Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
13 July 2021
Tulsa Man Pleads Guilty to Felony Child NeglectRead the Press Release
A Tulsa man pleaded guilty to two counts of child neglect in Indian Country after he left his two children unsupervised for more than four hours, at which time the children gained access to his parked vehicle and died due to extreme heat exposure, announced Acting U.S. Attorney Clint Johnson.
Dustin Lee Dennis, 32, fell asleep on June 13, 2020, only to wake up and discover his two children deceased in the backseat of his pick-up truck. As part of the plea agreement, Dennis and the United States agreed to a sentence between 36 and 72 months in federal prison followed by five years of supervised release. U.S. District Judge Claire V. Eagan will determine the final sentence at a hearing set for Nov. 10, 2021.
“Dustin Dennis was irresponsible and reckless. He prioritized using cocaine while his young children, Ryan and Tegan, were in his home and failed to protect them from harm,” said Acting U.S. Attorney Clint Johnson. “My office remains committed to prosecuting perpetrators of child neglect and abuse.”
In his plea agreement, Dennis admitted that while caring for his children on June 12-13, 2020, he got high on cocaine and stayed up playing video games. He fell asleep on June 13, leaving his two children unsupervised. The children entered Dennis’s vehicle in the driveway, were unable to get out of the truck and later died from exposure to extremely high temperatures while being trapped in the truck.
In court, Assistant U.S. Attorney Gina Gilmore outlined the evidence against the defendant. Dennis and his brother discussed purchasing and using cocaine days before the death of the children. On June 12, 2020, his brother indicated that he had the “stuff,” referencing cocaine, and the two could play video games at his home. Dustin later texted his brother that he would have to bring his children since his mother could not take care of them. Dennis then wrote that he was headed to his brother’s house.
Surveillance video showed Dennis and the children returning home just before 1 am on June 13. At 1:03 am, Dennis indicated in a text to his brother that he was turning his game on and later texted that he did a couple of lines and that he hated chopping up cocaine when it’s moist. He indicated he was about to do some more.
Surveillance video later showed Dennis leaving his residence alone at approximately noon for 11 minutes during which time Dennis stated he drove to a QuikTrip. When Dennis returned home from the convenience store, he fell asleep. Surveillance footage showed the two children trying to get into Dennis’ truck at 1:22 p.m. when the vehicle’s alarm went off. They attempted a second time at 1:29 p.m. and successfully gained access to the truck. The video later captured Dennis exiting his apartment and searching for his children approximately four hours later, at 5:32 p.m. Within minutes he discovered the children deceased in the truck.
Three-year-old Ryan and four-year-old Tegan were citizens of the Cherokee Nation. The crime occurred within the boundaries of the Muscogee Nation reservation.
Dustin Dennis and his brother, Michael Dennis, were charged in a superseding indictment, with use of a communication facility in committing, causing, and facilitating the commission of a drug trafficking felony. Michael Dennis is presumed innocent until proven guilty in a court of law.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Gina Gilmore prosecuted the case.
Trio Arrested in Large-Scale Drug ConspiracyRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Devonne L. Walker (35, Lady Lake, FL), Tymane D. Hamilton (29, Phoenix, AZ), and Kanisha D. Savage (28, Phoenix, AZ) with conspiracy to distribute controlled substances. If convicted, each faces a maximum penalty of life in federal prison.
According to the indictment, between March 2018 and October 10, 2019, Walker, Hamilton, and Savage conspired to distribute more than 50 kilograms of marijuana, 5 kilograms of cocaine, 1 kilogram of heroin, 500 grams of methamphetamine, and 40 grams of fentanyl. According to court records, law enforcement officers seized more than 54 kilograms of marijuana, 27 kilograms of methamphetamine, 125 grams of heroin, and 79 grams of fentanyl during the investigation. These drugs were shipped from Phoenix, Arizona to the Middle District of Florida using the United States Postal Service. The drugs were eventually distributed in Central Florida.
Walker was arrested on June 25, 2021, in Lake County, where agents recovered a stolen firearm and bags containing suspected cocaine, heroin, methamphetamine, and fentanyl. Hamilton and Savage were arrested on June 28, 2021, in Phoenix. All three defendants were ordered detained.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Lake County Sheriff’s Office, the U.S. Postal Service Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta.
Three Dothan Residents Sentenced for Stealing FirearmsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Sandra J. Stewart announced that three Dothan, Alabama residents have been sentenced for their roles in stealing guns from licensed firearms dealers. On July 8, 2021, 19-year-old Michael T. Taylor was sentenced to 26 months in prison. Previously, on June 9, 2021, 20-year old Jamir Y. Baxter was sentenced to 36 months and, lastly, on May 12, 2021, 21-year old Michaela R. White, was sentenced to 36 months imprisonment. Following each of their prison sentences, they will serve three years of supervised release. There is no parole in the federal system.
According to court records, on August 6, 2019, Baxter, acting alone, burglarized Performance Machine Works in Dothan, Alabama and stole five firearms, including a Glock, model 27, .40 caliber pistol; a Glock, model 20, 10mm pistol; a Glock, model 48, 9mm pistol; an FN, model 509T, 9mmm pistol; and, a Remington, model 1911 R1, .45 caliber pistol. Then, on September 6, 2019, Baxter, Taylor, and White all conspired to burglarize The Outpost, a Federal Firearms Licensee (FFL) in Dothan, Alabama, in order to steal guns. They made entry into the building by using hand tools to remove material and breach the business’ back wall to avoid setting off the alarm. A total of nine firearms were taken from The Outpost, including a BCM, model BCM4, 5.56 mm rifle; a Caracal, model F, 9mm pistol; an I.O. Inc., model BSR-74, 5.45mm rifle; a Kel-Tec, model P11, 9mm pistol; a Romarm/Cugir, model WASR-10, 7.62mm rifle; a Romarm/Cugir, model WASR-10UF, 7.62mm rifle; a Taurus, model 24/7 G2, 9mm pistol; and, two (2) Taurus, model G2C, 9mm pistols.
The three defendants were indicted for unlawfully taking firearms from a Federal Firearms Licensee (FFL) and conspiracy to steal from an FFL in connection with the September 6, 2019 burglary. Baxter was indicted on an additional charge of stealing from an FFL for the August 6, 2019 gun thefts. All three pleaded guilty to the charges contained in the indictment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Dothan Police Department, and the Houston County Sheriff’s Office. Assistant United States Attorney Eric M. Counts prosecuted the case.
Syracuse Man Pleads Guilty to Possessing Unregistered SilencersRead the Press Release
SYRACUSE, NEW YORK - Anthony Lopes, age 29, of Syracuse, New York, pled guilty today to possessing unregistered silencers, announced Acting United States Attorney Antoinette T. Bacon, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his guilty plea, Lopes admitted to selling a total of three silencers on February 10, 2020, and February 13, 2020. None of the silencers had serial numbers and were not registered to Lopes in the National Firearms Registration and Transfer Record.
Sentencing is scheduled for November 10, 2021, before Chief District Judge Glenn T. Suddaby in Syracuse, New York, at which time Lopes faces up to 10 years in prison, a fine of up to $10,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department-Special Investigations Division (SPD-SID), and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Suitland Man Pleads Guilty to Coercion and Enticement of a MinorRead the Press Release
Greenbelt, Maryland – Sean Levan Henson, age 28, of Suitland, Maryland pleaded guilty today to coercion and enticement of a minor.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Russell E. Hamill III of the Laurel Police Department; and Chief Eric L. Reiley of the Woodstock Virginia Police Department.
According to his guilty plea, in February 2019, Henson used various social media platforms to communicate with a 14-year old female victim residing in Shenandoah County, Virginia. Henson sent numerous sexual messages to the underaged victim using the screenname “stayreel2you”. For example, on February 15, 2019 Henson sent a message stating “I’m gonna take my time and appreciate you and make love to that body.”
As detailed in his plea agreement, on February 22, 2019, Henson traveled to Shenandoah County, Virginia where he picked up the victim for the purpose of transporting her to Maryland and engaging in sexual activity. On February 23, 2019, Henson engaged in sexual intercourse with the victim in Laurel, Maryland. Henson subsequently paid for a ride-sharing service to transport the female victim back to Shenandoah County, Virginia. The victim’s parents reported the victim as a missing person and gave a statement to law enforcement implicating Henson in her disappearance.
On March 6, 2019, law enforcement communicated with Henson by telephone. At that time Henson admitted he was aware the victim was 14 years-old and that he had been communicating with the victim for two months with the intention of a romantic relationship. Henson also informed law enforcement he picked up the victim at a Virginia gas station before he proceeded to Maryland where he engaged in sexual intercourse with the victim in Maryland.
Henson and the government have agreed that, if the Court accepts the plea agreement, Henson will be sentenced to 10 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for October 19, 2021 at 2 p.m.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Laurel Police Department, and the Woodstock Virginia Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Timothy F. Hagan who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Statement of Acting U.S. Attorney on the Shooting of Two Baltimore Police Officers Assigned to the U.S. Marshal Service Warrant Apprehension Task ForceRead the Press Release
Baltimore, Maryland – Statement from Acting United States Attorney for the District of Maryland Jonathan F. Lenzner:
“On behalf of the United States Attorney's Office, I would like to recognize the bravery and selfless commitment to public service of the Baltimore police officers assigned to the U.S. Marshal Service Capital Area Regional Fugitive Task Force who were shot and injured today in the line of duty. Today is a painful reminder of the dangers that law enforcement face every day in performing their duties to keep our communities safe. As reflected in their actions today, these two officers and their colleagues are dedicated to making communities in Baltimore safer, and they deserve our gratitude and appreciation.”
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
St. Paul Armed Career Criminal Sentenced to 210 Months in Prison for Illegal Possession of A FirearmRead the Press Release
ST. PAUL, Minn. – A Saint Paul man was sentenced yesterday to 210 months in prison followed by three years of supervised release for illegally possessing a firearm.
According to court documents, on January 16, 2019, Saint Paul police officers responded to a shooting incident near Charles Avenue in St. Paul. Four gunshots were fired at a house, which was occupied by two adults and a two-year old child, penetrating the walls and windows. Officers were able to recover the four 9mm shell casings from the scene. The following day, law enforcement located a Buick Lucerne, registered to Curtis AJ Harrell, 30, that was at the scene of the shooting. Following a search of the vehicle and Harrell’s apartment, law enforcement recovered a loaded Glock 26 9mm firearm with a 17-round extended magazine in the center console of the vehicle and a 50-round 9mm extended drum magazine and live 9mm ammunition inside the apartment.
Investigators test fired the recovered Glock firearm and entered the resulting cartridge casing into the National Integrated Ballistic Information Network (NIBIN), which linked the firearm to the discharged casings recovered from the scene of the shooting. NIBIN also linked the firearm to discharged casings from three other incidents, including two occurring within the previous month. In his plea agreement, Harrell admitted to possessing the firearm that was used to shoot at the house.
Because he has multiple prior felony convictions, Harrell is prohibited under federal law from possessing firearms or ammunition at any time.
“This individual has a long history of carrying guns and committing violent felonies,” said Acting U.S. Attorney W. Anders Folk. “Thanks to the hard work of investigators and the use of NIBIN technology, this armed career criminal is off the streets.”
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network. 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.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Saint Paul Police Department.
Assistant U.S. Attorney Nathan H. Nelson prosecuted the case.
St. Louis man pleads guilty to carjacking and gun chargesRead the Press Release
ST. LOUIS – Najee Neal, 30, of St. Louis, Missouri, appeared before United States District Court Judge Sarah E. Pitlyk on today’s date and pleaded guilty to carjacking, brandishing a firearm in furtherance of that carjacking, and felon in possession of a firearm. Neal also pleaded guilty to a separate offense of being a felon in possession of a firearm in connection with an unrelated incident.
On February 27, 2020, just after the victim parked his car in the driveway of a residence in Kirkwood, he noticed a vehicle (occupied by Neal and an accomplice) pull behind his car. Neal exited his vehicle and approached the victim. Neal pointed a pistol at the victim and ordered the victim out of his car and to empty his pockets. Neal took the victim’s wallet and key fob by force and ordered the victim to the ground. Neal entered the victim’s car. A witness approached the scene. The victim warned the witness that the robber had a gun. As Neal drove off, he threatened the witness. Neal’s accomplice followed Neal out of the area.
Minutes later, police spotted Neal in the victim’s car. Neal eluded police at speeds of over 100 miles per hour on Interstate 44. Approximately 45 minutes later, police spotted Neal and activated their emergency lights. Neal attempted to elude officers by running traffic signals and running up on sidewalks. Neal abandoned the carjacked vehicle after it became disabled. Officers pursued Neal on foot. Neal dumped his pistol near the porch area of a nearby home. Neal was arrested a short distance away after ignoring orders to stop. The pistol was recovered. The carjacking victim identified the pistol as the pistol Neal used to steal the victim’s car.
Several months earlier, on September 28, 2019, police, after receiving reports of illegal drug sales in the area of the M & K Market, near the 12000 block of Bellefontaine Road in St. Louis County, spotted Neal engaged in suspicious activity from his parked vehicle. An investigation by the police resulted in the seizure a loaded pistol between the driver’s seat and center console. Police also seized marijuana and a scale from the driver’s door of the vehicle.
Prior to September 28, 2019, Neal was convicted of one or more felony crimes. Neal was prohibited from possessing firearms as a result of his criminal record.
Neal will be sentenced for the above offenses on October 5, 2021.
The above cases were investigated by the Kirkwood Police Department, St. Louis Metropolitan Police Department, St. Louis County Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Szczucinski is handling the matter.
#####
Repeat Offender from Mount Pleasant Sentenced to More Than 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Charleston, South Carolina---- Acting United States Attorney M. Rhett DeHart stated today that Zachary Scott Fasola, 33, of Mount Pleasant, was sentenced to more than ten years in federal prison for possession of child pornography, marking the second federal conviction and sentence for possession of child pornography for Fasola, with his first being in 2016.
Evidence presented in court showed that, on May 16, 2018, the South Carolina Attorney General's Office Internet Crimes Against Children (ICAC) section received a CyberTipline Report from the National Center for Missing and Exploited Children (NCMEC), which had been notified by Facebook of alleged criminal activity on their servers related to a particular email address.
On January 24, 2019, law enforcement executed a search warrant at the residence associated with the email address, which was Fasola’s residence. At the residence, Fasola admitted to downloading child pornography from the internet. Law enforcement seized multiple electronic devices, on which 24 videos and 140 images of child pornography were found, including depictions of prepubescent children engaged in sexual activity with adults.
United States District Judge Richard M. Gergel of Charleston sentenced Fasola to 121 months imprisonment and lifetime supervised release. There is no parole in the federal system. Judge Gergel also ordered Fasola to pay special assessments of $100 and $5,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Charleston County Sheriff’s Office. Assistant United States Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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, please visit www.projectsafechildhood.gov.
#####
Queens Man Sentenced to 57 Months’ Imprisonment for Purchasing Illegally Defaced FirearmRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Joseph Miner was sentenced by United States District Judge William F. Kuntz, II, to 57 months’ imprisonment for purchasing an illegally defaced firearm in May 2020.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence holds Miner accountable for his knowing purchase of a firearm that could not be traced because its serial number had been removed,” stated Acting U.S. Attorney Kasulis. “I commend the swift action taken by members of law enforcement to address the serious threat that possession of illegal guns poses to the safety of the community.”
Law enforcement authorities began investigating Miner’s interest in illegally purchasing firearms in late 2019, when he posted on social media his desire to obtain assault weapons and other firearms for a racial civil war or racial holy war. Miner expressed support on social media for racially and ethnically motivated violence, including celebrating the August 2017 white supremacist rally in Charlottesville, Virginia, and the December 2019 machete attack at a synagogue in Monsey, New York. Although Miner at times disavowed interest in conducting an attack himself, on multiple occasions he posted social media messages in which he displayed suicidal ideations and fantasized about “martyring” himself and “go[ing] out in a blaze of glory” in a mass-shooting attack.
In April 2020, Miner initiated contact with an undercover law enforcement agent posing as a firearms dealer. Miner requested to purchase firearms from the undercover agent, knowing that the serial numbers that allow the weapons to be traced were removed from the guns that the undercover agent was offering for sale. Following further communications to set up the gun purchase, Miner and a co-defendant met the undercover agent at a Queens hotel on the evening of May 12, 2020. Miner purchased a Glock 9mm handgun with an obliterated serial number.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
JOSEPH MINER
Age: 31
Bayside, QueensE.D.N.Y. Docket No. 21-CR-554 (WFK)
Prairie Village Man Sentenced to 12 Years for $7.3 Million Dollar Payday Loan Fraud, $8 Million Tax EvasionRead the Press Release
KANSAS CITY, Mo. – A Prairie Village, Kansas, man was sentenced in federal court today for engaging in two separate fraud schemes related to millions of dollars in false payday loan debt and for tax evasion totaling more than $8 million.
“After raking in millions of dollars from the victims of his fraud scheme, the defendant lied repeatedly and used every trick in the book to hide his ill-gotten gain from the IRS,” said Acting U.S. Attorney Teresa A. Moore. “He spent lavishly on jet travel and luxury cars, but hasn’t voluntarily paid a dime in taxes owed for more than a decade. Adding insult to injury, he even fraudulently obtained a Paycheck Protection Program loan from the government after working for so many years to cheat U.S. taxpayers.”
Joel Jerome Tucker, 52, was sentenced by U.S. District Judge Roseann Ketchmark to 12 years and six months in federal prison without parole. The court also ordered Tucker to pay $8,057,079 in restitution to the Internal Revenue Service, and to forfeit to the government $5,000, which is the amount of stolen proceeds transferred across state lines as referenced in the specific count to which he pleaded guilty.
FBI Acting Special Agent in Charge Michael E. Hensle stated, “Tucker defrauded hundreds of thousands of innocent victims and the U.S. government for his own personal gain. While most people strive to earn an honest living and live the American dream, Tucker chose to live a lavish lifestyle at the cost of working Americans. The FBI will continue to pursue and bring to justice those individuals who take advantage of others for profit and believe they are above the law.”
“Tucker used the proceeds of his criminal activity to live a lavish lifestyle and defraud the American people. His sentencing shows the courts take tax and related fraud schemes seriously,” said Amanda Prestegard, Acting Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office. “IRS-CI aggressively investigates and uncovers complex financial crimes to disrupt criminal activity impacting the U.S. tax system.”
Tucker, working through various companies, serviced payday loan businesses. Tucker’s company names changed over the years; the primary company was eData Solutions, LLC. eData, formally registered on July 29, 2009, did not make loans directly to borrowers; it collected loan application information, referred to as leads, and sold those leads to its approximately 70 payday lender clients. As a loan servicer, eData also provided software for payday lenders.
Tucker and the other owners of eData sold the company to the Wyandotte Indian tribe in 2012. However, despite selling his interest in eData, Tucker maintained a file of 7.8 million leads he had acquired through eData, containing detailed customer information (including names, addresses, bank accounts, Social Security numbers, dates of birth, etc.). eData had collected the detailed customer information from online payday loan applications or inquiries to its payday lender clients; the file did not represent loans that were made. In addition, Tucker obtained and retained data regarding defaulted payday loans eData had acquired from a number of different payday lender clients. Tucker used these files to create falsified debt portfolios.
On July 16, 2020, Tucker pleaded guilty to one count of transporting stolen money across state lines as part of the debt fraud scheme, one count of bankruptcy fraud, and one count of tax evasion. The government also alleged in court filings that Tucker engaged in another fraud scheme that was not charged as part of this case, by fraudulently receiving funds under the Payroll Protection Program.
Debt Fraud Scheme
Tucker admitted that he engaged in a fraudulent debt scheme from 2014 to 2016. This scheme involved marketing, distributing, and selling false debt portfolios. Tucker defrauded third party debt collectors and millions of individuals listed as debtors through the sale of falsified debt portfolios. Tucker sold supposed debts which: 1) he didn’t personally own; 2) were not true debts; 3) had already been sold to other buyers; and 4) contained false lenders, false loan dates, false loan amounts, and false payment status. Some of the “debtors” had only applied for a loan but never received one, either because they withdrew their application or because the loan was not funded. Some of the listed debtors, however, actually paid the debt collectors out of fear or confusion of what they owed. Tucker received as much as $7.3 million from the sale of false debt portfolios in just two years, from early 2014 to early 2016.
As part of his fraud scheme, Tucker transferred the proceeds of the fraud scheme across state lines.
Bankruptcy Fraud Scheme
Tucker also admitted that he executed a related bankruptcy fraud scheme in 2015 and 2016. In his bankruptcy fraud scheme, Tucker also sold fraudulent debt, which entered the United States Bankruptcy Courts nationwide. When the United States Bankruptcy Court investigated these purported debts, which were presented as claims in bankruptcy cases, Tucker repeatedly lied under oath by providing false information and testimony to the Bankruptcy Court in order to conceal his scheme.
Tax Evasion
On April 15, 2014, the United States Tax Court entered a decision that Tucker owed tax deficiencies from 2007 and 2008. The total amount owed in 2014 with interest and penalties was $8,057,079.95. For tax years 2014 - 2016, neither Tucker personally nor any of his companies filed federal tax returns with the Internal Revenue Service. According to court documents, Tucker now owes approximately $12 million in taxes, interest, and penalties for 2007 through 2014. According to court documents, Tucker has never made any voluntary payments toward his tax debt.
Tucker told IRS agents that he had no income and was living on borrowed money, including a lot of borrowed money from his mother. In reality, bank accounts showed Tucker sent money to his mother rather than borrowing money from her. Tucker used nominee bank accounts to conceal income and assets and spent hundreds of thousands of dollars in personal living expenses such as vehicles, chartered jets, travel and entertainment, and a personal residence.
For example, Tucker leased a $1.59 million home in Prairie Village, bought a $105,367 Cadillac Escalade, spent $226,000 for private charter jet services, spent more than $75,000 to lease a Porsche and a Ferrari, spent $17,536 at The Arrabelle, a luxury hotel in Vail, Colorado, made $50,000 in payments to Vail Mountain Club, paid a total of $682,437 in payments to American Express, and made cash withdrawals totaling almost $200,000.
Paycheck Protection Program Fraud
According to court documents, a month before entering a guilty plea to financial crimes, Tucker fraudulently obtained a PPP loan by denying that he was under indictment.
Tucker submitted a loan application to the Small Business Administration for a Paycheck Protection Program (PPP) loan on June 13, 2020. Tucker was originally indicted June 5, 2018. A superseding indictment was returned May 21, 2019. Thus, Tucker had been under federal indictment for two years at the time he completed the PPP loan application. Question 5 of the application asked, “Is the Applicant (if an individual)…subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, or on probation or parole?” Immediately prior to this question, the loan application document notes that “If questions (5) or (6) are answered ‘Yes,’ the loan will not be approved.” (emphasis original). Tucker answered no, and electronically signed the application.
Due to Tucker’s false attestation, his loan request for $20,833 was approved and he received the funds on June 16, 2020.
Although Tucker has not been criminally charged in relation to the fraudulent loan, the court considered those actions as relevant behavior in determining today’s sentence.
This case was prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Patrick D. Daly. It was investigated by the FBI, IRS-Criminal Investigation, and the U.S. Bankruptcy Trustee in the Southern District of Texas.
COVID-19 Fraud Enforcement Task Force
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Paterson Man Sentenced to 95 Months in Prison for Coercion and Enticement of MinorRead the Press Release
NEWARK, N.J. – A Passaic County man was sentenced today to 95 months in prison for coercion and enticement of a minor and for illegally re-entering the United States, Acting U.S. Attorney Rachael A. Honig announced.
Juan Carlos Morales Pedraza, 35, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to a superseding information charging him with coercion and enticement of a minor and of illegally re-entering the United States after having previously been deported. Judge Chesler imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On April 13, 2019, Morales Pedraza approached a 15-year-old victim in Passaic County. Two days later, after engaging in sexual intercourse with the victim, Morales Pedraza and the victim left the New Jersey, with plans to travel to Illinois. Morales Pedraza admitted that he planned to engage in sexual conduct with the victim in Illinois. Law enforcement arrested Morales Pedraza in Ohio.
Morales Pedraza admitted that he is a citizen of Mexico and that he illegally entered the United States after having previously been deported.
In addition to the prison term, Judge Chesler sentenced Morales Pedraza to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Passaic County Prosecutor’s Office’s Sexual Investigations Unit, under the direction of Prosecutor Camelia M. Valdes, and investigators with the Ohio State Highway Patrol and the Lake Township Police Department in Lake Township, Ohio, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
Ohio man sentenced to 10 years for carjackingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Ashley Hubbs, of Paris, Ohio, was sentenced today to 124 months of incarceration for carjacking, Acting U.S. Attorney Randolph J. Bernard announced.
Hubbs, 38, pled guilty in January 2021 to one count of “Carjacking.” Hubbs admitted to using violence to steal a Honda CR-V in Lewis County in October 2016.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Lewis County Sheriff Office; and the Weston Police Department and investigated.
U.S. District Judge Thomas S. Kleeh presided.
North Carolina Man Indicted in Johnstown, PA on Drug ChargeRead the Press Release
Johnstown, PA - A resident of Goldsboro, North Carolina, has been indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Charles Triplin, 44, as the sole defendant.
According to the Indictment presented to the court, on June 21, 2021, Triplin was found to attempt to possess with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
The law provides for a minimum sentence of 10 years to life, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Newark Tax Preparer Sentenced to 18 Months in Prison for Aiding and Assisting in Preparation of False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Pennsylvania man who worked as a tax preparer in Newark was sentenced today to 18 months in prison for helping his clients file falsified tax returns that generated larger refunds, Acting U.S. Attorney Rachael A. Honig announced.
Sylvain Dienhoue, 53, of Tobyhanna, Pennsylvania, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with three counts of aiding and assisting in the preparation of false and fraudulent tax returns. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Dienhoue worked as a tax preparer at Cadi’s Multi Services in Newark. He knowingly and willfully aided and assisted in the preparation of 44 fraudulent tax returns on behalf of clients for the tax years 2014 through 2016. Dienhoue used fabricated and inflated figures, including expenses and itemized deductions, in order to generate inflated refunds.
In addition to the prison term, Judge Wigenton sentenced Dienhoue to one year of supervised release and ordered him to pay restitution of $237,738. He is also precluded from preparing taxes on anyone else’s behalf.
Acting U.S. Attorney Honig credited special agents from IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Criminal Division in Newark.
Nampa Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE - Cainen Bleu Johnson, 43, of Nampa, pleaded guilty to possession with intent to distribute methamphetamine, Acting United States Attorney Rafael M. Gonzalez, Jr., announced today. Johnson was indicted by a federal grand jury in Boise on April 14, 2021.
According to court records, Johnson was pulled over on a routine traffic stop on February 16, 2021. During the traffic stop Johnson became visibly agitated, refused to give his driver’s license to law enforcement, put his vehicle in drive, and fled the scene. After a high-speed chase, law enforcement officers were able to safely perform a pursuit intervention technique (PIT) maneuver to stop the vehicle and apprehended Johnson after a brief standoff. A subsequent search of Johnson’s vehicle uncovered 399.09 grams of methamphetamine that he admitted he intended to distribute to others, along with 5.5 grams of heroin, and 1.3 grams of 3,4-Methylenedioxymethamphetamine (MDMA). Johnson also possessed a digital scale and plastic packaging materials commonly used to weigh and package methamphetamine for distribution.
Johnson faces a statutory mandatory minimum sentence of at least ten years and a maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release. Sentencing is set for October 5, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez credited the efforts of the Nampa Police Department which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
###
Multiple Men Indicted for Arson and Other Offenses Committed During Unrest in Kenosha; Investigation into Other Suspects ContinuesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on July 7, 2021, a federal grand jury indicted four men, in two separate cases, for various offenses committed during the unrest in Kenosha, Wisconsin, in August 2020.
In the first case, Allen King, David Garner, and Kevin Martinez are charged with conspiring to steal controlled substances and transport stolen goods in interstate commerce, in violation of Title 18, United States Code, Section 371. King and Garner are also charged with two counts of arson, and conspiring to commit arson, in violation of Title 18, United States Code, Sections 844(i) and 844(n). Martinez is additionally charged with illegally possessing ammunition as a felon, in violation of Title 18, United States Code, Section 922(g)(1).
The charge against Martinez for illegally possessing ammunition stems from the shooting incident depicted below.
According to a publicly filed complaint, King, Garner, and Martinez traveled together from Minnesota to Kenosha on August 24, 2020. The complaint alleges that while in Kenosha, King and Garner attempted to set fires at a bar. King, Garner, and Martinez also looted and damaged other establishments in Kenosha, including a pharmacy and a gas station. The complaint further alleges that all three men described their illegal activities on social media, with King and Garner attempting to sell the stolen controlled substances over that same platform.
In the second case, Devon Vaughn is charged with arson, in relation to the fire at B&L Office Furniture in Kenosha.
Each of the arson crimes described above carries a mandatory minimum term of five years’ imprisonment.
“These cases are the direct result of the dedicated, skilled, and collaborative efforts of ATF and its federal, state, and law enforcement partners,” stated Acting U.S. Attorney Frohling. “Along with our partners, the Department of Justice is committed to holding individuals who engage in arson and other violent offenses accountable for their actions.”
“I commend all the law enforcement agencies for their tireless efforts and the United States Attorney’s Office for their diligence in charging these crimes that were committed during the civil unrest in Kenosha last August,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “ATF, alongside our partners, will continue to investigate those violent acts, and appeal to the public for their assistance, to ensure those responsible are held accountable.”
“The Kenosha Police Department is grateful for the support and resources provided by our Federal, State and Local partners,” said Kenosha Police Chief Eric Larsen. “We are committed to continuing our joint investigations into the destruction that occurred in the City of Kenosha last August, until every last person responsible is brought to justice.”
Law enforcement is still investigating various other crimes associated with the unrest in Kenosha. Anyone with information about the individuals depicted in the following photos should contact Kimberly Nerheim, Public Affairs Specialist, Bureau of Alcohol, Tobacco, Firearms and Explosives, at (773) 658-6419. There is a potential reward involved.
These cases were investigated by the Milwaukee Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kenosha Police Department, the Kenosha County Sheriff’s Office, and the Milwaukee County Sheriff’s Office. They will be prosecuted by Assistant United States Attorneys Kevin Knight and Philip Kovoor.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
# # # #
Mexican National Living in Meriden Sentenced to 4 Years in Federal Prison for Trafficking HeroinRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JESUS GOMEZ, 58, a citizen of Mexico last residing in Meriden, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 48 months of imprisonment for trafficking heroin.
According to court documents and statements made in court, in 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force learned that Gomez and Abisael Perez, of the Bronx, New York, were involved in the distribution of multi-kilogram quantities of heroin in the Meriden area. In November 2019, investigators made a controlled purchase of approximately 50 grams of heroin from Gomez and Perez.
Investigators next arranged to purchase two kilograms of heroin from Gomez and Perez. On November 17, 2019, investigators observed Gomez, Perez and a third individual, Heriberto Borrero, of Meriden, meeting at a construction site in Berlin. After the three individuals drove away from the site together, Berlin Police stopped their car. A subsequent search of a car that Perez had driven to and parked at the construction site revealed two packages containing a total of approximately two kilograms of heroin.
In 2012, Gomez was encountered by immigration authorities in Connecticut and, in March 2014, was removed to Mexico. Three months later, he illegally reentered the U.S. and was removed to Mexico a second time. He again illegally returned to the U.S. and was living in the country under an assumed identity at the time of his arrest.
Gomez has been detained since his arrest on November 17, 2019. On January 22, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Perez and Borrero also pleaded guilty. On March 16, 2021, Perez was sentenced to 60 months of imprisonment and, on April 20, 2021, Borrero was sentenced to three years of probation and 100 hours of community service.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force with the assistance of the Berlin Police Department. The Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments.
The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Mental Health Therapist Pleads Guilty to Enticing MinorRead the Press Release
A Monticello woman, who enticed a minor to engage in sexual activity, pled guilty today in federal court in Cedar Rapids, Iowa.
Miranda Breeden, age 46, pled guilty to one count of enticement of a minor. At the plea hearing, Breeden admitted that between November 2019 and January 2020, she used a cell phone to entice an individual under the age of 18 years old to engage in an illegal sex act. Breeden admitted that based on the sexual activity that occurred, she could have been charged with sexual abuse in the third degree in Iowa state court.
A criminal complaint filed in August 2020 alleged that Breeden was a mental health therapist for a school in the Cedar Rapids area in the fall of 2019 through at least January 2020. During that time, Breeden counseled a 14-year old male and the two engaged in a sexual relationship. Investigators located multiple Facebook messages between Breeden and the 14-year old, wherein Breeden arranged to meet the child for sex. In December 2019, investigators determined that Breeden went to Theisen’s in Cedar Rapids and purchased a firearm for the 14-year old.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Breeden remains in custody of the United States Marshal. Breeden faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life, a $250,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Elizabeth Dupuich and Ashley Corkery and was investigated by the Cedar Rapids Police Department, the Linn County Sheriff’s Office, the Federal Bureau of Investigation’s Safe Streets Unit, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-65. Follow us on Twitter @USAO_NDIA.
Member of Violent Gang from Detroit’s Eastside Sentenced to 210 Months in Federal PrisonRead the Press Release
DETROIT – A member of the violent eastside Detroit street gang, Smokecamp, a/k/a Original Paid Bosses (or OPB), was sentenced yesterday to 210 months in federal prison after having pleaded guilty to racketeering conspiracy and assault with a dangerous weapon, bringing the total number to 13 members of this gang having been convicted and sentenced, Acting United States Attorney Saima Mohsin announced.
Joining in the announcement were Keith Krolczyk, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief James White, Detroit Police Department, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division and Special Agent in Charge Keith Martin, US Drug Enforcement Administration, Detroit Division.
Sentenced was Tyree Williams, 27.
“These convictions and sentences demonstrate that by working together, federal, state and local law enforcement are systematically dismantling the street gangs that cause violent crime in our neighborhoods,” said Acting US Attorney Mohsin. “Detroit residents deserve to live in a community safe from violent crime.”
Acting Special Agent in Charge Krolczyk stated, “ATF’s highest priority is to remove violent criminals from our streets. Our long standing partnerships in the law enforcement community continues to expand these efforts to disrupt and dismantle violent gangs and criminal organizations.”
According to court records, the gang operated on the east side of Detroit, specifically the area in and around Albion Street and Seven Mile, an area Smokecamp/OPB members refer to as “ABlock.” This area is within a larger territory on Detroit’s east side claimed by the Bloods street gang known as the “Red Zone.” The gang has modified its name multiple times throughout the years going from “Runyon Boys” to “Original Paid Bosses” to “Paid Bosses Inc.” to “Smokecamp.”
In November, 2017, an indictment was returned which alleged that Smokecamp members were known to engage in robberies and extortion and that the gang made its money predominantly through the sale of narcotics, including cocaine, crack cocaine, heroin, marijuana, ecstacy, and other prescription pills. According to the indictment, the gang regularly sold these controlled substances on the “ABlock,” outside of vacant houses known as “trap houses,” and businesses in the area of Seven Mile and Albion. Additionally, between approximately 2014 – 2015, Smokecamp/OPB members regularly sold controlled substances from an apartment complex on East Seven Mile, which they branded the “Plaga,” sharing workers and firearms to distribute and protect their narcotics. However, this activity was not confined only to Detroit with some of their members traveling to Kentucky, West Virginia, and Ohio to sell their narcotics. The gang regularly engaged in acts of violence, including shootings and murder, in order to intimidate rival gangs and maintain control of their territory.
Through the lead efforts of the ATF and Detroit Police Department Gang Intelligence Unit, along with the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Michigan Department of Corrections, investigators were able to identify the members of this particular gang while investigating a similar gang on Detroit’s westside and piece together the varied criminal misconduct of the Smokecamp/OPB organization.
The following individuals have been convicted for their role in the gang and have received sentences ranging from 66 months to 384 months in federal prison:
• Korey Sanders, a/k/a “No Loan Corleon,” “Stax,” 29, of Detroit, pleaded guilty to RICO conspiracy, willful engagement in firearms business without a license and possession with intent to distribute a controlled substance; sentenced to 72 months in federal prison;
• Jerray Key, a/k/a “Chino,” “Dre,” 31, of Canton, pleaded guilty to RICO conspiracy and felon in possession of a firearm; sentenced to 72 months in federal prison’
• Deshawn Langston, a/k/a “Pook,” “Slips,” 30, of Detroit, pleaded guilty to RICO conspiracy and assault with a dangerous weapon in aid of racketeering, sentenced to 240 months in federal prison;
• Richard Langston, a/k/a “Dub,” “Rich,” “Blow,” 31, of Detroit, pleaded guilty to RICO conspiracy, sentenced to 170 months in federal prison;
• Hakeem Bunnell, a/k/a “LB Dub,” 27, of Detroit, pleaded guilty to RICO conspiracy, and assault with a dangerous weapon in aid of racketeering, sentenced to 348 months in federal prison;
• Keenan Nielbock, a/k/a “Dolla,” “Keno” 33, of Taylor, pleaded guilty to RICO conspiracy, sentenced to 84 months in federal prison;
• Caraun Key, a/k/a “Luch,” “Ron,” “Slick,” 29, of Detroit with RICO conspiracy, sentenced to 72 months in federal prison;
• Darryl Key, a/k/a “DB,” “Big Baby,” 30, of Detroit, with RICO conspiracy, sentenced to 66 months in federal prison;
• Tyree Williams, a/k/a “Snoop,” 27, of Detroit, Pleaded guilty to charges of RICO conspiracy and assault with a dangerous weapon; sentenced to 210 months in federal prison;
• Romale Gibson Jr., a/k/a “Santana,” 27, of Detroit, with RICO conspiracy, sentenced to 72 months in federal prison;
• Cary Dailey, a/k/a “Cease,” 31, of Detroit, with RICO conspiracy, sentenced to 72 months in federal prison;
• Antonio Langston, a/k/a “Tone,” 32, of Detroit, with RICO conspiracy, sentenced to 96 months in federal prison;
• Carlos Davis, a/k/a “Los,” “Loso,” 28, of Detroit with RICO conspiracy and assault with a dangerous weapon in aid of racketeering, sentenced to 180 months in federal prison.
Acting US Attorney Mohsin commended the hard work and dedication of all law enforcement agencies involved in the investigation of this case as well as Assistant United States Attorneys Jerome Gorgon, Andrew Yahkind and Blake Hatlem who prosecuted this case.
Member of Mississippi Band of Choctaw Indians Pleads Guilty to Murder and Aggravated Sexual Abuse of a ChildRead the Press Release
Jackson, Miss. – A Philadelphia, Mississippi man pled guilty today to federal charges of second degree murder and aggravated sexual abuse of a child, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
According to court documents and statements in open court, on June 8, 2019, Brett K. Hickman, 27, physically and sexually abused a two-year-old child who lived at his home in the Tucker Community of the Choctaw Indian Reservation which resulted in the death of the child.
In July 2019, a federal grand jury returned an indictment against Hickman, charging him with one count of murder and one count of aggravated sexual abuse of a child.
Hickman will be sentenced by U.S. District Judge David Bramlette III on November 2, 2021 in Natchez. He faces a potential maximum sentence of life in prison on the murder charge and not less than 30 years on the aggravated sexual abuse charge, along with a $250,000 fine on each count.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division and the Criminal Investigative Division of the Choctaw Police Department, who investigated the case.
The case is being prosecuted by Assistant United States Attorney Kevin Payne.
Manhattan U.S. Attorney Settles Fraud Suit Against Spectrum Painting for False Statements About Disadvantaged Business Participation on Federal Construction ProjectsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Brian Gallagher, Acting Special Agent-in-Charge, Northeastern Region, United States Department of Transportation Office of Inspector General (“USDOT-OIG”), Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), and Carolyn Pokorny, Inspector General of the Metropolitan Transportation Authority (“MTA-OIG”), announced today that the United States has settled civil fraud claims against New York-area painting contractor SPECTRUM PAINTING CORP. (“SPECTRUM”). The settlement resolves the United States’ allegations that SPECTRUM fraudulently obtained payments on two federally funded construction projects by causing misrepresentations of compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities. Specifically, the United States alleged that SPECTRUM caused the prime contractors on the projects to misrepresent that codefendant Tower Maintenance Corp. (“Tower”), a certified DBE, was solely performing work on the two projects, when in fact much of that work was performed by SPECTRUM, a non-DBE. As part of the settlement approved yesterday by U.S. District Judge Analisa Torres, SPECTRUM admits and accepts responsibility for conduct alleged in the Government’s amended complaint and agrees to pay $400,000 to the United States.
Manhattan U.S. Attorney Audrey Strauss said: “The Disadvantaged Business Enterprise program is intended to increase participation of minority- and women-owned businesses that historically have been disadvantaged in federal contracting. This settlement reflects this Office’s commitment to root out DBE fraud in federally funded contracts so that legitimate DBEs can compete fairly for public construction projects.”
USDOT-OIG Acting Special Agent-in-Charge Brian Gallagher said: “The Disadvantaged Business Enterprise (DBE) Program of the U.S. Department of Transportation is designed to create a level playing field for small, disadvantaged businesses to participate in federally-funded construction projects. We will hold accountable those who conspire to misrepresent their compliance with program requirements to obtain taxpayer supported contracts, thereby undermining the DBE program’s goal of expanding opportunities for small businesses.”
DOI Commissioner Margaret Garnett said: “This settlement rightly holds accountable a subcontractor that intentionally deceived the government and blatantly disregarded the regulations in place to ensure equal access by disadvantaged-owned businesses. Developing a fair and equal environment is how we do business in New York City and that is why contractors must follow the laws advancing participation by minority- and women-owned businesses. DOI thanks the U.S. Attorney’s Office for the Southern District of New York and the rest of our law enforcement partners on this matter for this successful result.”
MTA Inspector General Carolyn Pokorny said: “It is outrageous and against the law to use a minority- or women-owned business as a front to swindle precious taxpayer dollars from the Disadvantaged Business Enterprise program, which is meant to ensure an equal playing field for DBEs. This scheme was an affront to taxpayers, MTA riders, and the many honest DBEs that legitimately qualify for the federal program that these companies defrauded. I am proud to stand with our law enforcement partners to protect the integrity of this vital program.”
As alleged in the amended complaint filed in Manhattan federal court in August 2019, SPECTRUM performed steel painting work on two federally funded projects to renovate the Brooklyn Bridge and Queens Plaza. Contracts for both projects required codefendant Ahern Painting Contractors Co. (“Ahern”) to hire DBEs to perform a percentage of the work and to adhere to the DBE regulations. SPECTRUM was not a certified DBE, so SPECTRUM and Tower used Tower’s status as a DBE to take credit for work that was performed, managed, and supervised by SPECTRUM. Further, to conceal this scheme, SPECTRUM employees represented themselves as Tower employees in project documents. The case against Ahern was resolved in a settlement approved by Judge Torres in October 2019, and the case against Tower is ongoing.
As part of the settlement, SPECTRUM admits, acknowledges, and accepts responsibility for the following conduct alleged in the amended complaint:
- In or about March 2010, a manager at Spectrum (the “Spectrum Manager”) and a principal at Tower agreed that the two firms would work together on the Brooklyn Bridge Project. Pursuant to that agreement, the Spectrum Manager conducted a walk-through of the Brooklyn Bridge worksite with the Tower principal and an Ahern superintendent for the Brooklyn Bridge Project. The Spectrum Manager understood the he participated in the walk-through to assist Tower in preparing the bid Tower later submitted to Ahern for its anticipated work as a DBE subcontractor for the Brooklyn Bridge project.
- In May and June 2011, SPECTRUM and Tower memorialized two “consulting agreements” for work on the Brooklyn Bridge and the Queens Plaza Projects. Pursuant to those agreements, SPECTRUM and Tower agreed that SPECTRUM would “perform certain consulting services,” including “providing project management support,” and would furnish equipment to Tower for the two projects. The agreements further provided that SPECTRUM would receive 50% of all profits from the Tower DBE work on the projects.
- The key terms of the consulting agreements between Tower and SPECTRUM – including Tower’s agreement to pay SPECTRUM 50 percent of all of its profits from the two projects, or SPECTRUM’s agreement to furnish equipment to Tower for the projects – were not disclosed to Ahern, NYC-DOT, or MTA.
- Throughout the Brooklyn Bridge and Queens Plaza Projects, the SPECTRUM Manager managed and supervised the DBE work that Tower was retained to perform on each project, such as setting the work schedule, ordering materials for the work, hiring the foreman, inspecting the work performed, and coordinating payment for the work.
- The SPECTRUM Manager also hired other supervisors on the Brooklyn Bridge and Queens Plaza Projects. For example, the SPECTRUM Manager hired the superintendent for the DBE work assigned to Tower for the Brooklyn Bridge Project and the Queens Plaza Project (the “SPECTRUM Superintendent”). The SPECTRUM Manager also hired an individual to oversee health and safety issues related to the DBE work on the two projects (the “SPECTRUM Safety Supervisor”). Both the SPECTRUM Superintendent and the SPECTRUM Safety Supervisor were paid by SPECTRUM and not by Tower.
- The SPECTRUM Manager, SPECTRUM Superintendent, and SPECTRUM Safety Supervisor were all SPECTRUM employees. On the Brooklyn Bridge and Queens Plaza Projects, they identified themselves to others working on the projects as Tower employees, including by wearing Tower vests and security identification. In documents submitted to Ahern to obtain security clearances, the SPECTRUM Manager identified himself as a “Tower VP” or as a Tower employee.
Ms. Strauss praised the outstanding investigative work of the USDOT-OIG, DOI, and MTA-OIG.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Mónica P. Folch, Li Yu, and David J. Kennedy are in charge of this case.
- In or about March 2010, a manager at Spectrum (the “Spectrum Manager”) and a principal at Tower agreed that the two firms would work together on the Brooklyn Bridge Project. Pursuant to that agreement, the Spectrum Manager conducted a walk-through of the Brooklyn Bridge worksite with the Tower principal and an Ahern superintendent for the Brooklyn Bridge Project. The Spectrum Manager understood the he participated in the walk-through to assist Tower in preparing the bid Tower later submitted to Ahern for its anticipated work as a DBE subcontractor for the Brooklyn Bridge project.
Manhattan U.S. Attorney Announces Kidnapping Conspiracy Charges Against an Iranian Intelligence Officer and Members of an Iranian Intelligence NetworkRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Mark J. Lesko, the Acting Assistant Attorney General for National Security, and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of kidnapping conspiracy, sanctions violations conspiracy, bank and wire fraud conspiracy, and money laundering conspiracy charges against ALIREZA SHAVAROGHI FARAHANI, a/k/a “Vezarat Salimi,” a/k/a “Haj Ali,” MAHMOUD KHAZEIN, KIYA SADEGHI, and OMID NOORI, and sanctions violations conspiracy, bank and wire fraud conspiracy, money laundering conspiracy, and structuring charges against NILOUFAR BAHADORIFAR, a/k/a “Nellie Bahadorifar.” The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court. The case is pending before U.S. District Judge Ronnie Abrams. BAHADORIFAR was arrested on July 1, 2021 in California on charges contained in an underlying indictment. BAHADORIFAR will be arraigned on the charges in the Superseding Indictment by Judge Abrams at a date and time to be set by the Court. FARAHANI, KHAZEIN, SADEGHI, and NOORI, all of whom are based in Iran, remain at large.
U.S. Attorney Audrey Strauss said: “As alleged, four of the defendants monitored and planned to kidnap a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy, and to forcibly take their intended victim to Iran, where the victim’s fate would have been uncertain at best. Among this country’s most cherished freedoms is the right to speak one’s mind without fear of government reprisal. A U.S. citizen living in the United States must be able to advocate for human rights without being targeted by foreign intelligence operatives. Thanks to the FBI’s exposure of their alleged scheme, these defendants have failed to silence criticism by forcible abduction.”
Acting Assistant Attorney General Mark J. Lesko said: “Every person in the United States must be free from harassment, threats and physical harm by foreign powers. Through this indictment, we bring to light one such pernicious plot to harm an American citizen who was exercising their First Amendment rights, and we commit ourselves to bring the defendants to justice.”
FBI Assistant Director William F. Sweeney Jr. said: “This is not some far-fetched movie plot. We allege a group, backed by the Iranian government, conspired to kidnap a U.S. based journalist here on our soil and forcibly return her to Iran. Not on our watch. FBI special agents and analysts will continue to aggressively hunt for foreign operatives who attempt illegal action inside our borders or against our citizens. Working side-by-side with our international partners, the FBI’s reach is global. When we find you, you will be brought here and held accountable under U.S. law.”
According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]
FARAHANI is an Iranian intelligence official who resides in Iran. KHAZEIN, SADEGHI, and NOORI are Iranian intelligence assets who also reside in Iran. Since at least June 2020, FARAHANI, and the intelligence network he manages – including KHAZEIN, SADEGHI, and NOORI – have plotted to kidnap a U.S. citizen of Iranian origin (“Victim-1”) from within the United States in furtherance of the Government of Iran’s efforts to silence Victim-1’s criticisms of the regime. Victim-1 is a journalist, author, and human rights activist, residing in Brooklyn, New York, who has publicized the Government of Iran’s human rights abuses.
Prior to the plot to kidnap Victim-1 on U.S. soil, the Government of Iran attempted to lure Victim-1 to a third country in order to capture Victim-1 for rendition to Iran. In approximately 2018, Iranian government officials attempted to induce relatives of Victim-1, who reside in Iran, to invite Victim-1 to travel to a third country for the apparent purpose of having Victim-1 arrested or detained and transported to Iran for imprisonment. Victim-1’s relatives did not accept the offer. Iranian intelligence services have previously lured other Iranian dissidents from France and from the United States for the purposes of capturing and imprisoning regime critics and have publicly claimed responsibility for these capture operations. An electronic device used by FARAHANI contains, among other things, a photo of Victim-1 alongside photos of two other individuals, both of whom were captured by Iranian intelligence, with one later executed and the other imprisoned in Iran, and a caption in Farsi stating, “Gradually the gathering gets bigger... Are you coming, or should we come for you?”
On multiple occasions in 2020 and 2021, as part of the plot to kidnap Victim-1, FARAHANI and his network procured the services of private investigators to surveil, photograph, and video record Victim-1 and Victim-1’s household members in Brooklyn. The extensive surveillance that FARAHANI’s network procured included requests for days’ worth of surveillance at Victim-1’s home and the surrounding area, videos and photographs of Victim-1’s family and associates, surveillance of Victim-1 outside Victim-1’s residence, and the installation of and access to a live high-definition video feed depicting Victim-1’s home. The network repeatedly insisted on high-quality photographs and video recordings of Victim-1 and Victim-1’s household members; a large volume of content; pictures of visitors and objects around the house; and depictions of Victim-1’s body language. The network procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators, and laundered money into the United States from Iran in order to pay for the surveillance, photos, and video recordings of Victim-1. SADEGHI acted as the network’s primary point of contact with the private investigators in the United States, and NOORI facilitated payment to the investigators in furtherance of the plot targeting Victim-1.
As part of the kidnapping plot, the FARAHANI-led intelligence network also researched methods of transporting Victim-1 out of the United States for rendition to Iran. SADEGHI, for example, researched a service offering military-style speedboats for self-operated maritime evacuation out of New York City, and maritime travel from New York to Venezuela, a country whose de facto government has friendly relations with Iran. KHAZEIN researched travel routes from Victim-1’s residence to a waterfront neighborhood in Brooklyn, the location of Victim-1’s residence relative to Venezuela, and the location of Victim-1’s residence relative to Tehran.
The network that FARAHANI directs has also targeted victims in other countries, including victims in Canada, the United Kingdom, and the United Arab Emirates, and has worked to procure similar surveillance of those victims.
BAHADORIFAR is originally from Iran and is currently a California resident. BAHADORIFAR has provided financial and other services from the United States to Iranian residents and entities, including to KHAZEIN, since at least in or about 2015, including access to the U.S. financial system and U.S. financial institutions through the use of card accounts, and has offered to manage business interests in the United States on KHAZEIN’s behalf. Among other things, BAHADORIFAR caused a payment to be made to a private investigator for surveillance of Victim-1 on KHAZEIN’s behalf. BAHADORIFAR is not charged with participating in the kidnapping conspiracy, but is alleged to have provided financial services that supported the plot and is charged with conspiring to violate sanctions against Iran, to commit bank and wire fraud, and to commit money laundering. BAHADORIFAR is also charged with structuring cash deposits totaling more than approximately $445,000.
* * *
ALIREZA SHAVAROGHI FARAHANI, 50, MAHMOUD KHAZEIN, 42, KIYA SADEGHI, 35, and OMID NOORI, 45, all of Iran, have each been charged with: (1) conspiring to kidnap, which carries a maximum sentence of life in prison (Count One), (2) conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum sentence of 20 years in prison (Count Two), (3) conspiring to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison (Count Three), and (4) conspiring to launder money, which carries a maximum sentence of 20 years in prison (Count Four). NILOUFAR BAHADORIFAR, 46, of California, is charged in Counts Two, Three, and Four, and is further charged with structuring (Count Five), which carries a maximum sentence of 10 years in prison. The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge Abrams.
BAHADORIFAR was arrested on charges contained in an underlying indictment on July 1, 2021, and was arraigned by Judge Abrams on that indictment on July 8, 2021. FARAHANI, KHAZEIN, SADEGHI, and NOORI remain at large.
Ms. Strauss praised the outstanding investigative work of the FBI’s New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force. Ms. Strauss also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, the FBI’s Los Angeles Field Office Orange County Resident Agency, and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorney Nathan Swinton of the Counterintelligence and Export Control Section.
The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man “traveling for work” sentenced for smuggling 23 kilos of methRead the Press Release
McALLEN, Texas – A 53-year-old U.S. citizen living in Tamaulipas, Mexico, has been ordered to federal prison for importing meth into the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Fernando Ramirez pleaded guilty Feb. 26.
Today, U.S. District Judge Randy Crane ordered him to serve a 70-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence how this was not the first time he imported a controlled substance into the United States. Ramirez admitted to crossing loaded vehicles several times in the past. In sentencing Ramirez, Judge Crane further noted the seriousness of the crime.
On Dec. 11, 2020, Ramirez arrived at the Hidalgo port of entry and attempted to enter the United States from Mexico. Ramirez stated he was on his way to work from his home in Tamaulipas. He was referred for a secondary inspection where a K-9 alerted to the gasoline tank of the vehicle. Authorities inspected it and seized 44 packages of meth with a weight of approximately 23 kilograms.
The drugs had an estimated street value of $126,500.
Ramirez eventually admitted he knew the vehicle he was driving contained drugs and that he would be paid $500 to smuggle them into the United States.
Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Colton Turner prosecuted the case.
Man Who Stole over $67,000 Charged with Three Armed Robberies of Supermarket and Gas Stations in Cataño and Vega BajaRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a six-count indictment charging Juan Tyler López Gerraughty with six counts related to three armed robberies, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on November 4, 2020, Juan Tyler López Gerraughty and other individuals drove a truck into an Econo store in Cataño and threatened a security guard at gunpoint. They then loaded the ATM onto the truck and drove away.
On November 13, López Gerraughty and other individuals crashed a truck through the garage window of a Toral gas station in Cataño. After threatening an employee at gunpoint, the group tied a chain around the ATM and dragged it out of the store with the truck.
On November 28, López Gerraughty and other individuals crashed a truck through the entrance of a Toral gas station in Vega Baja. After threatening an employee with a gun, the group loaded the ATM onto the truck before driving away.
Assistant U.S. Attorney Juan Carlos Reyes of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. If convicted, the defendant faces a mandatory minimum of 21 years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Man Sentenced to 27 Years for Carjacking Murder in AguadillaRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Pedro A. Delgado Hernández sentenced Luis Enrique Valentín-Ramírez to 27 years in prison for a carjacking murder committed on September 13, 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the facts admitted during the change of plea hearing, the victim was spending time with the defendant and another individual during the early morning of September 13. The defendant and another individual beat the victim and took his car. They left the scene, only to return a few minutes later. They lifted the dazed victim into the car and drove him to an industrial zone in Aguadilla, where they beat him to death. Defendant and his cohort then went to a gas station, where they bought two bottles of lighter fluid, which they used to burn the car.
The Federal Bureau of Investigation was in charge of the investigation. Assistant United States Attorney Juan Carlos Reyes of the Violent Crimes and National Security Section prosecuted the case.
# # #
Lovington man sentenced to four years in prison for federal firearms violationsRead the Press Release
ALBUQUERQUE, N.M. – Cody Little, 43, of Lovington, New Mexico, was sentenced on July 6 in federal court to four years and nine months in prison for being a felon in possession of a firearm and ammunition and possessing a stolen firearm. Little pleaded guilty on Nov. 4, 2020.
According to the plea agreement and other court records, on Jan. 25, 2020, Lovington Police officers arrested Little, who had three active arrest warrants at the time. Officers found a 9mm ammunition magazine in Little’s pocket and located a 9mm handgun in the immediate area. Little had stolen the firearm from a nearby residence on Jan. 15, 2020, and could be seen on footage from a doorbell camera as he removed the firearm from a vehicle in the driveway and fled on foot.
In 2013, Little pleaded guilty to being a felon in possession of firearms and ammunition after previously having been convicted of burglary and larceny and battery upon a peace officer. As a previously convicted felon, Little cannot legally possess firearms or ammunition.
Upon his release from prison, Little will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Lovington Police Department. Assistant U.S. Attorneys Dustin Segovia and Aaron Jordan prosecuted the case.
# # #
Leader of Manhattan Drug Trafficking Organization Sentenced to 15 Years in PrisonRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that PEDRO VICIOSO DE LIMA, a/k/a “Pep,” a/k/a “Pepo,” was sentenced today in Manhattan federal court to 180 months in prison for leading a drug trafficking organization (the “DTO”) that was responsible for dealing fentanyl-laced heroin that has been tied to multiple suspected fatal and nonfatal overdoses. VICIOSO DE LIMA previously pled guilty to participating in a conspiracy to distribute heroin, and was sentenced today before U.S. District Judge Colleen McMahon.
U.S. Attorney Audrey Strauss said: “As he previously admitted, Pedro Vicioso De Lima led a Washington Heights drug distribution network that sold fentanyl-laced heroin even after he was aware that customers were overdosing on it. Vicioso De Lima’s drug peddling and his callous disregard for its consequences have resulted in today’s prison sentence.”
According to the allegations in the Indictment and other filings and statements made in Court:
VICIOSO DE LIMA was the leader of a drug trafficking organization (the “DTO”) that operated in New York, New York, and controlled heroin sales from a building at 501 West 167th Street (the “DTO’s Building”) and the immediately surrounding vicinity (the “DTO’s Drug Territory”). From July 2016 to October 2018, the DTO is estimated to have distributed more than 85 kilograms of heroin, much of it laced with fentanyl. VICIOSO DE LIMA controlled and oversaw the operations of the DTO, and together with his trusted second-in-command, Victor Hidalgo, managed stash houses in the DTO’s Drug Territory where the DTO stored its wares. The defendant directed other members of the DTO on matters ranging from how to handle drugs being sold by the DTO, to managing lookouts who worked for the DTO and surveilled for law enforcement, to handling complaints by customers about the quality of drugs being sold by the DTO.
No later than May 2018, VICIOSO DE LIMA was told by Hidalgo that the mixture of heroin being sold by the DTO was causing people to “drop[]” – or overdose – outside the DTO’s Building. Nevertheless, VICIOSO DE LIMA persisted in leading the DTO and selling its potentially fatal narcotics through his arrest in this case in November 2018.
* * *
VICIOSO DE LIMA, 52, of Bergenfield, New Jersey, pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin from July 2016 to October 2018. In addition to the prison term, VICIOSO DE LIMA was sentenced to 10 years of supervised release.
Hidalgo was previously sentenced to 120 months in prison.
Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations, the Drug Enforcement Administration, and the New York City Police Department.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jessica Greenwood, Aline R. Flodr, and Dominic Gentile are in charge of the prosecution.
Kenner Resident Sentenced to Four Years Probation for Failure to Account for and Pay over Employment Taxes to the Internal Revenue ServiceRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that defendant MARTHA BUEZO MARTINEZ (“MARTINEZ”), age 51, of Kenner, LA, was sentenced to four (4) years probation by the Honorable Susie Morgan for one count of failing to account for and pay over employment taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202. Additionally, the Court ordered MARTINEZ to pay a $100 mandatory special assessment cost. MARTINEZ must pay restitution in the amount of $272,096 to the federal Internal Revenue Service.
According to court documents, MARTINEZ was the President, Director, and sole officer of Infinity Construction Resources, Inc. From on or about March 2013 (1st quarter of 2013) to December 2017 (4th quarter of 2017), MARTINEZ, through Infinity, failed to pay over to the United States Internal Revenue Service approximately $272,096 in FICA taxes.
This matter was handled by the Internal Revenue Service, Criminal Investigation. United States Attorney Duane A. Evans is prosecuting the case.
Justice Department and Oneida County Board of Elections Reach Agreement under National Voter Registration Act and Help America Vote ActRead the Press Release
WASHINGTON - The Justice Department announced yesterday that it has entered into a proposed consent decree to settle a voting rights lawsuit with the Board of Elections of Oneida County, New York.
The proposed consent decree was filed in the U.S. District Court for the Northern District of New York in conjunction with a lawsuit brought by the Justice Department. The Justice Department’s complaint alleges that, before the November 2020 federal general election, the Oneida County Board of Elections failed to process approximately 2,400 timely-submitted voter registration applications completed through state motor vehicle offices and failed to ensure that voter registration applicants received timely notice of the disposition of their applications, in violation of Section 8 of the National Voter Registration Act (NVRA). The complaint also alleges that the State violated Section 302 of the Help America Vote Act (HAVA) by summarily rejecting nearly 1,800 provisional ballots cast by Oneida County voters in the November 2020 federal election without verifying the voters’ eligibility and without counting those provisional ballots cast by eligible voters.
The Justice Department gave notice to the Oneida County Board of Elections of its intent to bring suit under the NVRA and HAVA on March 23, and the parties worked collaboratively to achieve this agreement. The parties’ consent decree, which must still be approved by the court, provides that the Oneida County Board of Elections will develop and implement uniform and nondiscriminatory policies and procedures to ensure that election officials review and process all timely submitted voter registration applications in accordance with the NVRA. In addition, the board will train all poll officials and other election personnel regarding the provisional balloting requirements of HAVA. Finally, the board will provide periodic reports to the Justice Department regarding compliance with the proposed consent decree.
“We will continue using critical federal voting rights laws to help ensure that eligible voters enjoy access to the ballot box,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The National Voter Registration Act requires states to ensure that voter registration applications submitted before the deadline for federal elections are timely processed, and that qualified voters are promptly included on voter rolls for federal elections. The Help America Voter Act ensures that registered voters who have been left off voting lists can cast provisional ballots that will be promptly verified and counted if the voters are found to be eligible. I am pleased that the Oneida County Board of Elections has worked with the Department of Justice and agreed to measures that will protect these vital rights and establish safeguards to ensure compliance with the law in future federal elections.”
“We join the Civil Rights Division in bringing this important lawsuit under the National Voter Registration Act and the Help America Vote Act, and appreciate that Oneida County has worked with the Justice Department to ensure that all Oneida County residents enjoy the voting rights and protections afforded to them,” said Acting U.S. Attorney Antoinette T. Bacon of the Northern District of New York.
More information about the National Voter Registration Act, the Help America Vote Act and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section.
Judges sentences former SLMPD Officer for assaulting undercover officer posing as protestorRead the Press Release
ST. LOUIS – United States District Court Judge E. Richard Webber sentenced former SLMPD Police Officer Randy Hays to a 52-month term of imprisonment on today’s date. The 34-year-old St. Louis, Missouri resident pleaded guilty in November 2019 to using unreasonable and excessive force against a fellow St. Louis Metropolitan Police Department officer whom Hays mistakenly believed was a protestor.
As a result of the 2017 acquittal of a former police officer on a state murder charge, protests were taking place in downtown St. Louis. In an effort by the St. Louis Metropolitan Police Department to keep peace and order, the victim undercover officer was assigned to the protest detail. Hays was also assigned to the protest detail in his capacity as a police officer. Hays, who mistakenly believed the victim undercover officer was a protestor, assaulted the victim in a manner that constituted unreasonable and excessive force.
Hays’s co-defendant, Bailey Colletta, pleaded guilty to making false statements before a federal grand jury that was charged with investigating the assault of the victim undercover officer. Her sentencing hearing is set for July 15, 2021.
Co-defendant Dustin Boone was found guilty in June of aiding and abetting the deprivation of the victim’s civil rights under the color of law. His sentencing hearing is set for September 15, 2021.
Co-defendant Christopher Myers faces a charge of destruction of evidence related to the arrest and assault of the victim police officer. Christopher Myers is presumed innocent and the charge that he presently faces is merely an accusation and does not constitute proof of guilt.
The case is being investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin and Assistant United States Attorney Rob Livergood are handling the matter.
#####
Jefferson County Man Guilty of FEMA Fraud Related to Hurricane HarveyRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to hurricane-related fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jose Luis Carrillo, 50, pleaded guilty to an information charging him with fraud in relation to a major disaster or emergency benefits today before U.S. Magistrate Judge Keith F. Giblin.
“Defrauding federal programs is always an egregious act,” said Acting U.S. Attorney Nicholas J. Ganjei. “Disaster relief fraud is even more serious because of the limited nature of the funds intended to assist people in their time of greatest need.”
Department of Homeland Security Inspector General Joseph V. Cuffari stated, “This investigation and resulting plea demonstrates our continued commitment to identify and investigate all allegations of fraud to protect the integrity of FEMA programs funded by the taxpayer. Theft of funds from DHS programs intended to help those in need will not be tolerated.”
According to information presented in court, Hurricane Harvey made landfall in southeast Texas in August 2017, causing extensive damage to the region. On Sep. 21, 2017, Carrillo applied for assistance from the Federal Emergency Management Agency (FEMA) for a damaged dwelling located on Luis Drive in Port Arthur. Carrillo stated that he owned the damaged dwelling and that it was his primary residence. Carrillo received a total of $23,619.70 in FEMA assistance for rental expenses and home repairs. The actual residents of the residence also submitted an application, but were denied benefits. An investigation determined that the actual residents had lived at the location from July 2017 until they moved out at the end of August 2017, after Hurricane Harvey struck. Carrillo admitted that he fraudulently represented the home was his primary residence to obtain FEMA funds.
Carrillo faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Department of Homeland Security Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Rachel Grove.
###
Jamestown Man Charged with EscapeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Jensen Vasquez, 35, of Jamestown, NY, with escape from custody. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the indictment, defendant, in 2018, was sentenced to a term of imprisonment of 5 years as a result of his conviction on a federal narcotics charge. On April 28, 2021, the defendant escaped from the Community Resources for Justice, Lighthouse Buffalo Residential Reentry Center.
The U.S. Marshals Service took Vasquez back into custody on May 21, 2021.
Vasquez was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 15, 2021.
The indictment is the result of an investigation by the United States Marshals Service, under the direction of Special Agent-in-Charge Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Iranian Intelligence Officials Indicted on Kidnapping Conspiracy ChargesRead the Press Release
A New York federal court unsealed an indictment today charging four Iranian nationals with conspiracies related to kidnapping, sanctions violations, bank and wire fraud, and money laundering. A co-conspirator and California resident, also of Iran, faces additional structuring charges.
According to court documents, Alireza Shavaroghi Farahani, aka Vezerat Salimi and Haj Ali, 50; Mahmoud Khazein, 42; Kiya Sadeghi, 35; and Omid Noori, 45, all of Iran, conspired to kidnap a Brooklyn journalist, author and human rights activist for mobilizing public opinion in Iran and around the world to bring about changes to the regime’s laws and practices. Niloufar Bahadorifar, aka Nellie Bahadorifar, 46, originally of Iran and currently residing in California, is alleged to have provided financial services that supported the plot.
“Every person in the United States must be free from harassment, threats and physical harm by foreign powers,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Through this indictment, we bring to light one such pernicious plot to harm an American citizen who was exercising their First Amendment rights, and we commit ourselves to bring the defendants to justice.”
“As alleged, four of the defendants monitored and planned to kidnap a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy, and to forcibly take their intended victim to Iran, where the victim’s fate would have been uncertain at best,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “Among this country’s most cherished freedoms is the right to speak one’s mind without fear of government reprisal. A U.S. citizen living in the United States must be able to advocate for human rights without being targeted by foreign intelligence operatives. Thanks to the FBI’s exposure of their alleged scheme, these defendants have failed to silence criticism by forcible abduction.”
“As alleged in this indictment, the government of Iran directed a number of state actors to plot to kidnap a U.S.-based journalist and American citizen, and to conduct surveillance on U.S. soil - all with the intention to lure our citizen back to Iran as retaliation for their freedom of expression,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “We will use all the tools at our disposal to aggressively investigate foreign activities by operatives who conspire to kidnap a U.S. citizen just because the government of Iran didn’t approve of the victim’s criticism of the regime.”
According to the indictment, Farahani is an Iranian intelligence official who resides in Iran. Khazein, Sadeghi and Noori are Iranian intelligence assets who also reside in Iran and work under Farahani. Since at least June 2020, Farahani and his intelligence network have plotted to kidnap a U.S. citizen of Iranian origin (Victim-1) from within the United States in furtherance of the government of Iran’s efforts to silence Victim-1’s criticisms of the regime. Victim-1 is an author and journalist who has publicized the government of Iran’s human rights abuses.
Prior to the kidnapping plot, the government of Iran attempted to lure Victim-1 to a third country in order to capture Victim-1 for rendition to Iran. In approximately 2018, Iranian government officials attempted to induce relatives of Victim-1, who reside in Iran, to invite the victim to travel to a third country for the apparent purpose of having Victim-1 arrested or detained and transported to Iran for imprisonment. Victim-1’s relatives did not accept the offer. An electronic device used by Farahani contains, among other things, a photo of Victim-1 alongside photos of two other individuals, both of whom were lured from third countries and captured by Iranian intelligence, with one later executed and the other imprisoned in Iran, and a caption in Farsi that reads: “gradually the gathering gets bigger... are you coming, or should we come for you?”
On multiple occasions in 2020 and 2021, as part of the plot to kidnap Victim-1, Farahani and his network procured the services of private investigators to surveil, photograph and video record Victim-1 and Victim-1’s household members in Brooklyn. Farahani’s network procured days’ worth of surveillance at Victim-1’s home and the surrounding area, videos and photographs of the victim’s family and associates, surveillance of the victim’s residence, and the installation of and access to a live high-definition video feed of Victim-1’s home. The network repeatedly insisted on high-quality photographs and video recordings of Victim-1 and Victim-1’s household members; a large volume of content; pictures of visitors and objects around the house; and depictions of Victim-1’s body language. The network procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators, and laundered money into the United States from Iran to pay for the surveillance. Sadeghi acted as the network’s primary point of contact with private investigators while Noori facilitated payment to the investigators in furtherance of the plot.
As part of the kidnapping plot, the Farahani-led intelligence network also researched methods of transporting Victim-1 out of the United States for rendition to Iran. Sadeghi, for example, researched a service offering military-style speedboats for self-operated maritime evacuation out of New York City, and maritime travel from New York to Venezuela, a country whose de facto government has friendly relations with Iran. Khazein researched travel routes from Victim-1’s residence to a waterfront neighborhood in Brooklyn; the location of Victim-1’s residence relative to Venezuela; and the location of Victim-1’s residence relative to Tehran.
The network that Farahani directs has also targeted victims in other countries, including victims in Canada, the United Kingdom and the United Arab Emirates, and has worked to procure similar surveillance of those victims.
As alleged, Bahadorifar provided financial and other services from the United States to Iranian residents and entities, including to Khazein, since approximately 2015. Bahadorifar facilitated access to the U.S. financial system and institutions through the use of card accounts and offered to manage business interests in the United States on Khazein’s behalf. Among other things, Bahadorifar caused a payment to be made to a private investigator for surveillance of Victim-1 on Khazein’s behalf. While Bahadorifar is not charged with participating in the kidnapping conspiracy, she is alleged to have provided financial services that supported the plot and is charged with conspiring to violate sanctions against Iran, commit bank and wire fraud, and commit money laundering. Bahadorifar is also charged with structuring cash deposits totaling more than approximately $445,000.
Farahani, Khazein, Sadeghi and Noori are each charged with: (1) conspiring to kidnap, which carries a maximum sentence of life in prison; (2) conspiring to violate the International Emergency Economic Powers Act (IEEPA) and sanctions against the government of Iran, which carries a maximum sentence of 20 years in prison; (3) conspiring to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; and (4) conspiring to launder money, which carries a maximum sentence of 20 years in prison. Bahadorifar is charged with counts two, three and four, and is further charged with structuring, which carries a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s New York Field Office, Counterintelligence-Cyber Division and Iran Threat Task Force are investigating the case.
Trial Attorney Nathan Swinton of the Justice Department’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig and Matthew J.C. Hellman of the Southern District of New York are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Huntington Man Sentenced to over Five Years in Prison for Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Johnny Ray Francis III, 20, was sentenced to 66 months in federal prison for possession with intent to distribute heroin and using and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, Francis possessed a plastic baggie containing suspected heroin and a Glock 23 .40 caliber 9mm pistol in a residence on 26th Street in Huntington on June 12, 2019. After laboratory testing, the substance possessed by Francis was determined to be approximately 8 grams of heroin. Francis admitted that he intended to distribute the heroin and that he possessed the firearm for the purpose of protecting himself and the heroin.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00258.
###
Hartford Man Sentenced to 27 Months for Distributing Cocaine and Marijuana on Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL LEDBETTER, 30, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for distributing cocaine and marijuana while on federal supervised release.
According to court documents and statements made in court, on November 17, 2017, Judge Underhill sentenced Ledbetter to 15 months of imprisonment and three years of supervised release for possession of ammunition by a felon. In April 2014, Ledbetter had been convicted in state court of six counts of accessory to first degree assault.
Ledbetter was released from federal prison in April 2018. While on federal supervised release, Ledbetter was arrested on state domestic violence charges and he failed multiple drug tests. On October 30, 2019, Ledbetter cut off his GPS monitoring device and failed to respond to messages from the U.S. Probation Office. On November 20, 2019, the U.S. Marshals Service arrested Ledbetter in a motel room in Hartford with approximately 11 pounds of marijuana, 119 grams of cocaine and $4,750 in cash.
Ledbetter has been detained since his arrest. On November 9, 2020, he pleaded guilty to one count of possession with intent to distribute cocaine and marijuana.
This investigation was conducted by the FBI’s Connecticut Violent Crime Task Force and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County woman admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Harlie Christian Shaw, of Clarksburg, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Shaw, 30, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Shaw, a person prohibited from having a firearm because of a prior conviction, admitted to having a .22 caliber revolver in June 2020 in Harrison County.
Shaw is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Charges 19 Defendants in Alleged Conspiracy to Traffic Heroin via Telephone Call Centers and Launder $2 Million in ProceedsRead the Press Release
SANTA ANA, California – Law enforcement officials today arrested 12 defendants charged in a federal grand jury indictment with conspiring to distribute at least $2 million worth of heroin by operating two Orange County-based call centers that took telephone orders for deliveries of the drug.
The 13-count indictment returned on May 26 and unsealed today charges a total of 19 defendants with narcotics- and money laundering-related offenses. The 12 defendants who were arrested by special agents with the FBI via “Operation Horse Caller” are expected to be arraigned this afternoon in United States District Court in Santa Ana. The seven remaining defendants are fugitives.
According to the indictment, from March 2017 to April 2021, Julio Cesar Martinez, a.k.a. “Primo,” 43, of Riverside, and his brother, Victor Martinez, a.k.a. “Hector,” 44, of Hemet, owned and operated a heroin distribution organization in Orange County, obtaining the drug from suppliers in Mexico and the United States. Heroin was transported to the organization by couriers who concealed the drug, sometimes in their body cavities, to Orange County.
Maricela Guerrero, a.k.a. “Carla,” 53, of Santa Ana, and Marla Portillo Cordova, a.k.a. “Yvette,” 34, also of Santa Ana, allegedly assisted in the daily operations of the distribution organization and, on an almost daily basis, accepted telephone orders for heroin. These four defendants allegedly directed other conspirators to deliver the heroin to buyers and collect payment in exchange for a cut of the proceeds.
The organization allegedly distributed $2 million worth of heroin. To conceal the source of the income the organization generated, from September 2013 to May 2019, Julio Cesar Martinez and Victor Martinez allegedly caused the deposit of the heroin sales proceeds into bank accounts held by Cordova and other individuals. Cordova and others, at times, allegedly structured the deposits into the bank accounts to evade federal reporting requirements by depositing the money at different banks and by breaking the deposits up into amounts $10,000 and under.
Victor Martinez allegedly directed Cordova and others to further conceal the heroin proceeds by transferring the money between various bank accounts held by family members. He also directed them to transfer heroin sales proceeds into an escrow account that was used to purchase property in Hemet for his benefit, according to the indictment.
These four defendants, along with others, are charged with conspiracy to distribute heroin and conspiracy to commit money laundering. Victor Martinez also is charged with one count of possession with intent to distribute heroin, and, along with Cordova, is charged with four counts of engaging in monetary transactions in property derived from unlawful activity.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges of conspiracy to distribute heroin and distribution of heroin each carry a statutory maximum sentence of life imprisonment. The charges of money laundering conspiracy and engaging in monetary transactions in property derived from unlawful activity carry statutory maximum sentences of 20 years and 10 years in federal prison, respectively.
The FBI and IRS Criminal Investigation investigated this matter. The Orange County Sheriff's Department, the Newport Beach Police Department, the Costa Mesa Police Department, the Huntington Beach Police Department, the Oxnard Police Department, the California Highway Patrol and March Air Reserve Base provided substantial assistance.
Assistant United States Attorneys Joseph T. McNally and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section is handling the forfeiture portion of the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Glenshaw Cocaine Dealer is First to be Sentenced in Pittsburgh Safe Streets Task Force InvestigationRead the Press Release
PITTSBURGH, PA - A resident of Glenshaw, Pennsylvania, was sentenced in federal court to a charge of violating federal narcotics trafficking laws, Acting United States Attorney Stephen R. Kaufman announced today.
David Pietropaolo, 23, was sentenced to 18 months imprisonment and three years of supervised release before United States District Judge Robert J. Colville.
In conjunction with the sentencing hearing, the Court was informed that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including heroin, cocaine and methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Beginning in August of 2020 and continuing through November 2020, the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones. Three of the intercepted telephones were used by Mr. Pietropaolo’s co-defendant, Anthony Peluso, to further his illegal drug trafficking activity. Investigators identified Mr. Peluso as a long-time heroin and cocaine trafficker and source of supply for low to mid-level drug traffickers in this District. One of the individuals intercepted over Mr. Peluso’s telephones was the defendant, David Pietropaolo. Investigators identified that Pietropaolo regularly obtained ounce quantities of cocaine that he then redistributed.As a result of this investigation, to-date, 38 individuals have been charged across four related Indictments. Pietropaolo is the first defendant to be sentenced.
At sentencing, Judge Colville denied defendant’s request to be sentenced below the guideline range, imposing a sentence of 18 months’ imprisonment, which falls at the low end of the guideline range of 18-24 months.
Assistant United States Attorney Rebecca L. Silinski is prosecuting these cases on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation who led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department, for the investigation leading to the successful prosecution of Pietropaolo.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Georgia Woman Sentenced to Twenty-Five Years on Charges of Production and Distribution of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – On Friday afternoon, a federal judge in Tallahassee sentenced Madison King, 23, of Nashville, Georgia, to 25 years in prison on charges of conspiracy to produce, distribute, possess, and receive child pornography. The sentence, which followed her guilty plea last year, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Court documents reflect, in July 2019, representatives of local, state, and federal law enforcement executed a search warrant at the Tallahassee residence of King’s co-defendant, Gregory Johnson. While conducting the search, authorities found messages on Johnson’s phone that demonstrated Johnson and King had conspired to produce child pornography. The recovered evidence included short video clips and pictures that King had taken and transmitted to Johnson depicting the sexual abuse of a toddler. Florida investigators quickly obtained emergency legal process to locate King and contacted their Georgia counterparts. That same day, agents with Homeland Security Investigations, in concert with the Berrien County (Georgia) Sheriff’s Office, executed a search of King’s Nashville, Georgia residence, whereupon the child was rescued.
King’s co-defendant, Johnson, has also pleaded guilty to the federal charges. Johnson is scheduled to be sentenced on September 14, 2021, before Chief United States District Judge Mark Walker.
“There is no greater charge than the protection of our children,” stated Acting U.S. Attorney Coody. “Acts of such depravity, committed by a caregiver, are both horrific and incomprehensible. Our law enforcement partners are to be commended for the swift, multi-state investigation, which resulted in the immediate rescue of this child, preventing further abuse.”
“During the course of this investigation, a child was saved from this predator thanks to HSI partnerships in our offices in Philadelphia, Atlanta, and here in Tallahassee,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
“There is no crime worse than the crimes against our children,” said Berrien County Sheriff Ray Paulk. “I would like to thank our investigators and our District Attorney’s Office for acting swiftly and efficiently in this case to ensure the safety of this child. I also want to thank all of the local, state, and federal law enforcement that worked together in making a case like this priority.”
This conviction was the result of an investigation conducted by Homeland Security Investigations, the Leon County Sheriff’s Office, the Berrien County Sheriff’s Office, and the Florida Department of Law Enforcement. Assistant United States Attorneys Meredith L. Steer and Michelle Spaven prosecuted the case.
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 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.
Former bookkeeper of federally funded Washington Court House domestic violence shelter pleads guilty to misusing shelter funds for personal expensesRead the Press Release
CINCINNATI – The former bookkeeper of My Sister’s House, a now-shuttered domestic violence shelter in Washington Court House, pleaded guilty in U.S. District Court today to two counts related to stealing funds from the federally funded shelter.
Jaime Cardinal, 45, of Washington Court House, was arrested in July 2020, along with Crystal Chrisman, 53, of Columbus, the former executive director of the shelter.
Cardinal admitted that she and Chrisman spent tens of thousands of dollars intended for the operation of the shelter on personal expenses, including food, a trip to Disney World and Universal Studios for the defendants’ daughters, and thousands of dollars in purchases from Avon, Thirty-One and iTunes.
Cardinal’s plea details that, between January 2014 and October 2016, she misused debit cards connected to the shelter’s bank accounts to make hundreds of personal purchases at restaurants, auctions, craft stores and bowling alleys, among other places – including purchases made when few, if any, victims were living at the shelter. For example, in March and April 2016, when no victims were in the shelter, Cardinal and Chrisman charged more than $6,000 to the shelter’s debit cards for food at restaurants and grocery stores, car repair and fuel for personal cars, weight-loss supplements, and other personal expenses.
Due to the thefts, which totaled more than $50,000, My Sister’s House fell behind on payroll and on paying taxes. In November 2016, the shelter’s board placed all employees on administrative leave pending investigation. The domestic violence shelter never reopened.
Cardinal faces a prison sentence of up to five years in prison for conspiring to commit theft and up to 10 years in prison for committing theft concerning programs receiving federal funds. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors. Under the plea agreement, Cardinal has agreed to pay $25,000 in restitution.
My Sister’s House received more than $10,000 annually in federal grant funds, including grants under the Violence Against Women Act, the Family Violence Prevention and Services Act and the Victims of Crime Act. The grants are intended to be used to pay for salaries and benefits of staff and for shelter operations, including supplies and shelter maintenance.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and the Department of Justice Office of the Inspector General announced the plea entered into today before U.S. District Judge Matthew W. McFarland. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
# # #
Former Pittsburgh-area Doctor Pleads Guilty to Unlawfully Prescribing Opioids, Health Care Fraud and Money LaunderingRead the Press Release
PITTSBURGH – A former physician pleaded guilty today in federal court to drug diversion, health care fraud and money laundering charges associated with his suburban Pittsburgh holistic medical practice, Acting United States Attorney Stephen R. Kaufman announced today.
Andrzej Kazimierz Zielke, 66, of Allison Park, Pennsylvania 15101 (Hampton) pleaded guilty to four counts of unlawful dispensing and distributing Schedule II controlled substances, one count of health care fraud, and one count of money laundering before Senior United States District Judge Nora Barry Fischer,
In connection with the guilty plea, the court was advised Zielke owned and operated Medical Frontiers, LLC, a purported pain management practice, located in Gibsonia, Pennsylvania. On or about October 3, 2017, May 25, 2017, October 3, 2017, and December 17, 2014, Zielke knowingly dispensed and distributed Schedule II drugs, including Oxycodone, Methadone, Hydrocodone and Oxymorphone, to four patients outside the course of professional practice and not for a legitimate medical purpose. Zielke committed health care fraud by causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed drugs. Finally, Zielke violated federal money laundering statutes when he caused approximately $150,000 in proceeds obtained through his illegal drug distribution to be wired from a bank account to Kitco Metals, Inc., in Canada to purchase silver and collector coins.
“We are intensely focused on stemming the supply of illegal opioids into our communities, regardless of whether the dealers are trafficking on a street corner or are abusing their physician’s oath by prescribing painkillers for no legitimate medical reason,” said Acting U.S. Attorney Kaufman. “We will continue our critical work to prosecute all those who are fueling our nation’s continuing opioid crisis.”
“Mr. Zielke created a lucrative scheme peddling opioids for profit and at the same time undermining our healthcare system through fraudulent billing,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Unethical, crooked doctors who choose to line their pockets cause medical care costs to increase for everyone. The FBI is committed to holding those who think they won’t be caught accountable.”
“Andrzej Zielke recklessly funneled opioids into Pittsburgh neighborhoods, fueling the height of the epidemic that takes the lives of 13 Pennsylvanians every day,” said Attorney General Josh Shapiro. “We're working closely with our federal partners to combat this crisis that continues to destroy Pennsylvania families and communities.”
Judge Fisher scheduled sentencing for November 1, 2021. The law provides for a maximum per count sentence of 10 years in prison, a fine of $500,000.00, or both, for the controlled substances offenses. Zielke faces an additional maximum per count sentence of 10 years and fine of $250,000.00 for the health care fraud charges; and a maximum per count sentence of 10 years and a fine of $250,000.00 for the money laundering offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued Zielke on bond.Assistant United States Attorney Robert S. Cessar and Special Assistant U.S. Attorney Summer Carroll of the Pennsylvania Attorney General’s Office are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former Lab Owner Sentenced in Connection with $1.6 Million Medicaid Kickback ConspiracyRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court today for one count of conspiracy to pay unlawful kickbacks, Acting United States Attorney Stephen R. Kaufman announced.
United States District Judge David S. Cercone sentenced William Hughes, 74, to sixty days’ incarceration, followed by twelve months of home detention. Hughes was also ordered to pay a $5,000 fine, forfeit more than $750,000 in previously seized assets, and make restitution totaling $1,670,469.77 to the Kentucky Medicaid Program.
During the defendant’s plea hearing on June 18, 2020, Hughes admitted that he owned and operated Universal Oral Fluid Labs (UOFL), a clinical drug testing laboratory located in Greensburg, Pennsylvania. From October 2011 to August 2013, Hughes further admitted that he entered into an unlawful kickbacks-for-referrals arrangement, through UOFL, with his co-defendant, Dr. Varanise Booker, a physician practicing in Kentucky. Pursuant to this arrangement, Hughes agreed to pay Booker to refer patients to UOFL—including patients who were covered under the Kentucky Medicaid Program—for drug testing services in exchange for cash payments. Between September 2012 and August 2013, UOFL obtained $1,670,469.77 from the Kentucky Medicaid Program based on these illegal referrals. In turn, Hughes, through UOFL, caused Booker to be paid a total of $843,242.31 in kickbacks for her drug testing referrals.
Booker has pleaded not guilty, and her case remains pending before Judge Cercone.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service - Criminal Investigation, Defense Criminal Investigative Service, and Pennsylvania Office of Attorney General Medicaid Fraud Control Unit conducted the investigation that led to the prosecution of Hughes.
Former Detroit Police Department Officer Sentenced to 80 Months in Federal Prison for ExtortionRead the Press Release
DETROIT - Former Detroit Police Department Officer, Deonne Dotson, was sentenced today to 80 months in federal prison following convictions for extortion announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Juan Vargas, Acting U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James White, Detroit Police Department.
Dotson, age 49, was convicted after an 8-day jury trial before United States District Judge Robert H. Cleland. The trial was conducted in November 2019, but Dotson’s sentencing was delayed due to the COVID-19 pandemic.
According to the evidence presented at trial, Officer Dotson accepted bribes from owners and operators of automobile collision shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to their shops. The evidence also showed that Officer Dotson created false police reports in exchange for money from the owners and operators of the same collision shops. Owners of the vehicles were unaware that Officer Dotson was being paid by the collision shops when they agreed to have their cars fixed by the collision shops.
Five other Detroit Police Officers pleaded guilty and served time in federal prison for committing similar criminal activity while they were Officers with the Detroit Police Department. All six officers were actively employed with the Detroit Police Department at the time of the offenses. The other five officers were: Charles Wills, James Robertson, Jamil Martin, Martin Tutt, and Anthony Careathers. All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
“The overwhelming majority of Detroit Police Officers are honest, hard-working, and superb public servants,” said Mohsin. “Dotson’s conviction and 80 months’ sentence shows that no one is above the law, and when police officers commit crimes and violate their oath to protect and serve the public, they will be held accountable.”
"Mr. Dotson abused his authority as a law enforcement officer by engaging in conduct designed to benefit him personally. His actions are in stark contrast to the professionalism and integrity shown by the Detroit Police Department on a daily basis," said Timothy Waters, Special Agent in Charge of the FBI's Detroit Division.
“The successful resolution of this case highlights the importance of interagency cooperation. What began as a mail fraud investigation into illicit insurance claims developed into a public corruption case resulting in the conviction of six police officers for extortion – all because of the joint investigative effort. I fully commend all agencies involved for the hard work and countless hours put forth to bring these corrupt officers to justice,” said Juan Vargas, Acting US Postal Inspector in Charge.
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case was prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
Former Defense Department Official Pleads Guilty to Federal Charges of Taking Cash to Aid Contractor’s Request for $6.4 MillionRead the Press Release
RIVERSIDE, California – A former Department of Defense civilian official has pleaded guilty to two felony charges for taking tens of thousands of dollars in illegal cash payments from a private contractor to support the contractor’s effort to obtain $6.4 million from the government in connection with construction projects on a Navy base in the African nation of Djibouti, the Justice Department announced today.
Nizar Farhat, 63, of Palm Desert, pleaded guilty on Monday to one count of being a public official who received an illegal gratuity and one count of being a public official who received compensation from a private party for government services.
Farhat is a former construction manager who was based at the United States Marine Corps Air Ground Combat Center in Twentynine Palms.
According to his plea agreement, in 2014 and 2015, Farhat was on assigned temporary duty at the United States Navy Base Camp Lemonnier in Djibouti, where he oversaw a private company’s $15 million contract to construct an aircraft hangar and a telecommunications facility. After the projects were completed, the company submitted to the Defense Department Requests for Equitable Adjustment (REAs) that sought $6.43 million in additional payments.
Farhat admitted that, on four separate occasions between December 2015 and October 2017, he met with representatives of the company at hotels in Las Vegas and Palm Springs. During those meetings, Farhat took $15,000 in cash to help draft the REAs the company submitted to the Defense Department, and another $22,000 in cash to recommend that the Navy certify completion of the construction projects and approve the REAs. Following those meetings, Farhat urged the Defense Department to approve the majority of the REAs, without disclosing that defendant had received cash from the company in exchange for his recommendation.
The majority of the REAs remain under review by the Defense Department.
United States District Judge Jesus G. Bernal has scheduled an October 4 sentencing hearing, at which time Farhat will face a statutory maximum sentence of 10 years in federal prison.
The FBI and the Naval Criminal Investigative Service investigated this matter.
Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section and Justice Department Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
Former Custom Carbon Processing official sentenced for failing to surrender to prison for convictions stemming from explosion of Wibaux oil processing plantRead the Press Release
BILLINGS – The former president of Custom Carbon Processing, Inc., convicted of Clean Air Act violations in the explosion of an oil processing plant in Wibaux, was sentenced today after admitting he failed to surrender to prison to begin serving an 18-month prison term, Acting U.S. Attorney Leif M. Johnson said.
Peter Margiotta, 64, of Edmonton, Alberta, Canada, was sentenced to one day in prison, consecutive to his 18-month sentence, after he pleaded guilty today to an indictment charging him with failure to surrender for service of sentence.
U.S. District Judge Susan P. Watters presided and sentenced Margiotta immediately after his plea hearing. Margiotta was detained.
Under the terms of a plea agreement filed in the case, the government and Margiotta agreed that a sentence of one day of imprisonment was appropriate and that Margiotta would voluntarily dismiss any appeal of his previous convictions or sentence in the case involving Clean Air Act violations.
In court documents filed in the case, the government alleged that on July 10, 2020, Margiotta was sentenced to 18 months in federal prison and was permitted to self-surrender to the U.S. Bureau of Prisons to begin serving his sentence.
A jury in September 2019 found Margiotta guilty of all three counts in an indictment charging him with conspiracy, Clean Air Act-general duty and Clean Air Act-knowing endangerment, for his actions related to a 2012 explosion that injured three workers at the company’s oil processing plant in Wibaux.
The government alleged that the court gave Margiotta three extensions of time to self-report to prison, with the third deadline for self-reporting to the Bureau of Prisons’ SeaTac Facility in Seattle, Washington, on or before Jan. 15, 2021. Margiotta failed to self-surrender by Jan. 15. Margiotta turned himself into law enforcement authorities in Sweetgrass on March 25.
Assistant U.S. Attorney Bryan T. Dake and Eric E. Nelson, Special Assistant U.S. Attorney, prosecuted the case, which was investigated by the Environmental Protection Agency and Department of Transportation.
XXX
Former Bethel Principal Sentenced to 15 Years for Trying to Sexually Entice a MinorRead the Press Release
ANCHORAGE – A Bethel, Alaska, man was sentenced by U.S. Chief District Judge Timothy M. Burgess to 15 years in federal prison followed by a lifetime of supervised release for trying to sexually entice a minor.
According to court documents Christopher Allen Carmichael, 57, a former principal working in the Lower Kuskokwim School District in Bethel, pled guilty in November 2020 to attempted coercion and enticement of a minor to engage in sexual activity.
Carmichael became the subject of a federal investigation in November 2019 when the Bethel Police Department contacted the FBI concerning Carmichael’s online activities. During the investigation, Carmichael began engaging in graphic sexual communications with an undercover FBI agent posing as a fictional 13-year-old girl. In a series of text messages in December 2019, Carmichael graphically described several sexually explicit acts he would do to her. Carmichael continued to remind the fictional 13-year-old girl to delete their messages and that it was important they keep referring to her like she was 18 so that he wouldn’t get into trouble.
“With today’s sentencing we have removed this predator from the community and sent a resounding message that we are committed to aggressively prosecuting anyone who seeks to exploit children,” said Acting U.S. Attorney Bryan Wilson, District of Alaska.
“No child should ever have to go through this. Parents and communities entrusted Carmichael with a great responsibility, but he abused that position of trust in the most disgraceful way imaginable,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “Carmichael will now be held accountable for his horribly disturbing conduct.”
The FBI’s Child Exploitation and Human Trafficking Task Force, the Bethel Police Department, the Alaska State Troopers, and the Anchorage Police Department conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Daniel Doty prosecuted the case.
This case is part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative to increase engagement, coordination and action on public safety in Alaska Native communities. Led
by the U.S. Attorney’s Office, it encourages extensive collaboration among law enforcement at all levels, rural communities, Alaska Native groups, victim service organizations and care providers.
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 U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Florida Department of Children and Families Agrees to Pay $17.5 Million to Resolve False Claims Act Liability in Connection with Snap Quality ControlRead the Press Release
The Florida Department of Children and Families (FDCF) has agreed to pay the United States $17,500,000 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
“SNAP provides important benefits to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This settlement is an example of the department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in 2010, FDCF implemented policies and practices to reduce its SNAP error rate by submitting false information to USDA. Specifically, the United States alleged FDCF injected bias into its quality control process that resulted in FDCF submitting false quality control data and information to USDA, for which it received unentitled performance bonuses for fiscal years 2011 and 2012. In addition to its payment of $17.5 million, FDCF has also agreed to forego payment of an additional $14.7 million in unpaid bonuses USDA awarded for fiscal years 2013 and 2014.
Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington said, “While it is shocking these claims where submitted by the Florida Department of Children and Families, the state agency entrusted with assisting vulnerable and needy individuals, I commend the agency for correcting its conduct, cooperating with our investigation, and resolving its liability for its past actions. Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
This is the eighth settlement in this matter, and the seventh settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $60 million in connection with this investigation.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Washington, with investigative support from USDA, Office of the Inspector General. The investigation arose out of a nationwide audit of SNAP Quality Control processes by the USDA-OIG.
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA, Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants and/or the implementation of methods that injected bias into the QC process. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants and/or the implementation of certain methods resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
The matter was handled by Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington and by Don Williamson, Senior Trial Counsel of the Fraud Section of the Department of Justice, Civil Division, Commercial Litigation Branch.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal Inmate Sentenced to Additional Prison Time for Assault on GuardRead the Press Release
ST. PAUL, Minn. – A federal inmate was sentenced today to an additional 18 months in prison followed by three years of supervised release for assaulting a federal prison guard.
According to court documents, on May 29, 2020, Charles Marquis Mitchell, 28, an inmate at the Federal Correctional Institution in Sandstone, Minnesota, obtained and ingested a synthetic drug and began shouting and acting erratically. Mitchell struck one inmate with a closed fist and shoved another inmate into a wall. Mitchell did not comply with the prison guards’ orders to lay on the ground and instead lunged towards them, striking one guard in the head and face with a closed fist.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant. The sentence was imposed to run consecutively to the sentence Mitchell is currently serving.
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Father and Son Drug Dealers Found Guilty of Distribution of Methamphetamine and HeroinRead the Press Release
A father and son duo dealing methamphetamine and heroin around Mason City were convicted by a jury on July 9, 2021 after a three-day trial in federal court in Cedar Rapids.
Charlton Maxwell, age 60, and his son, Antione Maxwell, age 33, from Mason City, Iowa were convicted of one count of conspiracy to distribute methamphetamine and heroin. Antoine Maxwell was also convicted of three counts of distribution of methamphetamine, and one count of distribution of heroin. In addition to the conspiracy conviction, Charleton Maxwell was convicted of two counts of distribution of heroin, and one count of distribution of heroin and methamphetamine. The verdict was returned Friday, July 9, 2021.
The evidence at trial showed that Antione and Charleton Maxwell conspired to distribute large quantities of methamphetamine and heroin in and around Mason City between January 2018 and October 2020. Both Charleton and Antione were caught distributing methamphetamine and heroin. Testimony at trial showed that both defendants were involved in a long-term conspiracy involving numerous others to distribute pounds of methamphetamine as well as heroin in the Mason City area.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Antione and Charlton Maxwell both remain in custody of the United States Marshal pending sentencing.
For conspiracy to distribute methamphetamine and heroin, Antione Maxwell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and 10 years up to life of supervised release following any imprisonment.
For the two counts of distribution of 5 grams or more of pure methamphetamine, Antione Maxwell faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 8 years up to life of supervised release following any imprisonment for each count.
For distribution of 50 grams or more of pure methamphetamine, Antione Maxwell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and ten years up to life of supervised release following any imprisonment.
For distribution of heroin, Antione Maxwell faces a possible maximum sentence of 30 years’ imprisonment, a $2,000,000 fine, and three years up to life of supervised release following any imprisonment.
For conspiracy to distribute methamphetamine and heroin, Charleton Maxwell faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and four years up to life of supervised release following any imprisonment.
For distribution of three counts of distributing heroin, Charleton Maxwell faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and three years up to life of supervised release following any imprisonment, for each count.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Drug Task Force, the Cerro Gordo Sheriff’s Office, the Mason City Police Department, the Iowa Division of Narcotics Enforcement, and the Clear Lake Police department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3044.
Follow us on Twitter @USAO_NDIA.