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Friday 4 June 2021
Lawrence Man Pleads Guilty to Identity Fraud ChargesRead the Press Release
BOSTON – A Lawrence man who has been living under a false identity pleaded guilty today in federal court in Boston to charges arising from his use of the name and Social Security number of a U.S. citizen.
An individual referred to as “John Doe” pleaded guilty to false representation of a Social Security number, making a false statement concerning a health care benefit program and aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 30, 2021. Doe was indicted by a federal grand jury in June 2020.
Beginning in approximately 2014, Doe used the identity of a U.S. citizen to apply for MassHealth benefits and Massachusetts identification documents, among other things. Between approximately 2014 and 2018, Doe received approximately $25,081 in MassHealth benefits that he was not entitled to.
The charges of false representation of a Social Security number and making a false statement concerning a health care benefit program each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Mackenzie Duane and Benjamin Saltzman of Mendell’s Major Crimes Unit are prosecuting the case.
Laurel County Woman Indicted for COVID Relief FraudRead the Press Release
LONDON, Ky. - A Corbin, Ky., woman has been indicted for a scheme to commit COVID relief fraud and identity theft.
A federal grand jury in London returned an indictment charging 35-year-old Karenda Vaughn with fraudulently obtaining funds from Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), which are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The indictment alleges that, beginning on April 30, 2020 and through March 23, 2021, Vaughn created a fake business entity, Vaughn Outdoor, and submitted numerous fraudulent applications for EIDL proceeds, making numerous false statements about the business. The indictment also alleges that Vaughn used a stolen identity and personal identifying information to create another fake business entity, Josh’s Nature Cure, and then sought and obtained fraudulent EIDL proceeds.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Treasury Inspector General for Tax Administration. The case is being handled by Assistant U.S. Attorney Kate Smith.
On the fraud charges, Vaughn faces up to 20 years in prison and a fine of no more than $250,000. On the identity theft charge, she faces a mandatory, consecutive two-year sentence. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Latvian National Charged for Alleged Role in Transnational Cybercrime OrganizationRead the Press Release
A Latvian national was arraigned in federal court in Cleveland, Ohio, today on multiple charges stemming from her alleged role in a transnational cybercrime organization responsible for creating and deploying a computer banking trojan and ransomware suite of malware known as “Trickbot.”
Alla Witte, aka Max, 55, is charged in 19 counts of a 47-count indictment, which accuses her of participating in a criminal organization referred to as the “Trickbot Group,” which deployed the Trickbot malware. The Trickbot Group operated in Russia, Belarus, Ukraine, and Suriname, and primarily targeted victim computers belonging to businesses, entities, and individuals, including those in the Northern District of Ohio and elsewhere in the United States. Targets included hospitals, schools, public utilities, and governments. Witte, who previously resided in Paramaribo, Suriname, was arrested on Feb. 6, in Miami, Florida.
“This indictment demonstrates the strategic approach and broad reach of the Department of Justice’s Ransomware and Digital Extortion Task Force,” said Deputy Attorney General Lisa O. Monaco. “Trickbot infected millions of victim computers worldwide and was used to harvest banking credentials and deliver ransomware. The defendant is accused of working with others in the transnational criminal organization to develop and deploy a digital suite of malware tools used to target businesses and individuals all over the world for theft and ransom. These charges serve as a warning to would-be cybercriminals that the Department of Justice, through the Ransomware and Digital Extortion Task Force and alongside our partners, will use all the tools at our disposal to disrupt the cybercriminal ecosystem.”
“The Trickbot malware was designed to steal the personal and financial information of millions of people around the world, thereby causing extensive financial harm and inflicting significant damage to critical infrastructure within the United States and abroad,” said Acting U.S. Attorney Bridget M. Brennan of the Northern District of Ohio. “Federal law enforcement, along with assistance provided by international partners, continue to fight and disrupt ransomware and malware where feasible. We are united in our efforts to hold transnational hackers accountable for their actions.”
“Witte and her associates are accused of infecting tens of millions of computers worldwide, in an effort to steal financial information to ultimately siphon off millions of dollars through compromised computer systems,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Cyber intrusions and malware infections take significant time, expertise, and investigative effort, but the FBI will ensure these hackers are held accountable, no matter where they reside or how anonymous they think they are.”
The indictment alleges that beginning in November of 2015, Witte and others stole money and confidential information from unsuspecting victims, including businesses and their financial institutions in the United States, United Kingdom, Australia, Belgium, Canada, Germany, India, Italy, Mexico, Spain, and Russia through the use of the Trickbot malware.
Witte and her co-conspirators allegedly worked together to infect victim computers with the Trickbot malware designed to capture online banking login credentials and harvest other personal information, including credit card numbers, emails, passwords, dates of birth, social security numbers and addresses. Witte and others also allegedly captured login credentials and other stolen personal information to gain access to online bank accounts, execute unauthorized electronic funds transfers and launder the money through U.S. and foreign beneficiary accounts.
According to the indictment, Witte worked as a malware developer for the Trickbot Group and wrote code related to the control, deployment, and payments of ransomware. The ransomware informed victims that their computer was encrypted and that they would need to purchase special software through a Bitcoin address controlled by the Trickbot Group to decrypt their files. In addition, Witte allegedly provided code to the Trickbot Group that monitored and tracked authorized users of the malware and developed tools and protocols to store stolen login credentials.
Witte is charged with one count of conspiracy to commit computer fraud and aggravated identity theft; one count of conspiracy to commit wire and bank fraud affecting a financial institution; eight counts of bank fraud affecting a financial institution; eight counts of aggravated identity theft and one count of conspiracy to commit money laundering. The defendant was arraigned before U.S. Magistrate Judge William H. Baughman, Jr. of the U.S. District Court for the Northern District of Ohio. If convicted, she faces a maximum penalty of five years in prison for conspiracy to commit computer fraud and aggravated identity theft; 30 years in prison for conspiracy to commit wire and bank fraud; 30 years in prison for each substantive bank fraud count; a two-year mandatory sentence for each aggravated identity theft count, which must be served consecutively to any other sentence; and 20 years in prison for conspiracy to commit money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Cleveland Office investigated the case.
Senior Counsel C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Daniel J. Riedl and Duncan T. Brown of the Northern District of Ohio are prosecuting the case.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Latvian National Charged for Alleged Role in Transnational Cybercrime OrganizationRead the Press Release
A Latvian national was arraigned in federal court in Cleveland, Ohio, today on multiple charges stemming from her alleged role in a transnational cybercrime organization responsible for creating and deploying a computer banking trojan and ransomware suite of malware known as “Trickbot.”
Alla Witte, aka Max, 55, is charged in 19 counts of a 47-count indictment, which accuses her of participating in a criminal organization referred to as the “Trickbot Group,” which deployed the Trickbot malware. The Trickbot Group operated in Russia, Belarus, Ukraine, and Suriname, and primarily targeted victim computers belonging to businesses, entities, and individuals, including those in the Northern District of Ohio and elsewhere in the United States. Targets included hospitals, schools, public utilities, and governments. Witte, who previously resided in Paramaribo, Suriname, was arrested on Feb. 6, in Miami, Florida.
“This indictment demonstrates the broad reach of the Department of Justice’s Ransomware and Digital Extortion Task Force,” said Deputy Attorney General Lisa O. Monaco. “Trickbot infected millions of victim computers worldwide and was used to harvest banking credentials and deliver ransomware. The defendant is accused of working with others in the transnational criminal organization to develop and deploy a digital suite of malware tools used to target businesses and individuals all over the world for theft and ransom. These charges serve as a warning to would-be cybercriminals that the Department of Justice, through the Ransomware and Digital Extortion Task Force and alongside our partners, will use all the tools at our disposal to disrupt the cybercriminal ecosystem.”
“The Trickbot malware was designed to steal the personal and financial information of millions of people around the world, thereby causing extensive financial harm and inflicting significant damage to critical infrastructure within the United States and abroad,” said Acting U.S. Attorney Bridget M. Brennan of the Northern District of Ohio. “Federal law enforcement, along with assistance provided by international partners, continue to fight and disrupt ransomware and malware where feasible. We are united in our efforts to hold transnational hackers accountable for their actions.”
“Witte and her associates are accused of infecting tens of millions of computers worldwide, in an effort to steal financial information to ultimately siphon off millions of dollars through compromised computer systems,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Cyber intrusions and malware infections take significant time, expertise, and investigative effort, but the FBI will ensure these hackers are held accountable, no matter where they reside or how anonymous they think they are.”
The indictment alleges that beginning in November 2015, Witte and others stole money and confidential information from unsuspecting victims, including businesses and their financial institutions in the United States, United Kingdom, Australia, Belgium, Canada, Germany, India, Italy, Mexico, Spain, and Russia through the use of the Trickbot malware.
Witte and her co-conspirators allegedly worked together to infect victim computers with the Trickbot malware designed to capture online banking login credentials and harvest other personal information, including credit card numbers, emails, passwords, dates of birth, social security numbers and addresses. Witte and others also allegedly captured login credentials and other stolen personal information to gain access to online bank accounts, execute unauthorized electronic funds transfers and launder the money through U.S. and foreign beneficiary accounts.
According to the indictment, Witte worked as a malware developer for the Trickbot Group and wrote code related to the control, deployment, and payments of ransomware. The ransomware informed victims that their computer was encrypted, and that they would need to purchase special software through a Bitcoin address controlled by the Trickbot Group to decrypt their files. In addition, Witte allegedly provided code to the Trickbot Group that monitored and tracked authorized users of the malware and developed tools and protocols to store stolen login credentials.
Witte is charged with one count of conspiracy to commit computer fraud and aggravated identity theft; one count of conspiracy to commit wire and bank fraud affecting a financial institution; eight counts of bank fraud affecting a financial institution; eight counts of aggravated identity theft and one count of conspiracy to commit money laundering. The defendant was arraigned before U.S. Magistrate Judge William H. Baughman Jr. of the U.S. District Court for the Northern District of Ohio. If convicted, she faces a maximum penalty of five years in prison for conspiracy to commit computer fraud and aggravated identity theft; 30 years in prison for conspiracy to commit wire and bank fraud; 30 years in prison for each substantive bank fraud count; a two-year mandatory sentence for each aggravated identity theft count, which must be served consecutively to any other sentence; and 20 years in prison for conspiracy to commit money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Cleveland Office investigated the case.
Senior Counsel C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Daniel J. Riedl and Duncan T. Brown of the Northern District of Ohio are prosecuting the case.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Woman Sentenced on Bank Fraud, Aggravated Identify Theft ChargesRead the Press Release
ABINGDON, Va. – A Clay City, Kentucky woman, who along with two other individuals stole checks and identification documents and committed bank fraud and aggravated identify theft, was sentenced on Thursday to 39 months in federal prison.
Anica Maire Santiago, 34, pleaded guilty in May 2021 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Co-defendants Cregg Mitchell-Feazell and Patricia Butcher have both pleaded guilty and will be sentenced next month.
According to court documents, on May 24, 2020, at the Iron Furnace Trailhead in Lee County, members of the conspiracy broke into several vehicles and stole personal items, including identification documents, Social Security cards, and personal checks. Four days later, the defendants took one of the stolen checks to a drive-through lane at a Commercial Bank in Newport, Tennessee. The check was fraudulently made out to one of the victims of the previously thefts. Butcher produced the fraudulent check and a stolen state-issued photo ID to the bank teller, who cashed the check for $935.
The group used the stolen checks and IDs several other times to cash fraudulent checks. These events were also part of a larger organized scheme involving other break-ins at other locations, other thefts of checkbooks and identification documents, and the cashing of other fraudulent checks.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The National Park Service, with assistance from the Jacksboro, Tennessee Police Department; the Campbell County, Tennessee Sheriff’s Office; the Fentress County, Tennessee Sheriff’s Office; and the Cookeville, Tennessee Police Department investigated the case.
Assistant U.S. Attorneys Whit D. Pierce and Randy Ramseyer prosecuted the case.
Justice Department Resolves ADA Complaint with Maine Department of Health and Human ServicesRead the Press Release
The Justice Department today reached an agreement with the Maine Department of Health and Human Services (DHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
A young man with intellectual disabilities (ID) filed a complaint with the Justice Department alleging that Maine imposed restrictions that placed him at serious risk of having to move from his own home into a congregate setting in order to receive the services he needs. Congregate settings are multi-person homes or facilities where residents receive needed services. This agreement will help ensure that Mainers with ID and autism can receive the personal assistance they need in their own homes.
While Maine’s Medicaid program allows unlimited personal assistance services for people living in congregate settings, the state’s community service program for people with ID and autism limits those same services when they are provided in a person’s own home. As a result, people with disabilities who need more personal assistance, like the young man who filed the complaint, may be forced to leave their homes and move to a segregated setting.
“The ADA requires states to provide disability services in the most integrated setting appropriate,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This often means ensuring that people with disabilities can receive services in their own homes rather than in congregate settings. The Civil Rights Division will vigorously enforce the ADA to avoid unnecessary segregation of people with disabilities and ensure their full integration into the community.”
“We appreciate Maine DHHS’s cooperation with the department’s investigation,” said Acting U.S. Attorney Donald E. Clark for the District of Maine. “The settlement agreement ensures that this young man, and other Mainers with disabilities, will be able to obtain needed services in their own homes.”
After receiving the complaint, the department opened an investigation under the ADA. Maine fully cooperated with the Justice Department’s investigation. In February 2020, the department issued a letter of findings concluding that Maine was failing to provide the complainant with necessary services in the most integrated setting appropriate to his needs, which is his own home, thus placing him at serious risk of having to enter a congregate setting. The department also found that Maine had failed to modify its service program for people with ID and autism to avoid discrimination.
Under the agreement reached today, Maine will modify its policies so that people with ID or autism can receive services in the most integrated setting appropriate to their needs. For example, DHHS will implement a process for granting exceptions to its cap on services provided in one’s own home. DHHS will also establish an individualized process for people to assess their options of where they want to live and receive services. For the complainant, DHHS will provide access to all needed in-home services and pay $100,000 in damages.
Judges sentences Cape Girardeau man for possessing firearmRead the Press Release
CAPE GIRARDEAU – United States District Judge Matthew T. Schelp sentenced Garrick B. Madison to 57 months in prison today. The 25-year-old Cape Girardeau, Missouri resident pleaded guilty, in February, to one count of being a felon in possession of a firearm.
On June 7, 2020, an officer with the Sikeston Department of Public Safety made a traffic stop on a vehicle for having a defective license plate lamp. Madison was a passenger in the vehicle. During a consent search of the vehicle, the officer located a black Remington pistol concealed underneath the passenger seat where Madison was sitting. The officer asked the occupants who the gun belonged to. At this point, Madison turned around and placed his hands behind his back and began walking toward the officer. The officer took this as a non-verbal admission that the gun belonged to Madison.
Madison’s criminal history includes felony convictions for Unlawful Use of a Weapon and Resisting Arrest by Fleeing in Scott County, Missouri, and he is therefore prohibited from possessing firearms.
This case was investigated by the Sikeston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Julie Hunter handled the prosecution.
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Jacksonville Woman Pleads Guilty to Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – Zipporan Carmel Peters (32, Jacksonville) has pleaded guilty to aggravated identity theft and conspiracy to commit bank fraud. Peters faces up to 30 years in federal prison on the conspiracy to commit bank fraud charge, a 2-year mandatory minimum term of imprisonment on the aggravated identity theft charge, and payment of restitution to the victims she and her co-defendant, Charles Cornelius Smith, defrauded. A sentencing date has not yet been set.
According to court documents, Smith obtained the personal identification information, including the name, date of birth, and Social Security number of a victim. Using this information, Smith provided Peters with a counterfeit South Carolina driver license using the name and identity of the victim, but with Peters’ photo on it. Smith then drove Peters to different branches of the Navy Federal Credit Union in Clay and Duval Counties. Using the victim’s identity, Peters made various fraudulent transactions involving the withdrawal of large amounts of cash and the purchase of multiple $500 gift cards, utilizing the victim’s account. Smith and Peters also visited multiple cellphone stores in Clay and Duval Counties and used the victim’s identity to obtain several thousand dollars’ worth of cellphones and accompanying merchandise.
On May 27, 2021, U.S. District Judge Brian J. Davis sentenced Charles Cornelius Smith (35, Jacksonville) to five years in federal prison for aggravated identity theft and conspiracy to commit bank fraud. The court also ordered Smith to pay restitution to the victims he and Peters defrauded.
This case was investigated by United States Secret Service (Jacksonville Field Office), the Clay County Sheriff’s Office, and the Orange Park Police Department. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Jackson Man Pleads Guilty to Telemarketing FraudRead the Press Release
Jackson, Miss. – Jarvis Kendal Haynes, 30, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to conspiracy to commit wire fraud, mail fraud and bank fraud as part of a tech support telemarketing scheme, announced Acting United States Attorney Darren J. LaMarca and Jack P. Staton, Acting Special Agent in Charge of Homeland Security Investigations, New Orleans Field Office.
An original indictment naming ten defendants in the United States and abroad, returned by a federal grand jury on March 19, 2019, charged Haynes with acts supporting a conspiracy defrauding multiple victims, as part of an international tech support and telemarketing fraud scheme.
According to the indictment and testimony in court, beginning no later than on or about January 10, 2015, and continuing through on or about December 20, 2018, Haynes conspired with nine other defendants, located both across the United States and in India, to commit the federal offenses of wire fraud, mail fraud, and bank fraud, in addition to offenses of money laundering, aggravated identity theft, and passing fictitious obligations.
As stated in court documents and testimony in open court, Haynes assisted leaders of a fraud ring which sent tech support emails or telephone messages wrongly advising consumers that their computers were infected with malware or otherwise compromised, offering for a price to help free their computers. Once given permission to access victims’ computers, conspirators either in the United States or abroad would help themselves to personal identification information and bank account passwords from their victims’ computers.
Haynes specifically aided the conspirators by incorporating a company called Rapid Race Experts LLC, and opening bank accounts for the business. Conspirators would then use the business name and the bank accounts to transfer and remove money obtained from victims during the scam.
“Fraud schemes, like the ones perpetrated and executed by these defendants, inflict considerable loss on citizens, companies, and the financial system,” said Acting U.S. Attorney Darren LaMarca. “Many of these schemes target the elderly and often steal the victims’ entire life savings. These arrests affirm the Department of Justice’s commitment to prosecuting those who prey on our most vulnerable citizens.”
Haynes pled guilty to conspiracy to commit wire fraud, mail fraud, and bank fraud, admitting to his role in the fraud scheme financial operations. He will be sentenced by Judge Jordan on September 21, 2021.
Haynes faces maximum penalties for the wire fraud conspiracy of 20 years in prison and a fine of up to $250,000. If the Court finds applicable the Senior Citizens Against Marketing Scams Act (“SCAM Act”), then Haynes’s maximum penalty could extend up to thirty (30) years.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with HSI’s Jackson Division who investigated the case, and United States Marshals Service who assisted with the arrest of the defendant. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Jackson Man Pleads Guilty to Bank RobberyRead the Press Release
Jackson, Miss. – A Jackson man pled guilty in U.S. District Court yesterday to robbing a local bank, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Richard Dewayne Jiles, 42, robbed the Trustmark Bank on Medgar Evers Boulevard in Jackson on December 3, 2020. Jiles entered the Trustmark Bank and handed the teller a note stating that she would die if she did not give him $5,000. Law enforcement officers learned from Crimestoppers tips and witness statements that Jiles was the person who robbed the bank. Jiles was arrested in Rankin County after crashing into another vehicle. He was indicted by a federal grand jury on February 9, 2021.
Jiles pled guilty and is scheduled to be sentenced on September 17, 2021. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case.
Assistant U.S. Attorney Chris Wansley is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Internal Revenue Service Agent Pleads Guilty to Identity Theft and Wire FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Bryan Cho, also known as “Yong Hee Cho,” a Special Agent with Internal Revenue Service Criminal Investigation, pleaded guilty to wire fraud and aggravated identity theft in connection with a scheme to create false identification documents and passports using the stolen identity of the former subject of an IRS investigation. The proceeding took place before United States District Judge Ann M. Donnelly. When sentenced, Cho faces up to 22 years in prison and has agreed to forfeit $394,374.63.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), announced the guilty plea.
According to court filings and facts presented during the plea proceeding, Cho stole the identity of a former subject in one of his investigations and used it to create fake identification documents in the person’s name. The false documents included purported identification cards and passports from the Republic of Marshall Island, Philippines and the Republic of Guinea Bissau. Some of the documents, including identification cards from the Philippines and the Republic of Guinea Bissau, featured Cho’s picture. One false identification document was used by Cho to register a corporation overseas in the name of the suspect. Cho then lied during an official background investigation when he failed to disclose this conduct and denied having any aliases or foreign interests.
“The defendant shamelessly violated his oath of office, and now he will pay the price for his criminal conduct,” stated Acting United States Attorney Lesko. “While the vast majority of federal law enforcement agents honor the trust placed in them by the public, today’s plea serves as a reminder that this Office will prosecute corrupt agents who abuse their positions for their personal benefit.”
“TIGTA aggressively investigates Internal Revenue Service employees who violate the public’s trust,” stated Treasury Inspector General for Tax Administration George. “Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration, and we are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law.”
Cho faces up to 20 years’ imprisonment on the wire fraud count and a mandatory consecutive sentence of two years’ imprisonment on the aggravated identity theft count.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Elizabeth Geddes and Turner Buford are in charge of the prosecution.
The Defendant:
BRYAN CHO (also known as “Yong Hee Cho”)
Age: 49
New York, New YorkE.D.N.Y. Docket No. 21-CR-40 (AMD)
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 4 was:
Jared Robert Williams, 41, of Bozeman, and Marty Eugene McDonald, 62, of Amsterdam, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Williams and McDonald were detained pending further proceedings. The Missouri River Drug Task Force, FBI, Bozeman Police Department, Montana Probation and Parole and Montana Highway Patrol investigated the case. PACER case reference. 21-20.
Appearing on June 2 was:
Max Dudley Stilson, 57, of Belgrade, and Arthur Ronald Kane, 51, of Belgrade, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Stilson and Kane were detained pending further proceedings. The Missouri River Drug Task Force, FBI, Bozeman Police Department, Montana Probation and Parole and Montana Highway Patrol investigated the case. PACER case reference. 21-20.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 1 was:
Charles Dean Fourbear II, 28, of Poplar, on charges of stalking. If convicted of the most serious crime, Fourbear faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Fourbear was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-32.
Joseph Young Lodgepole, 41, of Box Elder, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Lodgepole faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Lodgepole was released pending further proceedings. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 21-34.
Brandon Wayne Glover, 38, of Havre, on charges of possession with intent to distribute controlled substances, distribution of meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Glover faces a mandatory minimum 10 years to life in prison a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory consecutive five years in prison, a $250,000 fine and three years of supervised release on the charge of possession of a firearm in furtherance of a drug trafficking crime. Glover was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Havre Police Department and Tri-Agency Task Force investigated the case. PACER case reference. 21-33.
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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Indiana Woman Convicted of Conspiracy to Commit Mail Fraud, Wire Fraud, and Money Laundering in Advance-Fee Fraud Scheme Targeting Deaf and ElderlyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 2, 2021, Donna L. Summerlin, age 62, of Fortville, Indiana, was convicted following a seven-day jury trial held before United States District Court Judge Jennifer P. Wilson of conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering.
According to Acting United States Attorney Bruce D. Brandler, Summerlin was charged with accepting over $1.2 million from victims of cross-border advance-fee schemes. Many of the identified victims were either elderly, deaf, or both. In these schemes, victims were contacted through Facebook and told that they were winners of a “deaf lottery” or that they had been selected for special and exclusive government grants or other programs. Summerlin herself is deaf and the trial used multiple sign language interpreters to interpret the witness testimony and court proceedings.
In order to claim their supposed prize, grant, or other financial reward, victims were directed to prepay expenses such as taxes and customs fees. Victims were persuaded to do so with the false promise of a much larger payoff. After making an initial payment, victims were directed to make additional larger payments. In some cases, fraudsters were successful at getting multiple payments from victims, who never received any financial reward.
Fraudsters contacting potential victims through Facebook, email, and text messages used fake names and photographs to disguise themselves. These fraudsters also took over the accounts of victims so that they could lure their friends into sending money and to reassure them of the scheme’s legitimacy when victims had doubts about participating. Victims were instructed to send these payments to Summerlin, who worked as a “money mule” or intermediary for these fraudsters for approximately four years, from 2012 to 2016.
At trial, the Government showed that Summerlin received over $1.2 million from over 100 people across the country and, in some cases, other countries such as Canada and Australia. Victims mailed Summerlin checks, cash, and money orders. They also wired her funds through bank-to-bank electronic wire transfers and sent her money through Western Union and MoneyGram money transfers. The victims included a deaf elderly couple that resided in this District during the time period of the conspiracy. The Government showed that this couple sent Summerlin around $500,000, depleting their life savings.
After receiving these funds, Summerlin rapidly withdrew them from the more than 40 bank accounts she used for these activities. Typically, she wired a portion of the funds to coconspirators in Nigeria and Great Britain. She also made large cash withdrawals, which were used to send funds to coconspirators and for personal use. Finally, she sent a large number of Western Union and MoneyGram money transfers to many of the same recipients in Nigeria and Great Britain. Evidence at trial showed that Summerlin benefited financially from this scheme.
The jury returned a guilty verdict after approximately an hour of deliberation. Summerlin was convicted of both counts in her indictment: one count of conspiring to commit mail fraud and wire fraud and one count of conspiracy to commit money laundering.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorneys Ravi Romel Sharma and Carlo D. Marchioli represented the United States at trial. The case was previously handled by Assistant U.S. Attorneys Chelsea Schinnour and Kim Douglas Daniel.
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 these offenses are 20 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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Independence Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri man who fled from law enforcement officers several times on a four-wheeler was sentenced in federal court today for illegally possessing a firearm.
Cody R. Wilkins, 29, was sentenced by U.S. District Judge Brian C. Wimes to eight years in federal prison without parole.
On Oct. 22, 2020, Wilkins pleaded guilty to being a felon in possession of a firearm. According to court documents, Wilkins was identified as a drug dealer in February 2019 and law enforcement officers executed a search warrant at his residence. Officers found a stolen, loaded Springfield Armory handgun, marijuana, pills, pipes, and methamphetamine in his bedroom.
After he was indicted by the federal grand jury in this case, law enforcement officers made several attempts to arrest Wilkins on the existing warrant. In each attempt, according to court documents, Wilkins fled in a dangerous manner.
On Sept. 19, 2019, after officers attempted to arrest him, he failed to stop the four-wheeler he was driving and fled at a high rate of speed off a roadway and down a walking path. Officers used a drone to follow him, but even the drone could not keep up with Wilkins given the speed he was traveling. On Sept. 23, 2019, officers again attempted to arrest Wilkins while he was a passenger in a truck. Instead of stopping, the vehicle fled the scene and the pursuit was terminated due to safety concerns. Later that day, Wilkins was spotted driving the four-wheeler and officers again attempted to stop him, but he fled. Wilkins eluded capture by traveling at a high rate of speed on public streets and through a city park.
On Sept. 27, 2019, officers again attempted to stop Wilkins while he was on the four-wheeler. A law enforcement helicopter assisted the officers on the ground as they attempted to locate him. During the pursuit, Wilkins refused to stop and continued fleeing, driving at a high rate of speed into opposing lanes of traffic. He entered a cemetery, where he lost control of the four-wheeler and was thrown from it. Wilkins then fled on foot and entered a nearby apartment building, where he broke into an occupied unit. The residents notified law enforcement that Wilkins had broken into their apartment. Officers responded to the unit and Wilkins attempted to close the door to prevent officers from arresting him, however, officers were able to enter the apartment and arrest Wilkins. During the pursuit, a local high school in the area had to be placed on lockdown for safety concerns.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wilkins has a significant criminal history. Wilkins was arrested 32 different times between 2011 and 2019, which resulted in five felony convictions and 14 misdemeanor convictions. Wilkins’s felony convictions include tampering with a motor vehicle, two convictions for possession of a controlled substance, and two convictions for aggravated stalking. In the aggravating stalking cases, he threatened law enforcement officers’ lives on multiple occasions. Wilkins’s misdemeanor convictions include domestic assault, resisting arrest, traffic violations, possession of a controlled substance, careless driving, and leaving the scene of an accident. The misdemeanor domestic assault conviction resulted from a violent attack on his girlfriend where he grabbed, struck, and threw her down multiple times.
This case was prosecuted by Assistant U.S. Attorney Matt Moeder. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Illegal Alien Sentenced for Unlawful Reentry into the United States and for Being a Convicted Alien Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Cecilio Gonzalez-Espino, 31, has been sentenced to 30 months in federal prison for unlawful reentry into the United States and for illegally possessing a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on August 11, 2020, in Memphis, agents with the U.S. Immigration and Customs Enforcement located the defendant with a loaded firearm in his vehicle. On August 20, 2020 Gonzalez-Espino was indicted for being an alien in possession of a firearm and illegally reentering the United States after removal.
Gonzalez-Espino is a convicted felon, having previously been convicted of multiple felony methamphetamine charges in 2011 in California. As a result of his prior conviction and alien status, he is prohibited by federal law from possessing firearms or ammunition.
"HSI works to keep our communities safe by removing violent criminals and deadly weapons from our streets," said Jerry C. Templet, Jr, special agent in charge, HSI Nashville.
On June 2, 2021, U.S. District Judge Mark Norris sentenced Gonzalez-Espino to 30 months imprisonment to be followed by three years’ supervised release. There is no parole in the federal system. He also faces deportation after completion of his sentence of confinement.
This case was investigated by Homeland Security Investigations (HSI).
Assistant U.S. Attorney Scott Smith prosecuted this case on behalf of the government.
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Harrison County woman sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nikoma L. Knight, of Clarksburg, West Virginia, was sentenced today to 132 months of incarceration for her involvement in distributing drugs, Acting U.S. Attorney Randolph J. Bernard announced.
Knight, age 25, pleaded guilty in January 2019 to one count of “Conspiracy with Intent to Distribute Greater than 500 grams of Methamphetamine” and one count of “Unlawful Use of Communication Facility.” She admitted to working with another to distribute more than 500 grams of methamphetamine and using a phone to distribute methamphetamine in June 2018 in Monongalia County. During a search at her residence, officers found approximately 10 pounds of methamphetamine, a half pound of heroin, $57,442 in cash, and twelve firearms.
Assistant U.S. Attorney Brandon S. Flower prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Former University of Louisville Coach Pleads Guilty to ExtortionRead the Press Release
LOUISVILLE, KY – A North Carolina man pleaded guilty today to making an interstate communication with intent to extort.
According to court documents, Dino J. Gaudio, 64, of Mooresville, North Carolina, was arraigned and pleaded guilty to sending a text message through interstate commerce as part of an attempt to extort the University of Louisville men’s basketball program.
During the plea hearing in federal court, Gaudio admitted that on March 17, 2021, after he was informed that his employment contract with the University of Louisville would not be renewed, he threatened to report to the media that the University of Louisville men’s basketball program had allegedly violated National College Athletic Association rules in its production of recruiting videos for prospective student-athletes and in its use of graduate assistants in practices, unless he was paid his salary of $25,000 a month for an additional 17 months, or received a lump sum payment of $425,000. Later the same day, as a continuation of this threat, Gaudio sent a text message to University of Louisville personnel containing one of the recruiting videos he was threatening to send to the media.
The crime Gaudio pleaded guilty to carries a maximum sentence of two years imprisonment and a $250,000 fine. Gaudio is scheduled to be sentenced on August 27th at 1:30 p.m.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge of the Federal Bureau of Investigation (FBI) Louisville Field Office James Robert Brown, Jr. made the announcement.
The FBI and the University of Louisville Police Department are investigating the case.
Assistant U.S. Attorney Amanda E. Gregory is prosecuting the case.
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Former Resident of Newfields Pleads Guilty to Destruction of Government PropertyRead the Press Release
CONCORD - Dwayne Grim, 52, formerly of Newfields, pleaded guilty in federal court on Thursday to destruction of government property, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the fall of 2016, U.S. Department of Agriculture Forest Service Law Enforcement Officers working in the Pemigewasset Ranger district of the White Mountain National Forest began noticing that USDA Forest Service signs, property, and interpretive materials on kiosks were being stolen and/or vandalized. The incidents occurred primarily in the towns of Woodstock, Benton, Easton, Landaff, Bath, and Warren, New Hampshire.
On January 14, 2018, a law enforcement officer notified the Forest Service that he had recovered signs that appeared to belong to the Forest Service at Grim’s home in Newfields. Grim later admitted to cutting down and/or removing signs belonging to the Forest Service in the area of the White Mountain National Forest. Many of the stolen signs were later recovered, some with Grim’s assistance.
In total, Grim damaged at least 26 signs and caused approximately $3,868 in damages to Forest Service property. As part of his plea, Grim agreed to make full restitution to the Forest Service.
Grim, who now resides in Oregon, is scheduled to be sentenced on September 9, 2021.
“The White Mountain National Forest attracts visitors from all over the world,” said Acting U.S. Attorney Farley. “By destroying Forest Service signs and property, Grim not only committed a federal crime, but also inconvenienced many people seeking to enjoy the National Forest. To protect the White Mountain National Forest, we will not hesitate to bring federal charges against those who commit crimes there.”
This matter was investigated by the USDA Forest Service and the Newfields Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Former Office Manager for San Antonio Dermatology Practice Indicted on Federal Fraud and Identity Theft ChargesRead the Press Release
SAN ANTONIO – A former office manager of a prominent local dermatology practice waived pre-trial detention today and agreed to remain in federal custody pending trial. She is charged with defrauding the medical practice of nearly $350,000 from patient billings and employee profit sharing accounts.
A federal grand jury indictment charges 74-year-old Patricia Ann Doucet with 10 counts of wire fraud, one count of bank fraud, one count of access device fraud and two counts of aggravated identity theft.
The indictment alleges that from July 2012 to February 2020, Doucet defrauded her former employer, the Dermatology & Laser Center of San Antonio. According to the indictment, the medical practice’s owner and operator organized and conducted a non-profit educational symposium on regenerative medicine in San Antonio in 2012. A bank account was established to collect contributions for the symposium event. That account was to be closed at the conclusion of the symposium. But Doucet, in her capacity as office manager, kept the account open without permission.
The indictment alleges that in July 2012, Doucet began to embezzle checks and cash paid to the dermatology practice by depositing them into the symposium account. She altered a signature stamp utilized by the practice for its business account or fraudulently endorsed checks by forging the owner’s signature. Doucet also stole money from the practice’s profit-sharing account that was designed to automatically issue checks to cover taxes for the employee’s profit share. Rather than directing those checks to the IRS, Doucet instead deposited those checks into the symposium account. Doucet then used the symposium account as her slush fund for international and domestic travel, property payments, meal purchases and other personal expenses on credit cards she fraudulently opened in the owner’s name.
The bank fraud charge upon conviction calls for up to 30 years in federal prison. The wire fraud charges upon conviction call for up to 20 years in federal prison per count. The aggravated identity theft charges upon conviction call for a mandatory two years in federal prison, consecutive to any other sentence imposed.
U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office, made today’s announcement.
FBI agents arrested Doucet in Shreveport, Louisiana on April 23, 2021. Doucet remains in federal custody. No trial date has been scheduled.
The FBI conducted this investigation. Assistant U.S. Attorneys Matthew W. Kinskey, Joseph E. Blackwell and Tony Franco are prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Former Northeast Missouri City Clerk pleads guilty to stealing city moneyRead the Press Release
ST. LOUIS – Tracey Ray, 48, of New London, Missouri, pleaded guilty to one count of wire fraud and one count of federal program theft. Ray appeared, today, before United States District Court Judge Rodney W. Sippel.
Ray was the City Clerk of Center, Missouri for many years. Beginning in January 2015 and continuing through July 2019, Ray engaged in a scheme to defraud and obtain money from Center, Missouri in an approximate amount of $317,325.59, by means of materially false and fraudulent pretenses, representations and promises.
As part of her fraudulent scheme, on approximately 30 occasions, Ray used Center bank funds to pay for charges on her personal credit card. Center funds used to pay for personal charges on Ray’s GM credit card totaled approximately $206,342.53 and were for such personal expenses as retail vendor charges, entertainment, lodging and travel, hair salons, restaurants and grocery store charges. These personal credit card payments were made either by Ray’s issuance of Center bank checks, or by Ray’s wire transfer of Center bank funds. Further, through these unauthorized credit card charges and payments, Ray earned and spent an additional approximately $1,911.00 in reward funds. Further, on approximately 39 occasions, Ray issued Center bank account checks in the approximate total amount of $62,537.76 to Anthem Blue Cross and Blue Shield to pay for the premiums on a family health insurance policy, as well as on life and disability policies for her and her family members.
As a further part of her scheme, Ray issued five additional Center payroll checks to herself in the total amount of approximately $3,580.00, depositing each of those unauthorized checks into her own personal bank account. On 49 occasions, Ray issued checks on City bank accounts, in the total approximate amount of $35,546.85 to directly pay for the purchases of personal items and services. Ray issued these Center checks to make personal purchases at a number of retailers, such as Kohl’s, Lowe’s, Walmart, and Hobby Lobby, as well as to pay for her personal residential mortgage and personal insurance policies. She also issued one or more of these Center checks to her family members, unrelated to the legitimate business and operations of Center. Further, Ray, as Center’s City Clerk, received cash payments from Center residents for various city charges, but Ray failed to deposit those cash receipts into the appropriate Center bank account. Instead, Ray used those cash proceeds, in the total amount of approximately $7,407.45 for her own personal use, without the knowledge and authority of Center and its Board of Aldermen.
In order to conceal her scheme from Center and its Board of Aldermen, Ray falsified the cash balances of one or more Center bank accounts on financial reports she prepared for monthly Board of Aldermen meetings. Ray also prepared false and incomplete lists of bills to be paid which she submitted for monthly Board of Aldermen meetings. Further, Ray falsified internal Center financial accounting records to make it appear that the unauthorized checks and wires she issued from Center bank accounts were made to legitimate third party vendors who had purportedly provided actual services or materials to Center.
During the period of her scheme, the City of Center received federal grant funds in excess of $10,000 into its bank accounts.
Judge Sippel has set sentencing for August 17, 2021.
The Federal Bureau of Investigation, Missouri State Auditor’s Office and Ralls County Sheriff’s Office investigated the case. Assistant United States Attorney Hal Goldsmith is handling the case.
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Former Maryland Tax Preparer Sentenced to More Than Two Years in Federal Prison for a Tax Fraud ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Anita Fortune, age 56, of Alexandria, Virginia, to 30 months in federal prison, followed by three years of supervised release, for a conspiracy to defraud the United States and for assisting in the preparation and filing of false tax returns. Judge Grimm also ordered Fortune to pay restitution in the full amount of the loss, $189,748.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Fortune’s continued actions to file fraudulent returns with the IRS warrant repercussions. Clients relied on the expertise of their return preparer to aid them in filing an accurate tax return. Fortune abandoned her responsibility to ensure her clients submitted accurate tax return to the IRS.” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office.
According to her guilty plea, Fortune was convicted of wire fraud in 2007 resulting in her Internal Revenue System (IRS) e-filing privileges being revoked. Following her release from prison, co-conspirator 2 agreed to allow Fortune to use co-conspirator 2’s unique electronic filing identifiers, in exchange for a fee of $29 per tax return. Beginning in 2012, Fortune and co-conspirator 2 agreed to operate a business that would allow Fortune to misrepresent her identity on the clients’ tax returns by using co-conspirator 2’s identifiers to prepare and electronically file client tax returns with the IRS. In August 2015, the IRS expelled co-conspirator 2 from its electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed with co-conspirator 2’s unique identifiers. At that time co-conspirator 3, who was also participating in the IRS’s electronic tax return filing program agreed to allow Fortune and co-conspirator 2 to use co-conspirator 3’s unique identifiers in exchange for the use of Fortune and co-conspirator 2’s shared office space in Temple Hills, Maryland.
Fortune and co-conspirator 2 misrepresented their identities on their clients’ tax returns by using co-conspirator 3’s identifiers to prepare and electronically file the tax returns with the IRS. Co-conspirator 3 also joined in Fortune and co-conspirator 2’s practice of falsifying tax returns and fraudulently claiming refunds. Specifically, Fortune, co-conspirator 2, and co-conspirator 3 falsified tax returns by: fabricating, inflating, and improperly claiming deductions on the Schedules A that were attached to clients’ federal individual income tax returns; and engineering business losses by fabricating, inflating, and improperly claiming purported business expenses. As a result, Fortune, co-conspirator 2, and co-conspirator 3 artificially lowered their clients’ taxable income, thereby lowering the taxes that the clients owed to the IRS and inflating their refunds.
On December 15, 2017, co-conspirator 3 was also expelled from the IRS’s electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed using co-co-conspirator 3’s unique identifiers. Co-conspirator 3 then misled a third-party electronic return originator (“ERO”) about the criminal nature of her issues with the IRS in order to obtain their assistance. The ERO allowed co-conspirator 3 to file tax returns using its unique identifiers, which co-conspirator 3 shared with Fortune and co-conspirator 2. Using the ERO’s identifiers, Fortune and her co-conspirators continued to prepare and file fraudulent federal tax returns through at least April 2019.
In total, the tax loss caused to the IRS as a direct result of Fortune and her co-conspirators’ conspiracy for the tax years 2012 through 2018 was $189,748.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Trial Attorney Kathryn Sparks of the Tax Division, who prosecuted the case.
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Former Madison County Resident Sentenced to 17 Years for Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – John T. Flinn, age 27, of Canastota, New York was sentenced yesterday to serve 17 years imprisonment to be followed by 10 years of supervised release for his conviction for sexual exploitation of a child. Flinn also will be required to register as a sex offender upon his release from incarceration.
The announcement was made by Acting United States Attorney Antoinette T. Bacon, Special Agent in Charge Kevin M. Kelly, Homeland Security Investigations (HSI), Buffalo, New York, and Special Agent in Charge Kevin D. Sibley, Homeland Security Investigations (HSI) Tampa, Florida.
As part of his previously entered guilty plea, Flinn admitted that he took sexually explicit images of an approximately six-year-old victim on three different occasions. Flinn also admitted that he possessed other images of child pornography, including images of toddlers and images depicting sadistic and masochistic sexual abuse of children.
This case was investigated by the New York State Police and the Department of Homeland Security, Homeland Security Investigations (Syracuse, New York and Tampa, Florida) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former IRS Employee in Fresno Pleads Guilty to Aiding and Assisting in the Preparation of False and Fraudulent Tax ReturnsRead the Press Release
FRESNO, Calif. — Angela Milton, 38, of Sacramento, pleaded guilty today to aiding and assisting in the preparation and presentation of false and fraudulent tax returns, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Milton was an IRS tax examining technician in Fresno between 2010 and 2013. During that time, she helped prepare and file numerous fraudulent tax returns in other peoples’ names to increase the refund that the IRS disbursed. In some cases, Milton received a fee while in others she took a portion of the refund without the knowledge of the taxpayer. As a result of her conduct, Milton attempted to defraud the IRS of over $170,000, and the actual loss was approximately $101,475.
This case is the product of an investigation by the U.S. Department of the Treasury, Office of Inspector General and IRS Criminal Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Milton is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 3. Milton faces a maximum statutory penalty of three years in prison and a $250,000 fine as well as restitution owed to the IRS. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Dolgeville Man Sentenced to 24 Months for Passport Fraud, Misuse of a Social Security Number, and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Timothy John Walsh, age 63, formerly of Dolgeville, New York (currently residing in California), was sentenced today to serve 24 months and four days imprisonment, to be followed by three years of supervised release, for making a false statement on a U.S. passport application, misuse of a social security number, and aggravated identity theft, announced Acting United States Attorney Antoinette T. Bacon and Keith Byrne, Special Agent in Charge, Diplomatic Security Service’s New York Field Office.
As part of his guilty plea, Walsh admitted that he mailed a fake passport application to the United States Department of State using his own picture but using his deceased brother’s name and other personal identifying information, including his brother’s social security number.
This case was investigated by the Diplomatic Security Service of the U.S. Department of State, and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Former Boston Police Sergeant and Officer to Plead Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Sergeant and a former officer have agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Gerard O’Brien, 62, of Braintree, and Diana Lopez, 56, of Milton, have agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. O’Brien is scheduled to plead guilty on June 17, 2021. A plea hearing for Lopez has not yet been scheduled.
In September 2020, O’Brien, Lopez and seven other Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, four additional officers have been charged: former officer Joseph Nee, former Captain Richard Evans and former Sergeants George Finch and William Baxter. Nee has agreed to plead guilty but a date has not yet been set. Finch pleaded guilty on June 1, 2021 and Baxter is scheduled to plead guilty on June 25, 2021.
It is alleged that, O’Brien and Lopez submitted false and fraudulent overtime slips for overtime hours that they did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, O’Brien and Lopez claimed to have worked from 4 – 8 p.m., but they routinely left at 6 p.m., and sometimes earlier. Additionally, O’Brien knowingly endorsed the fraudulent overtime slips of his subordinates who, allegedly, also left early from this shift. For the “kiosk” shift, O’Brien, Lopez and, allegedly, others submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact they and, allegedly, other members of the unit, only worked three-to-four hours of those shifts.
From December 2016 through February 2019, O’Brien personally collected approximately $25,930 for overtime hours he did not work. From January 2016 to February 2019, Lopez personally collected approximately $36,018 for overtime hours she did not work.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five 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; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Boston Police Officer Charged in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Joseph Nee, 48, of Randolph, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.
Nee admitted that from at least January 2015 through August 2017, he submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts. As a result, between January 2015 and August 2017, Nee personally collected approximately $12,636 for overtime hours he did not work.
In September 2020, nine Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, three other officers were charged: former Captain Richard Evans and former Sergeants George Finch and William Baxter. Baxter is scheduled to plead guilty on June 25, 2021 and Finch pleaded guilty on June 1, 2021.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five 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; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Returns Charges against Two Individuals for Covid-19 FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Russell Foreman and Chandler Simbeck were indicted by a Federal Grand Jury on May 18, 2021, on charges of wire fraud, money laundering and conspiracy to defraud the United States.
According to allegations in the indictment, between March 2020 and October 2020, Foreman electronically submitted loan applications to the Small Business Administration for various businesses knowing that the applications contained materially false and fraudulent information, including the establishment date of the businesses, gross revenues and costs of goods sold, and the applicant’s lack of felony criminal record. Upon approval, the SBA conducted electronic transfer of funds to bank accounts controlled by Foreman. Foreman then moved the money into different bank accounts he controlled. The indictment also alleges that Foreman and Simbeck created an entity, Fusion Group LLC, listing Simbeck as the owner. Together they applied for an Economic Injury Disaster Loan knowing the application contained false information. Upon receipt of the funds into the Fusion Group bank account, Foreman and Simbeck caused the loan proceeds to be moved into the bank accounts of Vegisir Consults LLC and Vegvisir Consults LLC, which they controlled. They then issued a check to Simbeck’s relative for $50,000.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to issue loans to small businesses and non-profit entities experiencing revenue loss due to the pandemic. The Economic Injury Disaster Loan (“EIDL”) program provides loan assistance up to $150,000 to pay permissible expenses such as fixed debts, payroll, and accounts payable for certain COVID-19 impacted businesses in operation prior to February 1, 2020. Additionally, the CARES Act created the Paycheck Protection Program (“PPP”) which authorizes forgivable loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
Foreman faces eight counts of wire fraud, one count of conspiracy, and four counts of money laundering. Simbeck faces one count of wire fraud and one count of conspiracy. Each wire fraud count carries a penalty of up to 20 years in prison. Conspiracy carries a penalty of up to five years in prison. Money laundering carries a penalty of up to 10 years in prison.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Robert Brown.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
CASE NUMBER: 21-cr-00165-RM
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Federal Court Finds Florida Tax Preparers in Contempt for Violating Court’s Preliminary InjunctionRead the Press Release
On Thursday, a federal court in the Southern District of Florida held two individuals, as well as the company they allegedly co-own, in contempt for violating a preliminary injunction that restricted their tax preparation activities. The court’s order notes defendants “admit that sufficient evidence exists to hold them in contempt of court for violating the preliminary injunction.”
The United States filed a complaint against Wendell Devallon, Berald Dominique, and Tax Time Group Inc. on Dec. 4, 2020, seeking to enjoin them from preparing returns for others. The complaint alleges that Devallon and Dominique co-own Tax Time Group Inc., which has its principal place of business in North Lauderdale, Florida, and additional offices in Charlotte, North Carolina; Niagara Falls, New York; Buffalo, New York; and Evansville, Indiana. According to the complaint, defendants prepared tax returns for customers that claimed fraudulent self-employment expenses, fictitious education credits, and fake charitable contributions, among other schemes. The complaint also alleged that Devallon and Dominique acted as “ghost” preparers, meaning that they acted as paid tax return preparers but did not sign the returns they prepared, as required by law.
On Jan. 13, 2021, the court entered a stipulated preliminary injunction against all three defendants, requiring them to “cease all tax preparation and filing services” at certain offices, including a location at 995 SW 71st Avenue, North Lauderdale, FL 33068.
On May 3, 2021, the United States sought an order to show cause and a temporary restraining order, alleging that Devallon, Dominique, and Tax Time Group Inc. were violating that preliminary injunction. According to the show cause motion, defendants continued to prepare returns out of the 995 SW 71st Avenue location but masked their involvement in the prohibited activities by submitting those returns through entities purportedly based in Indiana and Pennsylvania. The motion for a temporary restraining order alleged that proceeds from the prohibited return preparation were being deposited into five bank accounts, three of which were held in the name of nominee entities. On May 12, 2021, the court entered a temporary restraining order prohibiting Devallon, Dominique, and Tax Time Group Inc. from accessing the funds in those five bank accounts.
On Thursday, the United States and defendants jointly moved for an order holding defendants in contempt, which motion was granted the same day. The court will determine appropriate sanctions at a later date.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Elkhart, Indiana Man Convicted After Four-Day Jury TrialRead the Press Release
SOUTH BEND – Khalil Jackson, age 25, of Elkhart, Indiana, was convicted following a jury trial in the South Bend District Court announced Acting United States Attorney Bell.
U.S. District Court Judge Damon Leichty presided over this four-day jury trial. The jury found Jackson guilty of various federal charges arising out of conduct involving human trafficking of a minor victim: specifically, Count 1, sex trafficking of a minor, Count 2, production of child pornography, Count 3, transportation of child pornography, Count 4, possession of child pornography, and Count 5, cyberstalking.
Jackson’s sentencing is set for September 20, 2021.
This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Police Department and Elkhart Police Department. This case was prosecuted by Assistant United States Attorneys John Maciejczyk, Kim Schultz and Joel Gabrielse.
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Edgerton Man Sentenced to 5 Years for Illegal Gun Possession During Civil UnrestRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Kyle Olson, 29, Edgerton, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 27 months in prison for being a felon in possession of a firearm. Olson pleaded guilty to this charge on December 1, 2020.
On May 31, 2020, downtown Madison was experiencing civil unrest following peaceful protests. Olson saw a live video feed of these events and drove to Madison to see it for himself. Olson said that he brought a loaded .45 caliber handgun with him for protection because of what was going on in the area. At the time, Olson had four felony car theft convictions from 2015 and was on supervision after being released from state prison.
When Olson arrived downtown, several Madison Police Department officers observed him take a gun out of his trunk, tuck it into his waistband, and conceal it with his shirt. Because of the escalating violence in the area, the officers detained Olson to determine if he had a valid concealed carry permit. As the officers recovered the gun, Olson told them that he was a felon and knew he should not have the gun.
At sentencing, Judge Conley said that he was very thankful that the officers intervened, considering the violent civil unrest in the area. Judge Conley also said that it was deeply concerning that Olson said he drove to Madison because he was “tired of watching people burn down buildings.” Judge Conley noted that this was the latest in a long string of self-destructive behaviors by Olson that endangered others and, in this case, the police.
The charge against Olson was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
East Stroudsburg Man Sentenced to 18 Months’ Imprisonment for Numerous Acts of Passing Counterfeit CurrencyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 3, 2021, William Daquan Battle, age 28, of East Stroudsburg, Pennsylvania, was sentenced by United States District Court Judge Robert D. Mariani to 18 months’ imprisonment followed by a 2-year term of supervised release, for passing counterfeit United States currency on numerous occasions.
According to Acting United States Attorney Bruce D. Brandler, on diverse dates in November and December of 2018, Battle passed or attempted to pass over $2,000 in counterfeit currency at Walmart Supercenters located in East Stroudsburg and Mount Pocono, PA. Battle engaged in this conduct at a time when he was still serving a prior federal sentence for a handgun offense and was required to reside in a halfway house in Brooklyn, New York.
The matter was investigated by the United States Secret Service (U.S.S.S.). Assistant United States Attorney Jeffery St John prosecuted the case.
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Dubuque New Year’s Day Shooter Sentenced to Federal PrisonRead the Press Release
A felon who, after an argument, shot wildly on a populated street, was sentenced today to over eight years in federal prison.
Derrick Damon Timmons, age 30, from Dubuque, Iowa, received the prison term after a December 17, 2020 guilty plea to being a felon in possession of a firearm. Evidence at sentencing showed that, during the early morning hours of New Year’s Day 2020, Timmons had a discussion with another person in Dubuque. Video evidence showed that Timmons left and then returned to the area, where another felon, Katwan Brown, handed Timmons a pistol. Brown and Timmons then went inside a residence for a brief time. When Brown and Timmons returned to the street, Timmons engaged in an animated argument with the other individual. Someone fired a round and people in the area scattered, with Timmons running back into the residence. After a few moments Timmons leaned back out of the doorway and shot wildly up the street multiple times, striking one individual. Another of the rounds Timmons fired struck an occupied apartment nearby, and yet another round struck an unoccupied vehicle. Timmons fled the area after the shooting.
At sentencing, the judge found that Timmons’s conduct was “reprehensible and incredibly dangerous.” Timmons had previously been convicted of felony obstruction of justice and a prior misdemeanor crime of domestic violence, domestic abuse assault with strangulation.
Timmons was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Timmons was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Brown was previously sentenced to 96 months’ imprisonment and three years’ supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was made possible in part by evidence from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Timmons is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01013-1-CJW-MAR.
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Counselor Involved in Wide-Ranging Medicaid Fraud Scheme Pleads GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CORTNEY DUNLAP, 36, of Burlington, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to health care fraud related to a wide-ranging scheme that defrauded the Connecticut Medicaid Program of more than $1.3 million.
According to court documents and statements in court, from 2014 to 2020, Dunlap was a Licensed Professional Counselor with offices located on Brainard Road in Hartford. Dunlap also owned two entities, Inspirational Care and KEYS Program Inc., through which he managed group homes in Hartford, Bristol, Cromwell and Waterbury, including residences for women and children who were victims of domestic abuse.
From August 2018 through October 2020, Dunlap engaged in a scheme to defraud the Connecticut Medicaid Program by submitting claims for psychotherapy services that were purportedly provided to Medicaid clients. The vast majority of the claims were for occasions and dates of service when no psychotherapy services of any kind had been provided to the Medicaid clients identified in the claims. On a limited number of occasions, some of the services were rendered by unlicensed individuals who were not qualified or licensed to provide psychotherapy.
The Connecticut Medicaid program suspended Dunlap as a Medicaid provider on approximately April 28, 2020, and, on May 7, 2020, federal law enforcement agents executed a court-authorized search of Dunlap’s Hartford offices. Dunlap subsequently billed Medicaid for psychotherapy services through Inspirational Care for services that which were not provided, using the provider number of a licensed clinical social worker who did not provide the services and was not aware that her provider number was being used to bill for the nonexistent services.
Dunlap required tenants of the group homes operated or managed by Inspirational Care and KEYS program to provide copies of the Medicaid member cards for the tenants and their children as a condition of the tenants residing at the group homes. Dunlap then used these Medicaid member numbers to bill Medicaid for psychotherapy services that were not provided to the tenants or their children. Dunlap used the Medicaid member numbers of approximately 65 tenants or their children to bill Medicaid for fraudulent services, and Medicaid paid Dunlap approximately $543,117 for psychotherapy services that were not provided to these individuals.
In February 2019, the New Haven Public Schools hired Dunlap as a guidance counselor at the New Haven Adult and Continuing Education Center. In February 2020, Dunlap accessed a database containing personal identifying information of students and former students enrolled at New Haven Adult and Continuing Education, many of whom Dunlap did not have any professional relationship with and had never met. Dunlap used the information he acquired to determine whether the students were insured by Medicaid and, if so, identified the students’ Medicaid member identification numbers. He then billed Medicaid for fraudulent psychotherapy services that were never provided to the students. Dunlap used the personal identifying information and Medicaid member numbers of approximately 135 New Haven Adult and Continuing Education students to bill Medicaid for fraudulent services, and was paid a total of approximately $593,383 by Medicaid for these claims.
Dunlap also fraudulently billed Medicaid for psychotherapy services purportedly provided to employees of Inspirational Care when no such services were provided, and submitted fraudulent claims to Medicaid for psychotherapy services purportedly provided to members of his family when no such services were provided.
Dunlap was arrested on a criminal complaint on October 14, 2020.
Judge Dooley scheduled sentencing for August 27, 2021, at which time Dunlap faces a maximum term of imprisonment of 10 years. Dunlap has agreed to pay restitution to Medicaid in the amount of $1,313,322. To help satisfy his restitution obligation, Dunlap has agreed to forfeit a bank account containing approximately $152,000.
This investigation has been conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation, with the assistance of the Office of the Inspector General for the U.S. Department of Housing and Urban Development, the Office of the Inspector General for the U.S. Department of Education, the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services.
This case is being prosecuted by Assistant U.S. Attorney David J. Sheldon with the assistance of Auditor Susan N. Spiegel.
Convicted Felon on Parole Sentenced to more than 13 Years in Federal Prison for Drug Crimes and Gun PossessionRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that James Robert Cude, age 46, of Canon City, Colorado, was sentenced to 163 months in federal prison to be followed by a 5-year term of supervised release for distribution and possession with intent to distribute methamphetamine, as well as possession of a firearm by a previously convicted felon.
According to the plea agreement, on separate occasions during the month of September in 2016, the defendant sold undercover agents 26.6 grams, 26.4 grams, and 94.1 grams of methamphetamine. He also sold undercover agents a Rock River LAR-15 rifle, a stolen Ruger Model P95 9mm handgun, and a Beretta Model PX4 Storm handgun. The defendant was a multi-convicted felon and on parole at the time of the offense conduct in this matter.
“Prosecutions like this play an important role in keeping Colorado safe,” said Acting U.S. Attorney Matt Kirsch. “We thank our law enforcement partners at the ATF and the Aurora Police Department, who removed a dangerous felon from our community.”
ATF Denver Special Agent in Charge David Booth stated, “Not only was the defendant prohibited from possessing firearms, he also brought dangerous drugs into our community. ATF is proud to work with our partners at the U.S. Attorney’s Office to fight violent crime and protect the public.”
United States District Court Judge R. Brooke Jackson sentenced James Robert Cude on June 1, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation and was assisted by the Aurora Police Department. Assistant United States Attorney Candyce Choi Cline handled the prosecution of the case.
CASE NUMBER: 20-cr-00188-RBJ
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Convicted Felon Indicted on Federal Charges of Possession of Firearm, Fentanyl, Meth, Heroin, CocaineRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a five-count indictment charging Jonathan Xavier Miller, 37, of Blythewood, for drug possession and possession of a firearm as a convicted felon.
The indictment alleges that, in February 2019, Miller knowingly, intentionally, and unlawfully possessed with the intent to distribute 50 grams or more of a mixture containing meth, cocaine, and crack cocaine. It further alleges that, in July 2019, Miller possessed with the intent to distribute crack cocaine. The indictment also alleges that, in November 2019, Miller possessed with the intent to distribute a substance containing meth, fentanyl and heroin, as well as possessing a 9mm handgun in furtherance of a drug trafficking crime.
Miller is prohibited to possess a firearm due to prior felony convictions. Prior convictions of Miller include that for strong armed robbery, criminal domestic violence, drug possession, and gun possession.
Miller is facing up to life imprisonment on one of the federal charges.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richland County Sheriff’s Department and the Irmo Police Department.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Convicted Child Molester Indicted on Visa Fraud and False Statements in Immigration ProceedingsRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment yesterday charging a man from Cumberland County, North Carolina, with visa fraud and making false statements in immigration proceedings.
According to the indictment, Roger Rene Diaz-Castellano, 53, a citizen and national of Honduras, knowingly made false statements in his Application for Temporary Protected Status (Form I-821) when he denied having ever committed a crime, when in fact he had committed indecent liberties with a child over a seven-year period between 2010 and 2017.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven. Operation False Haven is an ongoing initiative designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained immigration benefits.
Concord Man Sentenced to over 16 Years for Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Tyler Cady, 31, of Concord, was sentenced to 198 months in federal prison for conspiracy to possess controlled substances with intent to distribute and possession of a firearm in furtherance of that conspiracy, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 4, 2020, an individual who was cooperating with law enforcement agents arranged to conduct a methamphetamine transaction that would involve Cady and another individual. Agents observed Cady arrive for the transaction in Dover, where he began to conduct the drug deal. When agents sought to arrest Cady, he had over 111 grams of 100 percent pure methamphetamine on his lap. A search of Cady’s person revealed approximately seven grams of fentanyl. Over $8,000 in cash was found in Cady’s vehicle and on his person. A search of Cady’s vehicle revealed a knapsack containing approximately 252 grams of highly pure methamphetamine. The vehicle also contained a loaded sawed-off shotgun, a pistol, a scale, and a money counter.
Cady previously pleaded guilty on February 26, 2021. Under his plea agreement, he will forfeit the cash, firearms, and ammunition to the United States.
“Armed drug traffickers are a menace to the community,” said Acting U.S. Attorney Farley. “We are working with our law enforcement partners to keep our state safe from violence and to stop the flow of deadly drugs. As this sentence shows, armed drug traffickers will face significant federal prison time if they choose to operate in the Granite State.”
“Drugs and guns are a deadly combination,” said DEA Special Agent in Charge Brian D. Boyle. “DEA is committed to bring to justice methamphetamine traffickers like Mr. Cady. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This matter was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the New Hampshire State Police and the Colebrook Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis. Assistant U.S. Attorney Robert Rabuck assisted with the forfeiture aspects of this matter.
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Chicago Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Chicago man was arrested yesterday and charged with sexual exploitation of children and receipt of child pornography.
Ernesto Herrera, 32, of Chicago, Ill., was charged by criminal complaint with one count of sexual exploitation of children and one count of receipt of child pornography. Following an initial appearance in federal court in the Northern District of Illinois yesterday, Herrera was detained pending a detention hearing scheduled for Monday, June 7, 2021. He will appear in Boston at a later date.
According to the charging documents, in June 2020, Herrera allegedly threatened and manipulated a Massachusetts minor via Snapchat and text message to make and send videos and images of the victim engaged in sexual conduct, among other things. The investigation determined that the phone number and Snapchat account used to contact the victim belonged to Herrera. A subsequent search of Herrera’s phone revealed that the victim sent over one thousand media files to Herrera’s Snapchat account. Several of those media files allegedly depicted child pornography
The charge of sexual exploitation of children provides a mandatory minimum sentence of 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district 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; Emmerson Buie, Jr., Special Agent in Charge of the Federal Bureau of Investigation, Chicago Division; and John R. Lausch, Jr., United States Attorney for the Northern District of Illinois made the announcement today. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Capitol Heights Man Sentenced to More Than Three Years in Federal Prison for Conspiracy to Pass Counterfeit Currency and Making Counterfeit CurrencyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ricco Darnell Taylor, age 32, of Capitol Heights, Maryland to 41 months in federal prison, followed by three years of supervised release, for conspiracy to pass counterfeit currency and making counterfeit currency. Judge Chuang has also ordered Taylor to pay $98,000 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office.
According to his plea agreement, from 2017 to December 2019, Taylor manufactured and passed counterfeit currency with co-conspirators Keara Davis, age 29, of Capitol Heights, Maryland; Deon Jones, age 31, of Temple Hills, Maryland; and Tara Simpson, age 52, of Hyattsville, Maryland. As part of the conspiracy, Taylor manufactured the counterfeit with a printer at his residence, supplied the fraudulent currency to his co-conspirators, and occasionally sold counterfeit currency to others.
During a search of Davis and Taylor’s Maryland residence on March 23, 2018, law enforcement officers recovered several cell phones, three counterfeit $100 bills, various gift cards, receipts from victim retailors, linen copy paper, an HP printer, two shell casings, and a .38 caliber revolver. According to authorities, the linen copy paper was a type commonly used in counterfeiting operations. The ink from the counterfeit $100 bills were analyzed by the Secret Service and determined to be indistinguishable from genuine currency. The .38 caliber revolver was possessed in connection with the counterfeiting operation.
Taylor, along with his co-conspirators, used the counterfeit currency to purchase merchandise at various local retailers and, in some instances, returned items in exchange of genuine currency. For example, on June 19, 2019, Taylor purchased diapers for $26.49 using a counterfeit $100 bill. The following day, Taylor returned the diapers, as well as a few items Jones had purchased, in exchange for genuine currency. In total, the Secret Service recovered eight counterfeit $100 bills used by Taylor and his co-conspirators during the June 19, 2019 transactions, as well as video surveillance and receipts reflecting their criminal activity.
His plea agreement further states that on July 26, 2019 and October 10, 2019, law enforcement officers conducted two traffic stops of a vehicle Taylor was operating. In both instances, Taylor attempted to flee on foot but was later apprehended. As a result of both traffic stops, officers recovered a total of 31 counterfeit $100 bills and 27 pages of uncut counterfeit $20 bills displaying three repeating serial numbers. A subsequent search of Taylor’s cell phone also revealed text messages indicative of passing counterfeit currency. Taylor’s fingerprints were also discovered on the first three pages of the uncut $20 bills.
In total, Taylor and his co-conspirators are responsible for passing over $95,000 in counterfeit currency.
On June 2, 2021, Davis was sentenced to 15 months in federal prison for conspiracy and passing of counterfeit currency. Co-defendants Simpson, and Jones were each sentenced to 37 months in federal prison for the same charge. All three co-defendants were also ordered to pay $95,000 in restitution.
Acting United States Attorney Jonathan F. Lenzner praised the Secret Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Michael Morgan and Dana J. Brusca, who prosecuted the case.
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Bellows Falls Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on June 4, 2021, Ferdinand Cruz, aka “Feldi,” 40, of Bellows Falls, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 15 months in prison after his guilty plea to one count of being a previously convicted felon found in possession of a firearm. U.S. District Judge Christina Reiss also ordered Cruz to serve a three (3) year term of supervised release and to pay a $100 special assessment. Judge Reiss also ordered the criminal forfeiture of two firearms that were found in Cruz’s possession.
According to court records and proceedings, in May 2020, the Dover, Vermont Police Department was investigating an unrelated criminal allegation against Cruz. When officers went to Cruz’s residence to interview him, he was wearing what was later identified as a Ruger LCP .380 caliber pistol on his waistband. At that time, Cruz was a previously convicted felon, having been convicted of Robbery in the Second Degree in 2003, and was prohibited from possessing a firearm. When police later went to Cruz’s residence to recover the Ruger LCP .380 caliber pistol, they found a second gun: a Taurus Model PT111 Millennium G2 9mm caliber pistol.
Acting U.S. Attorney Jonathan A. Ophardt commended the efforts of the Dover, Vermont Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives in the investigation and prosecution of Cruz.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Cruz. Assistant Federal Public Defender Elizabeth Quinn represented Cruz.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Bellevue man sentenced to prison for defrauding his employer with deceptive insider sales of used medical equipmentRead the Press Release
Seattle – A former manager of a Snoqualmie, Washington medical device company was sentenced today in U.S. District Court in Seattle to 14 months in prison for his scheme to defraud his employer of nearly $800,000 in used equipment sales, announced Acting U.S. Attorney Tessa M. Gorman. Arunkumar Singal, 42, pleaded guilty to wire fraud on January 3, 2020. At the sentencing hearing U.S. District Judge Richard A. Jones told Singal, “You put everything at risk for one thing: to add to your wealth….. You stopped because you were caught by law enforcement, but you continued to lie and deceive.”
According to records filed in the case, in 2014 Singal was the Director of Global Product Support at Spacelabs Healthcare Inc. The company was established in the 1950’s to make medical monitoring devices to astronauts and then expanded their business to include medical monitoring devices for hospitals and clinics. Singal was put in charge of a new initiative to resell used equipment. But instead of selling the equipment to the highest bidder as he was supposed to do, Singal devised a scheme to have a Texas company bid on the equipment at a very low price, and then used a shell company Singal himself created to purchase the equipment for a ten percent increase in profit to the Texas company. Singal then turned around and sold the equipment at a much higher price to a Minnesota company. Through this fraudulent scheme Singal made a profit of more than $780,000. Singal used the ill-gotten gain to pay down the mortgage on his luxury Mercer Island home and to buy a Tesla, among other expenditures. The scheme unraveled when tech support workers doing regular maintenance on Singal’s company cell phone reported messages that appeared to indicate side deals not authorized by the company. The company fired Singal and reported potential fraud to the Snoqualmie Police Department who alerted the FBI.
As part of the plea deal, Singal sold the Mercer Island home and paid restitution to Spacelabs of $780,163. However, the harm to the company went beyond the lost income on the sales of the equipment. At the time Singal was stealing from the company, Spacelabs was having to tighten its spending and lay-off staffers. Had it received the true value of the used equipment the financial constraints would not have been so severe.
In asking for a three-year prison sentence, prosecutors wrote to the court, “Singal abused his position of trust and responsibility... When he was placed in a position of increased responsibility, he promptly abused the trust he had been given, devising the scheme to resell Spacelabs’ property for his own personal gain… Singal literally lost no opportunity to wring every ounce of profit from his criminal scheme.”
“People tend to spend lavishly when it's not their money,” said Donald Voiret, Special Agent in Charge, FBI Seattle. “In this case, Mr. Singal's greed cost him not only his reputation, but also his home as well as restitution of hundreds of thousands of dollars. Perhaps most costly however, his selfishness may ultimately cost him his right to remain in the United States.”
Singal is a citizen of India and will likely be deported following his prison term.
The case was investigated by the Snoqualmie Police Department and the FBI.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs.
Baltimore Police SWAT Officer Facing Federal Indictment for Obstruction of Justice, Production, and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Donald Hildebrandt, age 51, of Bel Air, Maryland, on the federal charges of obstruction of justice, production of child pornography, and possession of child pornography.
The federal charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Harford County Sheriff Jeffrey R. Gahler; Lieutenant Paul Marziale of the Harford County Sheriff’s Office, Director of the Harford County Child Advocacy Center; and Harford County State’s Attorney Albert J. Peisinger, Jr.
Hildebrandt is a Special Weapons and Tactics (SWAT) officer with the Baltimore City Police Department and is currently suspended without pay. According to the court documents, on October 18, 2020, law enforcement received a complaint that Donald Hildebrandt had been discovered in a room with a minor female with his erect penis exposed. Another minor had reported the incident. During an interview at the Harford County Child Advocacy Center (CAC), one of the minor victims disclosed that Hildebrandt exposed himself to her and demanded that she engage in sexually explicit conduct with him.
The indictment alleges Hildebrandt attempted obstructed justice by altering and concealing evidence. According to court documents, in January 2021, a witness informed an investigator that Hildebrandt had reset his tablet. Allegedly, as alleged in previous court documents, a forensic review of the previously seized tablet showed signs consistent with a factory reset. In Hildebrandt’s iCloud account, investigators allegedly discovered a web address to an anonymous communication network within Hildebrandt’s notes application, which opened to a child pornography website. Purportedly, the website allowed customers to anonymously purchase child pornography with cryptocurrency.
The indictment also alleges that Hildebrandt produced child pornography by placing a covert camera into a bathroom he knew to be used by three minor females. As alleged in the indictment, Hildebrandt positioned the camera so that it would capture the minor females exiting the shower and drying off with towels. Hildebrandt allegedly created nude images of two prepubescent females. Hildebrandt allegedly possessed at least two videos constituting child pornography, including one that was over two and a half hours in length containing a compilation of numerous different instances of child abuse, including prepubescent minors being sexually abused.
If convicted, Hildebrandt faces a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison for production of child pornography; a maximum sentence of 10 years in federal prison for possession of child pornography; and a maximum of 20 years in federal prison for obstruction of justice. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Maryland State Police, the Harford County Sheriff’s Office, the Harford County Child Advocacy Center, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland Jr., who is prosecuting the federal case.
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A Southport Man was Sentenced to More Than 12 Years ImprisonmentRead the Press Release
WILMINGTON, N.C. – A Southport man was sentenced today to 151 months in prison for possessing with the intent to distribute five (5) grams or more of methamphetamine. On August 13, 2020, Kevin Joseph Boyle pled guilty to the charges.
According to court documents and other information presented in court, Kevin Joseph Boyle, 64, was stopped by Brunswick County Sheriff’s Deputies on a return trip from Charlotte, NC. The information presented showed that between July 20, 2019 and July 21, 2019, a GPS tracking device on Boyle’s truck indicated that Boyle traveled to Charlotte and then back towards Brunswick County. Once in Brunswick County, deputies with Brunswick County stopped Boyle’s truck after the vehicle crossed the center line of the highway. Boyle allowed law enforcement to search his truck. A K9 gave a positive indication for the presence of narcotics in the vehicle. Law enforcement found a magnetic box located in the rear passenger side tire well containing methamphetamine. Interviews from cooperating witnesses confirmed that Boyle travelled to Charlotte on a regular basis to resupply with methamphetamine and further confirmed that Boyle was a major source of methamphetamine in Southport.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Brunswick County Sheriff’s Office (BCSO) investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case. This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. 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. 7:20-cr-00013-M.
360 Patriot and 360 Ventures Pay $1.12 Million to Resolve False Claims Act Allegations of Service-Disabled Veteran-Owned Small Business FraudRead the Press Release
ALEXANDRIA, Va. – 360 Patriot Enterprises, LLC (360 Patriot), located in Alexandria, Virginia, and its former minority shareholder, 360 Ventures LLC (360 Ventures), located in Wilmington, Delaware, agreed to pay a combined $1.12 million to settle civil fraud allegations that 360 Patriot was awarded two U.S. Army contracts set aside for service-disabled veteran-owned small businesses (SDVOSB) at a time when 360 Patriot was not controlled by a service-disabled veteran (SDV), announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
In order to qualify as a SDVOSB, companies must meet defined eligibility criteria, including that the company is at least 51% unconditionally and directly owned and controlled by one or more SDVs. The United States alleged that from March 2015 to December 2017, 360 Patriot was controlled by a non-SDV, and 360 Ventures facilitated the non-SDV’s control of the company under previous ownership and management. During that time, 360 Patriot was awarded two Army contracts that were set aside for qualified SDVOSBs.
360 Patriot’s current management submitted a written contractor disclosure to the Department of Defense Office of Inspector General in October 2020, describing the company’s likely prior control by a non-SDV.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Defense Criminal Investigative Service; U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; and the Naval Criminal Investigative Service.
The matter was investigated by Assistant U.S. Attorneys Kristin S. Starr and William Hochul.
The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
26-Year-Old Florida Man Charged with Coercion and Enticement of A MinorRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Miriam E. Rocah, Westchester County District Attorney, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of CHRISTOPHER NUNEZ for persuading, inducing, enticing, and coercing a 15-year-old minor to engage in sexual activity. NUNEZ was arrested yesterday in Miami, Florida, and will be presented today in Miami federal court.
Manhattan U.S. Attorney Audrey Strauss said: “This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them. As today’s arrest shows, we will use every tool available to law enforcement to investigate and prosecute those alleged to have sexually exploited children.”
Westchester County District Attorney Miriam E. Rocah said: “This case highlights the dangers present online that can turn very real for minors in Westchester and elsewhere. We will work together with our law enforcement partners at every level in every jurisdiction to protect our children. I am grateful for the partnership of the SDNY and the FBI in this investigation, which will help identify perpetrators and victims around the country.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, we believe Mr. Nunez has chatted and possibly had contact with other victims. We’re asking for everyone to take note of his social media username ‘PLMV23’ and call 1-800-CALL-FBI or go to tips.fbi.gov if you recognize it. Parents and guardians are the first line of defense in keeping sexual predators from getting access to children, so please pay attention to what your children are doing online. Ask questions about with whom they’re chatting, and make sure you know how to use the security features on all their devices. A conversation with a child today may protect them from a trauma which will last a lifetime.”
According to the Complaint[1] filed on June 1, 2021, in White Plains federal court and unsealed today:
Between in or about early March 2021 up to and including on or about May 1, 2021, NUNEZ communicated online with a 15-year-old minor (“Victim-1”) and persuaded Victim-1 to meet NUNEZ in person to engage in sexual activities with him. NUNEZ used various social media platforms to communicate with Victim-1, including Discord and Snapchat. In his communications with Victim-1 on Discord, NUNEZ used the social media user name, “PLMV23.”
On or about April 30, 2021, and May 1, 2021, NUNEZ travelled to New York from Miami, Florida, to meet with Victim-1 in person in Westchester County, New York, to engage in sexual activity with her.
On or about May 2, 2021, CHRISTOPHER NUNEZ was charged in the Town of North Salem, New York, with Rape in the Third Degree and Endangering the Welfare of a Child. The Westchester County District Attorney’s Office will be prosecuting these charges.
Anyone who may have encountered CHRISTOPHER NUNEZ (who may have been using the social media user name “PLMV23”), or whose child may have had any communications with NUNEZ, is asked to contact the FBI at 1-800-CALL-FBI (225-5324).
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NUNEZ, 26, of Miami, Florida, is charged with one count of coercion and enticement, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the efforts of the FBI, the Westchester County District Attorney’s Office, and the New York State Police in connection with this investigation. She added that the investigation is ongoing.
This case began as an investigation in the Special Prosecutions Division Child Abuse Bureau of the Westchester County District Attorney’s Office by Assistant District Attorney Charlotte Gudis, working jointly with the New York State Police. The federal prosecution is being handled by the White Plains Division of the U.S. Attorney’s Office. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Thursday 3 June 2021
Woodville Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Jackson, Miss. – A Woodville man pled guilty in federal court today to selling methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Ricky Oneal Wright, 58, sold 6.5 grams of pure methamphetamine to an individual on October 22, 2019.
Wright was indicted and pled guilty today to possessing with intent to distribute 5 grams or more of methamphetamine. He is scheduled to be sentenced on September 2, 2021 at 10 a.m. and faces a mandatory minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by The Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
Veterans Affairs Employee Pleads Guilty After Recording Co-Workers in Veterans Affairs Clinic RestroomRead the Press Release
PENSACOLA, FLORIDA – Robert Sampson, 52, of Gulf Breeze, Florida, pled guilty today to charges of Video Voyeurism and Disorderly Conduct. Sampson surreptitiously videoed eight fellow Department of Veterans Affairs (VA) employees using a hidden recording device that he placed in a restroom at the Veterans Affairs Joint Ambulatory Care Center in Pensacola, Florida, on multiple occasions from August 2019 to June 2020. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the plea today.
“The victims in this case perform an incredible service to our retired and disabled military community and they should feel safe and have their privacy respected in their work environment,” stated Acting U.S. Attorney Coody. “I applaud the Department of Veterans Affairs Police and the Department of Veterans Affairs Office of the Inspector General for their thorough investigation into this crime.”
Sampson pled guilty as charged. The facts introduced at the time of the plea revealed that Sampson admitted to placing a hidden camera, disguised to look like a cell phone charger power adapter, in a restroom at the Pensacola VA Joint Ambulatory Care Center approximately 17 times. When VA employees discovered the recording device and notified the VA Police, Sampson attempted to wrestle the employees for control of the device. Sampson later admitted that he had placed the device in the restroom to record individuals in the restroom and would later watch the footage.
The Department of Veterans Affairs Police responded to the disturbance and initiated the investigation into the allegations before forwarding the case to the Veterans Affairs Office of the Inspector General.
Sampson’s sentencing hearing is scheduled for August 19, 2021, at 2:00 pm, at the United States Courthouse in Pensacola before the Honorable Elizabeth M. Timothy. Sampson faces up to one year of imprisonment on the Video Voyeurism Count, and up to six months imprisonment for the Disorderly Conduct Count.
The case is being prosecuted by Assistant United States Attorney Jennifer H. Callahan and Special Assistant United States Attorney Matthew Kalayjian, a member of the United States Navy JAG Corps.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Utah Man Sentenced to 30 Years in Prison for Murdering his Wife on a Cruise Ship in Southeast AlaskaRead the Press Release
JUNEAU – A Utah man was sentenced today to 30 years in federal prison followed by five years of supervised release for the beating death of his wife during a 2017 family cruise to Alaska.
Kenneth Manzanares, 43, pleaded guilty in February 2020 to the second-degree murder of Kristy Manzanares while onboard the Emerald Princess cruise ship in the U.S. Territorial Waters outside southeast Alaska on July 25, 2017.
“In 2017 Kenneth Manzanares brutally murdered his wife Kristy Manzanares while on an Alaskan cruise with their three daughters and extended family members. This was not a random act of violence but a chilling neglect for human life for which he will serve 30 years in federal prison, where there is no parole ever,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska.
“While today’s sentence will not bring Kristy back to her family and friends, we hope it provides a sense of justice for this heinous crime and brings some closure to those who knew and cared about her.”
“No excuse can justify the savagery committed by this man, who will now spend the next three decades behind bars,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “The FBI worked tirelessly, with the support of our partners, to seek justice for Kristy – a beloved mother, daughter, sister and friend. While justice has now been served, the lasting impact and trauma this man inflicted on Kristy’s family can never be erased. Our thoughts are with Kristy’s family and her home community.”
According to court documents, on July 24, 2017, Kenneth Manzanares, Kristy Manzanares, their three daughters and Kristy’s extended family members boarded the Emerald Princess on an Alaskan cruise. On the evening of July 25, Kenneth and Kristy were inside their cabin along with two of their daughters.
According to admissions made in connection with the plea, Kenneth and Kristy became involved in an argument about Kenneth’s behavior that evening. During the argument, Kristy stated she wanted a divorce and told him to get off the ship in Juneau and travel back home to Utah. Kenneth told the two daughters to leave the room and both went into an adjoining relatives’ cabin. A few minutes later, they both heard Kristy scream and attempted to reenter the cabin using the adjoining door when Kenneth told them “don’t come in here.” They both went to the connected balcony and saw Kenneth straddling Kristy on the bed striking her in the head with closed fists.
Prior to security officers arriving in the cabin, Kristy Manzanares’ two brothers and father arrived on scene. One of the brothers saw Kenneth Manzanares drag Kristy’s body toward the balcony and he grabbed her ankles pulling her back into the cabin. Soon after, at approximately 9:00 p.m., ship security and medical personnel arrived and attempted to perform life saving measures on Kristy but were unsuccessful. It was determined that she was killed by blunt force trauma to her head and face. Manzanares was arrested, on July 26, 2017, and has remained in federal custody.
The FBI’s Anchorage Field Office conducted the investigation leading to the charges in this case. Additional investigative assistance was provided by the FBI’s Seattle and Salt Lake City Field Offices, the U.S. Coast Guard Investigative Service (CGIS), Coast Guard District 17, U.S. Customs and Border Protection (CBP) and the U.S. Postal Inspection Service (USPIS).
Assistant U.S. Attorney Jack Schmidt prosecuted the case.
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Tyngsborough Police Officer Indicted for Bank Fraud and National Firearms Act ViolationsRead the Press Release
BOSTON – A Tyngsborough police officer was indicted yesterday by a federal grand jury on bank fraud and violations of the National Firearms Act (NFA).
Daniel Whitman, 36, of Salisbury, was indicted on one count of bank fraud conspiracy, two counts of bank fraud, two counts of making false statements to a bank, one count of possession of an unregistered firearm, one count of making a firearm in violation of the NFA and one count of transferring a firearm in violation of the NFA. Whitman was previously charged and arrested in January 2021 with conspiracy to violate provisions of the NFA.
According to the charging documents, Whitman is a police officer with the Tyngsborough Police Department and was the owner and principal manager of Hitman Firearms, LLC, a retail gun shop in Tyngsborough. It is alleged that Whitman and co-conspirator Bin Lu sought to build a large indoor shooting range, which would serve regional and international customers, and offer shooting clinics and other services. Whitman and Lu brought in a Chinese investor, who contributed several million dollars to the project. However, in applying for loans from federally insured financial institutions, Whitman allegedly hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.
It is also alleged that Whitman knowingly made, possessed and transferred firearms that had been modified by the addition of stocks and short barrels, resulting in their classification as short-barreled rifles (SBR) under the NFA. These SBRs were not properly registered in the National Firearms Registration and Transfer Record as required by the NFA, nor did Whitman pay the applicable taxes or fulfill other requirements under the NFA.
In May 2021, Lu agreed to plead guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. A plea hearing is scheduled for June 8, 2021.
The bank fraud charges provide for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The NFA charges provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. 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; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Pleads Guilty to Hate Crime Charges After Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
A Texas man pleaded guilty yesterday to federal hate crime charges in the U.S. District Court for the Northern District of Texas.
According to court documents, Daniel Jenkins, 22, of Dallas, pleaded guilty yesterday to a federal hate crime and two other charges in connection with his involvement in a scheme to target gay men for violent crimes, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney for the Northern District of Texas Prerak Shah, and FBI Special Agent-in-Charge Matthew J. DeSarno of the Dallas Field Office. Jenkins is the last of four defendants to plead guilty to charges stemming from the scheme.
Jenkins pleaded guilty to one hate crime count, one count of conspiracy to commit hate crimes, kidnapping, and carjacking, and one count of use of a firearm during and in relation to a crime of violence.
“The Department of Justice and the Civil Rights Division are committed to confronting the scourge of hate-based violence gripping communities across our nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We denounce hate-based violence in all of its forms, including violence targeting individuals based on sexual orientation and gender identity. We will continue to diligently investigate and prosecute violent, bias-motivated crimes to the fullest extent. As noted by Attorney General Garland, we stand ready to use every tool in our arsenal to address the rise in hate and we will work to hold perpetrators of hate-motivated violence accountable.”
“These defendants brutalized multiple victims, singling them out due to their sexual orientation. We cannot allow this sort of violence to fester unchecked,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “The Department of Justice is committed to prosecuting hate crimes. In the meantime, we urge dating app users to remain vigilant. Unfortunately, predators often lurk online.”
“Investigating hate crimes is one of the FBI's highest priorities because of the devastating impact they have on families and communities,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are committed to the pursuit of offenders and holding them accountable for perpetrating these harmful crimes. No one should have to live in fear of violence because of who they are, where they are from or what they believe. We will continue working with our law enforcement and community partners to detect and prevent violent incidents motivated by hate or bias. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
According to court documents filed in connection with his guilty plea, Jenkins admitted that he and his co-conspirators used Grindr, a social media dating platform used primarily by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes over the course of approximately a week in December 2017. Jenkins admitted that he and his co-conspirators held victims against their will; pointed a handgun at victims and took their personal property, including their vehicles; and traveled to local ATMs to withdraw cash from the victims’ accounts. Jenkins further admitted that he and his co-conspirators physically injured at least one victim and taunted the victims based upon the co-conspirators’ perception of the men’s sexual orientation.
In March 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. In December 2019, Daryl Henry and Pablo Ceniceros-Deleon pleaded guilty to a federal hate crime and other charges in connection with this case. Sentencing for these three defendants is set for June 23.
Daniel Jenkins’ sentencing is set for Oct. 6. Pursuant to the terms of the plea agreement, Jenkins faces a sentence of up to 26 years in prison.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division along with Assistant U.S. Attorney Nicole Dana of the Northern District of Texas are prosecuting the case.