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6 August 2021
Man Convicted of Sex Trafficking 14-Year-Old, Adult out of Dallas HotelRead the Press Release
A Dallas man has been found guilty of sex trafficking a 14-year-old minor and an adult victim, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After less than a half hour of deliberation, a federal jury in Dallas convicted Anthony Lennell Acy, 34, on one count of child sex trafficking and one count of sex trafficking by force, fraud, and coercion.
“Human trafficking is one of the most degrading crimes we prosecute. Like so many traffickers, this defendant preyed on vulnerable victims, lining his pockets at the expense of their dignity,” said Acting U.S. Attorney Prerak Shah. “The North Texas Trafficking Task Force is proud to stand against the exploitation of women and girls.”
“Sex trafficking has no place in our communities. HSI will vigorously pursue anyone involved in the exploitation of victims for commercial sexual acts,” said Ryan L. Spradlin, Special Agent in Charge HSI Dallas. “We will aggressively investigate these types of cases to ensure predators are identified, arrested, and face the justice deserved.”
According to evidence presented at trial, Mr. Acy trafficked at least two victims — including the 14-year-old girl, a runaway from McKinney, Texas — out of multiple hotels in Dallas and in California.
Agents with the North Texas Trafficking Task Force testified that they recovered Jane Doe 1 and Adult Victim 1 out of a Dallas hotel room and arrested Mr. Acy as he was leaving the hotel parking lot.
At trial, Jane Doe 1 testified that Mr. Acy approached her in a parking lot next to a hotel a couple weeks after she ran away from home. Jane Doe 1 stated that Mr. Acy told her that she could model for his clothing line and then drove her to a hotel, where he offered her dinner and a place to stay that night. She testified that Mr. Acy later forced her to take ecstasy pills, caused her to engage in commercial sex in Dallas and in California, and physically assaulted her multiple times.
Adult Victim 1 testified at trial that Mr. Acy first recruited her over Facebook, claiming that he wanted to be her boyfriend. Adult Victim 1 stated that, after she traveled to Dallas to visit Mr. Acy, he took her cell phone and her car keys and forced her to engage in commercial sex in order to pay back the money he claimed to have spent on her. Mr. Acy trafficked Adult Victim 1 first in Dallas and later in Austin and California. Adult Victim 1 testified that Mr. Acy forced her to earn $1,000 a day, with all proceeds turned over to him.
Both victims testified that Mr. Acy repeatedly beat them, threatened them at gunpoint and knifepoint, and threatened to kill them and their families if they called the police.
In the course of the investigation, investigators reviewed Mr. Acy’s hotel records, phone records, financial records, online advertisements, and Facebook posts that corroborated the victims’ accounts of Mr. Acy’s sex trafficking activity.
Mr. Acy now faces a minimum sentence of 15 years and up to life in federal prison.
The North Texas Trafficking Task Force, led by Homeland Security Investigations, conducted the investigation, with assistance from the Texas Department of Public Safety, the Dallas County Sheriff’s Office, the Colleyville Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorneys Rebekah Ricketts and John Kull are prosecuting the case. U.S. District Judge Jane J. Boyle presided over trial.
Lynn Man Pleads Guilty to Conspiring to Distribute Methamphetamine and Firearms OffensesRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston to conspiring to distribute methamphetamine and possessing firearms.
David Oth, a/k/a “Baby Bouncer,” a/k/a “BB,” 32, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 9, 2021. Oth was charged by criminal complaint on Feb. 24, 2021.
Oth was a member of the Tiny Rascals Gangsters, a street gang with a presence in the area north of Boston. Oth admitted that he and other gang members conspired to distribute methamphetamine by transporting it to Maine, where it would yield a higher resale value. A search of Oth’s residence resulted in the seizure of approximately three pounds of pure methamphetamine and two firearms.
The charge of conspiracy to distribute and possess a controlled substance with intent to distribute provides for a sentence of up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Based upon the weight of suspected narcotics involved in the conspiracy, the statute provides for a mandatory minimum sentence of 10 years. The charge of possessing a firearm in furtherance of a drug trafficking conspiracy provides for a sentence of at least five years and up to life in prison, to be served consecutively to the sentence imposed for the drug trafficking crime, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Acting Police Chief Len Desmarais made the announcement. Assistance was provided by the U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Essex County, Middlesex County and Suffolk County District Attorney’s Offices; Essex County and the Hancock County (Maine) Sheriff’s Departments; and the Malden, Salem, Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Lowden Man Sentenced to Five Years of Federal Prison After Gun Theft During Home BurglaryRead the Press Release
A man who broke into a house and stole an AR‑15-style rifle and marijuana was sentenced today to five years in federal prison.
John Christopher Jacobson, age 23, from Lowden, Iowa, received the prison term after a February 8, 2021 guilty plea to one count of possessing a stole firearm and one count of possessing a firearm as a drug user.
Court records show that in September 2018 Jacobson and an accomplice kicked in the back door of a residence in Springville, Iowa, and stole a Ruger AR‑15‑style rifle, a DVR security system, and marijuana. Jacobson later claimed he had committed the burglary in retaliation for the man who resided at the home shooting at Jacobson’s truck, which occurred a few days after Jacobson had rear‑ended the man’s vehicle. The rifle, as well as two other firearms, marijuana, and methamphetamine, were found in Jacobson’s residence.
Jacobson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jacobson was sentenced to 60 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Jacobson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Jones County Sheriff’s Office and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00105-CJW-MAR.
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Long Island Gang Member Pleads Guilty to Firearm-Related Murder in Connection with Shooting Death in RiverheadRead the Press Release
Earlier today, in federal court in Central Islip, Jason Langhorn, a member of the “Lowrider Brims” subset of the Bloods and an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise operating in Riverhead, New York, pleaded guilty to firearm-related murder for his role in the slaying of Thomas Lacolla on November 17, 2015, while attempting to kill another rival of the gang. The proceeding was held before United States Magistrate Judge A. Kathleen Tomlinson.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“As a result of the outstanding and tireless work by members of the Federal Bureau of Investigation, Long Island Gang Task Force, the Suffolk County East End Drug Task Force, the Riverhead Police Department and the Suffolk County Police Department, Homicide Squad, Langhorn has been held accountable for his role in an act of senseless gang violence that resulted in a man’s death,” stated Acting United States Attorney Kasulis. “It is our hope that today’s guilty plea brings a measure of closure to the victim’s family.”
According to court filings and facts presented during the plea proceeding, on November 17, 2015, Langhorn, along with two other members of the Bloods, went to a location in the Riverside section of Riverhead looking to kill a rival gang member. They sprayed 39 shots from three firearms, including an assault rifle, into a vehicle they believed was occupied by the rival gang member, but instead was occupied by Lacolla, who was killed in the fusillade.
This case was brought as 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. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
Defendant:
JASON LANGHORN (also known as “Hov”)
Age: 39
Riverhead, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Long Island Contractor Charged with Performing Lead-Based Paint Removal in Violation of the Toxic Substances Control ActRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Rickey Lynch with violating the Toxic Substances Control Act of 1976 (“TSCA”), making false statements and aggravated identity theft. Lynch is the first person to be charged with a felony violation of TSCA since the statute was amended in 2016 to include enhanced punishments for certain conduct posing a risk of death or serious bodily injury. Lynch was arrested this morning and will be arraigned this afternoon before United States District Judge Gary R. Brown.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Tyler Amon, Special Agent-in-Charge of the Environmental Protection Agency’s Criminal Investigation Division, New York (EPA), announced the charges.
“As alleged, the defendant placed a very young child at serious risk of continued exposure to toxic chemical hazards by deliberately disregarding federal standards that ensure the safe remediation of lead-based paint. He then compounded the risk of harm by lying and falsifying documents in a failed effort to establish his purported compliance with those standards,” stated Acting United States Attorney Kasulis. “Today’s arrest serves as a warning that those who circumvent environmental regulations that protect the community from the well-known dangers of lead-based paint will face the consequences.”
“Defendant Lynch knowingly violated the requirements of safely removing lead from a home and in so doing endangered the health of a vulnerable family,” stated EPA Special Agent-in-Charge Amon. “The EPA remains focused on holding accountable companies and individuals that cut corners and fail to put public health and safety first.”
As alleged in the indictment, in January 2020, Lynch’s company, Bright Lights Supreme Cleaning, Inc., was retained by residents of Freeport, Long Island, to remediate hazardous lead-based paint from their home after the family’s two-year-old son was found to have elevated levels of lead in his blood. Federal regulations require that lead-based paint abatement work be performed and supervised by individuals who have been certified by the EPA. The regulations also establish work practice standards to ensure that lead-based paint removal is done safely. Over the course of several days, Lynch remediated the lead-based paint himself, despite lacking the proper certification to either perform or supervise such work. Lynch also failed to comply with various work practice standards and did not use a High Efficiency Particulate Air (“HEPA”) filtration system that would have contained the spread of toxic dust and debris throughout the house. As a result of Lynch’s failure to comply with the regulations, lead dust exceeding legally permissible limits spread throughout the house.
In addition, Lynch faces charges of making false statements and aggravated identity theft related to his responses to an inquiry by the EPA. Specifically, Lynch took steps to obstruct the agency’s investigation by supplying a fake subcontractor agreement, an affidavit and other documents that contained the forged signature of an individual Lynch falsely identified as having supervised the abatement work on the Freeport residence.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. Under TSCA, the maximum sentence for conviction of a violation that places one or more individuals at risk of death or serious bodily injury is 15 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
RICKEY LYNCH
Age: 58
Arverne, New YorkE.D.N.Y. Docket No. 21-CR-405 (GRB)
Lehigh County Man Sentenced to 58 Months’ Imprisonment for Mail Fraud and Money Laundering OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 5, 2021, Anthony Redd, age 65, of Fullerton, Pennsylvania, was sentenced by U.S. District Judge Sylvia H. Rambo to 58 months’ imprisonment to be followed by three years of supervised release for mail fraud and money laundering offenses. Judge Rambo also ordered Redd to pay restitution to the victims in the amount of $240,133.
According to Acting United States Attorney Bruce D. Brandler, Redd participated in a criminal conspiracy to obtain money from victims through fraudulent misrepresentations and then have the proceeds transferred to multiple co-conspirators located in Jamaica, Costa Rica, and throughout the United States. Redd recruited other individuals to participate in the scheme. The investigation in this case identified at least 29 victims of the conspiracy.
The case was investigated by the United States Postal Inspection Service – Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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La Crosse Man Sentenced to 9 Years for Armed Robbery & Gun CrimeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Kenneth J. Lawson, 32, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 9 years in federal prison for armed robbery and possessing a firearm in furtherance of a crime of violence. This prison term will be followed by 3 years of supervised release. Lawson pled guilty to these charges on May 17, 2021.
On June 21, 2020, Lawson and a female associate robbed the occupants of a La Crosse apartment. Lawson carried a loaded 9mm handgun. When the female resident opened the door, Lawson grabbed her by the throat, hit her in the face, and pushed her to the ground. Lawson then attacked the male occupant, punching him multiple times in the face. During this altercation, Lawson’s gun fell from his waistband to the floor. Lawson and the male victim struggled over the gun. Eventually, the male victim returned the gun to Lawson after ensuring that it was unloaded.
Once Lawson regained possession of the gun, he and the female associate fled the apartment. Lawson accidentally left his cellphone and the loaded gun magazine in the apartment. When officers arrived, they found both victims had suffered injuries from the attack and many items inside the apartment were damaged.
La Crosse Police Department officers and the victims identified Lawson after searching the cell phone he’d dropped during the attack and finding his pictures on his Instagram account. The handgun used in the robbery was located by La Crosse police officers a few days later in the apartment where Lawson lived.
At the time of the robbery, Lawson was on Minnesota state supervision. He had multiple prior felony convictions and was prohibited from possessing a firearm.
In sentencing Lawson for the armed robbery and gun possession, Judge Conley noted the severity of the offense – a planned robbery to which Lawson brought a loaded gun and where the victims were brutally attacked, suffering trauma and injuries. Judge Conley noted that the La Crosse robbery was part of Lawson’s long history of violence.
The charges against Lawson were the result of an investigation conducted by the La Crosse Police Department and the 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 was handled by Assistant U.S. Attorney Steven Anderson.
Kodiak Fisherman Sentenced Federal Prison and $1 million Fine for Falsifying Fishing RecordsRead the Press Release
ANCHORAGE – A Kodiak, Alaska, man was sentenced by U.S. District Judge Joshua M. Kindred to six months in federal prison, a $1,000,000 fine, 126 days in a halfway house and 80 hours of community service. He must also make a public service announcement acknowledging his wrongdoing for knowingly submitting false records on halibut and sablefish.
According to court documents, James Aaron Stevens, 47, an experienced commercial fisherman, vessel owner and captain, pled guilty in November 2020 to falsely labeling fish in violation of the Lacey Act.
Stevens, the owner and operator of F/V Alaskan Star and F/V Southern Seas, falsely reported where he harvested 903,208 pounds of individual fishing quota (IFQ) halibut and sablefish. Stevens knowingly falsified numerous documents – IFQ landing reports, Alaska Department of Fish and Game fish tickets and fishing logbooks – to show that he harvested fish in locations and regulatory areas where he did not fish and omitted areas where he actually fished. Stevens committed this offense over the course of 26 fishing trips spanning four IFQ fishing seasons (2014-2017). Taken together, the halibut and sablefish that Stevens falsely reported had an approximate dock value of $4,522,210 and market value of $13,566,630. Stevens sold the falsely labeled fish caught during these trips, which were, or were intended to be, transported in interstate and foreign commerce.
“Fishing is at the heart of Alaska and we must all strive to protect this important resource. Criminals who violate the Lacy Act for their own personal gain harm both the resource itself and those who either depend on it for their livelihood or their subsistence lifestyle,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “Our office will continue to aggressively prosecute individuals who engage in falsifying fishery records.”
“Alaska is known for its world-class, sustainable fisheries based on science-based management and honest fishermen following the rules,” said Will Ellis, Assistant Director of NOAA's Office of Law Enforcement, Alaska Division. “This sentencing should serve as a reminder that there are serious consequences for those who break the rules, and that NOAA OLE is committed to holding those who cheat the system accountable.”
NOAA’s Office of Law Enforcement conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Adam Alexander and Andrea Hattan, Special Assistant U.S. Attorney, NOAA Office of General Counsel Enforcement Section, prosecuted this case.
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Justice Department Settles Sexual Harassment Lawsuit Against Property Manager and Owners of California Apartment BuildingsRead the Press Release
The Justice Department announced today that it has reached an agreement to resolve a lawsuit alleging that Filomeno Hernandez, a property manager of residential apartment buildings near MacArthur Park in Los Angeles, violated the federal Fair Housing Act by sexually harassing female tenants since at least 2006.
Today’s settlement also resolves claims against Ramin Akhavan, Bonnie Brae Investments LLC and Westlake Property Services LLC, which managed or owned the rental properties where the harassment took place.
Under the consent decree, which still must be approved by the U.S. District Court for the Central District of California, defendants are required to pay a total of $105,000, which includes $100,000 in monetary damages to women who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent decree also bars future discrimination, prevents Hernandez from participating in the rental or management of residential properties in the future, requires that Hernandez vacate the premises and leave his post as on-site property manager, mandates Fair Housing Act training and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.
The department’s lawsuit, filed in 2020, alleged that for more than a decade Hernandez subjected female tenants to harassment that included unwanted sexual touching, including sexual assault, frequent unwelcome sexual advances and comments, offers to reduce rent or excuse late or unpaid rent in exchange for sex and unannounced visits to the homes of female tenants without their consent to make sexual advances. The apartment buildings that Hernandez managed are located at 729 South Bonnie Brae Street and 720 Westlake Avenue in Los Angeles, near MacArthur Park.
“Sexual harassment of vulnerable tenants is an egregious violation of the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to pursuing predatory landlords and property managers and to ensuring that no individual is subject to housing discrimination because of their sex.”
“The right to be free from sexual harassment in one’s own home is a vital federal civil right,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “This settlement shows our commitment to vigorously enforcing federal civil rights laws and holding accountable those who discriminate against others in violation of the Fair Housing Act.”
The Justice Department enforces the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.9 million for victims of such harassment.
Individuals may report sexual harassment in housing or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online.
Individuals in the Central District of California also may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by calling (213) 894-2879, emailing [email protected] or completing and submitting this form (English) (Spanish).
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights. View the Spanish translation of this press release here.
Justice Department Settles Sexual Harassment Lawsuit Against Property Manager and Owners of California Apartment BuildingsRead the Press Release
Note: View the Spanish translation of this press release here.
LOS ANGELES – The Justice Department announced today that it has reached an agreement to resolve a lawsuit alleging that Filomeno Hernandez, a property manager of residential apartment buildings near MacArthur Park in Los Angeles, violated the federal Fair Housing Act by sexually harassing female tenants since at least 2006.
Today’s settlement also resolves claims against Ramin Akhavan, Bonnie Brae Investments LLC and Westlake Property Services LLC, which managed or owned the rental properties where the harassment took place.
Under the consent decree, which still must be approved by a federal judge in Los Angeles, the defendants are required to pay a total of $105,000, which includes $100,000 in monetary damages to women who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent decree also bars future discrimination, prevents Hernandez from participating in the rental or management of residential properties in the future, requires that Hernandez vacate the premises and leave his post as on-site property manager, mandates Fair Housing Act training, and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.
The Justice Department’s 2020 lawsuit alleged that, for more than a decade, Hernandez subjected female tenants to harassment that included unwanted sexual touching, including sexual assault; frequent unwelcome sexual advances and comments; offers to reduce rent or excuse late or unpaid rent in exchange for sex; and unannounced visits to the homes of female tenants without their consent to make sexual advances.
“The right to be free from sexual harassment in one’s own home is a vital federal civil right,” said Acting United States Attorney Tracy L. Wilkison. “This settlement shows our commitment to vigorously enforcing federal civil rights laws and holding accountable those who discriminate against others in violation of the Fair Housing Act.”
“Sexual harassment of vulnerable tenants is an egregious violation of the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to pursuing predatory landlords and property managers and to ensuring that no individual is subject to housing discrimination because of their sex.”
The apartment buildings that Hernandez managed are located at 729 South Bonnie Brae Street and 720 Westlake Avenue in Los Angeles, near MacArthur Park.
The Justice Department enforces the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.9 million for victims of such harassment.
Individuals may report sexual harassment in housing or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online.
Individuals in the Central District of California also may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by calling (213) 894-2879, emailing [email protected] or completing and submitting this form (English) (Spanish).
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights.
International Drug Trafficking Organization Member Sentenced for Trafficking Nearly Four Tons of CocaineRead the Press Release
RICHMOND, Va. – A Guatemalan national was sentenced today to 17 and a half years in prison for his role as a transportation manager in a large-scale Guatemalan drug trafficking organization (DTO).
According to court documents, between 2015 and 2016, Edi Barrera-Salguero, 46, conspired to distribute over 1,000 kilograms or more of cocaine. Barrera-Salguero, who was extradited to the United States on February 4, 2021, served as a transportation manager for the DTO. In this leadership role, Barrera-Salguero organized cocaine transportation networks, directed the movement of cocaine loads, and directed the movement of bulk cash.
Operating throughout Central America, Barrera-Salguero orchestrated the movement of 3,586 kilograms of cocaine from Costa Rica to Guatemala. In June 2016, Barrera-Salguero coordinated the transportation of 381 kilograms of cocaine from Costa Rica to Guatemala City, Guatemala. Once the cocaine arrived in Guatemala, the 381 kilograms of cocaine were seized by Guatemalan law enforcement authorities during a traffic stop in the vicinity of Barrera-Salguero’s commercial trucking business, “Importada La Zarza Encendida.”
On July 1, 2020, Luis Pedro Fuentes Amaya, a co-defendant of Barrera-Salguero, was sentenced to 192 months for his role in the cocaine trafficking conspiracy on behalf of the DTO.
This prosecution is part of the Organized Crime and Drug Enforcement Task Force (OCDETF) Operation Go Explorers. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson
Assistant U.S. Attorneys Erik S. Siebert and Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-18.
Institute of Living Settles ADA Complaint, Ensures Access for Deaf and Hard of Hearing IndividualsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement under the Americans with Disabilities Act (“ADA”) with the Institute of Living at Hartford Hospital, on behalf of itself and its professional emergency room and managed mental health center within Hartford Hospital. The Institute of Living is a mental health center that specializes in comprehensive patient care, research and education in the fields of behavioral, psychiatric and addiction disorders whose services are provided to the public.
This matter was initiated upon receipt of a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Disability Rights Connecticut. Disability Rights Connecticut filed the complaint on behalf of a complainant who is profoundly deaf. It is alleged that the complainant went to the Hartford Hospital Emergency Room and was then transferred to and treated by the medical staff at the Institute. On multiple occasions, the complainant requested a sign language interpreter during her several days of admission to understand treatment options and to attend group therapy sessions, and to understand and sign documents provided to her during her stay. She was not provided with a qualified interpreter and was not able to participate in group therapy sessions to treat her depression and suicidal ideations. The complainant also could not communicate with her treating psychiatrist and did not fully understand why she had been admitted into the hospital.
Title III of the ADA requires places of public accommodation, including hospital facilities, to take steps to ensure that individuals with disabilities are not excluded, segregated or otherwise treated differently due to the absence of auxiliary aids and services, such as qualified interpreters. The regulations to Title III prohibit places of public accommodation from requiring an individual with a disability to bring another individual to interpret for him or her. The regulations to Title III similarly prohibit places of public accommodation from charging a surcharge to individuals with disabilities for measures, including auxiliary aids and services like interpreters that are required to provide the individual with a disability with nondiscriminatory treatment under the ADA.
The settlement agreement resolves the complaint based on the above allegations that the Institute of Living violated Title III of the ADA by failing to provide effective communication to the complainant. The settlement agreement requires the Institute to provide free of charge appropriate auxiliary aids and services, including qualified interpreters, at all of its patient facilities to individuals who are deaf or hard of hearing whenever it is necessary to ensure effective communication for those individuals. The Institute will provide ADA training to all staff members. In addition, the Institute will compensate the complainant in the amount of $10,000.
The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“This case demonstrates this office’s commitment to protecting the rights of those who are deaf or hard of hearing, and ensuring that these individuals are able to effectively communicate with health care professionals.” stated Acting U.S. Attorney Boyle. “I thank the Institute of Living at Hartford Hospital for their cooperation during this investigation and for addressing these ADA issues without the need for litigation.”
This matter was handled by Assistant U.S. Attorney Brenda M. Green of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice’s Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury, criminal complaints or informations. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 3 was:
Vincent Harry Kopacek, 76, of Fredericksburg, Texas, on charges of attempted sexual abuse of a minor, abusive sexual contact, and assault within maritime or territorial jurisdiction. If convicted of the most serious crime, Kopacek faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release. Kopacek was released pending further proceedings. The FBI, Gallatin County Sheriff’s Office and Bozeman Yellowstone International Airport Public Safety Office investigated the case. PACER case reference. 21-26.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 6 was:
Raymond G. Fillion, 35, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious drug crime, Fillion faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. If convicted of possession of a firearm in furtherance of a drug trafficking crime, Fillion faces a mandatory minimum five years in prison consecutive to any other sentence. Fillion was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-47.
Appearing on Aug. 3 was:
Dew Rex Allenby, 34, of Richland, Washington, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth, possession of firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious drug crime, Allenby faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. If convicted of possession of a firearm in furtherance of a drug trafficking crime, Allenby faces a mandatory minimum five years in prison consecutive to any other sentence. Allenby was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-38.
Rans Ray Carroll, Jr., 38, of Big Timber, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of firearm in furtherance of a drug trafficking crime. If convicted of the most serious drug crime, Carroll faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. If convicted of possession of a firearm in furtherance of a drug trafficking crime, Carroll faces a mandatory minimum five years in prison consecutive to any other sentence. Carroll was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-03.
Shay Austin Dontmix, 24, of Billings, on charges of possession of stolen firearms. If convicted of the most serious crime, Dontmix faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Dontmix was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-49.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 3 was:
Dejarreh La’kean Talley, aka “DJ” Talley, 23, of Philadelphia, Mississippi, on charges of burglary. If convicted of the most serious crime, Talley faces a maximum 20 years in prison, a $50,000 fine and three years of supervised release. Talley was detained pending further proceedings. The FBI and Fort Peck Law Enforcement investigated the case. PACER case reference. 20-74.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hospice Facility Owner Indicted for Health Care FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHIVA AKULA (“AKULA”), age 65, of New Orleans, Louisiana was charged by a grand jury on August 5, 2021, in a 23-count Indictment for Health Care Fraud.
AKULA owned and oversaw the day-to-day operations of Canon Healthcare, a hospice facility.
According to the Indictment, AKULA unlawfully enriched himself by submitting and causing the submission of false and fraudulent claims to health care benefit programs, including Medicare. AKULA instructed Canon employees to improperly bill for General Inpatient (“GIP”) services to maximize reimbursement from health care benefit programs, knowing that those services were not medically necessary.
Canon routinely billed physician services with Common Procedural Terminology (“CPT”) Code 99233 for beneficiaries who were receiving GIP services, in addition to the daily per diem rate. CPT Code 99233 is an evaluation and management code, which requires two of the three following components: (1) detailed interval history; (2) detailed examination; or (3) medical decision making of a high complexity. Usually, the beneficiary is unstable or has developed a significant complication or a significant new problem.
Canon routinely billed for physician services for CPT Code 99236 for beneficiaries who were admitted into GIP and remained on GIP for more than 24 hours. CPT Code 99236 should only be billed when a patient is admitted to inpatient hospital care for a minimum of 8 hours, but less than 24 hours and discharged on the same calendar day. In addition, when billing for CPT Code 99236, the physician shall identify that he or she was physically present and that he or she performed the initial hospital care service. The physician shall personally document the admission and discharge notes and include the number of hours the beneficiary remained in inpatient hospital status.
From on or about January 1, 2013, to on or about August 25, 2017, Canon submitted approximately 1,053 claims for CPT code 99236 and was paid approximately $223,601 by Medicare. During that same time period, Canon submitted approximately $2,281,251. These physician services reflected in CPT Codes 99236 and 99233 should not have been billed as a separate line item in addition to the GIP services because they were included within the daily per diem rate that Medicare paid for the GIP services.
From on or about January 1, 2013, through on or about August 25, 2017, Canon submitted claims to Medicare for approximately 1,949 home visits using CPT code 99350 that were purported to have been performed by a doctor, when a doctor did not perform home visits. As a result of these 1,949 home visits, Medicare reimbursed Canon approximated $316,384.
From January 2013 to December 2019, Canon billed Medicare approximately $62,833,346.28 and was paid approximately $47,106,838.94.
If convicted, AKULA faces a maximum of 10 years imprisonment, a fine of not more than $250,000, supervised release of up to 3 years, and a mandatory special assessment of $100 as to each count.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorney Kathryn McHugh.
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Gilford Woman Sentenced to 37 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Sara Zareas, 36, of Gilford, was sentenced to 37 months in federal prison for participating in a conspiracy to distribute, and possess with intent to distribute, fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on June 17, 2020, law enforcement officers received information that Zareas would be traveling to Methuen, Massachusetts to purchase fentanyl. Law enforcement officers followed the truck and observed a hand-to-hand transaction between the occupants of the truck and another vehicle in a parking lot. A New Hampshire state trooper later conducted a traffic stop of the truck as it drove through Windham. The driver of the truck admitted that she drove Zareas to Methuen to buy fentanyl in exchange for a small amount for herself. Zareas consented to a search of her backpack and person which revealed scales, cellophane bags, and opioid kits. Zareas and the driver also had over 41 grams of fentanyl in their possession.
Zareas pleaded guilty on April 7, 2021.
“Fentanyl continues to cause large numbers of overdoses and fatalities throughout New Hampshire,” said Acting U.S. Attorney Farley. “In order to protect our community, we continue to work closely with our law enforcement partners to identify and prosecute the drug dealers who are bringing this dangerous substance into the Granite State.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John J. Kennedy.
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Georgia Woman Who Preyed on South Florida Seniors, Stole More Than $1.4 Million, Sentenced to 145 MonthsRead the Press Release
Miami, Florida – Today, a federal district judge in West Palm Beach sentenced a Georgia woman to 145 months in prison for leading a scam that tricked over 250 elderly South Floridians into turning over their credit cards, debit cards, and related personal identification numbers. The defendant and her co-conspirators used the cards and PINs to steal over $1.4 million.
Over approximately four years starting in 2016, Edtronda Simon, 41, of Fayette County, ran an elder fraud scheme that generally operated as follows: Simon would cold-call elderly victims in South Florida, pretend to be from the fraud department of each senior’s bank, and convince the seniors that their accounts had been compromised, which was not true. Once a senior seemed convinced, Simon would offer to send a “bank representative” to the elderly victim’s home to exchange any compromised credit or debit card with a new one. Usually with Simon still on the call trying to persuade the senior to verify a PIN number, a co-conspirator would arrive at the victim’s home, take the victim’s credit or debit card, and promise to return with a new one (which, of course, never happened). The co-conspirators used the seniors’ credit cards, debit cards, and PINs to withdraw cash from ATMs, purchase money orders, and otherwise drain money from the accounts as quickly as possible – before real bank fraud representatives caught on to the illegal activity.
Simon and her co-conspirators convinced over 250 seniors from Broward, Palm Beach, St. Lucie, Indian River and other South Florida counties into turning over debit cards, credit cards, and related information. They defrauded banks of over $1 million.
On May 25, Simon pled guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft (case no. 20-cr-80081). In a separate case (20-cr-80037), Simon’s co-conspirators also pled guilty to their roles in the scheme and received the following prison sentences: The co-defendants received the following prison sentences:
- Samuel Charles -- 40 months
- Shaumbrica Stubbs -- 76 months
- Shaquille Robinson – 63 months
- Luclesse Vernesse -- 48 months
- Ian Felder -- 52 months
- Dierdre Dixon -- 83 months
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sheriff Ric Bradshaw, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
USSS Miami and PBSO handled the investigation, along with federal task force officers from the Coral Springs Police Department, Pembroke Pines Police Department, and Plantation Police Department.
Assistant U.S. Attorney Susan Rhee Osborne is prosecuting the case. Assistant U.S. Attorney Danielle Croke handled asset forfeiture matters.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Gang Member Pleads Guilty to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Raekwon Cortez Ford, 24, of Columbia, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that, in late November 2019, several automobiles were broken into and various items stolen, including an iPhone. One of the victims of the break-ins was able to track their iPhone to a residence in Columbia and notified the Columbia Police Department. Officers responded to the residence and found a number of individuals in the yard, including Ford. Ford, a gang member, was placed under arrest on outstanding warrants and was found to be in possession of the stolen iPhone.
Officers then obtained a search warrant for Ford’s residence, which they executed on December 4, 2019. Within the residence, officers located Ford, who had been released on state bond from the earlier arrest, and found a loaded Ruger .45 caliber handgun concealed in an air vent in Ford’s bedroom. An analysis showed Ford’s DNA on the firearm and that the firearm had been reported stolen from an earlier auto break-in in Columbia in December 2018. A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) revealed that the firearm had been used in four separate shooting incidents in Richland and Lexington Counties from June through August 2019.
NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. More information on NIBIN can be found at: https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Ford is prohibited from possessing firearms and ammunition based upon his prior felony convictions. Ford has prior state convictions for unlawful carrying of a weapon, possession of a stolen weapon, breach of peace of an aggravated nature, and breach of trust.
Ford faces a maximum penalty of 10 years in federal prison and a fine of $250,000. United States District Judge J. Michelle Childs accepted the guilty plea and will sentence him after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The charges against Ford were the result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department, 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.
Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
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Freeburg Couple Plead Guilty to Defrauding Elderly Family MemberRead the Press Release
EAST SAINT LOUIS, Ill. – Ronald Speiser, 81, and Jean Speiser, 81, of Freeburg, Illinois, pled guilty today in federal court to two felony charges after defrauding an elderly family member out of nearly $200,000.
The Speisers were designated as the victim’s power of attorney and successor power of attorney in estate documents. In June 2018, they exercised their authority over the victim’s finances by opening a joint account for Ronald Speiser and the victim at Citizens Community Bank in Mascoutah, Illinois, and depositing a check for over $250,000 after selling the victim’s home. Starting around
December 2018, and continuing until at least June 2020, the Speisers abused their access to these funds by spending over $200,000 of the victim’s money without the victim’s knowledge or permission, and for purposes that did not benefit the victim. Their spending spree included over
$50,000 in personal home renovations, paying over a year’s worth of personal credit card bills, purchasing a $29,000 camper and $23,000 truck, and making a down payment and thirteen mortgage payments on a second home.As part of the plea agreement, the Speisers agreed to a sentence including twelve months of home confinement and full restitution to the victim, including $119,000 that must be paid before their sentencing hearing. The Speisers’ sentencing is set for November 18, 2021, at 1:30pm in the federal courthouse in East St. Louis.
This case was brought as part of the Department of Justice’s Elder Fraud Initiative. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This
U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.The case was investigated by Adult Protective Services, St. Clair County Sheriff’s Department, and
Federal Bureau o Investigation. The case is being prosecuted by Assistant United States Attorney
Luke J. Weissler.
Former Newton Scientist Agrees to Pay $215,000 to Resolve Allegations of False Statements in Grant ApplicationRead the Press Release
BOSTON – A former Newton scientist sponsored by Massachusetts General Hospital (MGH) has agreed to resolve allegations that he submitted false statements on a grant application to the National Institutes of Health (NIH).
Sam W. Lee, PhD, 67, of Bellevue, Wash., has agreed to pay $215,000 to resolve allegations that he submitted false claims for payment in a grant application to the NIH. MGH, the sponsor institution for the NIH grant, disclosed to the United States that Dr. Lee, the Principal Investigator (PI), submitted the grant application to NIH containing allegedly inauthentic data. MGH separately repaid NIH the full amount of funds it drew from the grant.
“The NIH grant application process relies on scientific integrity, accuracy and honesty from individual principal investigators, but Dr. Lee supplied falsified results, inauthentic data and false statements instead,” said Acting United States Attorney Nathaniel R. Mendell. “Defrauding the NIH wastes taxpayer money, limits the availability of funding for other research and undermines the central purpose of scientific inquiry. We commend MGH for disclosing the alleged false statements, for repaying funds and for taking meaningful steps to prevent future recurrences.”
“The National Institutes of Health (NIH) seeks to preserve and enhance the well-being of our communities by spending $35 billion in taxpayer money each year on medical research; in Massachusetts, over $3 billion is spent annually,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Dr. Lee’s lack of truthfulness defied NIH’s grant application process that is meant to protect research dollars. OIG, with our law enforcement partners, spares no resources to ensure that funding for life saving research is appropriately spent. People who suspect grant fraud are encouraged to report it by calling 1-800-HHS-TIPS.”
The United States contends that Dr. Lee knowingly included inauthentic data in his grant application to NIH. Pursuant to NIH policy, PIs are required to provide a signed assurance when submitting a grant application to the NIH that certifies the truth, completeness and accuracy of the information in the application. Dr. Lee signed the PI assurance for the grant application and confirmed that he had reviewed and approved the application. A fellow in Dr. Lee’s laboratory conducted the underlying experiments for certain figures included in the grant application, but the fellow no longer worked for Dr. Lee at the time that he submitted the application. The United States contends that Dr. Lee altered the experiment descriptions in two of the figures, falsifying the results of the experiments, and that Dr. Lee falsified a third figure by horizontally flipping the image and thus mislabeling the results in the application.
Acting U.S. Attorney Mendell and HHS-OIG SAC Coyne made the announcement today. Assistant U.S. Attorney Jessica J. Weber of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Former Detroit Police Department Officer Sentenced to 18 Months for BriberyRead the Press Release
DETROIT - Former Detroit Police Department Officer, Michael Mosley, was sentenced today to 18 months in federal prison following his conviction for bribery announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement was Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Mosley, age 49, pleaded guilty in February 2020 before United States District Judge George Caram Steeh. Mosley’s sentencing was delayed due to the COVID-19 pandemic.
Officer Mosley was a nineteen-year veteran of the Detroit Police Department. As stated during Mosley’s guilty plea, in April 2019, Mosley was a member of the Police Department’s Major Violators Unit. On April 3, 2019, Detroit police officers, including Officer Mosley, searched a drug trafficker’s house pursuant to a search warrant. The search uncovered two kilograms of heroin, one kilogram of cocaine, and six firearms. The drug trafficker admitted to owning the three kilograms of drugs to Officer Mosley, and the trafficker signed a confession. After the April 3rd search, Officer Mosley remained in contact with the drug trafficker in an effort to secure the trafficker’s cooperation concerning other criminal activity.
Subsequently, the drug trafficker offered Officer Mosley a cash bribe of $15,000 in exchange for not pursuing criminal charges based on the three-kilogram drug seizure. Officer Mosley agreed to the deal. On May 2, 2019, Officer Mosley collected $10,000 in cash left for him by the drug dealer in the backyard of an abandoned house in Detroit. On May 23, 2019, Officer Mosley accepted another $5,000 in cash left for him by the drug trafficker at the same abandoned house. In exchange, Officer Mosley gave the drug trafficker the original copy of his confession.
Acting U.S. Attorney Saima Mohsin commended the outstanding work of the FBI in conducting this criminal investigation of a corrupt police officer. “The vast majority of Detroit Police Officers are dedicated and superb public servants. When Mosley accepted a bribe, he betrayed his oath as a police officer and the citizens of Detroit. He also betrayed his fellow officers who seek to protect and serve with integrity. This prosecution demonstrates that we will not tolerate public officials who abuse their authority and seek to use their power to line their own pockets,” said Mohsin.
“Michael Mosley violated his oath to serve and protect the people of Detroit. His misconduct was a betrayal of his fellow officers, and it is not representative of the outstanding work of the Detroit Police Department every day," said FBI Detroit Special Agent in Charge Timothy Waters. "The FBI will do everything in its power to bring corrupt police officers to justice to ensure communities can have faith in the integrity of law enforcement."
“We are deeply disappointed in the actions of former police officer Michael Mosley,” said Interim DPD Chief James White. “I appreciate the collaborative effort with our federal partners and those members who conducted this thorough investigation and subsequent prosecution. Clearly, the actions of this former officer are disheartening; however, it does not represent the values of our department and the vast majority of the men and women who serve honorably to keep our residents safe.”
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, David A. Gardey, and Adriana Dydell.Former Deputy Arrested for Lying on Federal Firearm Forms at Gun DealerRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the arrest of Kenyari Devaughnte Brewton (26, Ocala) on a criminal complaint charging him with eight counts of knowingly causing a Federal Firearms Licensee (FFL) to maintain false information in its official records. Each count is punishable by up to five years in federal prison and a $250,000 fine. According to court records, Brewton worked as a detention deputy for the Alachua County Sheriff’s Office until his arrest on August 5, 2021.
According to the criminal complaint, between February 3, 2020, and April 26, 2021, Brewton purchased multiple Glock pistols, AK-47 style pistols, and an AK-47 rifle from a Marion County gun dealer. Many of the firearms were identical. While purchasing the firearms, Brewton certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the guns, even though he quickly resold them to “unknown” individuals for a profit. On May 2, 2021, one of the Glock pistols that Brewton had sold to an individual was used during a homicide in Marion County. Brewton had purchased this firearm only six days earlier from the gun dealer.
A criminal complaint is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This was investigated by the Ocala Police Department, the Marion County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Former Chattanooga-Area Public Claims Adjuster Sentenced for Mail FraudRead the Press Release
CHATTANOOGA, Tenn. – On August 4, 2021, Benjamin Reichel, 55, was sentenced to serve 54 months in prison, followed by three years’ supervised release, by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
In November 2020, as part of a negotiated plea agreement, Reichel pleaded guilty to felony mail fraud charges. According to court records, Reichel operated a Chattanooga-area business known as Loss Recovery Specialists (“LRS”). LRS held itself out to be a public claims adjuster licensed by the State of Tennessee to negotiate with insurance companies on behalf of homeowners and others who had suffered property damage.
When homeowners reached out to Reichel for help, Reichel fraudulently diverted his clients’ funds for his own personal gain. The United States argued at sentencing that, under Reichel’s scheme, rather than using the funds to repair his clients’ homes, he used the money to pay for, among other things, a babysitter, massages, the lease on an Audi, personal vacations, and a swimming pool, impacting a number of innocent victims.
Reichel will be required to make restitution of over $850,000 to his victims.
The charges resulted from an investigation conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Cleveland Police Department, and other local law enforcement agencies.
Assistant U.S. Attorney Kyle J. Wilson represented the United States.
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Federal Jury Convicts Fort Hall Man of MurderRead the Press Release
POCATELLO – After a four-day jury trial, a federal jury sitting in Pocatello found Justin Beasley, 27, of Fort Hall, Idaho, guilty of second degree murder, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye presided over the trial, which began on August 2nd, and concluded with guilty verdicts on the afternoon of August 5th.
According to court records and evidence presented at trial, on February 3, 2018, Austin Pevo, 23, was dropped off by his mother at a residence on the Fort Hall Indian Reservation for work cutting firewood. Testimony at trial showed that Beasley and others were at the residence at that time. Beasley and Pevo had an argument and Beasley stabbed Pevo twice in the chest with a knife. Beasley and two other men took Pevo’s body to an isolated area in Arbon Valley.
Pevo’s family reported him missing and the Fort Hall Police Department investigated but was unable to locate any information on Pevo’s whereabouts.
A witness to the events of February 3, 2018, came forward to the Fort Hall Police in August 2019, and reported that Pevo had died on that date and three men who had been at the house removed his body. The Federal Bureau of Investigation (FBI) executed a search warrant at the residence and found evidence that Pevo had died there. One of the men who helped hide the body admitted to his involvement and took FBI agents to the location of Pevo’s remains in Arbon Valley. The agents recovered Pevo’s remains along with clothing and other personal items. DNA testing showed that the remains were those of Pevo.
Beasley was indicted by a federal grand jury on the charge of second degree murder of Austin Pevo on September 24, 2019.
Beasley is scheduled to be sentenced on October 26, 2021 and faces up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Gonzalez said, “Prosecuting violent crimes in Indian Country is a priority for my office, and I hope this conviction brings some amount of closure and justice to the victim’s family.” He also praised the Federal Bureau of Investigation and the Fort Hall Police Department for their exemplary and thorough investigation of this crime. “Their complementary partnership resulted in the successful outcome of this senseless murder. This office and our law enforcement partners are committed to prosecuting aggressively cases involving violent acts committed against Native Americans residing on reservation lands within Idaho,” Mr. Gonzalez added.
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Federal Court Orders California Company and Owner to Stop Distribution of Unapproved, Misbranded and Adulterated ‘Poly-MVA’ ProductsRead the Press Release
A federal court ordered a California company and its owner to stop distributing unapproved and misbranded drugs and adulterated animal drugs.
In a complaint filed in the U.S. District Court for the Southern District of California in December 2020 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that AMARC Enterprises Inc. and Albert Lee Sanchez Jr. sold and distributed products called “Poly-MVA” and “Poly-MVA for Pets” that defendants claimed could cure, mitigate, treat or prevent disease, including cancer. According to the complaint, the defendants’ Poly-MVA products are not generally recognized as safe and effective by qualified experts for the uses intended by the defendants in the products’ labelling. The complaint also alleged that the defendants intended for Poly-MVA to be administered intravenously.
AMARC and Sanchez agreed to be bound by a consent decree of permanent injunction. The order entered by the court permanently enjoins the defendants from violating the Federal Food, Drug, and Cosmetic Act (FDCA) and requires them, among other things, to cease distribution of their products unless and until they come into compliance with the FDCA.
“Companies that market products with unproven claims endanger the public health,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The court’s order ensures that the defendants uphold their obligation to comply with the law.”
“Marketing products that claim to cure, mitigate, treat or prevent cancer in both humans and animals without adequate scientific support poses serious safety risks to consumers and their pets,” said Judith McMeekin, FDA’s associate commissioner for regulatory affairs within the Office of Regulatory Affairs (ORA). “The unlawful distribution of these types of products is particularly concerning as they have the potential to derail consumers from seeking and receiving proper treatment from qualified health care providers. Despite previous warnings, AMARC Enterprises Inc. continued violating the law. The FDA will continue to take action to protect the American public when companies knowingly violate the law and put consumers or their pets at risk.”
The complaint alleged that the claims defendants made regarding Poly-MVA and Poly-MVA for Pets lacked support from published, adequate and well-controlled clinical studies. The complaint also asserted that, because Poly-MVA’s labelling did not include adequate directions for lay users, the product was misbranded. Additionally, the complaint alleged that Poly-MVA for Pets was an adulterated new animal drug because it lacked an approved application.
Trial Attorneys Sarah Williams and Shannon Pedersen of the Civil Division’s Consumer Protection Branch handled the case with the assistance of Associate Chief Counsel Jaclyn Martinez Resly of the FDA’s Office of Chief Counsel.
El Departamento de Justicia llega a un acuerdo en una demanda contra propietarios y un administrador de propiedades de edificios residenciales en CaliforniaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo para resolver una demanda que alega que Filomeno Hernández, un administrador de propiedades de edificios residenciales cerca del Parque MacArthur en Los Angeles, vulneró la ley federal de Vivienda Justa al acosar sexualmente a inquilinas desde al menos el 2006. El acuerdo de hoy también resuelve alegaciones contra Ramin Akhavan, Bonnie Brae Investments LLC y Westlake Property Services LLC, que administraron o que fueron dueños de las propiedades de alquiler donde sucedió el acoso.
Conforme al decreto por consentimiento, el cual todavía debe ser aprobado por el Tribunal Federal de Distrito para el Distrito Central de California, los demandados están obligados a pagar un total de $105,000, lo que incluye una indemnización económica de $100,000 para mujeres que fueron perjudicadas como resultado del acoso sexual y $5,000 por concepto de sanción civil. Asimismo, el decreto por consentimiento también prohíbe futura discriminación; prohíbe la futura participación de Hernández en el alquiler o la administración de propiedades residenciales; requiere que Hernández abandone los edificios y que renuncie a su puesto como administrador de propiedad in situ; exige capacitación sobre la ley de Vivienda Justa y requiere supervisión y declaración extensivas en lo que se refiere a las actividades de gestión de propiedades y cumplimiento con los términos del decreto por consentimiento.
Entablado en el año 2020, la demanda del Departamento alegó que a lo largo de más de una década, Hernández sometía a las inquilinas a acoso que incluía contacto sexual no deseado, lo que incluye la agresión sexual, insinuaciones y comentarios sexuales no deseados, ofertas para reducir el alquiler o perdonar pagos retrasados o el impago del alquiler a cambio de sexo y visitas sin previo aviso a las casas de inquilinas sin su consentimiento para realizar insinuaciones sexuales. Los edificios residenciales que Hernández administraba están ubicados en 729 South Bonnie Brae Street y 720 Westlake Avenue en Los Angeles, cerca del Parque MacArthur.
«El acoso sexual de inquilinas vulnerables es una violación indignante de la ley de Vivienda Justa», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia se ha comprometido a perseguir a propietarios y administradores de propiedades depredadores y a garantizar que no se someta a nadie a la discriminación en la vivienda por motivos de su género.
«El derecho de una persona a vivir en su propia casa sin ser acosada sexualmente es un derecho civil federal fundamental», afirmó Tracy L. Wilkison, la Fiscal Federal Interina para el Distrito Central de California. «Este acuerdo demuestra nuestro compromiso con la aplicación de las leyes federales de derechos civiles y a hacer rendir cuentas a aquellos que discriminan a otros, en contra de la ley de Vivienda Justa».
El Departamento de Justicia hace cumplir la ley federal de Vivienda Justa, la cual prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o situación familiar. La Iniciativa contra el Acoso Sexual en la Vivienda del Departamento está dirigida por la División de Derechos Civiles y cuenta con el apoyo de las Fiscalías Federales por todo el país. El objetivo de la iniciativa del Departamento es abordar y crear conciencia sobre el acoso sexual por parte de propietarios, gestores de propiedades, trabajadores de mantenimiento, prestamistas u otras personas que controlan la vivienda. Desde el lanzamiento de la Iniciativa en octubre del 2017, el Departamento de Justicia ha entablado 21 demandas que alegan acoso sexual en la vivienda y ha recuperado más de 3.9 millones de dólares para las víctimas de tal acoso.
Las personas pueden reportar incidentes de acoso sexual en la vivienda y otros tipos de discriminación en la vivienda llamando a la línea informativa del Departamento para discriminación en la vivienda llamando al 1-800-896-7743, enviando un correo electrónico a [email protected] o completando un informe en línea.
Individuos radicados en el Distrito Central de California también pueden presentar una queja acerca de discriminación en la vivienda o de otras vulneraciones de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía Federal por teléfono al (213) 894-2879, correo electrónico a [email protected] o rellenando y entregando este formulario (inglés) (español).
También se puede presentar una queja ante el Departamento de Vivienda y Desarrollo Urbano de los EE. UU. llamando al 1-800-669-9777 o rellenando un formulario de demanda en línea
Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt-espanol. Para más información acerca de la Sección de Derechos Civiles de la División Civil de la Fiscalía de los Estados Unidos para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-espanol.
Dubuque Man Sentenced to over 15 Years for Distributing Opioids that Caused Overdose DeathRead the Press Release
A man who distributed a deadly cocktail of opioids was sentenced today to more than 15 years in federal prison.
Julius Gene Irvin, age 30, from Dubuque, Iowa, received the prison term after a March 1, 2021 guilty plea to one count of distribution of controlled substances near a protected location resulting in death.
At the plea hearing, Irvin admitted that he distributed a mixture of heroin, fentanyl, and valeryl fentanyl to another person on May 19, 2019. Court records reflect that Irvin was a long-time heroin and opioid user, facilitator, and distributor in Dubuque. He admitted to obtaining at least 60 grams of heroin from Travis Gordon Jones in two months in 2019, much of which he supplied to two individuals. On each day from May 17 to 19, 2019, Irvin supplied those individuals with heroin on three consecutive days, and each day one of those two individuals suffered an overdose. It was later determined that the heroin Irvin was supplying them also contained fentanyl and valeryl fentanyl, an illicitly produced substance that has similar effects to fentanyl. On May 19, 2019, Irvin obtained some heroin laced with fentanyl and valeryl fentanyl for one of his customers. The customer took some of the substance to a local women’s shelter, where she had been staying. She used the substance, overdosed, and was found dead by shelter staff the next morning. Jones previously pled guilty to conspiring to distribute the same drugs that caused the victim’s death, as well as two other deaths. Jones is awaiting sentencing.
Irvin was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Irvin was sentenced to 183 months’ imprisonment. He was ordered to make $8,325.67 in restitution to the victim. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Irvin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1011-CJW-MAR. The case file number for Jones is 19-CR-1037-CJW-MAR.
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Denver Oil and Gas Company Pays for Minerals Removed from Public Lands Without PermissionRead the Press Release
DENVER – Extraction Oil and Gas, Inc., an oil and gas company headquartered in Denver, has agreed to pay over $462,000 to resolve allegations that it drilled and operated three oil and gas wells where it removed minerals from federal public lands without permission. Extraction agreed to make this payment in addition to a $884,407 settlement it paid in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.
Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Once companies obtain the proper lease and permit, they pay royalties, which are a percentage—typically 12.5%—of the value of the federal minerals they remove. Removing minerals without permission is considered trespassing.
The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.
The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.
“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing--in amounts up to the full value of the minerals they removed, not just royalties they would have owed had they first obtained a federal lease.”
Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, stated, “This settlement is the result of the OIG, Department of Justice, Bureau of Land Management, and Office of the Solicitor working collaboratively and diligently to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
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Denver Oil and Gas Company Pays for Minerals Removed from Public Lands Without PermissionRead the Press Release
DENVER – Extraction Oil and Gas, Inc., an oil and gas company headquartered in Denver, has agreed to pay over $462,000 to resolve allegations that it drilled and operated three oil and gas wells where it removed minerals from federal public lands without permission. Extraction agreed to make this payment in addition to a $884,407 settlement it paid in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.
Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Once companies obtain the proper lease and permit, they pay royalties, which are a percentage—typically 12.5%—of the value of the federal minerals they remove. Removing minerals without permission is considered trespassing.
The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.
The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.
“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing--in amounts up to the full value of the minerals they removed, not just the royalties they would have owed had they first obtained a federal lease.”
Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, stated, “This settlement is the result of the OIG, Department of Justice, Bureau of Land Management, and Office of the Solicitor working collaboratively and diligently to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
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Death by fentanyl overdose leads to indictment of two men on federal drug chargesRead the Press Release
SAVANNAH, GA: Two Bryan County men face up to life in prison after another man’s fatal fentanyl overdose.
Javarus McKinney, a/k/a “Jody,” 32, of Richmond Hill, Ga., is charged with Distribution of Fentanyl Resulting in Death, Possession with Intent to Distribute Fentanyl, and Possession with Intent to Distribute Fentanyl Near a School, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. A co-defendant, Darien Cothern, 32, of Richmond Hill, also is charged with Distribution of Fentanyl Resulting in Death. The primary charge carries a possible statutory penalty of up to life in prison, and there is no parole in the federal system.
“Since the start of the pandemic, overdoses and deaths have been rising throughout the country, with an alarming increase in fentanyl-related overdose deaths in the Southern District,” said Acting U.S. Attorney Estes. “Our office will continue its diligence in working with our law enforcement partners to find the source of illegal drugs implicated in fatalities.”
Richmond Hill Police officers initiated an investigation Aug. 12, 2020, after a male victim was found dead in a residential pool. An autopsy indicated the man died from a fatal dose of fentanyl, and the indictment charges McKinney and Cothern with providing the illegal drugs.
In addition to the criminal charges, McKinney also faces forfeiture of $12,970 seized during the investigation, along with a 2017 Chevrolet Impala.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, and the Richmond Hill Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington and Noah J. Abrams.
Custer Man Sentenced to Federal Prison for Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Custer, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on July 30, 2021, by Judge Karen E. Schreier, U.S. District Court.
Kelly Campbell, age 28, was sentenced to 33 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Campbell was indicted for the charge by a federal grand jury August 20, 2020. He pleaded guilty on April 30, 2021.
The conviction stems from Campbell, a previously convicted felon who is prohibited from possessing firearms, being in possession of a Browning Arms Company, model Nomad, .22 Long Rifle caliber, semi-automatic pistol. This firearm was found in Campbell’s possession after a pursuit by the Rapid City Police Department on March 20, 2020.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Campbell was immediately remanded to the custody of the U.S. Marshals Service.
County Medical Center and County Agree to Pay $11.4 Million to Resolve False Claims Act Allegations Relating to Medically Unnecessary Inpatient AdmissionsRead the Press Release
San Mateo County Medical Center and San Mateo County (collectively SMMC), located in California, have agreed to pay approximately $11.4 million to resolve alleged violations of the False Claims Act for submitting or causing the submission of claims to Medicare for non-covered inpatient admissions.
Medicare reimburses only services that are reasonable and necessary for the diagnosis or treatment of illness or injury. The United States alleged that, from Jan. 1, 2013, through Feb. 28, 2017, SMMC admitted certain patients for whom inpatient care was not medically reasonable or necessary, including patients who were admitted for reasons other than medical status, including social reasons and lack of available alternative placements. SMMC billed Medicare for such patients despite SMMC’s knowledge that the costs for admitting them were not reimbursable by Medicare.
“Billing for non-covered hospital stays results in a misuse of federal dollars,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensure that Medicare pays only for services that are eligible for reimbursement.”
“The financial viability of our Medicare program must be protected for current and future generations,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Medical providers, such as SMMC, who seek to pass on the financial burden of their medically unnecessary hospital admissions to the federal government will be pursued, as today’s settlement reflects.”
“Our agency will continue to aggressively investigate health care providers who bill Medicare for medically unnecessary services. These unlawful actions divert funds for needed care,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to root out such schemes.”
In connection with the settlement, SMMC entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires SMMC to engage an independent review organization that will perform annual reviews of inpatient admissions that SMMC bills to federal health care programs.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Felix Levy, a former employee of San Mateo County Medical Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Levy v. San Mateo County and the San Mateo County Medical Center, C.A. No. 16-CV-5881 (N.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Northern District of California; and HHS-OIG.
The matter was handled by Trial Attorneys Danielle Sgro and Diana Cieslak and Assistant U.S. Attorneys Michael Pyle, Sharanya Sai Mohan and Jonathan Lee.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
County Medical Center and County Agree to Pay $11.4 Million to Resolve False Claims Act Allegations Relating to Medically Unnecessary Inpatient AdmissionsRead the Press Release
SAN FRANCISCO – San Mateo County Medical Center and San Mateo County (collectively SMMC), located in California, have agreed to pay approximately $11.4 million to resolve alleged violations of the False Claims Act for submitting or causing the submission of claims to Medicare for non-covered inpatient admissions.
Medicare reimburses only services that are reasonable and necessary for the diagnosis or treatment of illness or injury. The United States alleged that, from Jan. 1, 2013, through Feb. 28, 2017, SMMC admitted certain patients for whom inpatient care was not medically reasonable or necessary, including patients who were admitted for reasons other than medical status, including social reasons and lack of available alternative placements. SMMC billed Medicare for such patients despite SMMC’s knowledge that the costs for admitting them were not reimbursable by Medicare.
“The financial viability of our Medicare program must be protected for current and future generations,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Medical providers, such as SMMC, who seek to pass on the financial burden of their medically unnecessary hospital admissions to the federal government will be pursued, as today’s settlement reflects.”
“Billing for non-covered hospital stays results in a misuse of federal dollars,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensure that Medicare pays only for services that are eligible for reimbursement.”
“Our agency will continue to aggressively investigate health care providers who bill Medicare for medically unnecessary services. These unlawful actions divert funds for needed care,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to root out such schemes.”
In connection with the settlement, SMMC entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires SMMC to engage an independent review organization that will perform annual reviews of inpatient admissions that SMMC bills to federal health care programs.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Felix Levy, a former employee of San Mateo County Medical Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Levy v. San Mateo County and the San Mateo County Medical Center, C.A. No. 16-CV-5881 (N.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Northern District of California; and the Department of Health and Human Services Office of Inspector General.
The matter was handled by Trial Attorneys Danielle Sgro and Diana Cieslak and Assistant U.S. Attorneys Michael Pyle, Sharanya Sai Mohan and Jonathan Lee, with assistance from Jonathan Birch and Garland He.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Convicted Murderer Sentenced to 51 Months for Stealing and Possessing a HandgunRead the Press Release
ALBANY, NEW YORK – Anthony A. Parker, age 55, of Troy, was sentenced today to 51 months in prison for unlawful possession of a firearm by a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
In pleading guilty, Parker admitted that on April 13, 2020, while employed as a driver at the Federal Express distribution center in Menands, New York, he removed a package from a conveyor belt that was addressed to a Capital Region gun store that contained a Ruger 57 5.7 x 28mm caliber semi-automatic pistol and two magazines. Parker later hid the pistol and magazines at his residence in Troy. At the time he stole and possessed the pistol and magazines, Parker had a prior conviction for second-degree murder.
Parker has been in custody since his arrest on a federal complaint on May 13, 2020.
In addition to the prison sentence, Chief U.S. District Judge Glenn T. Suddaby sentenced Parker to serve a 3-year term of post-release supervision.
This case was investigated by the FBI and NYSP, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Convicted Bronx Fraudster Who Fled to Ghana Prior to Serving Sentence Is Extradited to the United StatesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Jacqueline Maguire, the Acting Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that TOUREY AHMED RUFAI, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” who was previously sentenced to four years in prison and fled to the Republic of Ghana (“Ghana”) prior to surrendering to serve his sentence, was arrested in Ghana on April 14, 2021, and extradited to the United States earlier today to serve his sentence. RUFAI’s sentence of four years was imposed by U.S. District Judge Denise L. Cote on April 12, 2019, in connection with RUFAI’s participation in a fraud scheme based in Ghana involving the theft of over $10 million through business email compromises and romance scams that targeted elderly victims from at least 2014 through 2018.
Manhattan U.S. Attorney Audrey Strauss said: “When a defendant released on bail like Tourey Ahmed Rufai cuts his ankle bracelet and flees the country, it is an affront to the victims of his crimes and the Court. Thanks to the extraordinary work of the FBI, IRS-CI, and our law enforcement partners both in the United States and in Ghana, this fugitive was apprehended in Ghana and has been returned to the United States to serve his four-year sentence.”
FBI Acting Assistant Director Jacqueline Maguire said: “Justice will now rightfully be delivered – both to Mr. Rufai as he serves his prison sentence, and to the innocent victims from whom he stole millions of dollars. When Mr. Rufai decided to cut off his ankle bracelet and flee the United States, he did not understand the FBI’s ability to find fugitives in foreign nations through our extraordinary international law enforcement partnerships. We thank everyone involved, and especially our IRS-CI colleagues and our Ghanaian partners, in ensuring Mr. Rufai will be held accountable for his crimes.”
IRS-CI Acting Special Agent in Charge Thomas Fattorusso said: “This extradition reflects that despite his best efforts, Tourey Ahmed Rufai could not outrun justice, even after two years on the run, and by fleeing to another continent. Tourey Ahmed Rufai perpetrated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. He will now rightfully serve out the prison term as originally handed down.”
According to court filings in Manhattan Federal Court:
Between 2014 and 2018, RUFAI, a Ghanaian national who was residing in the Bronx, New York, was a member of a criminal enterprise (the “Enterprise”) based in Ghana that was involved in defrauding more than 100 American businesses and individuals of more than $10 million through business email compromises and romance scams. RUFAI and his co-conspirators received or otherwise directed the receipt of millions of dollars in fraud proceeds from victims of the Enterprise in bank accounts that they controlled in the Bronx, New York. Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts. Once the defendants received the fraud proceeds in bank accounts under their control, the defendants withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.
RUFAI was released on bail shortly after his arrest on January 9, 2018, on conditions including a $150,000 bond co-signed by three individuals, surrender of all travel documents, and home detention with electronic monitoring through an ankle bracelet. At his sentencing on April 12, 2019, RUFAI was sentenced to four years in prison and ordered to self-surrender to prison on May 24, 2019. Then, on May 12, 2019, 12 days prior to his surrender date, U.S. Pretrial Services learned that the defendant’s ankle bracelet had been removed and that the defendant had fled. A bench warrant was thereafter issued for the defendant’s arrest.
On April 14, 2021, after the defendant’s bond was forfeited, the defendant was arrested in Ghana pending his extradition to the United States to serve his sentence.
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RUFAI, 33, of the Bronx, New York, pled guilty to conspiracy to commit wire fraud on January 9, 2019. In addition to a prison term of four years, he was also sentenced to three years of supervised release and ordered to forfeit $109,868.61 and pay restitution of $320,449.97 to victims.
Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI in locating RUFAI in Ghana so that he could be arrested by Ghanaian law enforcement. Ms. Strauss also thanked the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the U.S. Marshals Service, Ghana’s Economic and Organised Crime Office, Interpol - Ghana Police Service’s Criminal Investigative Division, Ghana National Security, and the Ministry of Justice & Attorney General’s Office of Ghana, for their assistance in the extradition of RUFAI to the United States.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Clearfield, PA Man Pleads Guilty in Meth Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield, PA pleaded guilty in federal court to charges of violating narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Zachary Quigley, 35, of Clearfield, PA, pleaded guilty to Count Two of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from July 2019 to June 2020, Quigley conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for Dec. 17, 2021, at 11:00 a.m. The law provides for a minimum sentence of five years in prison to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Charlotte Man Is Sentenced to Eight Years on Gun ChargesRead the Press Release
CHARLOTTE, N.C. – On Thursday, August 5, 2021, U.S. District Robert J. Conrad, Jr. sentenced Kane Kileal Lamont Moore, 26, of Charlotte, to 96 months in prison, followed by three years of supervised release, on felon in possession of a firearm charges, announced Acting U.S. Attorney William T. Stetzer.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and the sentencing hearing, between May and June 2019, Moore sold two firearms to undercover ATF agents and was involved in the sale or attempted sale of additional firearms. Court records show that Moore was previously convicted of Breaking and Entering, Common Law Robbery, and Attempted Common Law Robbery, and he is prohibited from possessing firearms. On July 24, 2020, Moore pleaded guilty to two counts of possession of a firearm by a felon.
Moore is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Career Offender Sentenced to Federal Prison after Violating Supervised Release, Distributing MethRead the Press Release
MACON, Ga. – A Perry, Georgia, resident and career offender was sentenced to federal prison for distributing methamphetamine after he was arrested in violation of his supervised release from a prior federal conviction.
Tony Jermaine Neely, 38, of Perry, Georgia, was sentenced to serve 180 months in prison to be followed by five years of supervised release by U.S. District Judge Marc Treadwell on Wednesday, August 4, after previously pleading guilty to possession with intent to distribute methamphetamine. There is no parole in the federal system.
“Career offenders who repeatedly break the laws—and in this particular case, violate the conditions of supervised release—will face serious consequences for their brazen criminal behavior,” said Acting U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office is working closely with our local, state and federal law enforcement partners across the Middle District to identify and prosecute the most hardened repeat criminals.”
According to court documents, Neely was pulled over during a traffic stop by a Houston County Sheriff’s Office deputy on October 18, 2019. Neely’s license was suspended, and he was detained. Neely was carrying 30 grams of methamphetamine in his pocket and a K9 unit, called to the scene, alerted to Neely’s vehicle. Officers found a semi-automatic pistol with ten rounds of ammunition. Evidence collected from Neely’s cell phone showed multiple text messages with individuals discussing the prices and quantities of drugs. Neely, a career offender, has prior felony convictions, including drug distribution and possession of a firearm in the furtherance of a drug trafficking crime in the U.S. District Court, Middle District of Georgia. Neely admitted that he knowingly violated the terms of his supervised release by distributing methamphetamine.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Houston County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Will Keyes.
Camp Verde Man Sentenced to 18 Months for Failing to Register as a Sex OffenderRead the Press Release
PHOENIX, Ariz. – On Wednesday, Rowan James Kickinghorse Rhodes, 29, of Camp Verde, Arizona, was sentenced by U.S. District Judge Douglas L. Rayes to 18 months in prison, followed by three years of supervised release. Rhodes previously pleaded guilty to Failure to Register as a Sex Offender.
On October 16, 2017, Rhodes was convicted of Abusive Sexual Contact with a Minor and ordered to register as a sex offender. In July 2019, Rhodes acknowledged the requirement to register and registered his address in Tucson, Arizona. Four months later, Rhodes absconded from his residence and did not update his registration. Rhodes was arrested by a Yavapai-Apache Nation police officer in Camp Verde, Arizona on December 10, 2019.
Rhodes is an enrolled member of the Yavapai-Apache Nation.
The United States Marshal and the Yavapai-Apache Nation Police Department conducted the investigation in this case. Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-8108-PCT-DLR
RELEASE NUMBER: 2021-048_Rhodes# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Commentary: Acting US Attorney Jonathan a. OphardtRead the Press Release
As the Acting United States Attorney for Vermont, I have spent the last few months visiting with local, state, and federal law enforcement partners throughout our state, as well as many of my prosecutorial colleagues in the State’s Attorneys offices. At these meetings, I sought feedback on how my office can better assist in addressing violent crime in Vermont, in particular violence perpetrated by firearms. Throughout the state, I have consistently heard two concerns: violent crime is increasing, and law enforcement capacity is eroding. The data backs up these concerns, and the ramifications for Vermont’s future are troubling.
Violent Crime in Vermont is Increasing
Violent crime is a significant and growing challenge for Vermonters. My office has seen increased violence by drug trafficking organizations, increases in collateral violence from individuals suffering from severe substance use disorder (i.e., convenience store robberies), increases in domestic violence, and increased violence involving individuals with mental health challenges. FBI data shows that between 2016 and 2019 (the last year for which data is available), Vermont saw an increase from 136.5 violent crime offenses per 100,000 people to a rate of 202.2 violent crime offenses per 100,000 people. During the same window, the prevalence of firearms as the weapon involved in violence increased by 36 percent.
Unfortunately, the number of officers capable of responding to this rise in violent crime is decreasing swiftly.
Police Recruitment and Retention is in Crisis
Vermont has a police recruitment and retention crisis. A recent report by the Vermont Department of Public Safety, highlighted the incredible challenge of retaining and recruiting the men and women of our law enforcement community. Vermont has seen a 14% decline in the total number of officers available for duty between 2018 and 2021. Of Burlington’s 75 police officers, 31 are actively seeking employment elsewhere. Ms. Morrison’s report estimated that by January of 2022, the number of full-time officers in the state will drop below 700 officers, a reduction of over 125 officers throughout the state. While 159 officers are set to leave policing in 2021, only 23 will have graduated from the Vermont Police Academy.
News reports from around the state reveal the reduction in available officers has already led to service curtailments, from Brattleboro, to Bellows Falls, to Burlington. In addition, staffing issues at the Vermont State Police have diminished levels of service provided by VSP to towns without dedicated departments, leading town residents to demand that selectboards establish new police departments. The reduction in VSP availability has resulted in an increase in reliance and demands on Vermont’s Sheriffs, who contract with local municipalities to provide patrol coverage, causing increased costs to municipalities. In Burlington, concerns about increasing violence have led the Burlington Business Association to pursue private security for Church Street and have prompted calls to increase police patrols in the commercial center of Burlington.
Ramifications of a Recruitment and Retention CrisisIn Burlington, a man with a long history of violent encounters has caused nearly 26 involvements with police so far in 2021, culminating in his arrest this month for aggravated assault with a hate crime motivation. Another had over 30 involvements with numerous violent episodes, culminating in his assault with a hammer on a good Samaritan trying to protect the intended victim. These cases are two examples of how our police officers continue to be tasked on a daily basis with repeatedly mediating challenging encounters in our communities, functioning as interventionists and mental health crisis responders.
Law enforcement work remains as difficult as ever, with police actions under close scrutiny, but with diminishing resources. Throughout Vermont, communities have been having necessary and overdue conversations about police reform, and an examination of the methods and manners of policing is warranted and justified. We want reasonable and rational police officers dedicated to serving their communities for the right reasons. But reasonable and rational people are thinking twice about whether to take an oath of service and join the ranks of law enforcement.
A reduction in recruitment and an increase in departures has a broader impact than simply the number of officers available to patrol and respond. Departments will be forced to reduce their numbers of detectives, transforming police departments further from crime solvers to crisis responders and crime documenters. A reduction in capable investigatory capacity will reduce the detection of sophisticated and covert criminal activity, from child exploitation to human trafficking to fraud. An atrophy of experienced officers will diminish training capacity and deprive departments of capable leaders.
Our law enforcement officers have sworn to protect everyone in Vermont from harm. I am deeply concerned about a shift to private security and a competition for the services of Sheriffs, as it would imply that security in Vermont will only be provided to those citizens and communities who can afford to pay for it. Vermont needs capable police who can protect vulnerable individuals, investigate criminal activity, and bring to justice those who undermine our communities. Quality, responsive, and compassionate public safety services must be available to all Vermonters, not just the highest bidders.
Ensuring equal access to safety and security requires a steady stream of applicants to law enforcement positions who are smart, capable, dedicated, courageous, and compassionate. While we debate how policing must change, we must also recognize the continuing need for high-quality law enforcement officers, encourage good men and women to join their ranks, and support those who serve honorably in a profession that requires great commitment and sacrifice.Bronx Man Convicted of Murder-For-Hire Conspiracy, Drug Trafficking, and Firearms OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against SYDNEY SCALES, a/k/a “Moe Black,” a/k/a “Sid,” on five counts in a Superseding Indictment, including charges of murder-for-hire conspiracy, narcotics conspiracy, a firearms offense, and two counts of distributing crack cocaine. SCALES is scheduled to be sentenced on November 18, 2021, by U.S. District Judge Jed S. Rakoff, who presided over the 11-day trial.
U.S. Attorney Audrey Strauss said: “Sydney Scales was the leader of a violent drug operation that peddled drugs and brought guns and violence to our streets. Scales caused at least one drug-related shooting, and he hired a hitman in an attempt to murder rival drug dealers who were having a barbecue in front of a neighborhood barbershop. We continue our daily work with our law enforcement partners to keep our communities safe by vigorously investigating and prosecuting acts of violence and drug trafficking.”
According to the Superseding Indictment and the evidence at trial:
Between in or about 2016 and in or about 2019, SCALES participated in a conspiracy to distribute crack cocaine, powder cocaine, heroin, fentanyl, and marijuana in the Bronx and elsewhere. SCALES also used, carried, and possessed firearms, which were brandished and discharged, in connection with the narcotics conspiracy, and aided and abetted such firearms offenses. For example, the Government offered evidence that on December 1, 2016, SCALES caused a shooting at rival drug dealers standing in front of a convenience store located next to the entrance of the West Farms subway station.
In addition, in or about June 2017, SCALES conspired to commit murder for hire, agreeing to compensate another individual in return for locating and killing at least one rival drug dealer.
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SCALES, 42, was convicted on five counts: (1) conspiring to distribute and possess with intent to distribute crack cocaine, powder cocaine, heroin, fentanyl, and marijuana, which carries a mandatory minimum prison term of 10 years and a maximum prison term of life; (2) murder-for-hire conspiracy, which carries a maximum prison term of 10 years; (3) using and carrying firearms during, and possessing firearms in furtherance of, the narcotics conspiracy, which carries a mandatory consecutive prison term of 10 years and a maximum prison term of life; and (4) two counts of distribution and possession with intent to distribute crack cocaine, each of which carries a maximum prison term of 20 years. SCALES was acquitted of one count of murder in furtherance of drug trafficking and one count of murder using a firearm.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello, Mathew Andrews, Andrew K. Chan, Sarah Krissoff, and Gina Castellano, and paralegal specialist Claudia Hernandez, are in charge of the prosecution.
Box Elder Woman Sentenced to 24 1/2 Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, woman who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on July 29, 2021, by Judge Karen E. Schreier, U.S. District Court.
Jennifer Cagle, age 32, was sentenced to 24 1/2 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Jennifer Cagle was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 23, 2020. She pleaded guilty on April 2, 2021.
During her involvement in the conspiracy, the defendant dispersed methamphetamine to others for use and further distribution in the Rapid City area. Over the course of her involvement, she bought and sold several pounds. The defendant also obtained firearms during the course of the conspiracy. The defendant also had methamphetamine sent to her through the mail.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol.
Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Cagle was immediately returned to the custody of the U.S. Marshals Service.
Boston Man Charged with Heroin DistributionRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with distribution of heroin.
Anthony Howard, 34, was charged with one count of possession with intent to distribute and distribution of heroin. Following an initial appearance before U.S. Magistrate Judge Jennifer C. Boal, Howard was detained pending a probable cause and detention hearing scheduled for Aug. 11, 2021.
According to the charging document, Howard allegedly sold over 30 grams of heroin to a cooperating witness on July 20, 2021.
Howard is currently on pre-trial release for a 2014 indictment charging murder, armed assault to murder, and illegal firearm possession, amongst other charges currently pending in Suffolk Superior Court.
The charge of possession with intent to distribute a controlled substance provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney John Dawley of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Blaine Man Pleaded Guilty to Illegal Possession of Multiple FirearmsRead the Press Release
MINNEAPOLIS – A Blaine man pleaded guilty yesterday to possession of eight firearms as an unlawful user of a controlled substance, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on August 15, 2020, a protest took place at the Minneapolis Police Department’s 5th Precinct building. The event became violent and destructive when individuals began throwing rocks and other objects, breaking windows, firing mortar-type fireworks at the building and at officers stationed on the roof, spray painting the building, and using paint to obscure the video surveillance cameras. After reviewing video surveillance footage, investigators were able to identify Thomas Wilder Moseley, 29, as one of the individuals who was spray painting the front windows of the building. The building sustained several thousand dollars of damages a result of the incident.
According to court documents, on October 15, 2020, Moseley was present inside the Hennepin County Government Center where protesters had gathered during a court appearance for the four former Minneapolis police officers charged in the death of George Floyd. Hennepin County Sheriff’s Deputies arrested Moseley on probable cause based on his involvement in the August 15 incident. At the time of his arrest, Moseley was carrying a loaded Glock, model 26 Gen5, 9 mm semi-automatic pistol.
According to court documents, following Moseley’s arrest, Minneapolis Police officers executed a search warrant at Moseley’s residence in Blaine, Minnesota, and recovered two firearms, more than 1,400 rounds of ammunition, 96 grams of marijuana, and other drug paraphernalia. Officers also obtained a search warrant for Moseley’s Toyota Tacoma, which was parked in downtown Minneapolis near the Government Center. Among other things, officers recovered from the vehicle five firearms, a large amount of ammunition, a hatchet, a crowbar, gas masks, and controlled substances, including marijuana, psychedelic mushrooms, and cocaine.
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 Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
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Baltimore County Man Pleads Guilty to Federal Murder-For-Hire and Extortion ChargesRead the Press Release
Baltimore, Maryland – Clement Robert Mercaldo, Jr., age 62, of Timonium, Maryland, pleaded guilty late yesterday to federal charges for a murder-for-hire conspiracy and for interstate communications with intent to extort, in connection to the extortion and planned murder of a Baltimore County restaurant owner and his partner over a debt.
The guilty plea was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his plea agreement and other court documents, Mercaldo loaned more than $1 million to a Baltimore County restaurant owner. When the restaurant owner was unable to make the monthly payments, Mercaldo hired a co-conspirator to send messages threatening victims and their families in order to extort money. During the course of the plots, Mercaldo paid the co-conspirator to vandalize a victim’s car and set fire to a victim’s house as part of the plot to extort. Later, Mercaldo agreed to pay the co-conspirator to murder one of the victims.
“Clement Mercaldo hired someone to extort and threaten victims who owed him money, including setting fire to the house where a victim and his family were sleeping and attempting to murder them. The defendant then went to great lengths to conceal his role from investigators and tried to subvert justice by falsely claiming that he was a victim, too,” said Acting United States Attorney Jonathan F. Lenzner. “This successful prosecution is another example of how our Maryland law enforcement team will never give up in holding accountable criminals like Clement Mercaldo.”
Between 2008 and 2017, Mercaldo, a former restaurant owner, loaned over $1 million to the victim. The victim repaid Mercaldo until 2019, when he was unable to make further payments. As a result, Mercaldo was in significant financial distress, causing him to sell personal belongings in order to continue to pay his expenses.
Beginning in March 2019, Mercaldo hired a co-conspirator to assist in his plot to collect the debt through a variety of extortionate means. Mercaldo gave at least $1,000 in cash to the co-conspirator in exchange for the co-conspirator agreeing to send threatening messages to the victim and destroy the victim’s property, with the intent to pressure the victim to repay Mercaldo.
According to Mercaldo’s plea agreement, between March 28 and 29, 2019, the co-conspirator smashed the windows of the victim’s car in his driveway. Immediately before and after the windows were smashed, the co-conspirator used an anonymous texting application to threaten the victim. The messages referenced a debt and threatened the victim’s wife. In the first few days of April 2019, the co-conspirator also placed calls to the victim in which he took responsibility for smashing the windows and then threatened the victim’s wife.
In order to conceal his role in the extortion, Mercaldo traveled to Florida just prior to March 28, 2019, returning on March 29th, when he supplied the co-conspirator with another cash payment. On April 10, 2019, at Mercaldo’s request, the co-conspirator, using the same number used to contact the victim, sent Mercaldo a message falsely purporting to be from a person from Delaware who was trying to collect money and threatening Mercaldo’s son. Mercaldo asked the co-conspirator to send this message so that Mercaldo could show it to the police when he was questioned about the victim’s smashed windows and other threats.
On April 12, 2019, Mercaldo was interviewed by a detective from the Baltimore County Police Department, regarding the destruction of property at the victim’s residence. Mercaldo falsely told the detective that he too had been receiving threatening messages from a person identifying themselves as “Robin.” Mercaldo then showed the detective the fake message the co-conspirator sent him two days earlier, which included a screen shot of Mercaldo’s son playing lacrosse at his high school. Mercaldo also provided detectives with a false story about his loan to the victim, claiming that he obtained the money he loaned the victim from an unnamed person in Michigan, who loaned the money to Mercaldo at a high interest rate, and that Mercaldo pays this person in cash on the first of the month after receiving an anonymous text message providing the location to meet for the transaction. Additionally, Mercaldo told the detective that he returned home from Florida on March 29, 2019 to find that the windshield of his Mercedes was also smashed, although he did not report it to the police. Mercaldo stated that he believed that the smashing of his windshield was related to the smashing of the victim’s windshield. In truth, Mercaldo’s windshield was damaged by a rock from another car and was repaired on March 14, 2019, two weeks prior to the vandalism of the victim’s car.
From April 2019 through July 2019, Mercaldo withdrew significant amounts of cash from his bank account, which he paid to the co-conspirator. For example, on April 26, 2019, May 7, 2019, and May 15, 2019, Mercaldo withdrew a total of $4,000 cash from his bank account in Maryland, and between May 3rd and July 19th, the co-conspirator deposited $2,514 into his account. The purpose of the payments was for the co-conspirator to set fire to the victim’s home.
At Mercaldo’s direction, in the early morning hours of Sunday, August 4, 2019, the co-conspirator set fire to the victim’s house. While the victim and his wife were asleep upstairs, the co-conspirator broke a rear basement window at the house and ignited a flammable liquid. The victim and his wife were awoken by the smoke detectors, and escaped the fire with the family cat. Although no injuries were sustained to the family or emergency responders, the fire caused significant damage to the residence and destroyed much of the victim’s personal property. As a result of the damage, the victim and his wife were forced to move out of their home and to live elsewhere. In the days immediately following the arson, Mercado withdrew $1,500 cash from his bank account and gave it to the co-conspirator, who deposited $1,290 in cash into his account.
In August and September 2019, the co-conspirator sent numerous threatening text messages from anonymous texting applications to the victim and his business partner. The messages demonstrated that they were being followed. The threats referenced a debt, and many of the messages threatened to harm the victims and their families. Mercaldo continued to instruct the co-conspirator to send threatening messages and on October 22, 2019, the business partner received the message, “This is the third check you and your partner gave me that bounce i talked to him and he gave me your address saying you is stealing from him and do what i have to do to get my money from you he even gave me pictures of your wife and kids.”
On October 26, 2019, the co-conspirator arranged to receive a cash payment from the business partner using the anonymous texting application. The payment was observed and recorded by law enforcement. Immediately after receiving the money, the co-conspirator purchased an Apple watch, and deposited cash onto his account. The co-conspirator and Mercaldo subsequently exchanged text messages for several days about this payment, with Mercaldo stating that the victims told him a payment was made to the co-conspirator and the co-conspirator repeatedly denying receiving any money from the victims.
Starting on October 29, 2019, and continuing through at least the end of January 2020, Mercaldo and the co-conspirator began discussing “plan b” – the murder of one or both of the victims for their lack of payment. For example, on November 3, 2019 Mercaldo sent a text to the co-conspirator, “Hope you whack his ass !” On November 8, 2019, Mercaldo texted the co-conspirator, “Nail em plz !!” In January 2020, the co-conspirator conducted surveillance at the residences and business of the victims, taking images and videos and during some of the videos, he narrated how he planned to follow and attack the victim. During two of the videos the co-conspirator is seen holding two different handguns in his vehicle during the surveillance. The co-conspirator sent these videos and images to Mercaldo as attachments to numerous text messages, during, and immediately after, many of the incidents of surveillance. Mercaldo and the co-conspirator continued to communicate about the victims and the debt through March 2020 and as late as May 30, 2020.
Mercaldo was arrested on June 23, 2020 and remains detained.
The arson at the victim’s residence in August 2019 caused an estimated $302,774.89 of damage to the dwelling and contents, and a loss to the insurance company of $353,340.66 as a direct result of the fire.
Mercaldo faces a maximum sentence of 10 years in federal prison for the murder-for-hire conspiracy and a maximum of 20 years in federal prison for interstate communications with intent to extort. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 28, 2021 at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Atlanta CEO sentenced to prison for securities fraudRead the Press Release
ATLANTA - Richard J. Randolph, III has been sentenced for securities fraud he committed while CEO of Randolph Acquisitions, Inc.
“Corporate executives, like Randolph, are expected to defend investors’ money, not take advantage of their position in a company to defraud them,” said Acting U.S. Attorney Kurt R. Erskine. “Instead, this defendant let his greed get the better of him and now he faces significant federal prison time.”
“Fraud is fraud, no matter how complicated,” said Special Agent in Charge Steven R. Baisel, U.S. Secret Service - Atlanta Field Office. “The defendant in this case employed multiple machinations in an effort to hide his criminal acts. Ultimately, his efforts failed under the scrutiny of the law enforcement professionals tasked with unraveling his schemes.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Richard Randolph was the CEO, Chairman of the Board of Directors, and majority shareholder of Randolph Acquisitions, Inc., a company headquartered in Atlanta, Georgia, that publicly filed its financials with the Securities and Exchange Commission. He also controlled Gallagher Management Group and other related entities. In 2017 and 2018, Randolph sold over $1 million in Randolph Acquisition stock to various investors.
In 2017, Randolph began preparing to merge Gallagher Management Group into Randolph Acquisitions and sold Randolph Acquisitions shares to multiple investors. Gallagher Management also engaged an accounting firm to audit its 2016 financial statements. In connection with this audit, Randolph provided false and fraudulent information regarding Gallagher Management Group’s assets which were then reflected on the balance sheet of the 2016 financial statements:
- Randolph falsely valued property at $10.5 million with no associated liability. In reality, Gallagher Management Group purchased the property in September 2016 for $1.1 million with a $1.1 million mortgage loan secured by the property. It was sold in August 2017 for $1.2 million.
- Randolph falsely claimed that Gallagher Management Group owned two buildings valued at a claimed $10 million combined. In reality, neither Gallagher Management Group nor Randolph ever owned these properties.
- Randolph falsely valued yet another property at $4.5 million that was acquired in January 2016 for $425,000 by an entity controlled by Randolph and was transferred to Gallagher Management Group in March 2017. In April 2018, the property was sold at auction for $687,500 after Gallagher Management Group defaulted on a $500,000 loan.
- Randolph provided a false bank statement showing a balance of over $2.5 million. The actual balance in this account was $58,198.78.
The audited financials included other misrepresentations:
- They falsely stated that Gallagher Management Group “has consistently maintained over $50 million dollars in assets, under management, annually.”
- They falsely stated that Gallagher Management Group “provides a broad range of investment banking services to a diverse group of corporations, financial institutions, investment funds, and governments.”
- They falsely stated that Gallagher Management Group “provides investment management services and offer[s] investment products (primarily through separately managed accounts, such as mutual funds and private investment funds) across all major asset classes to a diverse set of institutional and individual clients.”
Gallagher Management Group engaged a consultant to prepare a business valuation for the merger which relied upon Gallagher Management Group’s 2016 audited financial statements, additional false property valuation information provided by Randolph, and false projections provided by Randolph. The report valued Gallagher Management Group at $31.3 million on an enterprise value basis and $33.8 million on an equity value basis.
In connection with the proposed merger between Randolph Acquisitions and Gallagher Management Group, Randolph Acquisitions made multiple filings with the Securities and Exchange Commission that attached the false and fraudulent 2016 audited financial statements of Gallagher Management Group. Randolph directed investors to these filings.
In addition to these documents, Randolph made other false and fraudulent misrepresentations to prospective investors:
- Randolph falsely claimed that Randolph Acquisitions was close to securing a variety of large public and private contracts in the U.S. Virgin Islands, including hurricane remediation contracts and an agreement to manage the U.S. Virgin Islands public retirement fund. Randolph Acquisitions never obtained any of these contracts.
- Randolph falsely claimed that Randolph Acquisitions owned EF Block. To the contrary, Randolph Acquisitions did not own EF Block.
- Randolph falsely claimed that Randolph Acquisitions was publicly traded on the pink sheets. Randolph Acquisitions was never listed on any exchange.
Using these misrepresentations, Randolph induced 14 victims to invest over $1.6 million in Randolph Acquisitions.
Richard J. Randolph, III, 40, of Atlanta, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $1,602,200 to his victims. Randolph was convicted on these charges on April 9, 2021, after he pleaded guilty.
This case was investigated by the U.S. Secret Service, with assistance from the U.S. Securities and Exchange Commission. In a related civil matter, the U.S. Securities and Exchange Commission filed a complaint charging Randolph and he consented to entry of a judgment against him.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Albuquerque man charged with bank robbery, aiding and abettingRead the Press Release
ALBUQUERQUE, N.M. – Carl “Wizard” Gutierrez, 44, of Albuquerque, appeared in federal court on Aug. 5 for a detention hearing, charged with bank robbery and aiding and abetting. Gutierrez will remain in custody pending trial.
According to a criminal complaint and other court records, on July 15, Gutierrez and an accomplice allegedly robbed the BBVA Bank on Candelaria Road NE in Albuquerque. Gutierrez and his accomplice allegedly entered the bank and approached the teller counter. The accomplice allegedly made his way behind the counter, opened cash drawers and grabbed money. The pair then allegedly fled the bank in a gold minivan.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Gutierrez faces up to 25 years in prison
The FBI Violent Crime Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Niki Tapia-Brito is prosecuting the case.
5 August 2021
Worcester Man Pleads Guilty to Wire Fraud and Tax ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today to federal tax and fraud charges arising from his role overseeing various Worcester-based employment agencies.
Tam Vuong, 46, pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 1, 2021. Vuong was indicted in August 2019.
Vuong oversaw Prime Labor LLC and UT Services, Inc., which were employment agencies based in Worcester. Each agency paid a few employees by check but paid most employees in cash. Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in connection with tax filings and insurance audits. Vuong concealed millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, more than $30 million in Prime Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.
In addition, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.
Vuong shifted operations from Prime Labor to UT Services after federal search warrants were executed in November 2017. Vuong took steps to hide his role with both Prime Labor and UT Services.
In January 2021, Julio Lopez of Los Angeles, Calif., a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is scheduled to be sentenced on Sept. 29, 2021. In February 2021, Linda Le of Shrewsbury, a former employee of UT Services, pleaded guilty to perjury for giving false testimony before a federal grand jury and was sentenced in May 2021 to two years of probation.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of failing to pay taxes each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Mendell’s Criminal Division, Ian Stearns and Adam Deitch, of Mendell’s Criminal Division, are prosecuting the case.
Waterloo Man Who Engaged in Shootout Sentenced to Seven and a Half Years in Federal PrisonRead the Press Release
A man with multiple prior convictions involving violence was sentenced today to over seven years in federal prison.
Charles Ware, age 47, from Waterloo, Iowa, received the prison term after a guilty plea to possessing a firearm as a felon. The judge at sentencing noted that Ware engaged in a shootout with a co-defendant, also a felon, which was “not unlike the Wild West,” with bullets going through multiple windows and the co-defendant being shot in the leg. The judge also noted Ware’s “fairly nonstop” criminal conduct, which included 30 adult convictions, six convictions for violent assaults on women, and violent misconduct while in prison.
Ware was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ware was sentenced to 90 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Ware is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2063-CJW-MAR.
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Upper Marlboro Woman Sentenced to 18 Months in Federal Prison for Stealing over $300,000 in Social Security Benefits to Which She Was Not EntitledRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Sonya Bannister Burford, age 53, of Malboro, Maryland to 18 months in federal prison, followed by three years of supervised release, for stealing $322,938 in Social Security benefits to which she was not entitled. Judge Messitte also ordered that Burford must forfeit and pay restitution in the full amount of the loss, which is $322,938.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General (OIG), Philadelphia Field Division; and Special Agent in Charge Rico Medina of the Washington Metropolitan Area Transit Authority (WMATA) – OIG.
According to her guilty plea, Burford’s husband, who was receiving SSA Disability Insurance benefits, died on August 30, 1996. Upon his death, Burford failed to disclose to SSA that he had died and SSA continued to make monthly benefits payments. Between September 1996 and January 2020, Burford received and spent $322,938 in benefits paid to her husband after his death to which she was not entitled.
As detailed in her plea agreement, SSA paid the disability payments for her husband through direct deposit to a joint account held in Burford‘s and her husband’s name. After his death, Burford accessed the funds primarily through cash withdrawals or through the purchase of gift cards in large amounts at grocery stores. Burford also used the funds to make retail purchases and to pay for living expenses and wrote checks to herself.
As part of her plea agreement, Burford is required to forfeit and pay restitution in the full amount of the loss, which the parties agree is $322,938.
Acting United States Attorney Jonathan F. Lenzner praised the SSA OIG and WMATA OIG for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who prosecuted the case.
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Two dozen defendants indicted in investigation of Washington, Ga., area drug trafficking operationRead the Press Release
AUGUSTA, GA: A multi-agency drug trafficking investigation has culminated in the criminal conspiracy indictment of 21 defendants in the Southern District of Georgia.
Operation Wynner Storm, initiated by the Wilkes County Sheriff’s Office and the FBI Safe Streets Task Force, and coordinated through the Organized Crime Drug Enforcement Task Forces (OCDETF), targeted gang-related drug trafficking in the Wilkes, Lincoln and McDuffie County areas north of Augusta, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The primary charge in the indictment, Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana, carries a statutory penalty upon conviction of 10 years to life in federal prison and fines of up to $10 million, followed by not less than five years of supervised release.
There is no parole in the federal system.
“A collaborative effort with our law enforcement partners is the key to combatting large drug trafficking organizations,” said Acting U.S. Attorney Estes. “Our rural communities, particularly, benefit from the coordination of local, state and federal agencies in the fight against criminal street gangs.”
As described in the newly unsealed 51-count indictment in USA v. Wynn et al., Operation Wynner Storm describes a conspiracy to distribute 50 grams or more of methamphetamine or 500 grams or more of a mixture containing a detectable amount of methamphetamine, along with cocaine and marijuana, dating back at least to April 2019. Many of the defendants also are charged with illegal firearms possession, and the indictment includes the forfeiture of eight guns seized during the investigation.
An additional 18 defendants are being prosecuted on state charges related to the investigation.
“On behalf of local law enforcement and the good citizens of Wilkes County, we appreciate the hard work by the Safe Streets Task Force in making all of Wilkes County a safer place to live,” said Mark Moore, Sheriff of Wilkes County.
“Citizens in the communities affected by organizations who are alleged to peddle drugs and weapons are immediately safer following the collaborative effort of the FBI and our federal, state and local law enforcement partners,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are all committed to investigate and dismantle drug trafficking organizations.”
“ATF will continue to dedicate federal resources in conjunction with crucial federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in communities we serve,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“These indictments are the result of successful collaborative efforts between state, local, and federal agencies,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “We will continue to work with our partners to investigate drug trafficking and keep Georgia safe.”
Those charged in Operation Wynner Storm and their charges include:
- Exjaben Demontaz Hardman, a/k/a “Zay,” 42, of Washington, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Using or Maintaining a Drug Premises; and 24 counts of Use of Communication Facility, a charge related to the use of telephones to facilitate the conspiracy;
- Sherman Redzuees Blackmon, a/k/a “Shorty P,” 42, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and four counts of Use of Communication Facility;
- Paul Mickel McKittrick, a/k/a “Mike,” 40, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and 12 counts of Use of Communication Facility;
- Calvin Terrill Wynn, a/k/a “Swang Lo,” a/k/a “Lo,” 33, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and three counts of Distribution of 50 Grams or More of Methamphetamine;
- Timothy Derrick Pettus, a/k/a “TP,” 53, of Duluth, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and three counts of Use of Communication Facility;
- William Daniel Mason, 52, an inmate at the Georgia Diagnostic and Classification Prison in Jackson, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession of a Firearm by a Convicted Felon; and two counts of Use of Communications Facility;
- Amanda Kirkland Smith, 40, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana;
- Derrick Demond Barnett, a/k/a “DB,” 44, an inmate at the Georgia Diagnostic and Classification Prison, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession with Intent to Distribute Cocaine; Possession of a Firearm by a Convicted Felon; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Use of Communication Facility;
- Jermaine Wingfield, a/k/a “J-Chunk,” 32, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Roger Levar Powell, a/k/a “P,” 44, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession with Intent to Distribute Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Use of Communication Facility;
- Stevie Lamar Shank, 49, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana, and two counts of Use of Communication Facility;
- Elijah Abdullah Davis, 35, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and one count of Use of Communication Facility;
- Willie Fitzgerald Young, 51, of Rayle, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and three counts of Use of Communication Facility;
- William Paul Murray, 66, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Using or Maintaining a Drug Premises; and one count of Use of Communication Facility;
- Lindsey Harris Andrews, 37, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Lila Marie Quarles, a/k/a “Lila Dawkins,” 41, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Cynthia Leigh McCarty, 54, Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Demetrius Antonio Perkins, a/k/a “Dee,” 39, an inmate at Riverbend Correctional Facility in Milledgeville, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana;
- Stephanie Marie Adams, 24, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Taylor Ann Marie Farmer, 29, of Crawfordville, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession with Intent to Distribute Methamphetamine; and three counts of Use of Communication Facility; and,
- Tracy Reid Moore, a/k/a “T-Mo,” 33, of Athens, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility.
Initial appearance hearings in U.S. District Court have been underway for the defendants.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies investigating the case include the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service and the U.S. Probation Office; the Georgia Bureau of Investigation; the Georgia Department of Community Supervision; the Georgia State Patrol; the Wilkes County Sheriff’s Office; the Taliaferro County Sheriff’s Office; the McDuffie County Sheriff’s Office; the Richmond County Sheriff’s Office; and the Burke County Sheriff’s Office. The case is being prosecuted for the United States by Assistant U.S. Attorney Patricia G. Rhodes.