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5 August 2021
Two Arkansas Men Plead Guilty to Damaging Historic Mines in Buffalo National RiverRead the Press Release
FORT SMITH, Ark.—Two men pleaded guilty last week to felony violations of the Archaeological Resources Protection Act, in connection with their illegal excavations of archaeological sites in the Historic Rush Mining District of Buffalo National River, and the sale of stolen geological and mineral specimens at a store in Alpena. U.S. District Judge P.K. Holmes III presided over the July 27 change-of-plea hearings, in which Nathan Bradford LeMay, 35, of Hot Springs Village, and Justin Charles Baird, 32, of Hot Springs, each pleaded guilty to the first count of the three-count indictment in which both were named.
According to court documents, on multiple occasions in 2015 and 2016, LeMay and Baird traveled to the Historic Rush Mining District, in Marion County, Arkansas, to dig for mineral and geological specimens to sell at LeMay’s business, Alpena Crystals. The pair’s plans went awry on Feb. 14, 2016, when a U.S. Park Ranger observed them camped in Buffalo National River, which is a United States National Park.
Noticing evidence of their excavations, the Ranger obtained consent to search their campsite and vehicles, recovering digging tools and containers of geological specimens. Two days later, officers were sent to several mines in the area to assess whether or not they had been entered. The Monte Cristo Mine, a gated, locked and controlled mine along Clabber Creek, was observed to have been broken into. Trash, water bottles and other items were located both just inside and outside this mine. On the Rush Creek side of the same mountain, drag marks in high grass, from the Morning Star/Ben Carney Mine, down to Rush Creek and the parking lot, indicated large heavy objects had been dragged down the mountain to the parking area.
A subsequent investigation by the National Park Service, assisted by local law enforcement and the Carroll County Prosecuting Attorney’s Office, established the full extent of the pair’s illegal excavations. LeMay and Baird had excavated and damaged 22 areas within those mines, removing mineral and geological materials, and damaging the historic sites—which add to the knowledge of the mining community in the Ozarks as the industry transitioned from crude mining techniques to modern methods. Dr. Caven Clark, an archaeologist with the National Park Service, now retired, conducted a resource damage assessment, determining that the cost of restoration and repair to the site was approximately $22,241.
Both men were indicted by a federal grand jury in March 2020. In addition to violation of the Archaeological Resources Protection Act, which prohibits excavating, damaging, altering and defacing archaeological sites and resources, both men were also charged with theft of U.S. property and damage to government property. On February 10, 2021, LeMay was arrested at his residence, in Hot Springs Village, and was later released on a cash bond pending trial. Baird self-surrendered to authorities and was arraigned on April 16, 2021. Before they announced their intentions to plead guilty, the case had been scheduled to be tried beginning on July 26.
As a result of their guilty pleas both LeMay and Baird face up to two years in prison and fines of up to $250,000. Additionally, both men have agreed to pay $22,241 in restitution as a shared obligation. The court will determine their sentences at a later date, after reviewing pre-sentence investigation reports prepared by the U.S. Probation Office, and considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case was investigated by special agents of National Park Service, Investigative Services Branch, and U.S. Park Rangers at Buffalo National River, with the assistance of the Boone County, Ark. Sheriff’s Office, Eureka Springs Police Department, and the Carroll County Prosecuting Attorney’s Office.
Assistant U.S. Attorney Steven Mohlhenrich prosecuted the case for the United States.
The Historic Rush Mining District
Located within the Buffalo National River is a designated historical district known as the Historic Rush Mining District, a 1316-acre former zinc mining district located on the lower Buffalo River and two of its tributaries, Rush Creek and Clabber Creek. It is a remnant industrial landscape with the remains of both open-pit and underground zinc mines, processing facilities, and worker housing. Waste rock piles form a dominant feature of the landscape. Within this district, are dozens of historic and archaeological sites and mines, including the Monte Cristo, Ben Carney, and Morning Star mines. The Rush Historic District buildings and structures, through isolation, have retained their historic design features and use and convey the sense of a turn-of-the century mining operation and Ozarks community. The ruins and archaeological sites fill in the community layout and add to the knowledge of historic mining techniques and mining community construction; they retain and contribute to the feeling of the widespread activity of this once bustling Ozarks mining community. The Rush Historic District portrays the story of the zinc mining industry in the Ozarks as the industry moved from crude mining techniques to modern methods.
The Archaeological Resources Protection Act
The National Park Service wishes to remind the public that all public lands are protected by federal law and regulation. In 1979, the Congress found that archaeological resources on public and Indian lands are an irreplaceable part of the Nation’s heritage. The Archaeological Resources Protection Act of 1979 makes it a violation of federal law to excavate, remove, damage, or otherwise alter or deface any archaeological resource located on public (federal) or Indian (Native American) lands, or attempt to do so. If convicted of a felony, penalties include up to two years imprisonment and a fine of up to $250,000. Subsequent violations are punishable by up to five years imprisonment.
Troy Man Sentenced on Heroin and Gun ConvictionsRead the Press Release
ALBANY, NEW YORK – Jean Luis Colon, age 23, of Troy, New York, was sentenced today to 36 months in prison, to be followed by 3 years of supervised release, for possessing and intending to distribute heroin, and to possessing a firearm with an altered serial number.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Colon admitted that he possessed approximately 2,050 small bags of heroin that he intended to sell, which law enforcement seized when they executed a search warrant on his Troy residence on August 21, 2020; some of the heroin bags were stamped with the words “Corona Virus.” The bags collectively contained between 60 and 80 grams of heroin.
Colon also admitted to possessing a .38 caliber Smith and Wesson revolver with a scratched serial number. Colon has been in custody since his arrest on August 21, 2020.
This prosecution was the result of a joint investigation by the DEA, Troy Police Department, and the New York State Police Special Investigations Unit, and was prosecuted by Assistant U.S. Attorney Michael Barnett with assistance from the Rensselaer County District Attorney’s Office.
Three Springfield Residents Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Three Springfield, Missouri, residents were sentenced in federal court today for their roles in a conspiracy to distribute large amounts of methamphetamine.
Jeremy A. Ingram, 42, Laurie B. Holmes, 39, and Lonnie J. Tinker, 36, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Ingram was sentenced to 20 years in federal prison without parole. Holmes was sentenced to 15 years in federal prison without parole. Tinker was sentenced to 10 years in federal prison without parole.
Ingram, Holmes, and Tinker each pleaded guilty to their roles in the drug-trafficking conspiracy from Nov. 22, 2016, to Sept. 26, 2018. Ingram also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Ingram and Holmes each admitted they directly received methamphetamine to distribute from co-defendant Cheyenne W. Conn, 45, of Everton, Mo. Conn transported approximately 10 pounds of methamphetamine per week by vehicle from California to the Springfield area. He then distributed the methamphetamine to other dealers in the conspiracy, including Ingram and Holmes, who in turn distributed methamphetamine to other dealers. Tinker admitted that he purchased more than a kilogram of pure methamphetamine from co-defendant Cassidy R. Clayton, 25, of Springfield, who also received methamphetamine directly from Conn. Tinker distributed methamphetamine to at least seven other individuals.
Ingram admitted that he engaged in several controlled purchases of methamphetamine by undercover law enforcement officers and confidential informants. On Sept. 22, 2017, law enforcement officers executed a search warrant at Ingram’s motorcycle shop, Straight Clownin’ Customs. He and Conn were present in the garage, where officers seized a loaded Springfield Armory 9mm semi-automatic pistol, 300 rounds of 9mm ammunition, numerous rounds of various caliber ammunition, a lock pick set, and drug paraphernalia. Officers also seized a loaded Ruger 9mm semi-automatic pistol from Conn’s GMC Sierra, which had been reported as stolen.
When Ingram was arrested on May 10, 2018, he was in possession of a stolen Springfield Armory .45-caliber semi-automatic pistol and 31.79 grams of methamphetamine. Ingram was arrested again on July 4, 2018. Ingram fled from officers on his motorcycle at a high rate of speed, nearly striking a police van as he drove through a public parking lot.
Springfield police officers executed a search warrant at Holmes’s residence on Dec. 8, 2017, and seized 82.7 grams of methamphetamine, $2,085, and drug paraphernalia. Holmes admitted she purchased approximately 10 pounds of methamphetamine from Conn during the conspiracy, which she distributed to others. Holmes also admitted that she traveled with Conn to Los Angeles, Calif., to purchase methamphetamine.
When officer’s searched Tinker’s residence, they found a safe in his bedroom that contained a Tanfoglio .22-caliber revolver that had been reported stolen, 87 rounds of ammunition, and methamphetamine.
Conn and Clayton are among nine defendants who have pleaded guilty in this case and await sentencing: Larry E Stapp, 42, Tresha R. Ahart, 31, and Megan L McNary, 27, all of Springfield; Ginger L. Huerta, also known as Ginger L. Gray, 41, of Halfway, Mo.; Lloyd R. Bradley, 44, of Fordland, Mo.; Shelby R. Maupin, 32, of Ozark, Mo.; and Summerlee M. Barnett, also known as Summerlee M. Lacount, 35, of Salem, Mo.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
Tennessee Department of Human Services Agrees to Pay $6.8 Million to Resolve False Claims Act Liability in Connection with SNAP Quality ControlRead the Press Release
The Tennessee Department of Human Services (TDHS) has agreed to pay the United States $6,854,416 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). Until 2008, SNAP was known as the Food Stamp Program.
“The money allocated by Congress for the SNAP program funds critical USDA efforts to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.”
“It is shocking that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit,” said Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “I am gratified, however, that Tennessee has stepped up, corrected its conduct, cooperated with our investigation and resolved its liability. I want to especially commend the outstanding work by the USDA’s Office of Inspector General’s special agents and auditors who enabled the United States to recover over $67 million in wrongfully obtained funds. This nationwide investigation and series of settlements demonstrate our office’s commitment to working with our law enforcement partners to ensure that that those who abuse SNAP and other critical government programs will be held fully accountable.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in 2012, TDHS contracted with a consultant known as Julie Osnes Consulting LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by TDHS, injected bias into TDHS’s quality control process and resulted in TDHS submitting false quality control data and information to USDA, for which it received performance bonuses for fiscal years 2013 and 2014 to which it was not entitled.
This is the ninth settlement in this matter, and the eighth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska, Florida and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $67 million in connection with this investigation.
The settlement was a result of a joint investigation conducted by the USDA, Office of Inspector General, Investigations; the Civil Division’s Commercial Litigation Branch; and the U.S. Attorney’s Office for the Eastern District of Washington, with the assistance of USDA-OIG-Audit based on the results of its nationwide audit of SNAP quality control processes.
The matter was handled by Senior Trial Counsel Don Williamson of the Civil Division and Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Tennessee Department of Human Services Agrees to Pay $6,854,416 to Resolve False Claims Act Liability in Connection with Snap Quality ControlRead the Press Release
The Tennessee Department of Human Services (TDHS) has agreed to pay the United States $6,854,416 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
“The money allocated by Congress for the SNAP program funds critical USDA’s efforts to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.”
It is disheartening that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit,” said Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington. “I am encouraged that Tennessee has acknowledged and corrected its conduct, cooperated with this investigation, and resolved its liability. I want to especially commend the outstanding work by the USDA’s Office of Inspector General’s special agents and auditors that enabled the United States to recover over $67 million in wrongfully obtained funds. This nationwide investigation and series of settlements demonstrate our office’s commitment to working with our law enforcement partners to ensure that that those who abuse SNAP and other critical government programs will be held fully accountable.”
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in late 2012, TDHS contracted with a consultant known as Julie Osnes Consulting, LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by TDHS, injected bias into TDHS’s quality control process and resulted in TDHS submitting false quality control data and information to USDA, for which it received performance bonuses for fiscal years 2013 and 2014 to which it was not entitled.
This is the ninth settlement in this matter, and the eighth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Texas, Virginia, Wisconsin, Mississippi, Louisiana, Alaska, and Florida, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered more than $67 million in connection with this investigation.
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”
The settlement was the result of a joint nationwide investigation conducted by the USDA OIG, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch, with the assistance of USDA-OIG-Audit based on the results of their nationwide audit of SNAP QC processes. The United States was represented by Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington and by Don Williamson, Senior Trial Counsel of the Fraud Section of the Department of Justice, Civil Division, Commercial Litigation Branch.
The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Sussex County Man Admits Unlawfully Possessing Weapons, MarijuanaRead the Press Release
NEWARK, N.J. – A Sussex county man appeared in court today on charges that he possessed an arsenal of weapons, ammunition, and marijuana, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Rubino, 59, of Lafayette Township, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of possession of marijuana with intent to distribute and one count of possession of firearms and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On July 24, 2019, following a motor vehicle accident, officers with the New Jersey State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized search warrants on Rubino’s vehicle and residence, law enforcement recovered an arsenal of weapons and ammunition from Rubino’s car and house, including:
- An Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
- A Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high capacity magazine;
- A Keltec CMR30 .22 caliber semi-automatic rifle loaded with sixteen (16) .22 caliber hollow-point cartridges;
- A High Standard Derringer .22 caliber double-barrel handgun;
- A Polymer 80 9mm semi-automatic handgun;
- An Ithaca M-66 20-gauge single shotgun;
- A Remington Model 700 .223 caliber bold action rifle with scope;
- A Thompson Center .50 caliber muzzle-loading rifle with scope;
- A Remington Model 870 Wingmaster 12-gauge pump shotgun;
- A New England Firearms 20-gauge single shot shotgun;
- A Remington Model 760 .300 Savage pump rifle;
- A Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
- Two sawed-off double-barrel shotgun barrels
- Several high-capacity magazines;
- Numerous silencers;
- An assault rifle scope;
- A grenade launcher;
- A ballistics vest; and
- Numerous additional ammunitions of various calibers
In addition to the firearms and ammunition, law enforcement recovered approximately 2.5 kilograms of marijuana from Rubino’s house.
The count of possession of marijuana with the intent to distribute carries a maximum potential penalty of five years in prison and fine of up to $250,000, or twice the gross profits or other proceeds to the defendant, whichever is greatest. The count of possession of firearms and ammunition by a convicted felon is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross profit or pecuniary loss, whichever is greatest. Sentencing is scheduled for Dec. 14, 2021.
Acting U.S. Attorney Honig credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s guilty plea. She also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime and Gangs Unit in Newark.
Shepherd man charged in COVID-19 relief fraud schemeRead the Press Release
BILLINGS – A Shepherd man who owns a restaurant was arraigned today on charges in connection with a scheme to defraud the Small Business Administration (SBA) of approximately $75,000 in a COVID-19 relief loan and to use those funds for personal benefit, including buying classic cars, Acting U.S. Attorney Leif M. Johnson said.
Michael Eugene Bolte, 70, of Shepherd, owner of the Feedlot Steakhouse, pleaded not guilty to an indictment charging him with wire fraud and with engaging in transactions in property derived from specified unlawful activity. If convicted of the most serious crime, Bolte faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Bolte was released pending further proceedings.
The indictment said that in response to the COVID-19 pandemic, the SBA began the Economic Injury Disaster Loan (EIDL) program to provide economic relief to small businesses and nonprofit organizations that experienced a temporary loss of revenue. Loan proceeds were to be used solely as “working capital” for business operating expenses.
The indictment alleged that from April 1, 2020 to about March 4, 2021, Bolte devised a scheme to defraud the SBA by falsely certifying that loan proceeds were to be used as working capital for the business when in fact approximately $75,000 of loan proceeds were used for his own benefit. The indictment includes a criminal forfeiture in which if convicted, Bolte would forfeit to the United States any real and personal property derived from the offense. Property to be forfeited includes four classic cars -- a 1916 Studebaker, a 1929 Franklin, a 1939 Ford Deluxe and a 1941 Ford Super Deluxe.
Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case, which was investigated by IRS Criminal Investigation, with assistance from the SBA Office of Inspector General and the U.S. Attorney’s Office.
An indictment is merely an accusation and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
PACER case reference. 21-46.
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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Sanford Man Pleads Guilty to Making False Statements to Firearms DealersRead the Press Release
PORTLAND, Maine: A Sanford man pleaded guilty yesterday in federal court to providing false information to firearms dealers while purchasing firearms, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in October and November 2018, Allen Sinclair Bowman, 26, purchased 10 firearms from three different federal firearm licensees in Cumberland and York counties. While purchasing the firearms, Bowman responded “Yes” to a question on an ATF form which asked him if he was purchasing the firearms for himself. In truth, he was purchasing the firearms for a drug dealer in Massachusetts to settle a drug debt. It is against federal law to provide false information to federal firearm licensees when purchasing firearms from them.
Bowman faces up to 10 years in prison and a $250,000 fine on each of the three counts to which he pleaded guilty. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sanford Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Rhode Island Man Sentenced to 18 Months of Imprisonment for Automobile Warranty Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Pannone, age 40, of North Providence, Rhode Island was sentenced to 18 months’ imprisonment and two years of supervised release by United States District Court Judge Malachy E. Mannion for conspiring to commit wire and mail fraud, and for aggravated identity theft offenses.
According to Acting United States Attorney Bruce D. Brandler, Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through Ultra Auto Services, where he was employed. The invoices were sent to and paid by an automobile warranty company in Wilkes-Barre, Pennsylvania. Pannone pleaded guilty on March 23, 2021, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company. Judge Mannion ordered Pannone to pay restitution of $128,667.16 to the victim of his crime.
Three of Pannone’s coconspirators were convicted in this investigation:
- Brian Larry, age 59, of Clark’s Summit, Pennsylvania, was convicted on May 10, 2021, following a jury trial, of mail fraud, wire fraud, aggravated identity theft, and false statement offenses. Larry was convicted of defrauding his former employer, the Wilkes-Barre based automobile warranty company, from approximately January 2014 through October 2018. Larry also was convicted of stealing the personal information of warranty policy owners and providing it to his coconspirators, who created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company, where Larry approved payment of the invoices. During the course of the scheme, Larry and his coconspirators obtained approximately $400,000 paid out by the warranty company pursuant to the false invoices, including thousands of dollars in repair work for Larry’s personal vehicle that he charged to other policy owners. The evidence at trial showed that Larry then falsified internal warranty company documents in an attempt to conceal his crimes.
- Matthew Gershkoff, age 64, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and to aggravated identity theft, and is awaiting sentencing. Gershkoff was convicted of preparing false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts, and for forging policy owners’ signatures. Gershkoff pleaded guilty on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
- Herman Cabral, age 62, of Cranston, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and was sentenced to 10 months of imprisonment and three years of supervised release. Cabral was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, A Plus Auto Services. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and was ordered to pay over $211,644.03 in restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
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Prince George’s County Man Sentenced to Seven Years in Federal Prison for Distributing PCP, Crack Cocaine and Fentanyl and for Possessing an AM-15 Rifle in Furtherance of His Drug TraffickingRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Marvel David Yarborough, age 30, of Capitol Heights, Maryland, to seven years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, on February 21, 2020, Prince George’s County Police officers conducted a traffic stop of a vehicle being driven by Yarborough, after observing that the driver was not wearing a seat belt and did not properly use his turn signal. When approaching the vehicle officers observed Yarborough attempting to conceal objects in his groin area and detected the odor of phencyclidine (“PCP”) from his person and vehicle. Yarborough was searched and officers recovered approximately 34 baggies and capsules containing a white, rock-like substance. The substances were tested in the lab and found to contain 10.5 grams of crack cocaine, .352 grams of fentanyl, and 17.6 grams of PCP. In addition, law enforcement recovered $1,012 in cash from Yarborough’s vehicle, numerous empty baggies and several digital scales.
In March 26, 2020, law enforcement executed a search warrant at Yarborough’s residence and recovered an AM-15 rifle, with a loaded drum-style magazine containing eight rounds of ammunition from the hall closet. An additional drum-style magazine was found on the kitchen table, loaded with 14 rounds of ammunition. Law enforcement also seized: 100 capsules found to contain 9.234 grams of crack cocaine and 26.7 grams of powder cocaine; 6.68 grams of PCP; drug paraphernalia; and a notebook containing references to drugs and the names and numbers of drug customers.
Yarborough’s cell phone was also seized and subsequently searched. The phone contained text conversations about drugs and guns, photographs of Yarborough with the AM-15, and photographs of drugs and drug paraphernalia. The text messages reflect that Yarborough possessed the AM-15 in furtherance of his drug trafficking.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Brian W. Lynch and Rajeev Raghavan, who prosecuted the case.
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Postal Worker Pleads Guilty to Mail TheftRead the Press Release
BOSTON – A former U.S. Postal Service mail carrier pleaded guilty today in federal court in Boston to stealing mail containing gift cards.
Brian Thibodeau, 48, pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 13, 2021. Thibodeau was indicted on Feb. 10, 2021.
Beginning in 2001, Thibodeau worked as a letter carrier in the Saugus Post Office. In 2020, Thibodeau stole customers’ gift cards sent in the mail and spent them for his personal use. Thibodeau admitted to stealing approximately $2,000 worth of gift cards from postal customers on his route.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater; and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Pipeline Company to Pay $35 Million in Criminal Fines and Civil Penalties for Largest-Ever Inland Spill of Produced Water from Oil DrillingRead the Press Release
The Department of Justice today filed criminal charges under the Clean Water Act against Summit Midstream Partners LLC, a North Dakota pipeline company that discharged 29 million gallons of produced water from its pipeline near Williston, North Dakota, over the course of nearly five months in 2014-2015.
The discharge of more than 700,000 barrels of “produced water” – a waste product of hydraulic fracturing – contaminated land, groundwater, and over 30 miles of tributaries of the Missouri River. The spill, believed to be the largest inland spill in history, was visible in photographs taken by satellites orbiting the earth.
In addition to the criminal charges, the United States and the State of North Dakota filed a civil complaint against Summit and a related company, Meadowlark Midstream Company LLC, alleging violations of the Clean Water Act and North Dakota water pollution control laws. Under parallel settlements resolving the criminal and civil cases, the company has agreed to pay a total of $35 million in criminal fines and civil penalties.
“Summit prioritized profits over the environment. The company’s disregard for pipeline safety resulted in pollution of the environment on a massive scale over 143 days,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Summit’s conduct was criminal and its failure to immediately report the discharge a felony. This resolution holds the company financially accountable, requires enhanced compliance measures to prevent future spills, and provides compensation for North Dakota’s damaged natural resources.”
“North Dakota and its federal partners are holding Summit and Meadowlark accountable and making clear that disregard for North Dakota’s environmental laws will not be tolerated,” said North Dakota Attorney General Wayne Stenehjem. “The North Dakota Department of Environmental Quality, Game and Fish Department, and Industrial Commission staff spent countless hours investigating and responding to the spill, making this settlement possible.”
If the court accepts the plea agreement, Summit will pay $15 million in federal criminal fines for negligently causing the continuous spill, failing to stop it and deliberately failing to make an immediate report as required.
“Summit’s negligence included the design, construction and operation of the Marmon Water Gathering System pipeline, as well as the negligent failure to find and stop the spill after learning of objective signs of a leak,” according to a factual admission signed by the company and filed in court. Summit started pipeline operations without meters at both ends of the pipeline to conduct “line balancing” or otherwise having a reliable leak detection system in place. “Even after the company learned of major drops in pressure and volume – objective signs of a leak – the company negligently continued operations and thus caused millions of additional gallons to be discharged into U.S. waters without learning the cause or pausing operations,” according to the Joint Factual Statement.
Summit has further admitted that it knowingly did not share all relevant information regarding the volume and duration of the spill and that its reports to federal and state authorities “were incomplete and misleading,” in papers filed in court. Summit eventually reported 70,000 barrels over a 10-day period despite an internal analysis showing the discharge was more than 700,000 barrels over 143 days. Under the terms of the proposed plea agreement, Summit will serve three years of probation in which comprehensive remedial measures are required.
Under the proposed civil settlement, Summit, Meadowlark, and a third related company, Summit Operating Services Company LLC, will pay $20 million in civil penalties, perform comprehensive injunctive relief, clean up the contamination caused by the spill and pay $1.25 million in natural resource damages to resolve the civil case. Summit has spent over $50 million to date to clean up the spill under state oversight; ongoing remediation efforts under the civil settlement are expected to continue over the next several years. The civil settlement further requires Summit and Meadowlark to take concrete steps to prevent future discharges, including stringent pipeline installation, operation, and testing requirements; a centralized computational pipeline monitoring system; spill response planning and countermeasures; an environmental management system; and data management and training measures. Independent third-party audits are required to ensure that certain injunctive measures are properly developed and implemented. These compliance measures were made a condition of Summit’s probation in the proposed criminal plea agreement. The companies have also agreed to enter into a related administrative settlement with the North Dakota Industrial Commission.
Summit continued pumping produced water through the pipeline in 2014 to 2015 despite multiple warning signs that the line had ruptured:
- Aug. 17, 2014. Real-time pressure data collected by Summit showed a significant pressure drop, indicating a rupture had occurred.
- Oct. 14, 2014: Summit’s construction manager raised a concern about “extreme low pressure on the pipeline.” The facilities engineer responded: “Not good. We may want to consider shutting it down.” Summit continued to operate the line.
- Nov. 4, 2014: the third-party operator of the injection well at the end of the pipeline (Company A) informed Summit that 115,000 barrels (4,830,000 gallons) of produced water were missing for the month of October, which is approximately 3,700 barrels (155,400 gallons) per day.
- Dec. 3, 10, and 16, 2014: Company A followed up with Summit about the produced water discrepancy, having received no response to its previous inquiries. During this time, Company A confirmed the accuracy of its injection well meters and informed Summit that the discrepancy had risen to 4,900 barrels per day.
- Jan. 6, 2015: A Summit employee walked the line, finally identifying the rupture.
The resulting 700,000-barrel discharge of produced water contained crude oil, chloride, sodium, ammonia, aluminum, arsenic, boron, copper, nickel, selenium, zinc, barium, benzene and thallium, among other contaminants. Produced water is a waste product of oil extraction and can be toxic to plants, fish and other aquatic wildlife. It is also harmful to humans.
The designated federal trustee is the U.S. Department of the Interior’s Fish and Wildlife Service, and the designated state trustees are the North Dakota Department of Environmental Quality and the North Dakota Department of Game and Fish. A Draft Restoration Plan outlining the trustees’ restoration projects will be available at https://www.fws.gov/mountain-prairie/pressrel/archives/index.php and https://deq.nd.gov/EHSRulesRegs.aspx. The Draft Restoration Plan is subject to a 30-day public comment period. The civil settlement was lodged in the U.S. District Court for the District of North Dakota and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.
The criminal case is being prosecuted by Senior Litigation Counsel Richard A. Udell, Senior Trial Attorney Christopher J. Costantini, Trial Attorneys Stephen J. Foster and Erica H. Pencak of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resource Division (ENRD), and Assistant U.S. Attorney Gary Delorme. The federal civil case is being handled by Senior Attorney Laura A. Thoms and Trial Attorney Devon A. Ahearn of the Environmental Enforcement Section of ENRD. The state civil case is being handled by Assistant Attorney General Margaret I. Olson of the North Dakota Office of Attorney General.
The criminal investigation was conducted by EPA’s Criminal Investigations Division. EPA’s Office of Enforcement and Compliance Assurance, EPA Region 8, the North Dakota Department of Environmental Quality, the North Dakota Industrial Commission, the U.S. Fish and Wildlife Service, the U.S. Department of Interior, and the North Dakota Department of Game and Fish provided assistance to both the criminal and civil investigations.
If you believe that you may be a victim of this criminal offense and would like to be kept apprised of this matter, then please contact the Environmental Crimes Victim Coordinator at (833)-676-1816.
Pharmacy Owner and Pharmacist Employee, a Previously Convicted Felon, Agree to Pay $250,000 to Resolve Alleged False Claims Act LiabilityRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mark Zulewski, Kaushal Patel, Patel’s company Kass Management & Consulting, LLC, and Patel-owned pharmacies Belmont Pharmacy, LLC; Bensalem Pharmacy; Big Oak Pharmacy, Inc.; Doylestown Drugs, LLC; Family One Pharmacy; Penndel Drugs, Inc.; Penlar Pharmacy; and Medical Plaza Pharmacy have agreed to pay $250,000 to resolve potential liability under the False Claims Act.
Zulewski was a pharmacist licensed in Pennsylvania when, in 2010, he was convicted by the Commonwealth of Pennsylvania of a felony controlled substance offense. As a result of the conviction, Zulewski’s pharmacy license was suspended and in 2011 he was excluded from participation in federal health care programs by the U.S. Department of Health and Human Services.
The United States contends that Patel hired Zulewski to work in Patel’s pharmacies even though Patel knew that Zulewski had been convicted of a controlled substance offense, and that Patel allowed Zulewski to continue working in his pharmacies even after learning Zulewski was excluded from participating in federal health care programs as a result of his conviction. The United States further contends that, from August 2010 until March 2017, Patel gave Zulewski broad administrative authority as well as his pharmacist log-in credential so that Zulewski could manage Patel’s pharmacies and, on occasion, fill prescriptions as needed when pharmacists-in-charge at certain of the Kass pharmacies were unavailable.
The United States further contends that Zulewski, Patel, Kass Management, and the Patel-owned pharmacies knowingly and willfully disregarded Zulewski’s exclusion, resulting in the presentation of false or fraudulent claims for payment to the federal programs, including Medicare, Medicaid, and the Federal Employee Health Benefits Program.
The Office of the Inspector General of the U.S. Department of Health and Human Services excludes people from participating in federal health care programs upon their conviction of certain crimes, including a controlled substance offense. A federal health care exclusion is intended to keep individuals who have violated the law out of Medicare, Medicaid, and Federal Employee Health Benefits programs to protect program beneficiaries and the integrity of 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 statute. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The suit was filed in the Eastern District of Pennsylvania and is captioned United States of America, ex rel. LaGrossa v. Kass Management & Consulting, LLC, et al., Civil Action No. 15-6844. The whistleblower’s attorneys are Gavin Lentz and Peter Bryant of Bochetto & Lentz, PC.
“The United States will pursue those who violate a federal health care exclusion and those who knowingly allow excluded individuals to provide goods or services to federal program beneficiaries.” said Acting U.S. Attorney Williams. “An individual convicted of a controlled substances offense, as Zulewski was, must not be allowed behind the pharmacy counter during his exclusion to handle prescription drugs, including narcotics, and dispense them to federal program beneficiaries.”
“Civil enforcement is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and protect beneficiaries of federal healthcare programs.”
“Exclusions protect Medicare and Medicaid patients and safeguard the integrity of these vital programs,” stated Gregory Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “Anyone who circumvents an exclusion undermines the goal of ensuring Medicare and Medicaid patients receive safe, appropriate, and high-quality, services.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General, the U.S. Office of Personnel Management’s Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. This matter was handled by Assistant U.S. Attorney Judith A.K. Amorosa and Fraud Investigator Jeffrey Braun.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Patrick Dwayne Murphy Found Guilty by Federal JuryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Patrick Dwayne Murphy, age 52, of Vernon, Oklahoma was found guilty by a federal jury of Murder – Second Degree in Indian Country, in violation of Title 18, United States Code, Sections 1111, 2, 1151 and 1153; Murder in Indian Country in Perpetration of Kidnapping, in violation of Title 18, United States Code, Sections 1111(a), 2, 1151 and 1153; and Kidnapping Resulting in Death, in violation of Title 18, United States Code, Sections 1201(a)(2), 2, 1151 and 1153. The defendant was acquitted on one count of Kidnapping Resulting in Death. The jury trial began with testimony on Tuesday, August 3, 2021 and concluded on Thursday, August 5, 2021 with the guilty verdicts. The defendant faces imprisonment for life for the crimes the jury found he committed.
During the trial, the United States presented evidence that the defendant, two days prior to the murder, stated he would kill George Jacobs. Later, on August 28, 1999, the defendant found George Jacobs and Jacobs’ friend, M.S., traveling on a road in rural McIntosh County. The defendant chased after M.S. and George Jacobs in his vehicle and ultimately forced M.S. and George Jacobs to stop. After stopping George Jacobs and M.S., the defendant, along with two others, attacked George Jacobs. After beating and kicking Jacobs, the defendant cut the victim’s throat with a knife and cut off the victim’s penis and testicles. The next day, deputies of the McIntosh County Sheriff’s Department and agents with the Oklahoma State Bureau of Investigation apprehended and arrested the defendant.
The case was originally tried in McIntosh County, Oklahoma where the defendant was convicted and received the death penalty. However, after the United States Supreme Court ruling in McGirt v. Oklahoma, the case had to be retried in federal court because the murder happened within the boundaries of the Muscogee (Creek) Nation’s Reservation and the defendant was a member of a federally recognized Indian Tribe.
“I am thankful Patrick Murphy has been held accountable for the vicious killing of George Jacobs,” said Acting United States Attorney Christopher Wilson. “Justice was interrupted for a period of time due to the jurisdictional challenges raised by the defendant, but justice was not thwarted. Through the excellent work of the Oklahoma State Bureau of Investigation, the Federal Bureau of Investigation and the United States Attorney’s Office, the evidence was presented to the jury and the guilty verdicts were returned. I know it has been a tumultuous time for the family of Mr. Jacobs, but they can now rest assured the defendant will pay for his crimes.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Murphy was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Jarrod Leaman and Special Assistant United States Attorney Robert Reeves represented the United States.
Parkersburg Man with Multiple Felony Convictions Sentenced to Nine Years in Prison for Possession of FirearmsRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man with three previous felony convictions was sentenced to 108 months in federal prison today for being a felon in possession of firearms.
According to the plea agreement and statements made in court, Casey Douglas Saunders, 30, possessed three semi-automatic pistols and one semi-automatic rifle at his residence on Camden Avenue in Parkersburg on May 14, 2020. The firearms were located by law enforcement officers who entered the residence to arrest Saunders on an outstanding warrant for violating his parole. Saunders had absconded from parole that he was serving for previous felony convictions in Wood County Circuit Court for burglary, delivery of a controlled substance and escape. Saunders’ escape conviction resulted from him stealing and then fleeing in a police officer’s vehicle when the officer attempted to arrest him on an outstanding warrant. Saunders is prohibited from possessing firearms due to his previous convictions.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Violent Crimes and Narcotics Task Force, the United States Marshals Service (USMS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00014.
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Over $1 Billion in Misappropriated 1MDB Funds Now Repatriated to MalaysiaRead the Press Release
The Justice Department announced today that it has repatriated an additional $452 million in misappropriated 1Malaysia Development Berhad (1MDB) funds to the people of Malaysia, bringing the total returned to over $1.2 billion.
According to court documents, the funds from 1MDB, formerly Malaysia’s investment development fund, were laundered through major financial institutions worldwide, including in the United States, Switzerland, Singapore, and Luxembourg.
Beginning in 2016, a landmark effort encompassing 41 civil forfeiture actions filed in the U.S. District Court for the Central District of California and one in the U.S. District Court for the District of Columbia by the Money Laundering and Asset Recovery Section (MLARS) of the Justice Department’s Criminal Division led to the seizure of over $1.7 billion in stolen assets. This is the largest recovery to date under the Department’s Kleptocracy Asset Recovery Initiative. The funds include both funds finally forfeited and funds the Department assisted in recovering and returning. The Department continues to litigate actions against additional assets allegedly linked to this scheme.
As alleged in the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, and Low Taek Jho (aka Jho Low), through a criminal scheme involving international money laundering and embezzlement. Some of the embezzlement proceeds were also allegedly used to pay bribes.
1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were taken and spent on a wide variety of extravagant items, including luxury homes and properties in Beverly Hills, New York, and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. The funds also were sent into numerous business investments, including a boutique hotel in Beverly Hills, a movie production company that made “The Wolf of Wall Street” while the embezzlement scheme was ongoing, the redevelopment of the Park Lane Hotel in Manhattan, and shares in EMI, the largest private music-rights holder. As alleged, other funds were provided to various public officials and co-conspirators.
The FBI’s International Corruption Squads in New York and Los Angeles and IRS-Criminal Investigation are leading the investigation.
MLARS Trial Attorneys Barbara Levy, Josh Sohn and Jonathon Baum are litigating the case. Assistant U.S. Attorney Jonathon Galatzan and Chief of the Asset Forefeiture Section Steven R. Welk of the Central District of California worked as MLARS partners, along with former MLARS Deputy Chief Woo S. Lee, Trial Attorney Kyle Freeny, and former Assistant U.S. Attorneys John Kucera and Michael Sew Hoy.
The Criminal Division’s Office of International Affairs is providing substantial assistance. MLARS’ Program Operations Unit has also provided significant support.
Significant assistance was also provided to the department by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force–Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated MLARS prosecutors in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to seize, forfeit and repatriate those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should email [email protected] or submit information at https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of crime. These allegations are not proven until a court awards judgment in favor of the United States, which has occurred in the cases that have led to these recoveries.
Newton Landscaping Company Owner Sentenced for Tax EvasionRead the Press Release
BOSTON – The owner of a Newton landscaping company was sentenced yesterday in connection with a scheme to underreport income on his business and personal tax returns.
Kevin Newman, 70, of Auburndale, the owner of Kevin Newman Landscape and Tree Inc., was sentenced by U.S. District Court Judge Patti B. Saris to 10 months in community confinement, two years of supervised release and 100 hours of community service. Newman was also ordered to pay a fine in the amount of $10,000 and restitution of $572,843 to the Internal Revenue Service. On April 9, 2021, Newman pleaded guilty to one count of tax evasion.
For tax years 2015 through 2019, Newman underreported income and inflated expenses on his personal tax returns, and those his company filed, resulting in a tax loss of more than $671,812.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Multiple defendants federally indicted for illegal firearms possessionRead the Press Release
SAVANNAH, GA: Three men face felony firearms charges in separate indictments by a U.S. District Court grand jury in the Southern District of Georgia, while nine others have admitted to gun charges.
The cases are being investigated in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“These prosecutions continue to send a strong message,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we are working to make our communities safer by removing guns from the hands of those who illegally possess them.”
In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction on a previous felony. That charge carries a statutory penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system.
Defendants named in federal indictments from the August 2021 term of the U.S. District Court grand jury include:
- Shawn Green, 27, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Calvin Jerrod Hendrix, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Jamel Albert, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession, including:
- Darius Edwards, 33, of Pembroke, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. ATF agents found Edwards in possession of a firearm during an investigation of a suspicious gun purchase. Edwards was on state probation for a felony conviction at the time.
- Devonta Armon Stallings, 28, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies spotted Stallings March 28, 2020, when he ran from a group loitering in a known drug area and tossed a pistol before being captured. Stallings was on state probation at the time of his arrest.
- William Thomas Nealous III, 30, of Martinez, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Columbia County Sheriff’s deputies found Nealous with an AR-15 style rifle in his vehicle July 2, 2020, while investigating reports of a man driving slowly through a neighborhood. Nealous was on probation for a previous felony conviction at the time of the arrest.
- James Stallings III, 29, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Stallings encountered Richmond County Sheriff’s deputies July 27, 2020, when they were called to investigate shots fired outside an Augusta hotel.
- Bryant Young, 25, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. He was arrested July 16, 2019, after a pistol fell from his waistband when he ran from Savannah Police officers who were investigating a report of a man with a gun.
- Timothy Lee Lanigan, 38, of Reidsville, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Lanigan was on felony probation in June 2018 when Garden City Police officers found him in possession of a pistol during an investigation.
- King Coney, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found Coney in possession of a pistol Aug.19, 2020, when questioning him in relation to a domestic disturbance.
These cases also are being investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for adjudication of alleged crimes.
Agencies investigating these cases include the ATF; the Savannah Police Department; the Richmond County Sheriff’s Office; the Columbia County Sheriff’s Office; the Port Wentworth Police Department; and the Garden City Police Department.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Steven S. Lee, Joshua S. Bearden, Joseph McCool, Marcela C. Mateo, and Noah J. Abrams, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Massachusetts Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
PORTLAND, Maine: A Woburn, Massachusetts man pleaded guilty today in federal court to being an unlawful user of controlled substances in possession of firearms, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between March 6, 2020, and November 16, 2020, Sauma Brata Deb, 27, was arrested on five separate occasions in either New Hampshire or Massachusetts. During each of these arrests, drugs or drug-use paraphernalia (or both) were recovered from him. On January 29, 2021, he attempted to sell a firearm to the Kittery Trading Post. When he was arrested, two firearms were recovered from him and additional items of drug-use paraphernalia were recovered from his car. It is against federal law for unlawful users of drugs to possess firearms.
Deb faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Maine and New Hampshire offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kittery Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Maryland Woman Sentenced to 30 Months in Prison for Embezzling Money from Law FirmRead the Press Release
WASHINGTON – Katherine Emma Ross, 30, of Millersville, Md., formerly of Washington, D.C., was sentenced today to 30 months in prison for embezzling hundreds of thousands of dollars from a D.C. law firm.
The sentencing was announced by Acting U.S. Attorney Channing D. Phillips, Matthew R. Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Ross was employed by the law firm as an hourly employee in a non-lawyer capacity. Without permission of the firm or its owner, she wrote checks to herself in amounts that she was not owed, forged signatures on those checks, and cashed the checks at bank branches in the District of Columbia, Virginia, and Maryland. From as early as August 2016 and continuing through the summer of 2020, she carried out a scheme in which she stole at least $320,000 from the firm and its owner.
Ross pled guilty in April 2021 to one count of bank fraud in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Following her prison term, Ross will be placed on five years of supervised release. The judge also ordered Ross to pay $320,000 in restitution and forfeiture.
In announcing the sentencing, Acting U.S. Attorney Phillips, Special Agent in Charge Stohler, and Chief Contee commended the work of those who investigated the case from the Secret Service’s Washington Field Office and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Michon Tart, Forensic Accountant Bryan Snitselaar, and Assistant U.S. Attorney Kondi Kleinman, who prosecuted the matter.
Man from Rogers charged with enticement of a child and possession of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Jason Chandler Mapp, 41, of Rogers, New Mexico, appeared in federal court today for a detention hearing on charges of enticement of a minor and possession of child pornography. Mapp will remain in custody pending trial.
According to a criminal complaint, beginning in 2019, Mapp, a middle school bus driver for Dora Consolidated Schools in Roosevelt County, New Mexico, allegedly began using Instagram and Snapchat to message two minor victims. Mapp allegedly used multiple accounts to pressure the victims into sending him nude photographs of themselves and each other.
On July 23, 2020, officers from the Roosevelt County Sheriff’s Office executed a search warrant on Mapp’s home. In addition to non-pornographic photos of the victims found on Mapp’s cell phone, investigators found images and videos of child pornography on Mapp’s desktop computer.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Mapp faces a minimum of 10 years and up to life in prison
The Roswell Resident Agency of the FBI Albuquerque Field Office and the Roosevelt County Sheriff’s Office investigated this case. Assistant United States Attorney Marisa A. Ong is prosecuting the case.
Man Charged with Violent Crimes in Sequoia National ParkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Marvin Joseph Chang, 33, of Monterey Park, charging him with assault with a dangerous weapon, brandishing a firearm during a crime of violence, being a felon in possession of ammunition, and vandalism, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, on Feb. 19, 2021, within Sequoia National Park, Chang assaulted an individual with a firearm and brandished a semi-automatic 9 mm pistol. He also slashed the tire of a car in a parking lot inside the park. Chang subsequently was involved in a high-speed chase outside of the park that allegedly resulted in the shooting of a California Highway Patrol officer.
Chang is prohibited from possessing firearms and ammunition as a result of a prior felony conviction for assault with a deadly weapon involving infliction of great bodily injury.
This case is the product of an investigation by the National Park Service Investigative Services Branch; the Sequoia and Kings Canyon National Parks; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Highway Patrol; the Tulare County Sheriff’s Office; and the Visalia Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Chang is currently in custody in Tulare County.
If convicted, Chang faces a maximum statutory penalty of 10 years in prison on the assault and felon in possession of ammunition charges. If convicted of brandishing a firearm charge, he faces a mandatory minimum consecutive prison term of seven years. Each of the foregoing charges also carries a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lycoming County Man Charged with Filing False Tax ReturnsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 3, 2021, Joseph Rinker, age 51, of Jersey Shore, Pennsylvania, was charged by criminal information with one-count of filing false tax returns.
According to Acting United States Attorney Bruce D. Brandler, the information alleges that Rinker, a co-owner of Harvest Moon restaurant, convenience store, and gas station in Williamsport, Pennsylvania. failed to report income in years 2014 through 2017 after embezzling over $300,000 in funds from the Harvest Moon. The total estimated tax loss is $64,250.
The case was investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the offense charged is three years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Laconia Man Pleads Guilty to Conspiracy to Tamper with a WitnessRead the Press Release
CONCORD - James Flanders, 42, of Laconia, pleaded guilty on Tuesday in federal court to conspiracy to tamper with a witness, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between July 29 and August 9, 2019, an acquaintance (JL) of Flanders who was incarcerated on drug and firearm charges, contacted Flanders to assist him in persuading a witness in his matter to lie to law enforcement about the possession of a firearm that he was charged with possessing at the time of his arrest. On September 23, 2019, Flanders texted the witness expressing frustration at the witness’ lack of communication. Flanders threatened “I’m gonna start showing up on your doorstep” and that “our friend doesn’t have all the time in the world until court, he needs his defense in order now.”
Flanders is scheduled to be sentenced on November 22, 2021.
“Protecting the integrity of the judicial process is vital for the operation of our legal system,” said Acting U.S. Attorney Farley. “Those who seek to tamper with witnesses or obstruct justice will be held responsible for their criminal conduct.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Laconia Police Department and the Belknap County Sheriff’s Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Knoxville Woman Pleads Guilty to Scheme to Defraud the Small Business Administration’s COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On August 5, 2021, Porsha Tims Bush, 41, of Knoxville, entered a guilty plea to one count of executing a wire fraud scheme in the United States District Court for the Eastern District of Tennessee at Knoxville.
Sentencing is set for January 7, 2022, at 2:00 pm, before United States District Judge Katherine Crytzer. Bush faces a term of imprisonment of up to 20 years, a fine of up to $250,000, and a term of supervised release of up to three years. Bush has agreed to pay restitution to the victims of her fraud scheme in the amount of $471,621.
As part of the written plea agreement filed with the court, Bush waived an indictment by a federal grand jury and agreed to plead guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343.
According to court filings, from March to June 2020, Bush applied for ten loans for $547,286 through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Bush submitted false and fraudulent applications under the names of various companies that either did not qualify for COVID-19 relief funds or that did not exist. Bush submitted nine fraudulent applications to financial institutions seeking PPP funds and one fraudulent application to the SBA seeking EIDL funds. As part of her fraud scheme, Bush submitted fabricated supporting records and made false statements about the number of employees she had, the revenue she generated, and the amount of payroll expenses she incurred. Bush also made false statements about the corporate entities and the intended use of the loan proceeds.
In one instance, on March 30, 2020, Bush submitted an online application to the SBA in the name of Enlightenment Family Care, Inc., seeking $150,000 in EIDL funds. On the application, Bush falsely claimed that Enlightenment Family Care employed four individuals, generated $335,651 in gross revenue, and paid wages of $45,651 in the twelve months preceding the COVID-19 pandemic. These claims were all false. In further support of the application, Bush included fraudulent supporting documents, including a falsified Profit and Loss Statement and a fabricated Internal Revenue Service Form 941, Employer Quarterly Federal Tax Return, for the first quarter of 2020.
As a result of Bush’s fraudulent scheme, lenders approved eight of her fraudulent applications. Rather than using the funds for permissible business expenses, as required by the SBA, Bush used the money to pay off personal debt, pay for personal travel, purchase clothes and electronics, and to fund her daily lifestyle.
During the investigation, law enforcement obtained warrants to seize approximately $77,820.44 in fraudulent proceeds held in three bank accounts controlled by Bush. As set forth in the filed plea agreement, Bush will forfeit these seized funds to the United States.
This case is the result of an investigation conducted by the FBI.
The case is being prosecuted by Assistant U.S. Attorney William A. Roach, Jr.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Kansas Man Pleads Guilty in Unemployment Fraud CaseRead the Press Release
WICHITA, KAN. – A Fort Scott man pleaded guilty one count of Wire Fraud and one count of Aiding and Abetting Wire Fraud.
In June 2020, Donald Cook, 65, took part in a scheme to defraud the state governments of Arizona, Texas, and Ohio. Cook admitted he knew that an individual, identified in court documents only as “A.T.”, was falsely using other people’s identities to apply for state unemployment benefits. Cook allowed “A.T.” to deposit the fraudulently obtained funds totaling approximately $25,500 in his bank account. Cook then transferred money to “A.T.”
Cook faces up to 20 years in prison for Wire Fraud and up to 20 years in prison for Aiding and Abetting Wire Fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Alan Metzger is prosecuting the case.
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Justice Department Reaches Agreement with the State of New Jersey under the National Voter Registration ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the State of New Jersey and state officials.
The Justice Department’s lawsuit, brought under Section 7 of the National Voter Registration Act (NVRA), challenges the failure of disability transportation programs in the State of New Jersey — including NJ Transit Access Link and county-based Community Transportation programs — to provide voter registration opportunities to their customers.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the State of New Jersey failed to designate offices in the State that provide paratransit and other state-funded disability transportation services as voter registration agencies. Under the NVRA, these offices must distribute a voter registration application to each person who applies for their services, and along with each recertification, renewal or change of address form relating to such services, unless the person involved declines in writing to register to vote. They must also assist applicants in completing voter registration applications, and they must accept completed voter registration applications for transmittal to appropriate state election officials. However, NJ Transit Access Link and Community Transportation programs have not been providing the voter registration opportunities guaranteed by the NVRA.
“Part of our ongoing effort to ensure access to the ballot includes ensuring that social service and disability agencies are providing registration opportunities as required under federal law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The National Voter Registration Act is a vital tool to ensure that citizens with disabilities have convenient and accessible opportunities to register to vote. It is critical that all citizens have unfettered access to voter registration opportunities. I am pleased that the State of New Jersey has worked with the Department of Justice to help ensure that citizens with disabilities will have broad access to the voter registration opportunities that federal law guarantees.”
“The right to vote is a constitutional principle that forms a cornerstone of our democracy,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The National Voter Registration Act enhances citizens’ access to that democratic process by increasing voter registration opportunities. We appreciate that the State of New Jersey has worked with us to ensure that all New Jersey residents, including those with disabilities, enjoy convenient opportunities to register to vote.”
The department gave notice to the State of New Jersey of its intent to bring suit under the National Voter Registration Act on March 11, 2021, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree — and subject to approval by the federal district court in New Jersey — New Jersey will designate NJ Transit Access Link and Community Transportation as voter registration agencies. New Jersey will also conduct robust implementation and oversight efforts and will afford supplemental voter registration opportunities to existing Access Link clients.
More information about the National Voter Registration Act and other federal voting rights laws is available on the Department of Justice website at https:www.justice.gov/crt/voting-section. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Reaches Agreement with State of New Jersey under National Voter Registration ActRead the Press Release
NEWARK, N.J. – The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the State of New Jersey and state officials.
The Justice Department’s lawsuit, brought under Section 7 of the National Voter Registration Act, challenges the failure of disability transportation offices in the State of New Jersey – including NJ Transit Access Link and county-based Community Transportation programs – to provide voter registration opportunities to their customers.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The Department’s complaint alleges that the State of New Jersey failed to designate offices in the state that provide paratransit and other state-funded disability transportation services as voter registration agencies. Designated voter registration agencies that provide disability services must distribute a voter registration application with each application for such services, and with each recertification, renewal, or change of address form relating to such services, unless the applicant declines in writing to register to vote. They must also assist applicants in completing voter registration applications and accept completed voter registration applications for transmittal to appropriate state election officials. NJ Transit Access Link and Community Transportation programs do not provide the voter registration opportunities guaranteed by the National Voter Registration Act.
“The right to vote is a constitutional principle that forms a cornerstone of our democracy,” Acting U.S. Attorney Rachael A. Honig of the District of New Jersey said. “The National Voter Registration Act enhances citizens’ access to that democratic process by increasing voter registration opportunities. We appreciate that the State of New Jersey has worked with us to ensure that all New Jersey residents, including those with disabilities, enjoy convenient opportunities to register to vote.”
“Part of our ongoing effort to ensure access to the ballot includes ensuring that social service and disability agencies are providing registration opportunities as required under federal law,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “The National Voter Registration Act is a vital tool to ensure that citizens with disabilities have convenient and accessible opportunities to register to vote. It is critical that all citizens have unfettered access to voter registration opportunities. I am pleased that the State of New Jersey has worked with the Department of Justice to help ensure that citizens with disabilities will have broad access to the voter registration opportunities that federal law guarantees.”
The Department gave notice to the State of New Jersey of its intent to bring suit under the National Voter Registration Act on March 11, 2021, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree – subject to approval by the federal district court in New Jersey – the state will designate NJ Transit Access Link and Community Transportation as voter registration agencies. New Jersey will also conduct robust implementation and oversight efforts and will afford supplemental voter registration opportunities to existing Access Link clients.
More information about the National Voter Registration Act and other federal voting rights laws is available on the Department of Justice website at https:www.justice.gov/crt/voting-section. To learn more about civil rights enforcement at the U.S. Attorney’s Office in the District of New Jersey, additional information is available at https://www.justice.gov/usao-nj/civil-rights-enforcement.
The United States is represented by Assistant U.S. Attorney Michael E. Campion, Civil Rights Unit Chief; Richard A. Dellheim, Deputy Chief of the Civil Rights Division’s Voting Section; Daniel J. Freeman, Trial Attorney, Voting Section; and Rachel Evans, Trial Attorney, Voting Section.
Justice Department Announces Investigation of the City of Phoenix and the Phoenix Police DepartmentRead the Press Release
Attorney General Merrick B. Garland and Assistant Attorney General Kristen Clarke for the Civil Rights Division announced today that the Justice Department has opened a pattern or practice investigation into the City of Phoenix and the Phoenix Police Department (PhxPD).
This investigation will assess all types of use of force by PhxPD officers, including deadly force. The investigation will also seek to determine whether PhxPD engages in retaliatory activity against people for conduct protected by the First Amendment; whether PhxPD engages in discriminatory policing; and whether PhxPD unlawfully seizes or disposes of the belongings of individuals experiencing homelessness. In addition, the investigation will assess the City and PhxPD’s systems and practices for responding to people with disabilities. The investigation will include a comprehensive review of PhxPD policies, training, supervision, and force investigations, as well as PhxPD’s systems of accountability, including misconduct complaint intake, investigation, review, disposition, and discipline.
Department of Justice officials informed Phoenix Mayor Kate Gallego, PhxPD Chief Jeri Williams, and other City officials of the investigation. As part of this investigation, the Department of Justice will reach out to community groups and members of the public to learn about their experiences with PhxPD.
“When we conduct pattern or practice investigations to determine whether the Constitution or federal law has been violated, our aim is to promote transparency and accountability,” said Attorney General Merrick Garland. “This increases public trust, which in turn increases public safety. We know that law enforcement shares these goals.”
“One of the highest priorities of the Civil Rights Division is to ensure that every person in this country benefits from policing that is lawful, effective, transparent, and free from discrimination,” said Assistant Attorney General Kristen Clarke. “Police officers across the country must use their authority in a manner that adheres to the Constitution, complies with federal civil rights laws and respects human dignity.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The statute allows the Department of Justice to remedy such misconduct through civil litigation. This is the seventy-third investigation of a law enforcement agency conducted pursuant to this statute since it was enacted in 1994. The department will be assessing law enforcement practices under the First, Fourth, and Fourteenth Amendments to the United States Constitution, as well as under the Safe Streets Act of 1968; Title VI of the Civil Rights Act of 1964; and Title II of the Americans with Disabilities Act.
The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., will conduct this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at [email protected] or by toll free phone at (866) 432-0335. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at https://civilrights.justice.gov/.
Information specific to the Civil Rights Division’s Police Reform Work can be found here: . View the Spanish translation of this press release here.
Jury Convicts Two Former Wall Street Bank Traders of Wire FraudRead the Press Release
A federal jury convicted two men for engaging in a multi-year fraud scheme to manipulate U.S. commodities markets for publicly traded precious metals futures contracts.
According to court documents and evidence presented at trial, Edward Bases, 59, of New Canaan, Connecticut, a former senior trader employed at Deutsche Bank and Bank of America in New York, and John Pacilio, 57, of New York, New York, a former senior trader employed at Bank of America and Morgan Stanley in New York, fraudulently pushed market prices up or down by routinely placing large “spoof” orders in the precious metals futures markets that they did not intend to fill. Bases and Pacilio did so in order to manipulate prices for their own gain and the banks’ gain, and to defraud other traders on the Commodity Exchange Inc. (COMEX) and the New York Mercantile Exchange Inc. (NYMEX), both of which are exchanges run by the CME Group Inc. (CME).
“These defendants undermined public confidence in U.S. commodities markets by manipulating prices to create the false appearance of supply and demand,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This verdict shows that the Department of Justice is committed to holding accountable those who line their pockets by manipulating our financial markets through fraud.”
Court documents and witness testimony also showed that Bases and Pacilio taught other traders how to engage in the practice of spoofing, which involves placing orders on the exchange that, at the time they were placed, were not intended to be executed. For example, electronic chat messages introduced as evidence during trial demonstrated that, while he was placing deceptive trades, Bases stated, “that does show you how easy it is to manipulate it sometimes . . . I know how to ‘game’ this stuff.” Evidence introduced at trial also included electronic chat messages from Pacilio stating, “I just put in 500 lots to spoof the gold,” and “if you spoof this it really moves.”
“Illegally moving market prices in a direction that suits individual interests is a quick way to lose investor confidence and rack up federal criminal charges,” said Acting Assistant Director in Charge Jacqueline Maguire of the FBI’s New York Field Office. “The FBI will continue to pursue those who manipulate our financial markets.”
As a result of Bases’s and Pacilio’s scheme, other market participants, some of whom testified at trial, were induced to trade at prices, quantities, and times that they otherwise would not have traded. Bases and Pacilio engaged in this conduct despite having received and been trained on bank policies prohibiting fraud and deceptive trading practices.
Bases was convicted of conspiracy to commit wire fraud affecting a financial institution and wire fraud affecting a financial institution. Pacilio was convicted of conspiracy to commit wire fraud affecting a financial institution, wire fraud affecting a financial institution, and commodities fraud. Conspiracy to commit wire fraud and wire fraud affecting a financial institution carry a maximum sentence of 30 years’ imprisonment per count. Commodities fraud carries a maximum sentence of 25 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Principal Assistant Chief Avi Perry and Trial Attorneys Scott Armstrong and John Liolos of the Criminal Division’s Fraud Section are prosecuting the case. The FBI’s New York Field Office investigated this case.
The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country, and its Market Integrity & Major Frauds Unit is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.
Jury Convicts Five Former Officers and Employees of Banc-Serv Partners in $5 Million Scheme to Defraud the Small Business AdministrationRead the Press Release
A federal jury convicted five former officers and employees of Banc-Serv Partners LLP (Banc-Serv) — a lending service provider — in a 13-year conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
According to the evidence presented at trial, the defendants — Kerri Agee, 46, of Noblesville, Indiana, former president, chief executive officer and founder of Banc-Serv; Kelly Isley, 40, of Westfield, Indiana, Banc-Serv’s former chief operating officer; Nicole Smith, 44, of Indianapolis, Indiana, a former Banc-Serv employee; Chad Griffin, 48, of Carmel, Indiana, Banc-Serv’s former chief marketing officer; and Matthew Smith, 52, of Westfield, Indiana, Banc-Serv’s co-founder and a former director of a lending institution that originated loans with Banc-Serv — fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. The evidence at trial proved that from approximately 2004 until October 2017, the defendants helped originate SBA loans on behalf of various financial institutions and other lenders and, on multiple occasions, fraudulently obtained guarantees for loans that the SBA had deemed ineligible. They did so by, among other things, knowingly misrepresenting what the loans would be used for and unlawfully diverting previously denied loan applications into expedited approval channels at the SBA. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of the reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting some of the losses on the ineligible loans to the SBA.
The fraudulent loans presented at trial totaled approximately $5 million in guaranteed disbursements, which were not eligible for SBA guarantees.
Agee was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and four counts of wire fraud affecting a financial institution. Isley was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Nicole Smith was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Griffin was convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Matthew Smith was convicted of one count of conspiracy to commit wire fraud.
The defendants convicted of conspiracy or fraud affecting a financial institution face a maximum sentence of 30 years in prison per count. The charge of conspiracy to commit wire fraud carries a maximum sentence of 20 years. A federal district court judge will determine any sentence for each of these defendants after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Special Agent in Charge Paul Keenan of the FBI Indianapolis Field Office; and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) made the announcement.
The FDIC-OIG, the FBI and the SBA-OIG investigated the case. This case is being prosecuted by Assistant Chief William E. Johnston and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section. Trial Attorney Brandon Burkart provided significant assistance. The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.
The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country.
Jury Convicts Five Former Officers and Employees of Banc-Serv Partners in $5 Million Scheme to Defraud the Small Business AdministrationRead the Press Release
WASHINGTON - A federal jury convicted five former officers and employees of Banc-Serv Partners LLP (Banc-Serv) — a lending service provider — in a 13-year conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
According to the evidence presented at trial, the defendants — Kerri Agee, 46, of Noblesville, Indiana, former president, chief executive officer and founder of Banc-Serv; Kelly Isley, 40, of Westfield, Indiana, Banc-Serv’s former chief operating officer; Nicole Smith, 44, of Indianapolis, Indiana, a former Banc-Serv employee; Chad Griffin, 48, of Carmel, Indiana, Banc-Serv’s former chief marketing officer; and Matthew Smith, 52, of Westfield, Indiana, Banc-Serv’s co-founder and a former director of a lending institution that originated loans with Banc-Serv — fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. The evidence at trial proved that from approximately 2004 until October 2017, the defendants helped originate SBA loans on behalf of various financial institutions and other lenders and, on multiple occasions, fraudulently obtained guarantees for loans that the SBA had deemed ineligible. They did so by, among other things, knowingly misrepresenting what the loans would be used for and unlawfully diverting previously denied loan applications into expedited approval channels at the SBA. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of the reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting some of the losses on the ineligible loans to the SBA.The fraudulent loans presented at trial totaled approximately $5 million in guaranteed disbursements, which were not eligible for SBA guarantees.
Agee was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and four counts of wire fraud affecting a financial institution. Isley was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Nicole Smith was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Griffin was convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Matthew Smith was convicted of one count of conspiracy to commit wire fraud.
The defendants convicted of conspiracy or fraud affecting a financial institution face a maximum sentence of 30 years in prison per count. The charge of conspiracy to commit wire fraud carries a maximum sentence of 20 years. A federal district court judge will determine any sentence for each of these defendants after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Special Agent in Charge Paul Keenan of the FBI Indianapolis Field Office; and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) made the announcement.
The FDIC-OIG, the FBI and the SBA-OIG investigated the case. This case is being prosecuted by Assistant Chief William E. Johnston and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section. Trial Attorney Brandon Burkart provided significant assistance. The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.
The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country.
Jessup Correctional Institution Inmate Sentenced to More Than Five Years in Federal Prison for Racketeering Conspiracy Within Maximum Security PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Theodore D. Chuang sentenced Darnell Smith, a/k/a “Hook”, age 41, of Baltimore, Maryland to five years and three months in federal prison, to be served consecutive to Smith’s current state sentence, followed by three years of supervised release, for a racketeering conspiracy at the Jessup Correctional Institution (JCI). The conspiracy included former correctional officers, inmates, and outside “facilitators” who paid bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison.
The sentence was announced by Acting 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 Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to his plea agreement, between 2017 and the time of his arrest in 2020, Smith was an inmate at the Jessup Correctional Institution (JCI), a maximum-security prison located near Jessup, Maryland. While imprisoned at JCI, Smith agreed with others to participate in the conduct of JCI’s affairs through a pattern of racketeering activity. The racketeering acts at the center of this conspiracy were the distribution of controlled substances, bribery, and money laundering.
Specifically, while an inmate at JCI, Smith conspired with JCI Correctional Officer (CO) Chanel Pierce, outside facilitator Chaz Chriscore, the mother of his children (co-defendant Satya Hall) and others to smuggle controlled substances and other contraband items into JCI. Smith also distributed the controlled substances to other inmates. As part of the endeavor, Smith engaged in a romantic relationship with CO Pierce and bribed her to collect, package, and smuggle contraband into JCI. CO Pierce, Chriscoe, and Hall were all charged alongside Smith in this 15-defendant indictment.
As stated in his plea agreement, Smith possessed a contraband cell phone, which enabled him to communicate with CO Pierce, Hall, and Chriscoe to further the smuggling operation. Smith used the contraband phone to discuss the types and quantities of controlled substances that were to be smuggled into JCI, facilitate the distribution of drugs within JCI, and coordinate bribe payments that were being made to CO Pierce. Smith also used the cell phone to carry out his romantic relationship with CO Pierce.
On the morning of May 25, 2019, Chriscoe met CO Pierce at her home and provided her with several balloons filled with controlled substances to smuggle into JCI. CO Pierce then went to work and was stopped by law enforcement as she entered the facility and searched. Law enforcement recovered from CO Pierce’s person multiple packages containing contraband, including a balloon filled with Suboxone. A subsequent search of CO Pierce’s home revealed several more balloons filled with contraband that she intended for Smith and others to smuggle into JCI.
A total of nine defendants, including Smith, Chriscoe, former CO Pierce, and Hall, have pleaded guilty to their roles in the racketeering conspiracy. Six defendants are still facing charges. Former CO Chanel Pierce, age 28, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy and is awaiting sentencing. Co-defendant inmates Page Boyd, age 37, and Marshall Hill, a/k/a “Boosie,” age 29, pleaded guilty to their roles in the racketeering conspiracy and were each sentenced to four years in federal prison. Co-defendant facilitators Sataya Hall, age 38, of Baltimore, and Trinesse Butts, age 37, of Parkville, Maryland also pleaded guilty to the racketeering conspiracy and were sentenced to six months in federal prison and a year and a day in federal prison, respectively.
At sentencing, Judge Chuang ordered that Smith’s federal sentence be served consecutive to Smith’s state sentence, of which several years remain.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation. Mr. Lenzner also commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lauren E. Perry and Christopher M. Rigali, who prosecuted this case.
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Jamaican National Sentenced for Stealing more than $970,000 in Lottery ScamRead the Press Release
DENVER – Jamaican national Leonard Luton of Brooklyn, New York was sentenced yesterday to 108 months in federal prison, followed by 3 years supervised release and $881,477.41 in restitution for his role in a lottery scheme that targeted an elderly woman in Estes Park, Colorado.
According to court documents, Luton and another Jamaican national conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz but needed to pay thousands of dollars in “fees” in order to receive her winnings. During the scam, the victim was instructed to mail packages of cash and cashier’s checks, in addition to six iPhones, to the addresses of Luton’s friends.
On two occasions, Luton made trips to the victim’s home in Estes Park to pick up packages of cash. During the first trip in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. In total, the victim was scammed out of more than $970,000.
“Lottery scams are just one way that fraudsters prey on the elderly and vulnerable victims,” said Acting U.S. Attorney Matt Kirsch. “Together with our law enforcement partners, we are working to protect the elderly and to make scammers like Luton face justice.”
Luton was sentenced by United States District Court Judge Christine M. Arguello, after being convicted on February 13, 2020 of one count of conspiracy to commit mail fraud and eight counts of aiding and abetting mail fraud. The Court also entered an order of forfeiture in the amount of $484,123.16 and imposed a $900 special assessment fee.
"This sentence is a significant step toward justice for the elderly victim of Mr. Luton's self-serving greed and deception. The FBI is committed to combating those who prey on vulnerable members of our community," said FBI Denver Special Agent in Charge Michael Schneider. "The FBI extends its appreciation to the Larimer County Sheriff’s Office, Estes Park Police Department, and the U.S. Attorney's Office for their collaboration on this investigation."
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch and Sarah Weiss prosecuted this matter.
CASE NUMBER: 19-cr-00098
Inmate Charged with Possessing A Prohibited ObjectRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Martinez, age 54, an inmate at Federal Correctional Institute-Schuylkill (FCI Schuylkill), Minersville, Pennsylvania, was charged on August 4, 2021, by criminal information for unlawfully possessing a prohibited object.
According to Acting United States Attorney Bruce D. Bandler, the information alleges that on July 18, 2021, Martinez was found to be in possession of prohibited objects including a Samsung cellphone, charging cable, charging adapter, and a pair of Sony earbuds.
The matter is being investigated by the Federal Bureau of Prisons. Assistant United States Attorney James Buchanan is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is one year imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Houma Man Sentenced for Conspiring to Distribute Heroin, Cocaine, and MethamphetamineRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced DARREKA BOYKINS, age 44, of Houma, Louisiana, today to 73 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, announced U.S. Attorney Duane A. Evans.
According to the court records, BOYKINS conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a quantity of a mixture or substance containing a detectable amount of cocaine, and a quantity of a mixture or substance containing a detectable amount of methamphetamine. BOYKINS admitted to being captured on a Title III wire intercept.
District Judge Vance sentenced BOYKINS to the 73 months imprisonment to be followed by four years of supervised release. She also ordered that he pay a mandatory $100 special assessment fee.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
Gas Station Manager Arrested and Charged with Billing Fraudulent Fuel Charges on Amtrak VehiclesRead the Press Release
NEWARK, N.J. – A New Jersey gas station manager was charged today in connection with entering fraudulent charges on fuel credit cards assigned to at least four Amtrak vehicles, Acting U.S. Attorney Rachael A. Honig announced.
Umer Hassan Mir, 39, of South Amboy, is charged by complaint with knowingly and intentionally stealing and converting to his own use approximately $9,600 in money of a department or agency of the United States. He is also charged with making false statements to federal law enforcement. Mir appeared by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on $20,000.
According to the complaint:
From July 29, 2019, through Aug. 3, 2021, while working as a manager and attendant at a Delta gas station, in Metuchen, New Jersey, Mir caused numerous fraudulent fuel charges to be entered on fuel credit cards leased by the General Services Administration (GSA) and assigned to Amtrak vehicles. Amtrak employees using GSA vehicles are instructed to purchase regular unleaded fuel and provide accurate odometer readings when they are fueling their assigned vehicles with their fuel credit cards. The fraud was initially discovered when a GSA loss prevention technician discovered dozens of fuel credit card charges that exceeded the associated Amtrak vehicle’s fuel tank capacity, along with premium fuel transactions, and non-sequential odometer entries. Additional fuel credit cards assigned to Amtrak vehicles were discovered to have been compromised by fraudulent fuel charges at the Delta gas station.
The fraudulent charges were entered at the Delta gas station by Mir, who would manually enter information regarding fuel credit cards collected during legitimate fuel transactions electronically into the point-of-sale terminal. Immediately following certain false fuel transactions, Mir withdrew cash in the amount of the fraudulent transaction from the gas station’s cash register.
Mir made false statements to law enforcement when questioned about his presence at the gas station during one of the recent fraudulent transactions.
The theft charge carries a maximum potential penalty of 10 years in prison while the false statement charge carries a maximum potential penalty of five years. Each charge carries a maximum $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the Amtrak, Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Michael J. Waters; the General Services Administration, Office of Inspector General, Northeast Field Investigations Division, under the direction of Special Agent in Charge Joseph Dattoria; and inspectors with the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to the charges. She also thanked the Metuchen Police Department, under the direction of Chief of Police David Irizarry, for its assistance.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz, of the U.S. Attorneys’ Special Prosecutions Division and Assistant U.S. Attorney Cari Fais, Chief of the Opioid Abuse Prevention and Enforcement Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Fox Chapel Cardiologist Sentenced to 78 Months in Prison for Health Care Fraud Scheme Involving More Than $13 Million of Insurance BillingsRead the Press Release
PITTSBURGH – A resident of Fox Chapel, Pennsylvania, was sentenced in federal court following his conviction at trial on two counts of health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone sentenced Samirkumar J. Shah, 58, to 78 months of imprisonment followed by three years of supervised release.
“Dr. Shah risked the health of his patients so he could make millions of dollars through unnecessary procedures, and lied and fabricated records for years to perpetuate his fraud scheme,” said Acting U.S. Attorney Kaufman. “This prosecution demonstrates our commitment to protect the healthcare system from fraud and sends a clear message of deterrence to others who might consider similar criminal behavior.”
“Today's sentence holds Mr. Shah accountable for his appalling actions,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Shah used his position as a doctor to illegally profit from a healthcare program paid for by taxpayers. Fraud of this magnitude will not be tolerated. The FBI, along with our partners, are committed to making sure the integrity of our health care benefit programs remains intact and will always work diligently to investigate and hold accountable those who think they can steal from the system.”
“Rather than upholding the oath he swore and providing care for patients who trusted him, this defendant misled patients and drained critical Medicaid funds from families who needed it,” said Attorney General Josh Shapiro. “We will not let anyone put their patients’ lives at risk for a profit.”
Shah was convicted on June 14, 2019, following an eight-day jury trial in Pittsburgh. The evidence introduced at trial established that between 2008 and 2013, Shah, a practicing cardiologist, submitted fraudulent claims to private insurance plans—Highmark Blue Cross Blue Shield (Highmark), UPMC Health Plan (UPMC)—as well as government insurance programs—Medicare and Medicaid (through Gateway Health Plan)—for an outpatient treatment known as external counterpulsation, or ECP. ECP involves the use of a specialized bed equipped with pressure cuffs, which exert pressure to patients’ lower extremities as a means to increase blood flow to the heart. The evidence at trial further demonstrated that insurers only reimbursed for ECP treatments of patients who suffered from disabling angina—or significant chest pain caused by decreased blood flow to the heart—and only when a physician supervised the treatment.
In total, Shah purchased 25 beds and offered ECP to patients at more than 18 locations in Western Pennsylvania, Ohio, New York, and Florida. The evidence also showed that, in order to acquire new patients, Shah advertised ECP as “the Fountain of Youth,” claimed that it made patients “younger and smarter,” and offered the treatment for a range of ailments other than disabling angina, including obesity, migraines, high blood pressure, low blood pressure, diabetes, and erectile dysfunction. After signing up new patients, including many patients who never experienced chest pain, Shah instructed his employees to indicate that every patient had disabling angina on billing sheets that were used to support false insurance claims. In certain instances, Shah never met patients for whom he billed for ECP treatments.
The evidence also showed that patients were required to undergo certain diagnostic ultrasounds as a precautionary measure prior to starting ECP—in part to rule out blood clots that could cause a stroke or heart attack during the treatment. Nevertheless, witness testimony established that Shah did not review any of the ultrasound imagery before approving new patients to begin ECP, placing his patients at risk of serious injury or even death.
Likewise, contrary to health insurance requirements, ECP treatments routinely occurred while neither Shah nor any other medical doctor was present at his various locations. On one such occasion, a patient experienced an adverse event during his ECP treatment and had to be transported via ambulance to the hospital.
In addition to billing for ECP treatments that were not medically necessary and were not provided under direct physician supervision, Shah also double-billed insurers by using a so-called “bundled” ECP code, which accounted for and included payment for various incidental procedures, and then separately submitting claims for the same included procedures. The evidence at trial further established that during reviews initiated by various insurers, Shah routinely submitted fabricated patient files and made false statements concerning his practice, his patient population, his record keeping, and his compliance with applicable coverage guidelines.
During the period of Shah’s scheme, the evidence showed that he submitted ECP-related claims for Medicare Part B, UPMC, Highmark, and Gateway beneficiaries, totaling more than $13 million and that he received reimbursement payments in excess of $3.5 million.
As part of his sentence, Shah must pay restitution totaling over $1.2 million to the victim insurers.
Shah failed to appear for his original sentencing date on July 14, 2021, and he has been in custody since the following day after Judge Cercone issued a warrant for his arrest.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit, conducted the investigation that led to the conviction of Shah.
Four Defendants Charged with Federal Drug or Firearm Violations in Probe Centered on North Suburbs of ChicagoRead the Press Release
CHICAGO — A joint federal and local criminal investigation in the far north suburbs of Chicago has resulted in federal drug or firearm charges against four individuals.
The alleged drug trafficking and illegal firearm possession occurred last winter in Waukegan and Beach Park, according to indictments unsealed this week in U.S. District Court in Chicago. According to the charges, ROBERT SPURLOCK, 36, of Beach Park, distributed cocaine and illegally possessed a loaded handgun with an obliterated serial number; KURT NASH, JR., 34, of Milwaukee, Wisc., distributed cocaine on two occasions; RAFAEL ALVAREZ-MURILLO, 27, of Waukegan, distributed methamphetamine and illegally possessed a handgun; and JASON NAJERA-PRADO, 31, of Waukegan, illegally possessed two handguns. Spurlock, Alvarez-Murillo, and Najera-Prado were previously convicted of felonies and were not lawfully allowed to possess firearms.
Spurlock, Nash, and Najera-Prado pleaded not guilty during arraignments Wednesday in federal court in Chicago. Arraignment for Alvarez-Murillo will be scheduled at a later date. Six other individuals were charged in state court as part of this investigation.
The federal indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and John Idleburg, Lake County Sheriff. Assistant U.S. Attorneys Shawn McCarthy and Alejandro Ortega represent the government in the federal cases.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Fort Atkinson Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Christopher Cahill, 42, Fort Atkinson, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge James Peterson to 15 years in federal prison for distributing child pornography. This term of imprisonment is to be followed by a life-time period of supervised release.
In May 2020, Cahill emailed himself a sexually explicit video of a minor. In sentencing him to 15 years, Judge Peterson found as an aggravating factor Cahill’s two prior convictions for sex offenses against juveniles.
The charge against Cahill was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Cottage Grove Police Department, the Fort Atkinson Police Department, and with the assistance of the Jefferson County District Attorney’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Former Tangipahoa Parish Sheriff’s Office Employee Sentenced for Role in Bribery SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SONJA DYSON EVANS, 59, of Kentwood, Louisiana, was sentenced on August 4, 2021 by the Honorable Ivan L.R. Lemelle, United States District Court Judge, to a five (5) year term of probation for using an interstate facility with intent to carry on unlawful activity. EVANS was also ordered to pay a $5,000 fine, a $100 special assessment and to perform 100 hours of community service.
EVANS pleaded guilty in March 2021. According to court records, at the time of the offense, EVANS was employed by the Tangipahoa Parish Sheriff’s Office as a Criminal Records Division Supervisor. From January 2016 through January 2017, EVANS, along with a co-defendant, Shawanda Dove, used cell phones to carry out a bribery scheme, in violation of 18 U.S.C. §§ 1952(a)(3) and 2. EVANS solicited and accepted bribe money from Dove in exchange for fraudulent bonds used for the release of incarcerated persons.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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Former Springfield Man Pleads Guilty to Charges Related to Sham MarriageRead the Press Release
BOSTON – A former Springfield man pleaded guilty yesterday in connection with entering into a sham marriage in order to obtain immigration benefits for another individual.
Phu Thanh Huynh, 33, pleaded guilty to one count each of conspiracy, immigration fraud and making false statements. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 22, 2021. Huynh was indicted in October 2019.
On or about Sept. 28, 2013, Huynh married a Vietnamese national, referred to as Jane Doe, solely for the purpose of obtaining immigration benefits for Doe. Huynh and Doe never lived together after getting married. In or about late 2013 or early 2014, a co-conspirator paid Huynh $20,000 in cash for engaging in the sham marriage. On approximately Nov. 7, 2013, Huynh filed a false petition with the U.S. Citizenship and Immigration Services (USCIS) to classify Doe as his spouse for immigration purposes. On approximately May 3, 2017, Huynh made various false statements to a USCIS officer concerning his marriage to Doe, including that they spoke to each other almost every day.
The charges of conspiracy and making false statements 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 $250,000. The charge of immigration fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Former South Dakota Attorney Sentenced for Wire Fraud, Money Laundering, and Bank FraudRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Vale, South Dakota, woman convicted on two counts of Wire Fraud, two counts of Money Laundering, and one count of Bank Fraud, was sentenced on August 2, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Rena Hymans, age 48, was sentenced to 30 months in federal prison, ordered to pay a $500 special assessment to the Federal Crime Victims Fund, and $163,969.37 in restitution.
Hymans was indicted for the charges by a federal grand jury August 20, 2020. She pleaded guilty on January 27, 2021. Hymans, in her capacity as a South Dakota licensed attorney, transferred unearned money from her client trust account – where she was required to hold it for the benefit of a client - to her own business and personal accounts, and then used the money for her personal benefit between February 2014 and January 2020.
“IRS-CI will continue to investigate those who take advantage of their position of trust while knowingly taking advantage of their clients,” said Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Hymans was ordered to self-surrender to the custody of the U.S. Marshals Service on August 24, 2021.
Former Roseville Firearms Dealer Sentenced to 4 Years in Prison for Using Peace Officers’ Identities to Obtain and Sell New Off-Roster FirearmsRead the Press Release
SACRAMENTO, Calif. — Joseph John Deaser IV, 51, of Arizona, was sentenced today to four years in prison for aggravated identity theft and the illegal sale of firearms by a federally licensed dealer in violation of state law, Acting U.S. Attorney Phillip A. Talbert announced.
Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, that permits licensed dealers to sell “off-roster” firearms, or firearms that do not appear on the approved roster, to sworn peace officers. Peace officers who own non-roster firearms may generally sell them to the public in a private sale, as long as the sale is brokered by a Federal Firearms Licensee.
According to court documents, Deaser was a federally licensed firearm dealer who owned and operated Capital Gun Club, a members-only gun club in Roseville, California. Between December 2014 and April 2018, Deaser circumvented California’s law by conducting at least 50 straw purchases of new off‑roster firearms using the names and personally identifiable information (PII) of six peace officers that he had obtained through legitimate firearm transactions. By falsely reporting sales to peace officers, Deaser obtained new “off-roster” firearms registered to peace officers that he then sold to members of his private gun club, who could not have otherwise purchased the firearms.
In order to complete many of the transactions, Deaser completed and signed federal and state firearm transaction forms that the purchaser was required to complete using an officer’s identity as the purchaser. Deaser also placed his finger print — almost always his middle finger — on the state firearm transaction forms in the box designated for the “Purchaser’s Right Thumb Print.”
Publicly, Deaser was an advocate for gun safety and universal background checks, who testified on several occasions before federal and state legislatures. In imposing the sentence, Judge Nunley found that Deaser had abused his position of trust as a Federally Licensed Firearms dealer and remarked, “I think it’s totally acceptable to, on the one hand, look at the things he’s done, but on the other hand, look at the life he was living behind the scenes. You know … on the one hand, he was … advocating for sensible gun laws before Congress, before local governments, before organizations, and on the other side of it, he was trying to circumvent those very same gun laws.”
“Firearms trafficking is a primary focus of ATF as one of the most pressing problems we face today,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “ATF’s strategy is multi-faceted and includes the inspection of licensed gun dealers, the identification/arrest of straw purchasers, and a greater intelligence-driven emphasis by identifying and targeting individuals responsible for organizing and directing illegal firearms trafficking operations in the United States. When criminal wrongdoing by a Federal Firearms Licensee (FFL) is suspected, the FFL will be thoroughly investigated. FFLs, as a whole, have the responsibility to ensure that firearms are not illegally diverted from lawful commerce. The vast majority who comply with the regulations suffer when a small number of corrupt FFLs threaten public safety by abusing the secondary market to obtain and sell firearms illegally for their own greed. ATF will continue to work alongside our law enforcement partners to ensure crimes of this nature are investigated and prosecuted.”
“Circumventing California law to illegally sell firearms by using the identities of peace officers in order to make a profit is a crime that violates the public’s trust and puts the safety of Californians at risk,” said California Attorney General Rob Bonta. “Successful cooperation with our law enforcement partners has put an end to this scheme and brought resolution to this case.”
Deaser was charged and pleaded guilty in May 2019.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the California Depart of Justice’s Bureau of Firearms. Assistant U.S. Attorneys Michael D. Anderson and Shelley D. Weger are prosecuting the case.
Former Member of Boston Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former leader of the Boston Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Angel Calderon, a/k/a “King Bam,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 10, 2021.
During the investigation, Calderon was identified as the Inca, or leader, of the Morton Street Bricks (MSB) Chapter of the Latin Kings. Named for the Morton Street housing project in Boston, the MSB Chapter included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. Additionally, Calderon conspired with members of the Latin Kings regarding the commission of criminal acts and discussed efforts to murder a rival gang member using poisoned narcotics, also known as a hotshot, in 2019.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Calderon is the 48th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Contractor Sentenced for Receiving Converted Government MoneyRead the Press Release
BOISE – Susan Mittleider, 55, of Kuna, Idaho, was sentenced in U.S. District Court for unlawfully receiving converted government money, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. Magistrate Judge Candy W. Dale ordered Mittleider to serve one year of probation and pay restitution to the Social Security Administration (SSA).
According to court records, in 2016, Mittleider completed a Social Security application for her half-brother who has been incarcerated at the South Dakota Department of Corrections since 1994, and is ineligible for parole until 2024. The No Social Security Benefits for Prisoners Act, however, generally prohibits the SSA from making social security payments to prisoners.
As a result, SSA incorrectly paid $19,180 in benefits to Mittleider’s half-brother before SSA realized the error. SSA then notified Mittleider and her half-brother via letter that the funds were incorrectly paid and that the funds needed to be returned to SSA. Mittleider and her half-brother, however, never attempted to return the funds or appeal SSA’s decision. Instead, even after receiving the letter, Mittleider directly received a portion of the funds that SSA had incorrectly paid to her half-brother and used the funds for her own benefit.
During the time that Mittleider applied for–and received–SSA benefits for her half-brother, she was employed as a federal contractor. As a result of this incident, her employment as a federal contractor was terminated.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Department of Justice–Office of Inspector General and the Social Security Administration–Office of Inspector General, which led to charges.
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Five Alleged Members of Altadena- and Duarte-Based Street Gangs Face Federal Firearms Charges Related to Shootout in OntarioRead the Press Release
LOS ANGELES – Five alleged members of street gangs based in Altadena and Duarte have been arrested on federal charges of being felons in possession of firearms or ammunition during a shootout in Ontario that investigators say was part of an ongoing dispute with a rival gang, the Justice Department announced today.
According to the affidavit in support of the criminal complaint, all five defendants used firearms during the February 17 incident, which occurred during a funeral party for a suspected member of the Altadena Bloc Crips (ABC). Investigators with the Ontario Police Department believe the shooting was the result of an attack by the Pasadena Denver Lane Bloods (PDL), which has been in a long-running gang war with ABC and its allies in the Duarte-based Duroc Crips, the affidavit states.
Surveillance video from the house where the shooting took place “showed that once the PDL members fired the initial shots, at least five subjects from the ABC funeral party ran from the home’s backyard into the front yard and began firing recklessly toward the unidentified PDL members,” according to the affidavit by an ATF special agent, which notes that bullets struck several homes and vehicles in the neighborhood.
The defendants charged in the criminal complaint, all suspected members of the ABC or Duroc Crips gangs, are:
- Tristan Jon Taylor, 32, of Ontario, who was arrested Wednesday on a charge of illegally possessing a .38 special revolver;
- Daniel Corey Roach, 41, of Altadena, who was arrested Wednesday on a charge of illegal possession of ammunition;
- Dejon Thomas Nunley Sr., 32, of Adelanto, who was arrested Monday on a charge of illegally possessing a 9mm handgun;
- Lionel Roberts, 32, of Altadena, who was arrested Wednesday on a charge of illegally possessing a small revolver and is expected to make his first court appearance later today; and
- Shawn Terrell Lyndolph, 30, of Rialto, who was arrested Wednesday on a charge of illegally possessing a semiautomatic handgun.
During court appearances on the day of their arrests, Lyndolph was ordered held without bond, Taylor was ordered jailed pending a detention hearing scheduled for August 10, and both Roach and Nunley were released on bond. Arraignments for the defendants in this case are scheduled for later this month.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charge of felon in possession of a firearm or ammunition carries a statutory maximum sentence of 10 years in federal prison.
This case is the product of a joint investigation between ATF and the Ontario Police Department. The United States Marshals Service provided substantial assistance.
The investigation used intelligence developed by the Los Angeles Crime Gun Intelligence Center and the National Integrated Ballistics Information Network (NIBIN). NIBIN is the only national network that allows the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
NIBIN, which is used to link incidents by determining when there is a common firearm, produced multiple intelligence leads during this investigation. The affidavit states that NIBIN linked multiple shooting incidents between October 2020 and the February shoutout, including homicides in Ontario and San Bernardino. As of now, all the incidents are the subjects of open and active investigations, according to the affidavit.
Assistant United States Attorneys John A. Balla and Peter H. Dahlquist of the Riverside Branch Office are prosecuting this case.
The ongoing federal investigation is part of the Firearms Trafficking Strike Force launched last month by the Department of Justice.
Federal Judge Sentences Former Waxhaw, N.C. Resident to 33 Months for Orchestrating an $845,000 Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Kamlesh Gopal Pardasani, 50, formerly of Waxhaw, N.C., was sentenced today to 33 months in prison for orchestrating an $845,000 investment scheme, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad also ordered Pardasani to serve three years of supervised release and to pay $880,000 in restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s court proceedings, from August 2016 to June 2017, Pardasani executed a scheme to defraud at least seven victims of at least $845,000, by inducing the victims to invest in his company, FreightGuru.com LLC (FreightGuru). Court documents show that Pardasani induced his victims to invest their money by falsely representing that he would use the investors’ money to fund a specific shipment of goods, and that, once the shipment cleared, the victims’ return rate on their initial investment would be between 15% and 20%. Pardasani further lied to victims by falsely assuring them that their funds were secure and safe, when in fact he used the victims’ money to fund his lifestyle, pay off personal creditors, and to engage in high-risk securities trading in his personal trading account. After failing to invest the victims’ funds as promised, Pardasani continued to make additional false and fraudulent representations to lull victims and provided excuses for failing to return the victims’ money.
Pardasani was arrested in January 2020, at the Philadelphia International Airport upon entering the United States from India. In July 2020, Pardasani pleaded guilty to wire fraud.
The FBI’s Charlotte Field Office led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fairmont man admits to his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nathaniel Lee Williams, of Fairmont, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Williams, also known as “Sticks,” 63, pleaded guilty today to one count of “Possession with Intent to Distribute Five Grams or more of Methamphetamine.” Williams admitted to having 37.43 grams of methamphetamine, also known as “crystal” or “ice,” in August 2018 in Marion County. As a part of the plea agreement, Williams also admitted that he sold more than a half of a gram of fentanyl during three separate buys in July 2020.
Williams faces at least five and up 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-detroit-residents-indicted-drug-trafficking-operation
Fairmont Man Found Guilty of Four Robberies in Robeson CountyRead the Press Release
NEW BERN, N.C. – A Fairmont man was found guilty today of four counts of Hobbs Act robbery, four counts of Brandishing a Firearm in Furtherance of a Crime of Violence, and one count of Possession of a Firearm by a Convicted Felon.
According to court documents and other information presented in court, Frank Giles McCree, 34, was accused of a series of robberies in Robeson County. During the month of June, 2016, three different Family Dollar stores and one Dollar General store were robbed at gun point. In each of the robberies, the robber wore a Jamaican style beanie, a wig of fake dreadlocks and a dark hooded sweatshirt. The robber would wait until the cash drawer was opened by a clerk and then would brandish a firearm. Using threats to shoot or kill the clerks, the robber would steal the entire drawer from the cash registers and demand the clerks open the safes, from which he would also steal money. During two of the robberies, he also stole the stores phone to make it more difficult for the victims to contact law enforcement.
On June 29, 2016, Frank McCree was the passenger in a car that was pulled over for a traffic violation. The car also matched the description of a car leaving the scene of the first Family Dollar robberies. When law enforcement spoke to the driver and the defendant, law enforcement noticed a dreadlock wig in the glove compartment. McCree and the driver were removed from the car. In the middle of the passenger floorboard, at McCree’s feet, was a loaded, .40 Hi-Point Firearm. Also located in the car was the distinct Jamaican style beanie worn by the robber.
McCree made a phone call from the Robeson County jail to a family member asking them to get in touch with his girlfriend to get rid of something under her bed. When law enforcement went to her home, they found a Family Dollar bag with change in it, in bank rolls consistent with how the Family Dollar would get coins from the bank.
In an interview, McCree admitted possession of the firearm and said he had borrowed it from a friend for protection. McCree will be sentenced during the November 9, 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco and Firearms, Rowland Police Department, Maxton Police Department, Robeson County Sheriff’s Office, and St. Pauls Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
This case is also 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. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:17-cr-00134-FL-1