments or otherwise locked in the tractor.
The jury did not believe Howard’s defense and found him guilty as charged
U.S. District Judge David S. Morales presided over trial and set sentencing for Nov. 12. At that time, Howard faces up to five years in prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending the hearing.
Border Patrol conducted the investigation. Assistant U.S. Attorneys Roland Swanson and Dennis Robinson are prosecuting the case.
Issaquah Man Sentenced for Covid-19 Relief Fraud SchemeRead the Press Release
Seattle – A Washington State man was sentenced today to two years in prison for perpetrating a scheme to fraudulently obtain COVID-19 disaster relief loans guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Austin Hsu, 46, of Issaquah, pleaded guilty on Jan. 21. According to court documents, Hsu submitted nine fraudulent disaster loan applications seeking over $1.1 million. Hsu, the owner and CEO of a company named Blackrock Services P.S. dba Back 2 Health Bellevue (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of four other companies that he owned and controlled. In support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
Hsu also incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. In truth, Blueline had no business or operations.
Six of Hsu’s nine fraudulent loan applications were approved, and he fraudulently obtained more than $700,000 in COVID-19 relief funds.
In addition to the prison sentence, Hsu was ordered to pay a fine in the amount of $25,000 and $709,104.97 in restitution.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); Inspector General Gail S. Ennis of the Social Security Administration (SSA); Inspector General Hannibal “Mike” Ware of the SBA; and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) made the announcement.
This case was investigated by the TIGTA, SSA – Office of Inspector General (OIG), SBA – OIG, and HSI.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Indiana Man Sentenced to a Term of Imprisonment and Ordered to Pay $316,450.41 in RestitutionRead the Press Release
HAMMOND-Robert Bruns, Jr, 43, of Clarksville, Indiana was sentenced by U.S. District Court Judge Philip P. Simon upon his plea of guilty to mail fraud and aggravated identity theft, announced Acting United States Attorney Tina L. Nommay.
Bruns was sentenced to 54 months in prison, ordered to pay $316,450.41 in restitution and 2 years of supervised release.
According to documents in this case, Robert Bruns, owner of Accelerated Billing and Reimbursement Services (ABRS), a medical billing business specializing in ambulance service providers, engaged in a fraud scheme that bilked his customers out of hundreds of thousands of dollars from October 2017 through February 2020. Bruns diverted his clients’ insurance reimbursement checks to a Post Office box that he controlled. He collected the checks, cashed the checks and used the money for his personal benefit. To keep the scheme going Bruns created phony documentation that made it appear he had purchased one of the client businesses resulting in payments owed to the client being diverted to Bruns’ Post Office box. Bruns embezzled a total of $316,450.41 from two clients, Prompt and InHealth. Bruns has prior convictions for Forgery (2000; 2004; 2006); Theft (2004; 2012); Criminal Simulation (2006); and Identity Theft (2006).
This case was the result of investigation by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz and Molly Kelley.
Illinois Man Sentenced to Prison for Arson of Minneapolis Cell Phone Store During Summer 2020 Civil UnrestRead the Press Release
MINNEAPOLIS – An Illinois man was sentenced today to 105 months in prison followed by three years of supervised release for setting fire to a cell phone store in Minneapolis in the aftermath of the killing of George Floyd.
According to court documents, on May 28, 2020, Matthew Lee Rupert, 29, a resident of Galesburg, Illinois, posted messages on his Facebook account referencing the public protests occurring in the Twin Cities following the death of George Floyd, including one that stated, “I’m going to Minneapolis tomorrow who coming only goons I’m renting hotel rooms.” On May 29, 2020, Rupert broadcast a Facebook Live video indicating that he was in Minneapolis, Minnesota. Rupert announced that he came “to riot,” and is depicted handing out artillery-shell fireworks, encouraging violence against law enforcement officers, actively damaging property, breaking into buildings, and looting businesses.
According to the defendant’s guilty plea and documents filed with the court, the video also depicts Rupert asking for lighter fluid before entering a boarded-up Sprint store located on Nicollet Avenue in Minneapolis. Rupert canvassed the store and eventually entered a backroom while telling others that he had located a store safe. Rupert and others then knocked several boxes into a pile on the ground. Rupert doused the pile of boxes with lighter fluid and then directed another individual—at the time a juvenile—to light the pile on fire. Rupert fled the building and stated, “I lit it on fire!” The store sustained significant damage as a result of the fire.
“Matthew Rupert chose to drive more than 400 miles from his home in Illinois to Minnesota to engage in violence and destruction, all while broadcasting it for the world to see. Peaceful protest was not on his agenda,” said Acting U.S. Attorney W. Anders Folk. “Arson, looting, property damage, and the glorification of it, will not be tolerated. Today, justice has caught up with Mr. Rupert as he must now account for his crimes.”
“Today, we count yet another violent offender as held to account for his reckless and deliberate damage to our community,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “Mr. Rupert made his way to Minneapolis for the express purpose of instigating lawless behavior on our local streets. He demonstrated no purpose other than endangering peaceful protests by actively encouraging violence against law enforcement and personally destroying community businesses. Together with our local partners, FBI Minneapolis and ATF St. Paul continue to hold indifferent criminals like Mr. Rupert accountable for their dangerous and divisive criminal conduct in the Twin Cities.”
“Arson is a dangerous act of violence,” said Acting Special Agent in Charge Jon Ortiz, St. Paul Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “Arson poses a great threat to public safety. ATF works diligently to secure public safety. The defendant in this case committed a reckless act of violence on unsuspecting members of this community. We are thankful that no one was seriously injured or killed as a result of this crime. This sentencing will send a message to anyone who considers conducting these types of violent acts that they will not be tolerated. ATF will continue to work alongside our law enforcement partners to ensure that this community remains a safe place.”
This case was the result of an investigation conducted by the FBI Minneapolis Field Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the FBI Chicago Field Office, the FBI Springfield Field Office, and the Chicago Police Department.
This case was prosecuted by Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing.
Guilty Plea in a Mail Theft and Bank Fraud Scheme Committed Throughout Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Desiree Brianna Bello, 27, of Contra Costa County, pleaded guilty Monday to bank fraud and possession of stolen U.S. mail, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2020, Bello and co-defendant Richard Beldon Waters III, 29, perpetrated a mail theft and bank fraud scheme throughout Northern California. The scheme involved stealing U.S. mail from residential mailboxes and harvesting bankcards, identification documents, financial information, checks, and personally identifiable information (PII) for use in fraudulent activity. Bello used the identification and PII of the mail theft victims to obtain money and property from banks and businesses.
On several occasions, Bello used identification documents and financial instruments of mail theft victims to purchase and lease vehicles from car dealerships. For example, on June 25, 2020, Bello entered a Hyundai dealership in Stockton to lease a new Hyundai Genesis G80 using a stolen identity. She made an initial $7,000 payment with a check in the victim’s name, and also submitted a lease application using the victim’s name, date of birth, California Driver’s License number, and Social Security Number. The dealership ultimately approved the application. Bello was able to drive the new G80 off the lot, which was valued at approximately $55,490.
Additionally, on two separate occasions in May 2020, Bello knowingly possessed stolen U.S. mail. On May 11, 2020, she was arrested in Folsom where she possessed over 300 pieces of stolen mail. Similarly, on May 18, 2020, she was arrested in El Dorado Hills where she possessed five large trash bags of mail that she and her co-schemers had just stolen minutes earlier from a residential complex.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Stockton Police Department, the Folsom Police Department, the Concord Police Department, the Pittsburg Police Department, the El Dorado County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the California Highway Patrol. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Bello is in federal custody and is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Bello faces a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud and five years in prison and a $250,000 fine for possession of stolen U.S. mail. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.
Charges are pending against Waters. The charges against Waters are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Georgia Man Pleads Guilty to Charges Related to Ponzi and COVID-19 Fraud SchemesRead the Press Release
WASHINGTON – Christopher A. Parris, 41, formerly of Rochester, New York, and currently of Lawrenceville, Georgia, pleaded guilty today to conspiracy to commit mail fraud related to a Ponzi scheme, as well as to wire fraud involving the fraudulent sale of purported N95 masks during the pandemic.
“The fraud schemes at issue here, including the purported sales of personal protective equipment that the defendant could not actually provide, are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to prosecuting anyone who would try to profit through this kind of conduct.”
“Preying on companies and the Department of Veterans Affairs as they sought to protect their employees and patients from this pandemic is beyond the pale,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The department and our law enforcement partners will catch and stop those who take advantage of public health emergencies to perpetrate such frauds.”
“Defendant Parris, together with his co-defendant Perry Santillo, bilked millions of dollars from unsuspecting investors in their Ponzi scheme,” said U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Their web of deceit spread far and wide as they purchased established investment advisor or broker businesses from across the country in order to gain access to new victims. This office remains committed to working with all of our partners to identify and bring to justice those who seek to enrich themselves by defrauding others.”
“Financial frauds are grounded in greed, so it's no surprise that when multiple people are behind a single scheme the greed runs deeper and the damage hits harder,” said Special Agent-in-Charge Stephen Belongia of the Buffalo Office of the FBI. “The only guarantee in a Ponzi scheme is that it will fall short, and the founders who contrived them will too.”
“The urgent need to protect veterans and VA health care workers during this fast-moving pandemic required the Department of Veterans Affairs to rapidly purchase personal protective equipment” said Inspector General Michael J. Missal of the Department of Veterans Affairs (VA). “Working with our law enforcement partners, the VA Office of Inspector General (OIG) stopped a criminal who was attempting to profit from this horrible crisis and prevented the government and taxpayers from being defrauded of hundreds of millions of dollars. The VA OIG will continue to work zealously to ensure schemes like this are uncovered, investigated and prosecuted to the fullest extent of the law.”
“Since the onset of the pandemic, HSI quickly adapted to investigate the increasing and evolving threat posed by COVID-19-related fraud and criminal activity,” said Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI), New Orleans Field Office. “This guilty plea is a testament to the commitment we have, along with our law enforcement partners, to protecting the American public in times of crisis.”
The Ponzi Scheme
Between January 2011 and June 2018, Parris conspired with co-defendant Perry Santillo and others to obtain money through an investment fraud, commonly known as a Ponzi scheme. Specifically, in 2007, Parris and Santillo, as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Parris and Santillo were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Parris and Santillo agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Parris and Santillo chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, Parris and Santillo continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Parris and Santillo purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Parris and Santillo, using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (five businesses), Florida, South Carolina (two businesses), Texas, Pennsylvania, Maryland and Indiana.
The investment offerings pitched by Parris and Santillo consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Parris and Santillo. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable, and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments).
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Parris, Santillo and other co-conspirators to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans – all of which were used to keep the scheme going and maintain façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of salespeople, including Parris and Santillo, who traveled around the country to meet with and solicit new investors.
Between January 2012 and June 19, 2018, Parris and Santillo obtained at least $115.5 million from approximately 1,000 investors. By the time the scheme collapsed in late-2017/early 2018, Parris and Santillo, doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million in principal.
Among the Rochester area victims of the Ponzi scheme were the following: a resident of Webster, New York, who held a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of Dec. 31, 2017, was in fact worthless or close to worthless; and a resident of Victor, New York, and his wife, who invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2,500 but lost approximately $214,258.67.
Parris and Santillo controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank and ESL Federal Credit Union. Santillo and Parris directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Parris and/or Santillo authorized. By moving investors’ funds through various accounts in various entity names, Parris and Santillo were able to conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
Santillo was previously convicted and is awaiting sentencing.
The COVID-19 Fraud Scheme
Parris also pleaded guilty in a case originally charged in the U.S. District Court for the District of Columbia to defrauding the U.S. Department of Veterans’ Affairs (VA), as well as at least eight other victim companies, in a scheme involving personal protection equipment (PPE). Between February and April 10, 2020, the defendant, as the owner and operator of Encore Health Group, a company based in Atlanta, that purported to broker medical equipment, offered to sell scarce PPE, including 3M-brand N95 respirator masks, to various medical supply companies and governmental entities. In these proposals, Parris knowingly misrepresented his access to, and ability to obtain and deliver on time, vast quantities of 3M N95 masks and other PPE. The defendant falsely represented that he was able to obtain 3M N95 masks directly from authorized sources in the United States, when in fact, he had no ready access to 3M factories or 3M N95 masks or other PPE, no proven source of supply, and no track record of procuring and delivering such items.
For example, in March 2021, Parris offered to sell the VA 125 million 3M N95 masks at a cost of $6.45 per mask. In this process, the defendant attempted to obtain an upfront payment of $3.075 million from the VA, even though he knew at the time that he had no access to the promised masks or present ability to deliver the promised masks.
As part of his guilty plea, Parris admitted that, in addition to attempting to defraud the VA, he actually obtained upfront payments totaling approximately $7.4 million from at least eight clients for 3M N95 masks that he knew he had no access to or present ability to obtain or deliver on time. Parris also admitted that the proceeds of the scheme totaled approximately $6,218,525. In total, Parris sought orders in excess of $65 million for the non-existent PPE equipment.
**
Parris is scheduled to be sentenced on Dec. 8 before U.S. District Judge Frank P. Geraci Jr. He faces a maximum penalty of 20 years in prison for conspiracy regarding the Ponzi scheme, 30 years in prison for wire fraud in connection to a presidentially-declared emergency, and 10 years in prison for committing the offense originally charged in the District of Columbia while on release from the Western District of New York.
The plea is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua W. McCallister of the Boston Division; the FBI, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, the IRS, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the Securities and Exchange Commission; the VA OIG, under the direction of Michael J. Missal, Inspector General, and HSI, under the direction of Acting Special Agent in Charge Jack P. Staton of the New Orleans Field Office.
Assistant U.S. Attorney John J. Field is handling the prosecution in the Western District of New York, and Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Lallas are handling the prosecution in the District of Columbia.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Pleads Guilty in New York Federal Court on Charges Related to Ponzi and COVID-19 Fraud SchemesRead the Press Release
Christopher A. Parris, 41, formerly of Rochester, New York, and currently of Lawrenceville, Georgia, pleaded guilty today to conspiracy to commit mail fraud related to a Ponzi scheme, as well as to wire fraud involving the fraudulent sale of purported N95 masks during the pandemic.
“The fraud schemes at issue here, including the purported sales of personal protective equipment that the defendant could not actually provide, are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to prosecuting anyone who would try to profit through this kind of conduct.”
“Defendant Parris, together with his co-defendant Perry Santillo, bilked millions of dollars from unsuspecting investors in their Ponzi scheme,” said U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Their web of deceit spread far and wide as they purchased established investment advisor or broker businesses from across the country in order to gain access to new victims. This office remains committed to working with all of our partners to identify and bring to justice those who seek to enrich themselves by defrauding others.”
“Preying on companies and the Department of Veterans Affairs as they sought to protect their employees and patients from this pandemic is beyond the pale,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The department and our law enforcement partners will catch and stop those who take advantage of public health emergencies to perpetrate such frauds.”
“The U.S. Postal Inspection Service aggressively conducts investigations of those who fraudulently use the U.S. Mail to facilitate complex fraud schemes,” said Acting Inspector in Charge Joshua W. McCallister of the U.S. Postal Inspection Service, Boston Division. “Today’s plea demonstrates our ongoing work with law enforcement partners to stop those who are engaged in these types of fraudulent activities.”
“Financial frauds are grounded in greed, so it's no surprise that when multiple people are behind a single scheme the greed runs deeper and the damage hits harder,” said Special Agent-in-Charge Stephen Belongia of the Buffalo Office of the FBI. “The only guarantee in a Ponzi scheme is that it will fall short, and the founders who contrived them will too.”
“The urgent need to protect veterans and VA health care workers during this fast-moving pandemic required the Department of Veterans Affairs to rapidly purchase personal protective equipment” said Inspector General Michael J. Missal of the Department of Veterans Affairs (VA). “Working with our law enforcement partners, the VA Office of Inspector General (OIG) stopped a criminal who was attempting to profit from this horrible crisis and prevented the government and taxpayers from being defrauded of hundreds of millions of dollars. The VA OIG will continue to work zealously to ensure schemes like this are uncovered, investigated and prosecuted to the fullest extent of the law.”
“Since the onset of the pandemic, HSI quickly adapted to investigate the increasing and evolving threat posed by COVID-19-related fraud and criminal activity,” said Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI), New Orleans Field Office. “This guilty plea is a testament to the commitment we have, along with our law enforcement partners, to protecting the American public in times of crisis.”
The Ponzi Scheme
Between January 2011 and June 2018, Parris conspired with co-defendant Perry Santillo and others to obtain money through an investment fraud, commonly known as a Ponzi scheme. Specifically, in 2007, Parris and Santillo, as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Parris and Santillo were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Parris and Santillo agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Parris and Santillo chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, Parris and Santillo continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Parris and Santillo purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Parris and Santillo, using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (five businesses), Florida, South Carolina (two businesses), Texas, Pennsylvania, Maryland and Indiana.
The investment offerings pitched by Parris and Santillo consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Parris and Santillo. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable, and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments).
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Parris, Santillo and other co-conspirators to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans – all of which were used to keep the scheme going and maintain a façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of salespeople, including Parris and Santillo, who traveled around the country to meet with and solicit new investors.
Between January 2012 and June 19, 2018, Parris and Santillo obtained at least $115.5 million from approximately 1,000 investors. By the time the scheme collapsed in late-2017/early 2018, Parris and Santillo, doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million in principal.
Among the Rochester area victims of the Ponzi scheme were the following:
- A resident of Webster, New York, who held a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of Dec. 31, 2017, was in fact worthless or close to worthless; and
- A resident of Victor, New York, and his wife, who invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2,500 but lost approximately $214,258.67.
Parris and Santillo controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank and ESL Federal Credit Union. Santillo and Parris directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Parris and/or Santillo authorized. By moving investors’ funds through various accounts in various entity names, Parris and Santillo were able to conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
Santillo was previously convicted and is awaiting sentencing.
The COVID-19 Fraud Scheme
Parris also pleaded guilty in a case originally charged in the U.S. District Court for the District of Columbia to defrauding the U.S. Department of Veterans’ Affairs (VA), as well as at least eight other victim companies, in a scheme involving personal protection equipment (PPE). Between February and April 10, 2020, the defendant, as the owner and operator of Encore Health Group, a company based in Atlanta, that purported to broker medical equipment, offered to sell scarce PPE, including 3M-brand N95 respirator masks, to various medical supply companies and governmental entities. In these proposals, Parris knowingly misrepresented his access to, and ability to obtain and deliver on time, vast quantities of 3M N95 masks and other PPE. The defendant falsely represented that he was able to obtain 3M N95 masks directly from authorized sources in the United States, when in fact, he had no ready access to 3M factories or 3M N95 masks or other PPE, no proven source of supply, and no track record of procuring and delivering such items.
For example, in March 2021, Parris offered to sell the VA 125 million 3M N95 masks at a cost of $6.45 per mask. In this process, the defendant attempted to obtain an upfront payment of $3.075 million from the VA, even though he knew at the time that he had no access to the promised masks or present ability to deliver the promised masks.
As part of his guilty plea, Parris admitted that, in addition to attempting to defraud the VA, he actually obtained upfront payments totaling approximately $7.4 million from at least eight clients for 3M N95 masks that he knew he had no access to or present ability to obtain or deliver on time. Parris also admitted that the proceeds of the scheme totaled approximately $6,218,525. In total, Parris sought orders in excess of $65 million for the non-existent PPE equipment.
* * *
Parris is scheduled to be sentenced on Dec. 8 before U.S. District Judge Frank P. Geraci Jr. He faces a maximum penalty of 20 years in prison for conspiracy regarding the Ponzi scheme, 30 years in prison for wire fraud in connection to a presidentially-declared emergency, and 10 years in prison for committing the offense originally charged in the District of Columbia while on release from the Western District of New York.
The plea is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua W. McCallister of the Boston Division; the FBI, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, the IRS, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the Securities and Exchange Commission; the VA OIG, under the direction of Michael J. Missal, Inspector General, and HSI, under the direction of Acting Special Agent in Charge Jack P. Staton of the New Orleans Field Office.
Assistant U.S. Attorney John J. Field is handling the prosecution in the Western District of New York, and Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Lallas are handling the prosecution in the District of Columbia.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Gaithersburg Man Pleads Guilty to Money Laundering in Connection to Elder Romance SchemeRead the Press Release
Greenbelt, Maryland – David Annor, age 28, of Gaithersburg, Maryland, pleaded guilty today to conspiracy to commit money laundering, in connection with a romance scheme in which conspiracy members induced elderly and isolated victims to send money to co-conspirators based on romantic assertions and other misrepresentations. Annor and his co-conspirators received and laundered the payments from the victims.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Robert E. Bornstein of the Federal Bureau of Investigation - Washington Field Office (FBI); Postal Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office (USSS).
According to his guilty plea, between May 2017 and October 2020, Annor participated in a romance scheme in which his brother, Lesley Annor, and a co-conspirator targeted elderly victims online, typically through social media, dating websites, e-mail, and online applications. Once the conspiracy members convinced the victims to trust them, the conspiracy members would instruct the victims to send money to bank accounts and physical addresses linked to Annor and conspiracy members. Conspirators often received 10 percent of the victim’s money and sent the remainder of the money to co-conspirators located in Ghana.
For example, in September 2018, Victim 2, a woman born in 1957, met an individual claiming to be Brett Fernley on a social media platform. Fernley told Victim 2 that he was an underwater welder from Canada, who resided in Florida and worked near Ireland. After engaging in what Victim 2 thought to be romantic conversations, and gaining Victim 2’s trust, Fernley began asking Victim 2 for money.
In December 2018, Fernley instructed Victim 2 on how to send money to a bank account in the name of Ravid Enterprise, a business bank account opened and controlled by Annor. Bank records show that Victim 2 wired over $44,800 to the Ravid Enterprise bank account.
Over the course of the scheme, Annor and his co-conspirators laundered over $6,200,000 through approximately 34 bank accounts at 11 different financial institutions. At least $3,909,396 in victim payments were made into personal and business bank accounts controlled by Annor.
Annor has been in custody since his arrest on November 16, 2020.
Annor faces a maximum sentence of 20 years in federal prison followed by three years of supervised release for money laundering. U.S. District Judge George J. Hazel has scheduled sentencing for October 29, 2021 at 2 p.m.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, USPIS, and the USSS for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Thomas P. Windom and Special Assistant United States Attorney Jessica C. Harvey from the Department of Justice’s Public Integrity Section, who are prosecuting the case.
# # #
Former USDA Official Sentenced in Bribery CaseRead the Press Release
WASHINGTON – Richard Holman, the former Chief of the U.S. Department of Agriculture (USDA) Office of Homeland Security and Emergency Coordination, Physical Security Division, was sentenced today to 180 days of home detention and fined $110,000 for carrying out a multi-year scheme in which he accepted bribes in exchange for ensuring the awarding of USDA contracts.
The sentencing was announced by Acting U.S. Attorney Channing D. Phillips and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office, Criminal Division.
Holman, 69, of Fairfax, Va. pled guilty in May 2021 to one count of bribery. He was sentenced in the U.S. District Court for the District of Columbia by the Honorable Carl J. Nichols. The judge placed Holman on four years of probation, the first 180 days of which must be served under home detention.
According to court papers, between July 2013 and December 2015, Eric Schneider and Communications Resources, Inc. (CRI) gave Holman and other USDA officials Corvette wheels, concert tickets, PGA tour tickets, meals, alcohol, strip clubs, parking, concierge medical services, prescription drugs, and other cash tips. In exchange, Holman gave Eric Schneider and CRI preferential treatment in the award of USDA contracts worth over $19 million. As part of the scheme, CRI employees drafted procurement documents in such a way as to favor the award of a multi-million dollar contract to CRI, and USDA officials used the documents in the procurement process as if they prepared them.
Schneider, 51, also of Fairfax, Va., pleaded guilty in November 2020 to conspiracy and obstruction for his role in the scheme last year. He is to be sentenced on Oct. 4, 2021.
The FBI’s Washington Field Office and the Beltsville Field Office of the U.S. Department of Agriculture, Office of the Inspector General (OIG) investigated the case, with assistance from the inspector general’s offices of the U.S. Department of Health and Human Services, the U.S. Department of State, and the Small Business Administration OIG. The cae was prosecuted by Assistant U.S. Attorney Elizabeth Aloi of the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Former Suffolk County District Attorney Thomas J. Spota and Government Corruption Bureau Chief Christopher McPartland Each Sentenced to Five Years in PrisonRead the Press Release
Former Suffolk County District Attorney Thomas J. Spota and Christopher McPartland, the former Chief of Investigations and Chief of the Government Corruption Bureau of the Suffolk County District Attorney’s Office (SCDAO), were each sentenced today by United States District Judge Joan M. Azrack, to five years in prison. Additionally, Spota was ordered to pay a $100,000 fine.
The sentences stem from the defendants’ December 17, 2019 convictions, following a six-week federal jury trial, on all four counts of the Indictment; specifically, of conspiracy to tamper with witnesses and obstruct an official proceeding, witness tampering, obstruction of justice, and being accessories after-the-fact to former Suffolk County Police Department (SCPD) Chief of Department James Burke’s deprivation of a prisoner’s civil rights.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Jacqueline Maguire, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“When a sitting District Attorney and one of his top prosecutors are corrupt and use their power to intimidate witnesses and cover up a brutal assault by a high-ranking law enforcement official, they not only jeopardize the safety of citizens who are entitled to the protection of the law, they also undermine confidence in the integrity and fairness of our criminal justice system,” stated Acting U.S. Attorney Kasulis. “Instead of serving the people of Suffolk County, these defendants brazenly abused their exceptional positions of power and public trust to protect their friends and hurt their enemies. With today’s sentences, justice has been served and the defendants have learned the consequences of their crimes, just like anyone else who has broken the law. I commend the tenacity and skill of this Office's prosecutors and the FBI special agents in toppling the defendants from their undeserved positions of prominence and in holding them to account for their reprehensible violations of the public trust.”
“With great power comes great responsibility – and, as we’ve proven throughout the course of this investigation, Mr. Spota and Mr. McPartland abused their power to skirt their responsibility to comply with a federal civil rights investigation. They placed fear of retaliation inside the minds of those who may otherwise have been willing to cooperate, and they interfered with efforts of federal investigators who were trying to get to the bottom of a heinous crime. Their behavior was outrageous, and their sentences today prove as much. There is absolutely no place for this type of behavior within our criminal justice system. Those who abuse their power and subject others to cruel and unnecessary punishment must be removed from serving in any official capacity and must pay the price for their conduct. Only then, and with today's sentences, the earned trust and confidence of the citizens of Suffolk County can be justly restored, stated FBI Acting Assistant Director-in-Charge Maguire.
In December 2012, then-Chief of the SCPD, James Burke – the highest-ranking uniformed police official in Suffolk County – physically and verbally assaulted a shackled prisoner, Christopher Loeb, who was under arrest and being held in an interrogation room at the 4th Precinct in Hauppauge, New York. Loeb had broken into Burke’s official police vehicle and stolen his gun belt and ammunition, and a duffel bag containing cigars, sex toys, prescription Viagra and pornography. After the assault, Burke ordered high-ranking lieutenants of the SCPD to ensure that the detectives and officers who had witnessed the assault would never reveal what they had observed. Burke also enlisted the help of his long-time mentor, then-District Attorney Spota, and McPartland, his personal friend and then-Chief of both Investigations and the Government Corruption Bureau, to ensure that the witnesses kept quiet. Having served as the Suffolk County D.A. for over a decade, Spota had successfully helped Burke avoid legal trouble regularly during their decades-long friendship. McPartland, who worked directly under Spota, also had built a close friendship with Burke, and was the first person who Burke called the morning he discovered that his vehicle had been burglarized.
A federal grand jury investigation into the Loeb assault as a civil rights deprivation was opened by the U.S. Attorney’s Brooklyn Office, with the assistance of the FBI, in the spring of 2013. Burke, Spota and McPartland used the power and influence of their official positions, and the threat of retaliatory arrest and prosecution, to keep anyone from cooperating with that investigation. Because of their obstructive efforts, the federal investigation was unsuccessful and was closed approximately eight months later. Local law enforcement eyewitnesses had been frightened into silence, as they feared retaliation against themselves and their families from within the Suffolk County Police Department and the District Attorney’s Office. Approximately one year later, prosecutors from U.S. Attorney’s Long Island Criminal Division reopened the investigation. As certain key witnesses were then compelled to testify before the grand jury under a grant of immunity, the truth about Burke assaulting Loeb finally emerged.
Burke pleaded guilty to a civil rights violation and conspiracy to obstruct justice in February 2016 and was sentenced to 46 months’ imprisonment. Spota and McPartland both resigned from the District Attorney’s Office in light of the charges against them and have since been disbarred.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Lara Treinis Gatz, Justina L. Geraci and Michael R. Maffei are in charge of the prosecution.
The Defendants:
THOMAS J. SPOTA
Age: 79
Mount Sinai, New YorkCHRISTOPHER McPARTLAND
Age: 55
Northport, New YorkE.D.N.Y. Docket No. 17-CR-587 (JMA)
Former Rochester Man Pleads Guilty to Charges Related to Ponzi and COVID-19 Fraud SchemesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY--Christopher A. Parris, 41, formerly of Rochester, NY, and currently of Lawrenceville, Georgia, pleaded guilty today to conspiracy to commit mail fraud related to a Ponzi scheme, as well as to wire fraud involving the fraudulent sale of purported N95 masks during the pandemic.
“The fraud schemes at issue here, including the purported sales of personal protective equipment that the defendant could not actually provide, are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to prosecuting anyone who would try to profit through this kind of conduct.”
“Defendant Parris, together with his co-defendant Perry Santillo, bilked millions of dollars from unsuspecting investors in their Ponzi scheme,” said U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Their web of deceit spread far and wide as they purchased established investment advisor or broker businesses from across the country in order to gain access to new victims. This office remains committed to working with all of our partners to identify and bring to justice those who seek to enrich themselves by defrauding others.”
“Preying on companies and the Department of Veterans Affairs as they sought to protect their employees and patients from this pandemic is beyond the pale,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The department and our law enforcement partners will catch and stop those who take advantage of public health emergencies to perpetrate such frauds.”
“Financial frauds are grounded in greed, so it's no surprise that when multiple people are behind a single scheme the greed runs deeper and the damage hits harder,” said Special Agent-in-Charge Stephen Belongia of the Buffalo Office of the FBI. “The only guarantee in a Ponzi scheme is that it will fall short, and the founders who contrived them will too.”
“The U.S. Postal Inspection Service aggressively conducts investigations of those who fraudulently use the U.S. Mail to facilitate complex fraud schemes,” said Joshua W. McCallister, Acting Inspector-in-Charge of the U.S. Postal Inspection Service, Boston Division. “Today’s plea demonstrates our ongoing work with law enforcement partners to stop those who are engaged in these types of fraudulent activities.”
“The urgent need to protect veterans and VA health care workers during this fast-moving pandemic required the Department of Veterans Affairs to rapidly purchase personal protective equipment” said Inspector General Michael J. Missal of the Department of Veterans Affairs (VA). “Working with our law enforcement partners, the VA Office of Inspector General (OIG) stopped a criminal who was attempting to profit from this horrible crisis and prevented the government and taxpayers from being defrauded of hundreds of millions of dollars. The VA OIG will continue to work zealously to ensure schemes like this are uncovered, investigated and prosecuted to the fullest extent of the law.”
“Since the onset of the pandemic, HSI quickly adapted to investigate the increasing and evolving threat posed by COVID-19-related fraud and criminal activity,” said Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI), New Orleans Field Office. “This guilty plea is a testament to the commitment we have, along with our law enforcement partners, to protecting the American public in times of crisis.”
The Ponzi Scheme
Between January 2011 and June 2018, Parris conspired with co-defendant Perry Santillo and others to obtain money through an investment fraud, commonly known as a Ponzi scheme. Specifically, in 2007, Parris and Santillo, as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Parris and Santillo were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Parris and Santillo agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Parris and Santillo chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, Parris and Santillo continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Parris and Santillo purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Parris and Santillo, using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (five businesses), Florida, South Carolina (two businesses), Texas, Pennsylvania, Maryland and Indiana.
The investment offerings pitched by Parris and Santillo consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Parris and Santillo. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable, and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments).
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Parris, Santillo and other co-conspirators to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans – all of which were used to keep the scheme going and maintain a façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of salespeople, including Parris and Santillo, who traveled around the country to meet with and solicit new investors.
Between January 2012 and June 19, 2018, Parris and Santillo obtained at least $115.5 million from approximately 1,000 investors. By the time the scheme collapsed in late-2017/early 2018, Parris and Santillo, doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million in principal.
Among the Rochester area victims of the Ponzi scheme were the following: • A resident of Webster, New York, who held a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of Dec. 31, 2017, was in fact worthless or close to worthless; and
• A resident of Victor, New York, and his wife, who invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2,500 but lost approximately $214,258.67.Parris and Santillo controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank and ESL Federal Credit Union. Santillo and Parris directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Parris and/or Santillo authorized. By moving investors’ funds through various accounts in various entity names, Parris and Santillo were able to conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
Santillo was previously convicted and is awaiting sentencing.
The COVID-19 Fraud Scheme
Parris also pleaded guilty in a case originally charged in the U.S. District Court for the District of Columbia to defrauding the U.S. Department of Veterans’ Affairs (VA), as well as at least eight other victim companies, in a scheme involving personal protection equipment (PPE). Between February and April 10, 2020, the defendant, as the owner and operator of Encore Health Group, a company based in Atlanta, that purported to broker medical equipment, offered to sell scarce PPE, including 3M-brand N95 respirator masks, to various medical supply companies and governmental entities. In these proposals, Parris knowingly misrepresented his access to, and ability to obtain and deliver on time, vast quantities of 3M N95 masks and other PPE. The defendant falsely represented that he was able to obtain 3M N95 masks directly from authorized sources in the United States, when in fact, he had no ready access to 3M factories or 3M N95 masks or other PPE, no proven source of supply, and no track record of procuring and delivering such items.
For example, in March 2021, Parris offered to sell the VA 125 million 3M N95 masks at a cost of $6.45 per mask. In this process, the defendant attempted to obtain an upfront payment of $3.075 million from the VA, even though he knew at the time that he had no access to the promised masks or present ability to deliver the promised masks.
As part of his guilty plea, Parris admitted that, in addition to attempting to defraud the VA, he actually obtained upfront payments totaling approximately $7.4 million from at least eight clients for 3M N95 masks that he knew he had no access to or present ability to obtain or deliver on time. Parris also admitted that the proceeds of the scheme totaled approximately $6,218,525. In total, Parris sought orders in excess of $65 million for the non-existent PPE equipment.
* * *
Parris is scheduled to be sentenced on December 8, 2021, before U.S. District Judge Frank P. Geraci, Jr. He faces a maximum penalty of 20 years in prison for conspiracy regarding the Ponzi scheme, 30 years in prison for wire fraud in connection to a presidentially declared emergency, and 10 years in prison for committing the offense originally charged in the District of Columbia while on release from the Western District of New York.
The plea is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua W. McCallister of the Boston Division; the FBI, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, the IRS, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the Securities and Exchange Commission; the VA OIG, under the direction of Michael J. Missal, Inspector General, and HSI, under the direction of Acting Special Agent in Charge Jack P. Staton of the New Orleans Field Office.
Assistant U.S. Attorney John J. Field is handling the prosecution in the Western District of New York, and Trial Attorney Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Lallas are handling the prosecution in the District of Columbia.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
# # # #
Former Police Officer Sentenced for Making a False Statement to a Firearms Dealer to Purchase a Gun for BoyfriendRead the Press Release
A former Tulsa police officer was sentenced today in federal court for conspiring to make a false statement to a firearms dealer when purchasing a pistol on behalf of her boyfriend, announced Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Latoya Lisa Dythe, 27, to five years of probation. Judge Heil further ordered the defendant to pay a fine of $1,000. In April, Dythe pleaded guilty to conspiracy to make a false statement to a firearms dealer and to false statement to a firearms dealer.
“My office is committed to holding accountable individuals who engage in illicit firearms transactions, including straw purchases,” said Acting U.S. Attorney Clint Johnson. “Too often, straw purchases are linked to gun violence within communities across our nation. Latoya Dythe’s choice to illegally purchase a firearm on behalf of another not only ended her career as a Tulsa police officer, but also placed Tulsans at risk.”
In a written plea agreement, Dythe admitted that she and her codefendant Devon Jamyll Jones, her boyfriend at the time of the crime, agreed that Dythe would purchase a firearm for him at a Bass Pro Shop. Jones gave Dythe money to purchase a specific firearm, a FN HERSTAL S.A., 5.7 X 28mm. As mandated by law, Dythe filled out required forms to purchase the firearm. When asked on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 “Are you the actual transferee/buyer of the firearm(s) listed on this form,” Dythe answered “Yes”. Her response was a false statement made to obtain the firearm for Jones. Dythe admitted that she did in fact obtain the firearm and immediately gave it to Jones following the purchase. She admitted that she knew her actions were Illegal when she committed the crime.
The ATF Form 4473 specifically issues a warning to purchasers: “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”
Devon Jones, 28, was charged as a coconspirator with Dythe in the indictment announced in December and is awaiting trial. Jones is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Edward Snow prosecuted the case.
This case was prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Former Medical Office Bookkeeper Pleads to Embezzling Nearly $593,000 and Filing False Tax ReturnsRead the Press Release
PITTSBURGH, PA- A resident of Blairsville, Pennsylvania, pleaded guilty in federal court to charges of Mail Fraud and Filing False Income Tax Returns, Acting United States Attorney Stephen R. Kaufman announced today.
Sandra Jo Doak, 63, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Doak, in her role as bookkeeper for the medical office of Matthew Klain, MD, embezzled company funds totaling approximately $592,833.30, and engaged in deceptive acts to conceal the embezzlement from her employer. The embezzlement scheme produced the following stolen funds: $536,887.21 in unauthorized checks written by Doak to herself; $26,519.26 in unauthorized checks written by Doak for personal expenditures; and $29,426.83 in unauthorized checks used to pay for Doak’s personal expenses on the victim’s credit card. The court was also advised that for several years between 2014 and 2019, Doak concealed the embezzled income from the IRS on her personal income tax returns, resulting in a tax loss to the IRS of $123,849.
Judge Bisson scheduled sentencing for Dec. 9, 2021 at 10:00 a.m. The law provides for a total sentence of 23number years in prison, a fine of $752,250.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, Internal Revenue Service - Criminal Investigation and the Pennsylvania State Police along with the Indiana Pennsylvania District Attorney’s Office conducted the investigation that led to the prosecution of Sandra Jo Doak.
Former Jamestown Man Pleads Guilty to Meth 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 Evan Motherwell, 25, of Penfield, PA, formerly of Jamestown NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, 500 grams or more of methamphetamine. The charge carries a mandatory minim penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorneys Joshua A. Violanti and Misha A. Coulson, who are handling the case, stated that between September 2018, and January 26, 2019, the defendant conspired with Douglas Beardsley and others, to sell methamphetamine and heroin/fentanyl for profit. Motherwell would go to Beardsely’s residence to pick up bundles of heroin and “blacks” (approximately 3.5 grams) of methamphetamine. Beardsley fronted the narcotics to the defendant and when Motherwell failed to pay, Beardsley would get mad and try to fight him. During the conspiracy and afterwards, the defendant utilized Facebook to conduct drug trafficking activities, including communication with co-defendants.
Co-defendants Tracey Wynn, Richard Dean, Daniel Harding, and Justin Cusimano were previously convicted and are awaiting sentencing. Charges remain pending against co-defendants Douglas Beardsley and Angelo Pollino. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
Sentencing is scheduled for October 12, 2021, at 12:30 p.m. before Judge Arcara.
# # # #
Former CFO of Connecticut Healthcare Staffing Agency Sentenced for Tax OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that PAMELA SMITH, 72, of Kirkland, Washington, formerly of Guilford, Connecticut, was sentenced today by U.S. District Judge Victor A. Bolden to two years of probation for aiding in the preparation of a false tax return. Judge Bolden also ordered Smith to perform 100 hours of community service.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, between approximately 2009 and 2018, Smith was the Chief Financial Officer of Equinox Home Care, LLC (“EHC”), a home healthcare staffing agency based in Stratford, Connecticut. EHC was established as a partnership between Theresa Foreman and another individual. In September 2012, the partnership ended, and, by court order, Foreman was obligated to make payments to her partner for the purchase of the partner’s interest in EHC.
At Foreman’s direction, Smith and EHC’s payroll manager helped Foreman receive money from EHC in a manner that hid the fact that Foreman was the true recipient of the funds. Beginning in 2012, EHC’s payroll included payments to “ghost employees” who did not work for EHC, and those funds were actually for Foreman’s benefit. As the CFO of EHC, Smith became aware that the payroll checks were being issued to the “ghost employees” and that EHC and its payroll manager were causing the false payroll checks to be issued. Smith also assisted Foreman by issuing or causing to be issued bonus checks from EHC to approximately 30 EHC employees. The employees cashed the checks and provided the cash to Foreman. Some of the employees later noticed that the amount of funds cashed had been included on their Forms W-2. Smith would issue a corrected W-2 only if an employee made a request. Several EHC employees did not request a corrected W-2 and, as a result, overpaid taxes to the IRS.
In addition, Foreman received funds through cashed mileage checks that were issued to two individuals who did not drive on behalf of EHC.
Smith interacted with the tax return preparer who prepared the partnership tax return in addition to Foreman’s own individual income tax returns, and she failed to inform the return preparer about funds that Foreman received through these various mechanisms. More than $600,000 of such funds were not reported on Foreman’s 2014 tax return alone.
Smith pleaded guilty to the offense on January 12, 2021.
Foreman pleaded guilty to one count of tax evasion and, on January 6, 2020, was sentenced to 12 months and one day of imprisonment and ordered to pay $641,941.46 in restitution.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Peter S. Jongbloed.
Felon Pleads Guilty to Possession with Intent to Distribute Two Kilograms of Cocaine and Being a Felon in Possession of a HandgunRead the Press Release
Greenbelt, Maryland – Ian Carlton Alexander a/k/a “Shawn Alexander”, age 49, of Towson, Maryland, pleaded guilty today to possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of a firearm.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division.
According to his guilty plea, on October 3, 2019, Alexander travelled from his Towson, Maryland residence to New York to acquire 1,990 grams of cocaine that Alexander intended to distribute to a potential narcotics customer in Maryland. The following day, as Alexander was returning from New York to Maryland, law enforcement conducted a traffic stop on Alexander in Maryland. On October 4, 2019, law enforcement recovered approximately two kilograms of cocaine in the passenger compartment of Alexander’s car and a 9mm handgun in the vehicle’s center console. Law enforcement also recovered approximately $3,357 in U.S. currency from Alexander’s person at the time of the arrest.
As detailed in his plea agreement, law enforcement executed a search warrant on Alexander’s Towson, Maryland residence. As a result of the search warrant, law enforcement seized 28 grams of heroin, an assault rifle, and two AR-15 box magazines loaded with armor piercing ammunition. Alexander agreed that the $3,357 seized from his persons were proceeds of cocaine distribution and that he possessed the 9mm handgun in furtherance his cocaine trafficking activities.
Prior to October 3, 2019, Alexander had been previously convicted of a crime punishable by imprisonment for a term exceeding one year and his civil rights had not been restored.
Alexander and the government have agreed that, if the Court accepts the plea agreement, Alexander will be sentenced to between 61 months and 78 months in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 16, 2021 at 1 p.m.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Erin Pulice, who is prosecuting the case.
# # #
Felon Pleads Guilty to Possession with Intent to Distribute Two Kilograms of Cocaine and Being a Felon in Possession of a HandgunRead the Press Release
Greenbelt, Maryland – Ian Carlton Alexander a/k/a “Shawn Alexander”, age 49, of Towson, Maryland, pleaded guilty today to possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of a firearm.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division.
According to his guilty plea, on October 3, 2019, Alexander travelled from his Towson, Maryland residence to New York to acquire 1,990 grams of cocaine that Alexander intended to distribute to a potential narcotics customer in Maryland. The following day, as Alexander was returning from New York to Maryland, law enforcement conducted a traffic stop on Alexander in Maryland. On October 4, 2019, law enforcement recovered approximately two kilograms of cocaine in the passenger compartment of Alexander’s car and a 9mm handgun in the vehicle’s center console. Law enforcement also recovered approximately $3,357 in U.S. currency from Alexander’s person at the time of the arrest.
As detailed in his plea agreement, law enforcement executed a search warrant on Alexander’s Towson, Maryland residence. As a result of the search warrant, law enforcement seized 28 grams of heroin, an assault rifle, and two AR-15 box magazines loaded with armor piercing ammunition. Alexander agreed that the $3,357 seized from his persons were proceeds of cocaine distribution and that he possessed the 9mm handgun in furtherance his cocaine trafficking activities.
Prior to October 3, 2019, Alexander had been previously convicted of a crime punishable by imprisonment for a term exceeding one year and his civil rights had not been restored.
Alexander and the government have agreed that, if the Court accepts the plea agreement, Alexander will be sentenced to between 61 months and 78 months in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 16, 2021 at 1 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the DEA for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Erin Pulice, who is prosecuting the case.
# # #
Federal Bureau of Prisons Inmate Sentenced to More Than 21 Years for Murder-for-Hire Plot against Assistant United States AttorneyRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Richard Gilbert, a Federal Bureau of Prisons (BOP) inmate, has been sentenced to more than 21 years in federal prison for a murder-for-hire and retaliation plot against an Assistant United States Attorney and a confidential informant.
Evidence presented in the court showed that Gilbert was serving time at a federal prison in Edgefield for trafficking methamphetamine in Bowling Green, Kentucky, when he sought to hire a hitman to kill the federal prosecutor and a key witness from his Kentucky case. Using a contraband cell phone in prison, Gilbert communicated with an undercover task force officer with the Federal Bureau of Investigation (FBI) who was posing as a hitman. Following multiple recorded phone calls, Gilbert sent the undercover officer a $2,000 check from his prison canteen account as a down payment for the retaliatory murder-for-hire. Masking the true purpose of this payment, Gilbert attempted to mislead BOP officials by misrepresenting the payment as being for an “investment firm.”
Evidence presented also showed that Gilbert drew maps of where he believed the witness from Kentucky lived and provided directions to the undercover officer, posing as the hitman, on how to avoid detection by nearby surveillance cameras. The evidence also showed how Gilbert planned to use income from two of his rental properties to facilitate the attempted murder-for-hire and retaliation plot. He also planned to use the value of his ownership stake in other land to pay for the murder of the federal prosecutor from Kentucky.
United States District Judge Henry M. Herlong, Jr. sentenced Gilbert to serve 262 months in federal prison, consecutive to the 130-month sentence for which he was already in federal prison, to be followed by 60 months of supervised release. There is no parole in the federal system.
The case was investigated by the FBI and the BOP Special Investigative Services Team and prosecuted by Assistant United States Attorneys Justin Holloway and Will Jordan.
#####
Fort Washakie Man Sentenced in Shooting CaseRead the Press Release
Acting United States Attorney Bob Murray announced today that VICTOR YNOSTROSA, age 21, of Fort Washakie, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl for assaulting an individual with a firearm, resulting in serious bodily injury. Ynostrosa received a sentence of 30 months imprisonment to be followed by three years of supervised release with special conditions. He was also ordered to pay $26,557.28 in restitution and a $100 special assessment fee.
On December 10, 2020, the Bureau of Indian Affairs, Wind River Police Department was dispatched to a reported shooting in Fort Washakie. Upon arrival, the officer witnessed a young man with a bullet wound who was described to be Ynostrosa’s cousin. After a night of heavy drinking with his sister and cousin, the three began arguing and an altercation ensued. Ynostrosa brandished a .22 caliber firearm and shot his cousin in the upper torso, which missed his heart but hit his aorta. The victim was taken to Wyoming Medical Center with potentially life-threatening injuries where he underwent surgery. Ynostrosa was located a short time later and arrested.
“These types of cases must be prosecuted to the fullest extent of law to provide justice for the victim and reassure the public that we hold any person who risks the lives of others accountable,” said Acting U.S. Attorney Bob Murray. “This was an unfortunate event but one that was preventable. It is never a good idea to mix alcohol and firearms.”
“Mr. Ynostrosa’s use of a weapon while intoxicated seriously endangered the life of another individual and the community at large. Today’s sentence sends a message that the FBI and our federal, tribal and local partners will serve justice on those who choose to put the lives of our citizens at risk,” said FBI Denver Special Agent in Charge Michael Schneider. “FBI Denver thanks the Bureau of Indian Affairs, the Wind River Police Department, and the U.S. Attorney’s Office for their diligence in this investigation.”
This crime was investigated by Federal Bureau of Investigation, Bureau of Indian Affairs, and the Wind River Police Department. Ynostrosa was prosecuted by Assistant United States Attorney Kerry Jacobson.
Eleven Alleged Wholesale Narcotics Traffickers Facing Federal Indictment for Supplying Fentanyl, Cocaine, Crack Cocaine, Heroin and Marijuana to Baltimore Drug DealersRead the Press Release
Baltimore, Maryland – A 16-month investigation by the Baltimore OCDETF Strike Force into drug dealing in Baltimore has led to eleven alleged wholesale drug suppliers being charged in a federal indictment for conspiracy, drug distribution, and firearms charges. The indictment was returned under seal on July 29, 2021 and was unsealed upon the arrests of the defendants. Charged in the indictment are:
Rigby Dukes, a/k/a “Panama,” age 54, of Baltimore; Kevin Fuller, age 55, of Baltimore; Jimmye Howard, age 32, of Baltimore; Thomas Jones, a/k/a “Pooda,” age 52, of Baltimore; Eugene Link, age 40, of Baltimore; Khyle Paige, age 30, of Baltimore; Fred Primus, age 47, of Washington, D.C.; Keith Smith, a/k/a “Fat Keith,” age 39, of Gwynn Oak, Maryland; Phillip Washington, age 53, of Windsor Mill, Maryland; Ronald White, a/k/a “Ron,” age 53, of Towson, Maryland; Eric Wilson, a/k/a “E” and “Remy,” age 50, of Owings Mills, Maryland.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Tom Carr, Executive Director of the Washington-Baltimore High Intensity Drug Trafficking Administration.
Acting United States Attorney Jonathan F. Lenzner stated, “The Baltimore OCDETF Strike Force will continue to target large scale drug distributors and areas where violence is fueled by armed drug dealers. We are committed to working with our law enforcement partners to prosecute the suppliers and street level drug dealers to get them off of our streets, and to reducing violent crime in our neighborhoods. This indictment focuses on those importing bulk quantities of dangerous drugs into Baltimore, and is an important step in our efforts to make our communities safer.”
“Today’s charges serve as a great example of the effective partnerships we’ve forged and, our commitment to protecting the residents of this great city. These 11 individuals represent the top tier of drug traffickers here in the city of Baltimore,” said DEA Assistant Special Agent in Charge Orville O. Greene. “They were responsible for supplying a vast number of drug shops across the city, and fueling addiction and violence across the Baltimore Metropolitan area. Taking these prolific criminals off of our streets is a step toward making Baltimore a safer place.”
“This indictment comes as the result of a continued regional commitment to reduce violence and protect our communities,” said Baltimore County Police Chief Melissa Hyatt. “The significant amounts of weapons and drugs seized during this multi-jurisdictional operation will help keep our neighborhoods safe and prevent future violence.”
“The Baltimore OCDETF Strike Force program exemplifies multi-agency collaboration and our shared commitment to creating a safer, stronger Baltimore,” said Baltimore City State's Attorney Marilyn Mosby. “As drug organizations become more sophisticated in the way they operate, we will continue to elevate our data-driven tactics, superior collaboration and consistent partnership among local, state, and federal law enforcement partners to work together to fight the violence on our streets.”
Over the course of this investigation, law enforcement executed 55 search warrants on people, locations and vehicles, seized approximately $722,334 in cash; more than four kilograms of fentanyl—enough to kill 200,000 people; more than 10 kilograms of cocaine; more than a kilogram of a heroin/fentanyl mixture; 914 grams of crack cocaine; a total of 258 grams of a crack or cocaine/fentanyl mixture; a quantity of marijuana; as well as six firearms, three magazines, ammunition, and a silencer; and more than 62 cell phones used to facilitate the business. Law enforcement also seized drug packaging material, digital scales, cutting agents, and money counters.
According to the 11-count indictment and information provided to the Court, the defendants distributed heroin, fentanyl, cocaine, crack cocaine, and marijuana to customers, including to each other. The indictment alleges that members of the conspiracy sold bulk quantities of narcotics to other drug traffickers who, in turn, redistributed the narcotics in and around Baltimore. The conspirators allegedly cut the heroin, fentanyl, cocaine, and crack cocaine with other substances to maximize their profits, and used residences in and around Baltimore to process, repackage, and prepare heroin, fentanyl, cocaine, crack cocaine and marijuana for distribution. Further, the indictment alleges that the members of the conspiracy possessed firearms in furtherance of their drug trafficking activities, including this conspiracy.
The defendants face a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for the conspiracy; Dukes face a minimum mandatory sentence of 5 years in prison for the count of possession with intent to distribute controlled substances and Smith, White, and Wilson face a mandatory maximum of 10 years in federal prison for each count of possession with intent to distribute controlled substances; Link and Paige face a maximum of 20 years in federal prison for each count of possession with intent to distribute controlled substances; Paige faces a maximum of five years in federal prison for possession of a firearm in furtherance of a drug trafficking crime; and Jones faces a maximum of 10 years in federal prison for possession of a firearm by a prohibited person. All of the defendants have had an initial appearance. White was ordered to be detained, pending a detention hearing on August 11, 2021, and the remaining defendants were released with conditions, under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Maryland Department of Public Safety and Correctional Services, the Baltimore Police Department, the Baltimore County Police Department, and the Washington-Baltimore HIDTA for their work in the investigation and thanked the Baltimore City and Baltimore County State’s Attorneys’ Offices for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
# # #
Drug trafficker sent to prison for smuggling meth via UPSRead the Press Release
McALLEN, Texas – A 31-year-old San Antonio resident has been ordered to federal prison for his role in a meth conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Ramiro Acevedo Jr. pleaded guilty Dec. 3, 2020.
Today, U.S. District Judge Micaela Alvarez ordered him to serve a 130-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard evidence noting Acevedo’s criminal history including 2017 felony convictions for manufacture and delivery of a controlled substance and evading arrest with a motor vehicle.
In June 2020, authorities began an investigation into parcels containing narcotics mailed from the Texas area of the Rio Grande Valley. Law enforcement intercepted two parcels containing meth mailed utilizing UPS, both destined for San Antonio. Acevedo, in San Antonio, coordinated with drug traffickers in the Rio Grande Valley to receive the two parcels containing a total of one kilogram of meth.
The drugs had an estimated street value of $5,500.
Acevedo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Laura M. Garcia prosecuted the case.
Drug dealer who attempted to intimidate a witness with an explosive device, and assaulted fellow inmate, sentenced to 8+ years in prisonRead the Press Release
Tacoma – A drug dealer who tried to use an explosive device to stop a witness from testifying about his criminal activity was sentenced last week to 100 months in prison, announced Acting U.S. Attorney Tessa M. Gorman. David Nathaniel Hoffman, 38, pleaded guilty April 13, 2021, to three counts of possession of controlled substances with intent to distribute and one count of assault resulting in serious bodily injury. At the sentencing hearing U.S. District Judge Benjamin H. Settle called Hoffman’s conduct “extremely disturbing.”
“This defendant was not just spreading poisons in our community, he tried to use fear and intimidation to thwart being brought to justice,” said Acting U.S. Attorney Gorman. “Such conduct – using an explosive to damage a witness’ car– resulted in a longer federal sentence.”
According to records filed in the case, Hoffman was caught three times by law enforcement with distribution quantities of narcotics. In November 2017, Hoffman was on Department of Corrections supervision and was found to have methamphetamine and heroin in his Olympia residence. In January 2019, following a traffic stop, Hoffman was found to have methamphetamine in his car. And in September 2019, Hoffman was stopped in Shelton, Washington and was found to have methamphetamine, various narcotic pills and an improvised explosive device in his car.
In his plea agreement, Hoffman admitted that before he was taken into federal custody in November 2019, he had confronted and threatened a person with knowledge of his drug dealing and had an associate use an explosive device to damage a car outside the person’s home. Further, in the plea agreement he also admitted he assaulted a fellow inmate at the FDC causing serious facial and head injuries.
In asking for a sentence at the high end of the guidelines range, Assistant United States Attorney Kate Crisham wrote in her sentencing memo, “Hoffman’s attempt to intimidate a potential witness against him by detonating a bomb on a car in front of her home strikes at the heart of our criminal justice system…. his behavior was intended to weaken our criminal justice system’s delicate reliance on witnesses. His conduct was egregious.”
Hoffman has been in custody since his arrest on November 19, 2o19.
Following prison, he is to serve three years of supervised release.
The case was investigated by Homeland Security Investigations and the Thurston County Narcotics Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Thurston County Sheriff’s Office, and the Washington State Department of Corrections. The FBI investigated the assault at the Federal Detention Center.
The case was prosecuted by Assistant United States Attorneys Kate Crisham and Ye-Ting Woo.
Delaware man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Durrion Joshua Morrison, of Wilmington, Delaware, has admitted to a cocaine charge, Acting United States Attorney Randolph J. Bernard announced.
Johnson, also known as “Nephew,” age 32, “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base.” Johnson admitted to distributing and possessing more than 12 grams of cocaine base, also known as “crack,” in July 2016 in Berkeley County.
Johnson faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Convicted Felon Admits Illegally Possessing Firearm in Planned Revenge Shooting SpreeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man with previous felony convictions today admitted illegally possessing firearms and ammunition as part of a planned revenge shooting, Acting U.S. Attorney Rachael A. Honig announced.
Raheem Allen, 34, of Newark, pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of possession of a firearm by a convicted felon and one count of possessing with intent to distribute cocaine.
According to documents filed in this case and statements made in court:
On March 7, 2021, Allen travelled to Jersey City, New Jersey, to gain revenge for the March 6, 2021, murder of his brother, a high-ranking member of a Jersey City street gang. Law enforcement officers obtained communications involving Allen wherein he explained his criminal purpose. As a result, law enforcement officers saw Allen arrive in Jersey City and retrieve an Intratec Tec-22 semi-automatic firearm, which was loaded with approximately 25 rounds of ammunition. Law enforcement immediately apprehended Allen as he was readying to enter a vehicle. Law enforcement officers recovered the firearm, additional boxes of ammunition, and a quantity of cocaine. During post-arrest questioning, Allen admitted that he came to Jersey City to “kill a lot of people” due to the murder of his brother.
Allen has previously been convicted of felony offenses, including robbery and possession of controlled substances.
The firearms offense to which Allen pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. The drug offense carries a maximum sentence of 20 years in prison and a fine of up to $1 million. Sentencing is scheduled for Dec. 14, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Keith R. Travers of the U.S. Attorney’s Office in Newark.
Chillum Drug Dealer Caught with Two Kilograms of Cocaine Pleads Guilty to Federal ChargeRead the Press Release
Greenbelt, Maryland – Ludin Alfredo Ipina-Ipina, age 33, of Chillum, Maryland, pleaded guilty today to possession with intent to distribute over 2,000 grams of cocaine.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department (PGPD).
According to his guilty plea, from July 2020 to November 2020, Ipina sold various quantities of cocaine on three instances to co-conspirators: in July 2020, Ipina sold 21.7 grams of cocaine to a co-conspirator for $1,600; in August 2020, Ipina sold 55.7 grams of cocaine to a co-conspirator for $3,600; in September 2020, Ipina sold 167.8 grams of cocaine to a co-conspirator for $10,000.
On November 12, 2020, law enforcement executed search warrants at Ipina’s residences. At his residence in Chillum, Maryland, law enforcement recovered approximately 2,406.2 grams of cocaine, digital scales, baggies, and shrink wrap with cocaine residue. In addition to the cocaine and drug paraphernalia, law enforcement also recovered five-kilogram wrappings with cocaine residue and $118,453 in U.S. Currency. At the time of his arrest, law enforcement also recovered $1,021 from Ipina’s person.
In an interview with law enforcement, Ipina admitted that the cocaine recovered by law enforcement was his and claimed that he was holding the two kilograms of cocaine for another individual. Ipina also informed authorities that he intended to use the $119,474 in recovered currency, along with other currency, to purchase 10 kilograms of cocaine from a drug supplier in Texas.
In total, Ipina distributed 167.8 grams of cocaine, possessed 2,405.2 grams of cocaine with the intent to distribute, and attempted to purchase 10 kilograms of cocaine with the intent to distribute that cocaine to drug users and distributors.
Ipina faces a minimum sentence of five years in prison and a maximum of 40 years in prison followed by at least four years of supervised release for possession with intent to distribute controlled substances. U.S. District Judge Paula Xinis has scheduled sentencing for December 20, 2021 at 12 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and PGPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Rajeev R. Raghavan, who is prosecuting the case.
# # #
California Woman Pleads Guilty to Unemployment Benefits FraudRead the Press Release
LAS VEGAS, Nev. – A Santa Clarita woman pleaded guilty today to her role in a conspiracy to use other peoples’ personal information — without their consent — to unlawfully apply for and obtain over $250,000 in unemployment insurance benefits from the California Employment Development Department (EDD).
According to court documents and admissions made in court, around May of 2020, Brittany Danielle Griesel, 38, and her co-conspirators submitted fraudulent unemployment insurance claims with the EDD using other people’s personal identifying information. In total, EDD approved more than $250,000 in benefits for these fraudulent claims, which Griesel and her co-conspirators spent on goods and services. During a traffic stop in Las Vegas on August 8, 2020, law enforcement discovered Griesel was in possession of $45,464 in fraudulent proceeds obtained as part of the conspiracy.
Griesel pleaded guilty to one count of conspiracy to effect illegal transactions with access devices and one count of aggravated identity theft. U.S. District Judge Richard F Boulware II scheduled sentencing for November 9, 2021. Griesel faces a statutory maximum penalty of nine and a half years in prison and a $250,000 fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles region made the announcement.
This case was investigated by the DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Brown University Required to Ensure Equal Access for Students with Mental Health DisabilitiesRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office and the Justice Department today announced a settlement agreement with Brown University to ensure that students with mental health disabilities have equal access to educational programs. The agreement resolves the Department’s findings that Brown University violated Title III of the Americans with Disabilities Act (ADA) by not allowing students who took medical leave for mental health reasons to return to school even though they were ready to return to campus life.
The settlement agreement protects the rights of students with mental health disabilities to have equal access to Brown’s educational programs. The agreement also ensures that Brown will make reasonable modifications to its policies for students with mental health disabilities seeking to return from medical leave.
Title III of the ADA requires places of public accommodation like colleges and universities to provide individuals with disabilities, including mental health disabilities, with an equal opportunity to participate in their programs and services. The ADA also requires colleges and universities to make reasonable modifications to their policies for students with disabilities when needed.
The U.S. Attorney’s Office and the Justice Department’s investigation found that, between fall 2012 and spring 2017, dozens of undergraduate students were denied readmission to Brown after taking mental health-related medical leave. These students met the requirements for returning to Brown, and each of the students’ treatment providers reported to Brown that the students were ready to resume their studies and participate in campus life. Yet, the U.S. Attorney’s Office and the Department found that Brown denied the students’ applications for readmission, depriving these students of the opportunity to participate in and benefit from Brown’s educational programs.
As a result of the agreement announced today, Brown will:
• revise its undergraduate leave policies and practices to be consistent with Title III of the ADA;
• provide training on Title III of the ADA to all faculty and staff responsible for evaluating or making decisions about requests to take or return from leaves of absence; and
• pay $684,000 to compensate the undergraduate students who were harmed.
“Universities play a critical role in fulfilling the ADA’s promise of equal opportunity for individuals with disabilities. Instead of imposing extra barriers on students seeking to return to campus from medical leave, universities must reasonably accommodate students who are treating their mental health disabilities,” said Acting United States Attorney Richard Myrus. “I want to thank Brown University for its cooperation throughout our investigation and its willingness both to address the issues identified and to compensate the students who were wrongfully denied readmission. The policies that Brown has agreed to implement should serve as a timely reminder to other colleges and universities to ensure that their medical leave policies must not discriminate against students with mental health disabilities.”
“Students with disabilities deserve access to equal opportunity to help ensure that they can achieve their educational goals. The Justice Department is committed to ensuring that colleges and universities do not exclude students on the basis of their disability or because they took time to receive the treatment they needed to thrive,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We will keep fighting to ensure equal access for students with mental health disabilities at colleges and universities across our country.”
This matter was handled jointly by Assistant United States Attorney Amy Romero of the U.S. Attorney’s Office for the District of Rhode Island and the Disability Rights Section of the Department’s Civil Rights Division.
July 26, 2021 marked the 31st Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint.
Additional information about the U.S. Attorney’s Office Civil Rights Programs is available at http://www.justice.gov/usao-ri.
###
Bradenton Woman Sentenced to Federal Prison for Theft of Government FundsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Tekia Middleton (41, Bradenton) to 18 months in federal prison, followed by 3 years of supervised release, for theft of government funds. As part of Middleton’s sentence, the court also ordered Middleton to pay restitution in the amount of $51,755 and, separately, entered a forfeiture money judgment against her in the amount of $51,755, the proceeds of the offense.
Middleton had pleaded guilty on May 4, 2021.
According to court documents, Middleton’s mother, A.C., was receiving Social Security benefits. After A.C. passed away on September 7, 2014, Middleton never reported her death to the Social Security Administration (SSA), causing the SSA to continue paying benefits for A.C. From September 2014, through June 2019, Middleton knowingly accessed the funds meant for A.C. and used them for her own personal expenses. In total, Middleton knowingly and willfully stole approximately $51,755 in benefits to which she was not entitled.
This case was investigated by the Social Security Administration – Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.