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Saturday 15 May 2021
Two Jefferson County Men Arrested on Drug and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – Richard Desormeau, age 22, of Watertown, and Adam Cook, age 30, of Clayton, New York, were arrested and charged with federal firearms and/or drug charges, announced Acting United States Attorney Antoinette T. Bacon and 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).
Adam Clark is charged in a criminal complaint alleging that he manufactured, possessed, and transferred an illegally short-barreled rifle. He is also charged with possession with intent to distribute and distributing cocaine, as well as possessing a firearm in furtherance of a drug trafficking crime. For his alleged manufacturing, possessing, and transferring an illegally short-barreled rifle, he faces up to ten-years imprisonment and a fine of up to $10,000. For his alleged possession with intent to distribute and distribution of cocaine, he faces a maximum sentence of up to 20-years imprisonment, a fine of up to $1,000,000, and period of supervised release of at least three years and up to life. For his alleged possession of a firearm in connection with a drug trafficking crime, he faces a mandatory consecutive sentence of at least 5-years and up to life.
Richard Desormeau is charged in a criminal complaint alleging that he possessed and transferred an illegally short-barreled rifle. For his alleged possessing and transferring an illegally short-barreled rifle, he faces up to ten-years imprisonment, a fine of up to $10,000, and a period of supervised release of up to three 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.
Richard Desormeau and Adam Cook were arraigned in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter and detained pending a bail hearing. The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Metro-Jefferson Drug Task Force, consisting of Investigators from the Jefferson County District Attorney’s Office, Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, and Special Agents from the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Friday 14 May 2021
大学研究员为帮助中国发展科学水平，在申请经费时说谎被判入狱Read the Press Release
华盛顿 — 俄亥俄一名与中国关系密切的风湿病学教授和研究员因向联邦政府作虚假陈述而入狱 37 个月。这是其在免疫学研究实施欺诈计划的一部分。作为判决的一部分，郑也被勒令向国立卫生研究院（NIH）支付 340 多万美元的赔偿金以及向俄亥俄州立大学支付约 41.3 万美元的赔偿金。
来自希里厄德现年 58 岁的郑颂国在 2020 年 5 月 22 日星期五乘坐包机抵达阿拉斯加州安克雷奇后，在准备登上另一架飞往中国的包机时被捕。被捕时，郑随身携带三个大包、一个小手提箱和一个公文包，其中包括两台笔记本电脑、三部手机、数个 USB 驱动器、几根银条、其家人的过期中国护照、在中国的房产契约和其他物品。他被带回俄亥俄州南区并于 2020 年 7 月 7 日首次在哥伦布市出庭。
郑于2020 年11 月认罪，并承认他在申请中说谎，以便利用NIH 提供的约410 万美元资金发展中国在风湿病学和免疫学领域的专业水平。
这是又一起涉及中国政府千人计划的案件。郑选择说谎并向美国研究资助机构隐瞒自己参与这项计划，他将在联邦监狱中度过未来的 25 个月。” 负责国家安全事务的助理司法部长约翰•德梅斯（John C. Demers）还表示： "联邦研究经费是由美国纳税人为美国社会的利益提供的，而不是送给中国政府的非法礼物。”“当联邦资金用于研究时，因向美国人民做到完全透明，我们将继续追究那些选择谎报外国政府关系，以欺诈为目的获取资金的人的责任。”
联邦调查局反情报司助理主任艾伦·科勒（Alan E. Kohler Jr.）表示: “多年来，被告隐瞒参与中国政府人才招聘计划，避而不谈自己与中国至少五家研究机构的关系。郑贪婪地占用联邦研究经费，导致他人无法获得关键且对医学进步有支持作用的研究资助。联邦调查
局将继续追捕这些人，无论天涯海角，即便是在午夜阿拉斯加的飞机上。”“我们希望对郑的判决能阻止其他人与中国所谓的 ‘千人计划 ’或任何相关项目有任何联系。”美国代理联邦检察官俄亥俄州南区, 维帕尔·帕特尔（Vipal J. Patel）表示：“盗亦有道，但应外国政府要求齐力窃取我国的创新和技术而实行盗窃，闻所未闻，无以复加。”
联邦调查局辛辛那提探员主管克里斯·霍夫曼 (Chris Hoffman) 说：“郑今天判决实锤来自中国政府的持续威胁即窃取美国纳税人资助的研究。郑未能披露其外国资金和支持，破坏了信任原则，损害了美国人民赋予我们研究机构的信誉，同时也触碰了美国学术体系的核心价值底线即公开性和透明化。此次判刑应起到威慑作用，也凸显出联邦调查局保护我国的研究和技术的决心。 美国联邦调查局承诺将继续长期与伙伴合作，对那些不守诚信的人进行调查，因为他们使美国大学正在从事的高端工作陷入阴霾。”
美国卫生与公众服务部芝加哥地区监察长办公室的探员主管拉蒙特·普格三世（Lamont Pugh III）表示：“在寻求国立卫生研究院的拨款资金时，报告潜在的利益冲突对于确保公众对所开展的研究及其利用方式的信任至关重要。”“作出虚假陈述以掩盖潜在的利益冲突违反了这种信任和法律。”监察长办公室致力于查明和调查个人蓄意不报或伪造有关其研究支持来源的信息以确保纳税人的钱用之得当。
据法庭文件显示，郑曾是一名内科教授，曾经领导俄亥俄州立大学和宾夕法尼亚州立大学的小组进行自体免疫研究。根据他的认罪，郑为隐瞒其参与中国人才计划，以及他与中国政府控制的中国大学的联系和合作，在 NIH 的赠款申请中提供了虚假和误导性陈述。
法庭文件也显示，自 2013 年以来，郑一直在参与一项中国人才计划，该计划由中国政府设立，旨在招募具备知识或外国技术知识产权的个人。从那时起，郑就开始利用在美国进行的研究为中国谋利。郑即没有向其美国雇主也没有向国立卫生研究院披露利益冲突或他对外国的承诺。
美国代理联邦检察官帕特尔感谢了联邦调查局安克雷奇分局的协助。他们逮捕并问询了郑，在郑被拘留期间执行了多次法院命令。帕特尔也感谢了美国阿拉斯加地区检察官办公室的帮助。
该案由联邦调查局与卫生和公共服务部监察长办公室调查。美国助理检察官道格拉斯·斯奎尔斯（Douglas W. Squires）和 S.费特·希米尔 (S. Courter Shimeall) 、美国特别助理检察官克里斯托弗·圣皮埃尔和国家安全司反情报和出口管制科庭审律师马修·麦肯齐代表美国处理此案。美国地区首席法官阿尔格农·马布尔利 Algenon L. Marbley 于今日宣判
Yankton Man Charged with Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Yankton, South Dakota, man has been indicted by a federal grand jury for Possession of Child Pornography.
Matthew Carter, age 31, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 29, 2020, and January 14, 2021, Carter knowingly possessed and attempted to possess materials which contained images of child pornography.
The charge is merely an accusation and Carter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Homeland Security Investigations, the South Dakota Division of Criminal Investigation, and the Yankton Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Carter was returned to state custody pending trial. A trial date has not been set.
Window Rock Man indicted for violating Migratory Bird Treaty Act and Bald and Golden Eagle Protection ActRead the Press Release
ALBUQUERQUE, N.M. –Fred J. Federici, Acting U.S. Attorney for the District of New Mexico, and Phillip Land, Special Agent in Charge (SAC) of the Southwest Region, U.S. Fish and Wildlife Service, Office of Law Enforcement, announced the indictment of George Tom Skeet, 35, of Window Rock, Arizona, for violating the Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act.
Skeet made an initial appearance in federal court on May 10. He was indicted by a federal grand jury on April 23.
The two-count indictment alleges that on Jan. 18, 2019, and Feb. 5, 2019, in Bernalillo County, New Mexico, Skeet sold and offered for sale red-tailed hawk, bald eagle and golden eagle feathers. The birds are protected under the Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act. To help ensure that hawk, eagle, and other bird populations remain healthy and sustainable, these laws prohibit the possession, use, and sale of the feathers or other parts of federally-protected birds, as well as the unauthorized killing of these birds.
“One of our highest priorities is to combat wildlife trafficking and investigate individuals who are involved in the unlawful commercialization of our nation's fish and wildlife," said SAC Land. "This successful indictment was the result of working together with the Navajo Nation Department of Fish and Wildlife and the U.S. Attorney's Office for the District of New Mexico. We will continue to work closely with all our law enforcement partners to root out those individuals who exploit protected wildlife species for their own financial gain.”
If convicted, Skeet faces a maximum penalty of two years in prison, three years of supervised release, a $2,000 fine, and a $100 special penalty assessment. An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty.
The U.S. Fish and Wildlife Service investigated the case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
The U.S. Fish and Wildlife Service is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges, thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The agency enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands and helps foreign and Native American tribal governments with their conservation efforts.
Wheeling woman sentenced for failing to registerRead the Press Release
WHEELING, WEST VIRGINIA – Bobbi Jo Starry, of Wheeling, West Virginia, was sentenced today to 30 months of incarceration for a sex offender registry charge, Acting United States Attorney Randolph J. Bernard announced.
Starry, 55, pleaded guilty in April 2021 to one count of “Failure to Register.” Starry, who is required to register as a sex offender, admitted to failing to update her registry from January to August 2020 in the Northern District of West Virginia and elsewhere.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. District Judge John Preston Bailey presided.
University researcher sentenced to prison for lying on grant applications to develop scientific expertise for ChinaRead the Press Release
COLUMBUS, Ohio – A rheumatology professor and researcher with strong ties to China was sentenced to 37 months in prison for making false statements to federal authorities as part of an immunology research fraud scheme.
As part of his sentence, Song Guo Zheng, 58, of Hilliard, was also ordered to pay more than $3.4 million in restitution to the National Institute of Health (NIH) and approximately $413,000 to The Ohio State University.
Zheng was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight to China.
When he was arrested, Zheng was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cell phones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.
He was transported to the Southern District of Ohio and made his first federal court appearance in Columbus on July 7, 2020.
Zheng pleaded guilty in November 2020 and admitted he lied on applications in order to use approximately $4.1 million in grants from NIH to develop China’s expertise in the areas of rheumatology and immunology.
Zheng was a professor of internal medicine who led a team conducting autoimmune research at The Ohio State University and Pennsylvania State University. According to his plea, Zheng caused materially false and misleading statements on NIH grant applications, seeking to hide his participation in Chinese Talent Plans and his affiliation and collaboration with a Chinese university controlled by the Chinese government.
“In yet another case involving the Chinese Government’s Thousand Talents program, Song Guo Zheng will spend the next 37 months in a federal prison because he chose to lie and hide his involvement in this program from U.S. research funding agencies,” said Assistant Attorney General for National Security John C. Demers. “American research funding is provided by the American taxpayer for the benefit of American society—not as an illicit gift to the Chinese Government. The American people deserve total transparency when federal dollars are being provided for research, and we will continue to hold accountable those who choose to lie about their foreign government affiliations in an attempt to fraudulently gain access to these funds.”
“For years the defendant concealed his participation in Chinese government talent recruitment programs, hiding his affiliations with at least five research institutions in China," said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. "Zheng greedily took federal research dollars and prevented others from receiving funding for critical research in support of medical advances. The FBI will continue to pursue people wherever they may be, even on a plane, in Alaska, in the middle of the night.”
“We hope Zheng’s prison sentence deters others from having anything to do with China’s so-called ‘1000 Talents Plan’ or any of its variations, said Acting U.S. Attorney Vipal J. Patel. “Stealing is stealing, but stealing at the behest of a foreign government’s concerted effort to pilfer our nation’s innovations and technology takes things to a new and significantly worse level.”
“Zheng’s sentencing today is a recognition of the constant threat posed by the Chinese government to steal research funded by American taxpayers,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “Zheng’s failure to disclose his foreign funding and support damages the trust and undermines the credibility the American people place in U.S. research, while abusing the openness and transparency that is a core value of U.S. academia. This sentence should serve as a deterrent and underscores the FBI’s commitment to work with our partners to investigate individual’s whose actions throw a cloud over the cutting-edge work being done at U.S. universities.”
“Reporting potential conflicts of interest when seeking grant funding from the National Institutes of Health is imperative in ensuring the public’s trust in the research being conducted and how it is utilized,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Making false statements to conceal potential conflicts violates that trust and the law. The OIG is committed to identifying and investigating instances where individuals intentionally fail to report or falsify information regarding their sources of research support in order to ensure the proper use of taxpayer dollars.”
According to court documents, since 2013, Zheng had been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since that time, Zheng used research conducted in the United States to benefit the People’s Republic of China. Zheng failed to disclose conflicts of interest or his foreign commitments to his American employers or to the NIH.
Acting U.S. Attorney Patel acknowledged the assistance of the Anchorage FBI Division who arrested Zheng, interviewed him and executed multiple warrants while he was detained, and the assistance provided by the U.S. Attorney's Office for the District of Alaska.
This case was investigated by the FBI and Health and Human Services Office of the Inspector General. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, Special Assistant United States Attorney Christopher N. St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice’s National Security Division are representing the United States in this case. Chief U.S. District Judge Algenon L. Marbley imposed the sentence today.
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Press release translation
University Researcher Sentenced to Prison for Lying on Grant Applications to Develop Scientific Expertise for ChinaRead the Press Release
WASHINGTON – An Ohio man and rheumatology professor and researcher with strong ties to China was sentenced to 37 months in prison for making false statements to federal authorities as part of an immunology research fraud scheme. As part of his sentence, Zheng was also ordered to pay more than $3.4 million in restitution to the National Institute of Health (NIH) and approximately $413,000 to The Ohio State University.
Song Guo Zheng, 58, of Hilliard, was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight in order to flee to China. He was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cell phones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items. He was transported to the Southern District of Ohio and made his first federal court appearance in Columbus last July.
Zheng pleaded guilty last November and admitted he lied on applications in order to use approximately $4.1 million in grants from NIH to develop China’s expertise in the areas of rheumatology and immunology.
“In yet another case involving the Chinese government’s Thousand Talents program, Song Guo Zheng will spend the next 37 months in a federal prison because he chose to lie and hide his involvement in this program from U.S. research funding agencies,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “American research funding is provided by the American taxpayer for the benefit of American society — not as an illicit gift to the Chinese government. The American people deserve total transparency when federal dollars are being provided for research, and we will continue to hold accountable those who choose to lie about their foreign government affiliations in an attempt to fraudulently gain access to these funds.”
“For years the defendant concealed his participation in Chinese government talent recruitment programs, hiding his affiliations with at least five research institutions in China,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “Zheng greedily took federal research dollars and prevented others from receiving funding for critical research in support of medical advances. The FBI will continue to pursue people wherever they may be, even on a plane, in Alaska, in the middle of the night.”
“We hope Zheng’s prison sentence deters others from having anything to do with China’s so-called ‘1000 Talents Plan’ or any of its variations,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Stealing is stealing but stealing at the behest of a foreign government’s concerted effort to pilfer our nation’s innovations and technology takes things to a new and significantly worse level.”
“Zheng’s sentencing today is a recognition of the constant threat posed by the Chinese government to steal research funded by American taxpayers,” said Special Agent in Charge Chris Hoffman for the FBI’s Cincinnati Field Office. “Zheng’s failure to disclose his foreign funding and support damages the trust and undermines the credibility the American people place in U.S. research, while abusing the openness and transparency that is a core value of U.S. academia. This sentence should serve as a deterrent and underscores the FBI’s commitment to work with our partners to investigate individual’s whose actions throw a cloud over the cutting-edge work being done at U.S. universities.”
“Reporting potential conflicts of interest when seeking grant funding from the National Institutes of Health is imperative in ensuring the public’s trust in the research being conducted and how it is utilized,” said Special Agent in Charge Lamont Pugh III for the U.S. Department of Health & Human Services’ Office of Inspector General, Chicago Region. “Making false statements to conceal potential conflicts violates that trust and the law. The OIG is committed to identifying and investigating instances where individuals intentionally fail to report or falsify information regarding their sources of research support in order to ensure the proper use of taxpayer dollars.”
According to court documents, Zheng was a professor of internal medicine who led a team conducting autoimmune research at The Ohio State University and Pennsylvania State University. According to his plea, Zheng caused materially false and misleading statements on NIH grant applications, seeking to hide his participation in Chinese Talent Plans and his affiliation and collaboration with a Chinese university controlled by the Chinese government.
According to court documents, since 2013, Zheng had been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since that time, Zheng used research conducted in the United States to benefit the People’s Republic of China. Zheng failed to disclose conflicts of interest or his foreign commitments to his American employers or to the NIH.
Acting U.S. Attorney Patel acknowledged the assistance of the Anchorage FBI Division who arrested Zheng, interviewed him and executed multiple warrants while he was detained, and the assistance provided by the U.S. Attorney's Office for the District of Alaska.
This case was investigated by the FBI and Health and Human Services Office of the Inspector General. Assistant U.S. Attorneys Douglas W. Squires and S. Courter Shimeall, Special Assistant U.S. Attorney Christopher N. St. Pierre, and Trial Attorney Matthew J. McKenzie with NSD’s Counterintelligence and Export Control Section are representing the United States in this case. Chief U.S. District Judge Algenon L. Marbley imposed the sentence today.
View this press release in Mandarin
here.U.S. Attorney Presents Law Enforcement “Awards of Excellence”Read the Press Release
On Friday, Acting U.S. Attorney Prerak Shah presented the 2021 United States Attorney’s Awards of Excellence, honoring law enforcement officers and agents who exceed the call of duty to keep their communities safe.
“It’s hard to believe that COVID-19 has been raging here in north Texas for more than 14 months. But while much of the rest of the country sheltered at home, you all continued to risk your health and safety in the pursuit of justice,” Acting. U.S. Attorney Shah said at a socially distanced ceremony at the Belo in Dallas. “You all are invaluable assets to our offices, and true heroes to our communities. You represent the best of the best in law enforcement.”
Awardees worked the following cases:
United States v. Sean DeAndrea Lewis
Federal Bureau of Investigation and United States Marshals Service
This investigation led to the prosecution of aa federal inmate who fabricated a murder-for-hire plot in order to receive potential credit towards his sentence.United States v. John Cooper
Defense Criminal Investigative Service
This investigation revealed a network of illegal kickbacks and a conspiracy to defraud TTRICARE of over $65 million. The leader of the pharmaceutical marketing company was convicted at trial and two of the marketers plead guilty to recruiting more than 2,300 patients, many of whom were on active duty at Fort Hood. More here.United States v. Bo Jack Kelly
Texas Department of Public Safety
This investigation led to the prosecuting of a Shallowater, Texas man for using a variety of social media accounts to coerce a 14-year-old minor into sending him sexually explicit videos of herself.United States v. Cynthia Carrasco
Drug Enforcement Administration with Amarillo Police Department
This investigation led to the prosecution of a drug dealer who sold a fatal dose of heroin killing an Amarillo woman. More here.Operation Double Eagle
Drug Enforcement Administration
This investigation led to the prosecution of cocaine dealers connected to Car Del Noreste and the seizure of more than 55 kilograms of cocaine, 92 kilograms of methamphetamine, and 374 kilograms of marijuana.Forest Park Medical Center
IRS-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Department of Labor Office of Inspector General, Defense Criminal Investigative Service, and U.S. Office of Personnel Management Office of Inspector General
This multi-year investigation resulted in the prosecution of 21 defendants in a $40 million dollar healthcare kickback scheme which caused half-a-billion dollars in tainted claims to be submitted to government and private insurances causing $80 million in losses. More here.United States v. Marcus Anthony Braziel
Bureau of Alcohol, Tobacco, Firearms, & Explosives, Federal Bureau of Investigation, and IRS-Criminal Investigation Division
This investigation led to charges against a Lubbock Man who unlawfully sold the AR-15 style rifle used by the Midland-Odessa mass shooter in August 2019. More here.United States v. Broussard, et al.
Federal Bureau of Investigation
This multi-year investigation resulted in the prosecution of 13 members of a violent criminal enterprise who routinely robbed customers leaving banks. More here.United States v. Jose Linares
Federal Bureau of Investigation
This investigation led to the prosecution of a Honduran man who operated a $2.3 million Ponzi-link scheme. More here.United States v. Jose Daniel Flores
Drug Enforcement Administration
This investigation led to the prosecution members of the Texas Syndicate gang. As a result, 11 defendants plead guilty resulting in a combined 1,114 months in federal prison. More here.United States v. Yaser Said
United States v. Yassein and Islam Said
Federal Bureau of Investigation
This investigation led to the prosecution of the brother and nephew of Yaser Said, FBI’s “10 Most Wanted suspect,” for helping him evade capture for more than 12 years. More here and here.The staff of the United States Attorney’s Office is grateful for law enforcement officers’ sacrifices, dedication, and skill.
The U.S. Attorney and Chief U.S. District Judge Barbara M.G. Lynna also presented the “Administration of Justice” award, recognizing a staff member who consistently provides outstanding support, to Information Technology Specialist Eric Umbarger and the “Barefoot Sanders Prosecutor of the Year” award to Assistant U.S. Attorney Tiffany Eggers, Deputy Chief of NDTX’s National Security & Cyber Division.
Troy Businessman Pleads Guilty to Payroll Tax FraudeRead the Press Release
TROY, Ill. – A Troy, Illinois businessman has entered a guilty plea on a charge that he willfully
failed to pay millions in federal payroll taxes. Gary Hunsche, 54, admitted in federal court today
that he committed the offense while serving as the owner-operator of a Troy-based staffing company
called Unique Personnel Consultants.
“Business owners have a responsibility to withhold federal income taxes for their employees and
then remit those taxes to the Internal Revenue Service,” said David Talcott, Acting Special Agent
in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Investigations
of employment tax fraud is one of the priorities for IRS CI special agents, and those
individuals who cheat their employees and other honest taxpayers will be investigated and
prosecuted to the fullest extent of the law.”According to court records, from 2014-2016, Hunsche properly withheld over $8 million in federal
taxes from the paychecks of roughly 3,000 to 5,000 employees, most of whom were hired out to
clients as temporary workers. But rather than paying the full amount to the IRS, Hunsche kept over
$4 million of it for himself. As part of his plea, Hunsche acknowledged using a portion of the
unpaid taxes on his own residence, including landscaping work, a barn with a full-size indoor
basketball court, and partial construction of a new home.Hunsche is scheduled to be sentenced on Aug. 17, 2021 and faces up to five years in prison. United
States District Judge Staci M. Yandle will determine the sentence after considering the U.S.
Sentencing Guidelines and other statutory factors.IRS Criminal Investigation agents conducted the investigation.
Assistant U.S. Attorneys Norman R. Smith and Luke Weissler are prosecuting the case.
If you suspect or know of an individual or company that is not complying with the tax laws, please
contact the local IRS Criminal Investigation Office at (618) 622-2160 or visit this website:
https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity.Todd County Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Todd County, South Dakota, woman convicted of Assault With a Dangerous Weapon was sentenced by Chief Judge Roberto A. Lange, U.S. District Court.
Julia Swift Hawk, age 26, was sentenced on May 11, 2021, to time served through May 18, 2021, equal to three months incarceration, followed by two years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that occurred outside the Rosebud Casino, in Todd County, on January 14, 2020. Swift Hawk unlawfully assaulted an individual with a utility knife with the intent to do bodily harm to the individual.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Swift Hawk was immediately remanded to the custody of the U.S. Marshals Service.
Todd Bussino Pleads Not Guilty to Multiple Convenience Store Robbery ChargesRead the Press Release
The Acting United States Attorney for the District of Vermont, Jonathan Ophardt, announced that Todd Bussino, 37, of Rutland, pled not guilty today in United States District Court in Burlington to charges that he robbed four Rutland-area convenience stores between November 2020 and March 2021. U.S. Magistrate Judge Kevin Doyle ordered that Bussino be held without bail pending trial.
According to court records, federal, state and local law enforcement officials in the Rutland area have been investigating a series of robberies that took place between early November 2020 and April 2021 in Rutland and surrounding towns. In each of the robberies, a single male entered the store, waited until other customers had left and then demanded money from the clerk. In almost all the incidents, the robber brandished a knife. Bussino was arrested after the ninth such robbery, on March 7, but released on bail. He was rearrested after a tenth, attempted robbery on April 13. On April 21, a federal grand jury in Rutland charged Bussino with four of those robberies.
The Acting United States Attorney emphasizes that the charges in the indictment are merely accusations and that Bussino is presumed innocent unless and until he is proven guilty.
If convicted, Bussino faces up to 20 years of imprisonment for each robbery and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case has been investigated by the Federal Bureau of Investigation, the Rutland Police Department, the State Police and the Rutland County Sheriff’s Department.
Bussino is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Three Peruvian Nationals Plead Guilty to Conspiring to Defraud Thousands of Spanish-Speaking U.S. ResidentsRead the Press Release
Three Peruvian nationals pleaded guilty to operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by threatening, among other things, arrest and deportation.
According to court documents, Omar Cuzcano Marroquin, 32, Jerson Renteria Gonzales, 37, and Evelyng Milla Campuzano, 35, each of Lima, Peru, conspired to commit mail fraud and wire fraud through a series of Peruvian call centers that used fraud and extortion to obtain money from Spanish-speaking individuals in the United States. The defendants and their employees falsely told victims that they were required to accept and pay for English language courses and other educational products. Victims who at first refused to make payments were threatened with serious adverse consequences, including supposed criminal court proceedings, arrest and deportation. Between April 2011 and July 2019, thousands of victims made payments based on calls from their call centers.
“The Department of Justice’s Consumer Protection Branch will steadfastly pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division. “Those who impersonate U.S. government officials and use threats to prey on our recent immigrant communities will be brought to justice and held accountable in U.S. courts.”
All three defendants were arrested on July 2, 2019, by Peruvian authorities based on a U.S. extradition request, and each has remained incarcerated since that time. The defendants were extradited to the Southern District of Florida on Oct. 23, 2020.
As part of their guilty pleas, the defendants admitted that they managed and operated the Latinos en Accion, Accion Latino, and Bienestar Hispano call centers in Lima, Peru. The defendants admitted that they and their employees in Peru used internet-based telephone calls to contact Spanish-speaking residents of the United States, many of whom were recent immigrants from Central America, Mexico and other Spanish-speaking countries. The callers falsely told the victims they had won raffles for free products, including computer tablets with English language courses. Many consumers expressed interest in receiving the supposedly free products and the chance to improve their English language abilities. In later calls, victims were told they were required to make large payments to receive the products. When victims objected, the callers misrepresented that the victims had unlawfully failed to pay for or receive delivery of products.
In pleading guilty, the defendants admitted that they and their employees falsely claimed to be lawyers, court officials, federal agents and representatives of a supposed “minor crimes court.” The defendants and their co-conspirators falsely told the victims that they had a contractual obligation to pay for and receive products and had caused legal problems for themselves and others by allegedly failing to do so. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims paid because of these baseless threats, and the defendants and their co-conspirators fraudulently collected millions of dollars from thousands of vulnerable victims.
“With today’s technology, fraudsters can target victims living thousands of miles away as easily as they can target next-door neighbors,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “This office, together with its domestic and international law enforcement partners, will continue to aggressively investigate and prosecute criminals who prey on vulnerable victims within our district, no matter where those criminals are located.”
“We seek justice for victims by working collaboratively with foreign governments when investigating criminal misuse of the U.S. mail, such as these fraud and extortion schemes,” said Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service will continue to aggressively pursue transnational criminal enterprises targeting U.S. consumers.”
Cuzcano, Renteria and Milla each pleaded guilty to conspiracy to commit mail and wire fraud. Cuzcano is scheduled to be sentenced on July 9 and faces a maximum penalty of 20 years in prison. Renteria and Milla are scheduled to be sentenced on Aug. 6 and face a maximum penalty of 20 years in prison. U.S. District Judge Robert N. Scola Jr. will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Two co-defendants in this case are scheduled to go to trial in January 2022.
The U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case. Trial Attorney Phil Toomajian of the Consumer Protection Branch is prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the Diplomatic Security Service and the Peruvian National Police provided critical assistance.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Switzerland’s Largest Insurance Company and Three Subsidiaries Admit to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
The Department of Justice today filed a criminal information charging Swiss Life Holding AG (Swiss Life Holding), Swiss Life (Liechtenstein) AG (Swiss Life Liechtenstein), Swiss Life (Singapore) Pte. Ltd. (Swiss Life Singapore), and Swiss Life (Luxembourg) S.A. (Swiss Life Luxembourg), collectively, the “Swiss Life Entities,” with conspiring with U.S. taxpayers and others to conceal from the IRS assets held in offshore insurance policies, including more than 1,600 insurance wrapper policies, and related policy investment accounts in banks around the world and the income generated in these accounts.
The Justice Department also announced a deferred prosecution agreement with the Swiss Life Entities (“the Agreement”) under which they agreed to accept responsibility for their criminal conduct by stipulating to the accuracy of the Statement of Facts attached to the Agreement. The Agreement requires the Swiss Life Entities to refrain from all future criminal conduct, enhance remedial measures, and continue to cooperate fully with further investigations into hidden insurance policies and related policy investment accounts. Further, as part of today’s resolution, the Swiss Life Entities agreed to pay approximately $77.3 million to the U.S. Treasury, which includes restitution, forfeiture of all gross fees, and a penalty component. If the Swiss Life Entities abide by all of the terms of the Agreement, the government will defer prosecution on the information for three years and then seek to dismiss the charge.
“Swiss Life today is held responsible for creating and marketing specially designed insurance products to U.S. tax evaders seeking a new way to hide their offshore assets, in light of heightened Justice Department and IRS tax enforcement efforts,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Financial enablers here and abroad – and the taxpayers seeking their services – should know that we will continue to identify and unmask such schemes.”
“As they admit, Swiss Life and its subsidiaries sought out and offered their services to U.S. taxpayers to help them become U.S. tax evaders,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “The Swiss Life Entities offered private placement life insurance policies and related investment accounts to U.S. customers, and provided services that concealed the policies and other assets from the IRS. Indeed, the Swiss Life Entities saw U.S. authorities’ stepped-up offshore tax enforcement as an opportunity to pitch themselves to tax-evading U.S. customers as an alternative to Swiss banks. Under the terms of today’s agreement, Swiss Life will turn over more than $77 million and be required to continue to cooperate with the United States in identifying U.S. tax evaders.”
“The successful resolution of this investigation is an important victory for the American taxpayer for two primary reasons,” said Chief James C. Lee of the IRS Criminal Investigation. “First, the recovery of more $77 million owed to the U.S. government sends an unequivocal message that offshore evasion is still a high priority of IRS Criminal Investigation. Secondly, this agreement further requires Swiss Life Entities to continue to cooperate with the government and does not shield them from future civil or criminal sanctions, which should put every entity engaged in offshore evasion on notice.”
According to documents filed today in Manhattan federal court:
Swiss Life Holding is the ultimate parent company of the Swiss Life group of companies (Swiss Life), a Switzerland-based provider of comprehensive life insurance and pension products for individuals and corporations, as well as asset management and financial planning services. From 2005 to 2014, Swiss Life through affiliated insurance carriers in Liechtenstein (Swiss Life Liechtenstein), Luxembourg (Swiss Life Luxembourg), and Singapore (Swiss Life Singapore), (collectively, the PPLI Carriers) maintained approximately 1,608 Private Placement Life Insurance (PPLI) policies. The PPLI Carriers’ issuance and administration of those policies (colloquially known as “insurance wrappers”) and the related investment accounts were often done in a manner to assist U.S. taxpayers in evading U.S. taxes and reporting requirements and concealing the ownership of offshore assets.
Moreover, beginning as early as the summer of 2008, the PPLI Carriers were aware that UBS and other Swiss banks were terminating or reevaluating their business relationships with U.S. clients in response to increasing offshore tax enforcement efforts by U.S. authorities. Certain management and sales personnel within the Swiss Life PPLI Business Unit viewed these developments as a business opportunity to expand the PPLI Business by onboarding U.S. clients who were fleeing UBS and other Swiss banks. Such clients with undeclared assets were typically referred within Swiss Life as “non-comprehensive advice seeking,” which was frequently abbreviated to “NCAS.” Because Swiss Life would be identified as the owner of the policy investment accounts, rather than the U.S. policyholder and/or ultimate beneficial owner of the assets, the insurance wrapper policies could be and were used by unscrupulous U.S. taxpayers to hide undeclared assets and income and to evade taxes. In turn, Swiss Life grew its PPLI business and earned fees on those policies. Members of management of the PPLI Business Unit knew about and authorized the onboarding of U.S. clients without regard to whether they were declared or undeclared.
Swiss Life engaged in other misconduct with respect to U.S.-related policies:
- U.S.-related PPLI Policies were funded or terminated through asset transfers from/to an account maintained by a third party associated with the policyholder, such as an offshore law firm or intermediary.
- Swiss Life PPLI personnel assisted U.S. taxpayers in establishing and maintaining Swiss Life PPLI policies in the name of a foreign relative with the effect of obscuring the U.S. nexus of the assets used to fund the policy or to repatriate the U.S. taxpayer’s undeclared assets through a sham death payout.
- Certain U.S.-related PPLI Policies issued by Swiss Life Liechtenstein involved transfers of physical gold, other precious metals, or precious gemstones into or out of the policy investment account, presumably for the purpose of avoiding detection by U.S. authorities.
- The PPLI Carriers allowed policyholders to designate an authorized recipient – typically the policyholder’s asset manager or other foreign representative – to receive policy documents and custodian investment account statements, rather than having those documents sent directly to the policyholder.
- Certain Swiss Life Liechtenstein personnel promoted the use of Swiss Life products to turn U.S. taxpayers’ undeclared or so-called “black” money into so-called “white” money by parking the funds in a Swiss Life insurance policy until the clock had run on the perceived statute of limitations for tax offenses.
- Corporate premium bank accounts were also misused as a transitory account to help conceal the movement of U.S. clients’ funds.
Under today’s resolution, the Swiss Life Entities are required to continue to cooperate fully with ongoing investigations and affirmatively disclose any information they may later uncover regarding U.S.-related insurance policies and related policy investment accounts. The Swiss Life Entities are also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2019. The Agreement provides no protection from criminal or civil prosecution for any individuals.
Swiss Life Holding will pay a total of $77,374,337, which has three parts. First, Swiss Life Holding has agreed to pay $16,345,454 in restitution to the IRS, which represents the approximate unpaid taxes resulting from the Swiss Life Entities’ participation in the conspiracy. Second, Swiss Life Holding has agreed to forfeit $35,782,375 to the United States, which represents the approximate gross fees (not profits) that the Swiss Life Entities earned on the penalized insurance policies and related policy investment accounts between 2005 and 2014. Finally, Swiss Life Holding has agreed to pay a penalty of $25,246,508.
The penalty amount takes into consideration that Swiss Life conducted a robust internal investigation, supplied client-related data, facilitated the acquisition by the Justice Department of information relating to custodian banks, asset managers, and other entities and individuals related to Switzerland, Liechtenstein, and Singapore, and otherwise meaningfully assisted the department’s cross-border tax enforcement efforts. In addition, Swiss Life conducted extensive outreach to current and former U.S. clients to confirm historical tax compliance, and to encourage disclosure to the IRS when policyholders’ historical tax compliance issues had not yet been resolved. Swiss Life further implemented remedial measures to protect against the use of its services for tax evasion in the future.
The IRS Criminal Investigation is investigating this case.
This prosecution is being handled by the Department of Justice’s Tax Division and the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York. Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division and Assistant U.S. Attorneys Nicholas Folly and Olga I. Zverovich of the U.S. Attorney’s Office for the Southern District of New York are in charge of the prosecution.
Switzerland’s Largest Insurance Company and Three Subsidiaries Admit to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of a criminal Information charging Swiss Life Holding AG (“Swiss Life Holding”), Swiss Life (Liechtenstein) AG (“Swiss Life Liechtenstein”), Swiss Life (Singapore) Pte. Ltd. (“Swiss Life Singapore”), and Swiss Life (Luxembourg) S.A. (“Swiss Life Luxembourg”) (collectively, the “Swiss Life Entities”) with conspiring with U.S. taxpayers and others to conceal from the Internal Revenue Service (the “IRS”) more than $1.452 billion in offshore insurance policies, including more than 1,600 insurance wrapper policies, and related policy investment accounts in banks around the world and the income generated in these accounts.
Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced a deferred prosecution agreement with the Swiss Life Entities (“the Agreement”) under which they agreed to accept responsibility for their criminal conduct by stipulating to the accuracy of the Statement of Facts attached to the Agreement. The Agreement requires the Swiss Life Entities to refrain from all future criminal conduct, enhance remedial measures, and continue to cooperate fully with further investigations into hidden insurance policies and related policy investment accounts. Further, as part of today’s resolution, the Swiss Life Entities agreed to pay approximately $77.3 million to the U.S. Treasury, which includes restitution, forfeiture of all gross fees, and a penalty component. If the Swiss Life Entities abide by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charge.
Manhattan U.S. Attorney Audrey Strauss said: “As they admit, Swiss Life and its subsidiaries sought out and offered their services to U.S. taxpayers to help them become U.S. tax evaders. The Swiss Life Entities offered private placement life insurance policies and related policy investment accounts to U.S. customers, and provided services that concealed the policies and other assets from the IRS. Indeed, the Swiss Life Entities saw U.S. authorities’ stepped-up offshore tax enforcement as an opportunity to pitch themselves to tax-evading U.S. customers as an alternative to Swiss banks. Under the terms of today’s agreement, Swiss Life will turn over more than $77 million and be required to continue to cooperate with the United States in identifying U.S. tax evaders.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Swiss Life today is held responsible for creating and marketing specially designed insurance products to U.S. tax evaders seeking a new way to hide their offshore assets, in light of heightened Justice Department and IRS tax enforcement efforts. Financial enablers here and abroad – and the taxpayers seeking their services – should know that we will continue to identify and unmask such schemes.”
IRS-CI Chief James C. Lee said: “The successful resolution of this investigation is an important victory for the American taxpayer for two primary reasons. First, the recovery of more $77 million owed to the U.S. government sends an unequivocal message that offshore evasion is still a high priority of IRS Criminal Investigation. Secondly, this agreement further requires Swiss Life Entities to continue to cooperate with the government and does not shield them from future civil or criminal sanctions, which should put every entity engaged in offshore evasion on notice.”
According to documents filed today in Manhattan federal court:
Swiss Life Holding is the ultimate parent company of the Swiss Life group of companies (“Swiss Life”), a Switzerland-based provider of comprehensive life insurance and pension products for individuals and corporations, as well as asset management and financial planning services. From 2005 to 2014, Swiss Life through affiliated insurance carriers in Liechtenstein (Swiss Life Liechtenstein), Luxembourg (Swiss Life Luxembourg), and Singapore (Swiss Life Singapore) (collectively, the “PPLI Carriers”) maintained approximately 1,608 Private Placement Life Insurance (“PPLI”) policies. The PPLI Carriers’ issuance and administration of those policies (colloquially known as “insurance wrappers”) and the related investment accounts were often done in a manner to assist U.S. taxpayers in evading U.S. taxes and reporting requirements and concealing the ownership of offshore assets.
Moreover, beginning as early as the summer of 2008, the PPLI Carriers were aware that UBS and other Swiss banks were terminating or reevaluating their business relationships with U.S. clients in response to increasing offshore tax enforcement efforts by U.S. authorities. Certain management and sales personnel within the Swiss Life PPLI Business Unit viewed these developments as a business opportunity to expand the PPLI Business by onboarding U.S. clients who were fleeing UBS and other Swiss banks. Such clients with undeclared assets were typically referred within Swiss Life as “non-comprehensive advice seeking,” which was frequently abbreviated to “NCAS.” Because Swiss Life would be identified as the owner of the policy investment accounts, rather than the U.S. policyholder and/or ultimate beneficial owner of the assets, the insurance wrapper policies could be and were used by unscrupulous U.S. taxpayers to hide undeclared assets and income and to evade taxes. In turn, Swiss Life grew its PPLI business and earned fees on those policies. Members of management of the PPLI Business Unit knew about and authorized the onboarding of U.S. clients without regard to whether they were declared or undeclared.
Swiss Life engaged in other misconduct with respect to U.S.-related policies:
• U.S.-related PPLI Policies were funded or terminated through asset transfers from/to an account maintained by a third party associated with the policyholder, such as an offshore law firm or intermediary.
• Swiss Life PPLI personnel assisted U.S. taxpayers in establishing and maintaining Swiss Life PPLI policies in the name of a foreign relative with the effect of obscuring the U.S. nexus of the assets used to fund the policy or to repatriate the U.S. taxpayer’s undeclared assets through a sham death payout.
• Certain U.S.-related PPLI Policies issued by Swiss Life Liechtenstein involved transfers of physical gold, other precious metals, or precious gemstones into or out of the policy investment account, presumably for the purpose of avoiding detection by U.S. authorities.
• The PPLI Carriers allowed policyholders to designate an authorized recipient – typically the policyholder’s asset manager or other foreign representative – to receive policy documents and custodian investment account statements, rather than having those documents sent directly to the policyholder.
• Certain Swiss Life Liechtenstein personnel promoted the use of Swiss Life products to turn U.S. taxpayers’ undeclared or so-called “black” money into so-called “white” money by parking the funds in a Swiss Life insurance policy until the clock had run on the perceived statute of limitations for tax offenses.
• Corporate premium bank accounts were also misused as a transitory account to help conceal the movement of U.S. clients’ funds.
Under today’s resolution, the Swiss Life Entities are required to continue to cooperate fully with ongoing investigations and affirmatively disclose any information they may later uncover regarding U.S.-related insurance policies and related policy investment accounts. The Swiss Life Entities are also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2019. The Agreement provides no protection from criminal or civil prosecution for any individuals.
Swiss Life Holding will pay a total of $77,374,337, which has three parts. First, Swiss Life Holding has agreed to pay $16,345,454 in restitution to the IRS, which represents the approximate unpaid taxes resulting from the Swiss Life Entities’ participation in the conspiracy. Second, Swiss Life Holding has agreed to forfeit $35,782,375 to the United States, which represents the approximate gross fees (not profits) that the Swiss Life Entities earned on the penalized insurance policies and related policy investment accounts between 2005 and 2014. Finally, Swiss Life Holding has agreed to pay a penalty of $25,246,508.
The penalty amount takes into consideration that Swiss Life conducted a robust internal investigation, supplied client-related data, facilitated the acquisition by the Justice Department of information relating to custodian banks, asset managers, and other entities and individuals related to Switzerland, Liechtenstein, and Singapore, and otherwise meaningfully assisted the Department’s cross-border tax enforcement efforts. In addition, Swiss Life conducted extensive outreach to current and former U.S. clients to confirm historical tax compliance, and to encourage disclosure to the IRS when policyholders’ historical tax compliance issues had not yet been resolved. Swiss Life further implemented remedial measures to protect against the use of its services for tax evasion in the future.
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Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI. Ms. Strauss also thanked the Department of Justice’s Tax Division for their partnership on this case.
This prosecution is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorneys Nicholas Folly and Olga I. Zverovich of the United States Attorney’s Office for the Southern District of New York and Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division are in charge of the prosecution.
Statement of Acting U.S. Attorney Boyle in Recognition of National Police Week and Peace Officers Memorial DayRead the Press Release
This is National Police Week, a time our nation sets aside each year to recognize the significant contributions and extraordinary work of local, state, federal and Tribal law enforcement in keeping our communities and those in them safe.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
According to national statistics, 285 law enforcement officers were killed in the line-of-duty in 2020. Approximately 60 percent of these officers lost their lives to COVID-19, which was contracted during their on-duty service in their communities. Additionally, the Law Enforcement Officer Killed and Assaulted (LEOKA) Program reports that 46 law enforcement officers died as a result of felonious acts and 47 died in accidents.
Although Connecticut is fortunate to have avoided a law enforcement line-of-duty death this past year, throughout our history 152 officers have died while on duty and serving those living in Connecticut.
Each one of these deaths is a stark reminder of the level of dedication and good work members of law enforcement selflessly perform every day. The dangers of this important profession are present in our state and remain constant to our law enforcement officers. They see it in a variety of ways when responding to situations involving domestic violence, shootings, assaults, homicides, drug related violence, robberies and other calls for help. This deserves our gratitude and support.
National Police Week and Peace Officers Memorial Day also remind us about the need for officer wellness. Law enforcement is a deeply stressful profession, a stress that is compounded when their many good works become overshadowed by reports of those officers who unlawfully choose to abuse their authority and betray their peacekeeper oath. Constant, multiple pressures can take a toll and have a cumulating effect over time. As a result, officers suffer increased heart disease, stress disorders, post-traumatic stress (PTSD), depression, and alcohol abuse, to name a few. Stigma and job loss can create barriers and cause officers to avoid seeking help. In 2020, 172 officers across our nation died by suicide. In 2021, 56 officers have already taken their own life. We support and encourage officers to seek the help they need and have earned.
Please join me in honoring these officers who have sacrificed their lives for our safety, and remembering their families and loved ones who continue to endure their loss.
Leonard C Boyle
Acting United States Attorney
District of Connecticut
May 14, 2021Starkville Man Charged with more than $6 million in COVID-Relief Fraud, False Statements and Money LaunderingRead the Press Release
STARKVILLE, Miss. – A Starkville man was arrested Thursday by FBI Special Agents after being indicted by a federal grand jury on criminal charges related to his alleged fraud scheme exceeding $6 million in federal COVID-19 Paycheck Protection Program loans.
According to court documents, Christopher Paul Lick, 45, of Starkville devised a scheme to defraud, and to obtain PPP funds, by filing false and fraudulent loan applications with banks providing loans as part of the Paycheck Protection Program, including Customers Bank and Cross River Bank. Lick is alleged to have overstated the number of employees and payroll expenses of his purported businesses to receive the funds.
Rather than use the PPP funds for his businesses, Lick is alleged to have purchased a variety of luxury items for personal use, including a home valued at more than $1 million and a Tesla valued at nearly $100,000. Lick also is alleged to have used the PPP funds to invest in the stock market.
Lick is charged with four counts of wire fraud, one count of false statements to a financial institution, and eleven counts of money laundering. He is scheduled for an initial court appearance today before U.S. Magistrate Judge David A. Sanders of the U.S. District Court for the Northern District of Mississippi. If convicted, he faces up to 30 years in federal prison.
The FBI’s Oxford Resident Agency is investigating the case. Assistant U.S. Attorney Philip Levy is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Slidell Man Pleads Guilty to Failure to Account for and Pay TaxesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SCOTT PELLISSIER (“PELLISSIER”), age 55, of Slidell, Louisiana, pleaded guilty on May 13, 2021 to one count of failing to account for and pay federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.
According to documents filed in federal court, PELLISSIER was the sole owner of two companies located in Slidell, Louisiana: Paint and Body Experts of Slidell, Inc. (“Paint and Body Experts”), a corporation that repairs and refinishes cars, and Pellissier Autoplex, LLC, d/b/a The Radiator Shop of Slidell (“Radiator Shop”). During the third quarter of the year 2016, PELLISSIER collected federal income taxes and FICA taxes in the approximate sum of $43,205.83 from employees of Paint and Body Experts, but willfully did not pay any of that money to the Internal Revenue Service. According to court documents, PELLISSIER failed to account for and pay additional FICA and other taxes associated with Paint and Body Experts and the Radiator Shop, resulting in a total loss amount between $550,000 and $1.5 million.
PELLISSIER faces a maximum sentence of five (5) years. Upon release from prison, PELLISSIER also faces a $100 mandatory special assessment fee and a term of supervised release of up to (3) three years, and/or a fine of $10,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. United States District Court Judge Carl J. Barbier set sentencing in this matter for August 19, 2021.
The U.S. Attorney’s Office would also like to acknowledge the work of the Internal Revenue Service on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
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Sioux Falls Woman Pleads Guilty in Federal Court to Making a Materially False StatementRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Tami Haug-Davis, age 63, of Sioux Falls, South Dakota, appeared before U.S. District Judge Karen E. Schreier on May 11, 2021, and pled guilty to an Information that charged her with Making a Materially False Statement.
The maximum penalties upon conviction are as follows: five years in federal custody and/or a $250,000 fine; a period of supervised release of three years; a $100 special assessment to the Federal Crime Victims Fund; and restitution may be ordered.
Beginning on or about September 2016 until February 2019, Tami Haug-Davis was the Director of the Missouri Valley Crisis Center (MVCC) in Chamberlain, South Dakota. During this time, MVCC was funded in large part by state and federal grants, awarded by the South Dakota Department of Social Services. MVCC received funds from the following federal grants: Family Violence Prevention Services, Department of Health and Human Services, Administration for Children and Families and Crime Victims Assistance, and Department of Justice, Office of Victims of Crime.
In the fall of 2018, the South Dakota Department of Public Safety Victim Services Program (DPS) conducted a review of MVCC pursuant to their receipt of federal and state grants. DPS later issued MVCC a Corrective Action Plan dated October 11, 2018. The plan listed 17 items for which MVCC needed to provide supporting documentation to DPS, including a corrective action that MVCC must provide detailed board meeting minutes from the last three meetings and a complete list of the Board of Directors.
MVCC provided a response to DPS’s directive for more information. Following receipt of MVCC’s response, a complaint was issued by the State of South Dakota’s Division of Criminal Investigation. On March 28, 2019, the Department of Justice – Office of the Inspector General opened an investigation regarding the management of MVCC as it had provided federal grant monies to MVCC. The Department of Health and Human Services – Office of the Inspector General joined the investigation, as it had also provided federal grant monies to MVCC.
As part of the joint investigation, federal agents with each agency interviewed Haug-Davis. On August 30, 2019, and July 14, 2020, during interviews with federal agents, Haug-Davis knowingly and intentionally made materially false statements regarding the creation, submission, and veracity of board meeting minutes and documents provided to DPS in response to the October 11, 2018, corrective action plan. Her statements were made about a matter within the jurisdiction of the U.S. Departments of Justice and Health and Human Services, and she knew her statements were untrue when she made the statements to investigators.
The investigation was conducted by the Department of Justice – Office of the Inspector General, the Department of Health and Human Services – Office of the Inspector General, and the State of South Dakota’s Division of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Jeremy Jehangiri.
A presentence investigation was ordered, and a sentencing date has been set for August 2, 2021. The defendant was released on bond.
Sioux Falls Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 10, 2021, by U.S. District Judge Karen E. Schreier.
Senthong Phiengsai, a/k/a “Chino,” a/k/a “Noy,” age 42, was sentenced to 151 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Phiengsai was indicted by a federal grand jury on September 1, 2020. He pled guilty on February 19, 2021.
The conviction stemmed from incident beginning on an unknown date and continuing until on or about September 2020, when Phiengsai, along with others, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Phiengsai was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Theophile Jesse Taken Alive, age 38, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Taken Alive, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between March 19, 2020, and November 3, 2020.
The charge is merely an accusation and Taken Alive is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Taken Alive was returned to state custody pending trial. A trial date has not been set.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Chester Dennis Marshall, age 55, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 10, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Marshall, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between January 2, 2021, and May 4, 2021.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Marshall was released on bond pending trial. A trial date has not been set.
Sand Springs Man Pleads Guilty to Kidnapping a Former GirlfriendRead the Press Release
A Sand Springs man who kidnapped and threatened to kill a former dating partner pleaded guilty today in federal court, announced Acting U.S. Attorney Clint Johnson.
Michael Joseph Pointer, 42, pleaded guilty to carjacking; kidnapping in Indian Country; and carrying, using, and discharging a firearm during and in relation to a crime of violence.
“Michael Pointer has a history of threats and acts of violence. In this case, he threatened to kill the victim in a ‘bloodbath’ and fired his shotgun at the victim, narrowly missing her head. Because of her quick thinking, she was eventually able to escape her captor,” said Acting U.S. Attorney Clint Johnson. “Assistant U.S. Attorney Chantelle Dial and our partners at the FBI and Tulsa Police Department ensured Pointer’s conviction today in federal court. I am proud of their work to protect victims of abuse.”
Pointer admitted that on April 3, 2020, he kidnapped a former dating partner using force and intimidation. Pointer threatened to kill the victim and her family and discharged a shotgun at her. At that time, Pointer knew he was prohibited from possessing a firearm because of his previous felony conviction. He then took the victim and her Mercury minivan, driving her around Tulsa against her will. At one point, the victim was able to break away from Pointer and run into a convenience store where she hid in a bathroom. A store employee called authorities. Tulsa Police officers responded to the call, located the vehicle, and conducted a high-risk traffic stop. Officers discovered a 12-gauge shot gun and ammunition in the vehicle.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Chantelle Dial is prosecuting the case. Ms.Dial is a prosecutor from the U.S. Attorney’s Office in the Western District of Washington. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
Raleigh County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BECKLEY, W.Va. – A Raleigh County man pleaded guilty today to a federal drug charge.
According to court documents, on December 18, 2020, law enforcement officers executed a search warrant at the Beaver residence of Frederick Van-Horn, 42, and found a 9mm handgun, ammunition, $1,697 in U.S. currency and cocaine base. Van-Horn admitted that he possessed more than 23 grams of “crack” cocaine and to having sold fentanyl to confidential informants.
Van-Horn pleaded guilty to possession with intent to distribute a quantity of cocaine base and faces up to 20 years in prison when he is sentenced on August 27, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh County Drug Task Force conducted the investigation. Assistant United States Attorney L. Alexander Hamner is prosecuting the case.
United States District Judge Frank W. Volk presided over the hearing.
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. 5:21-cr-00052.
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Pittsburgh Felon Sentenced to 3½ Years for Illegally Possessing Guns and AmmunitionRead the Press Release
PITTSBURGH, PA-- A resident of Pittsburgh, PA, has been sentenced in federal court to 40 months’ imprisonment on his convictions of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Nicholas J. Ranjan imposed the sentence on Clayton Sowell, age 28.
In connection with the sentencing, the court was advised that in the early evening of December 19, 2019, Pittsburgh Police conducted a traffic stop of a vehicle driven by Clayton Sowell. During the traffic stop, officers recovered a loaded handgun with an extended pistol magazine containing 17 rounds of ammunition in the driver’s side door. Law enforcement determined that this firearm was previously reported stolen.
The court was further advised that in the late morning of April 28, 2020, an officer of the Penn Hills Police Department conducted a separate traffic stop of a vehicle driven by Mr. Sowell. During the traffic stop, law enforcement recovered a loaded handgun with an extended pistol magazine containing 18 rounds of ammunition in Mr. Sowell’s front waistband.
Finally, the Court was advised that Mr. Sowell has two prior felony convictions. On May 21, 2012, Mr. Sowell pled guilty to Fleeing or Attempting to Elude Officer in the Court of Common Pleas, County of Allegheny, Commonwealth of Pennsylvania. On June 20, 2016, Mr. Sowell pled guilty to Firearms Not to be Carried Without a License in the Court of Common Pleas, County of Allegheny, Commonwealth of Pennsylvania.
Assistant United States Attorney Brendan J. Mckenna prosecuted this case on behalf of the government.
Acting U.S. Attorney Kaufman commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Pittsburgh Bureau of Police, and Penn Hills Police Department for the investigation leading to the successful prosecution of Sowell.
Owner of Oil Chem Inc. Sentenced for Clean Water Act ViolationRead the Press Release
The president and owner of Oil Chem Inc. was sentenced today to 12 months in prison for violating the Clean Water Act stemming from illegal discharges of landfill leachate — totaling more than 47 million gallons — into the city of Flint sanitary sewer system over an eight and a half year period.
Robert J. Massey, 70, of Brighton, Michigan, pleaded guilty on Jan. 14, to a criminal charge of violating the Clean Water Act. According to court records, Oil Chem, located in Flint, Michigan, processed and discharged industrial wastewaters to Flint’s sewer system. The company held a Clean Water Act permit issued by the city of Flint, which allowed it to discharge certain industrial wastes within permit limitations. The city’s sanitary sewers flow to its municipal wastewater treatment plant, where treatment takes place before the wastewater is discharged to the Flint River. The treatment plant’s discharge point for the treated wastewater was downstream of the location where drinking water was taken from the Flint River in 2014 to 2015.
According to the plea agreement filed in federal court, Oil Chem’s permit prohibited the discharge of landfill leachate waste. Landfill leachate is formed when water filters downward through a landfill, picking up dissolved materials from decomposing trash. Massey signed and certified Oil Chem’s 2008 permit application and did not disclose that his company had been and planned to continue to receive landfill leachate, which it discharged to the sewers untreated. Nor did Massey disclose to the city when Oil Chem started to discharge this new waste stream, which the permit also required. Massey directed employees of Oil Chem to begin discharging the leachate at the close of business each day, which allowed the waste to flow from a storage tank to the sanitary sewer overnight.
From January 2007 through October 2015, Massey arranged for Oil Chem to receive 47,824,293 gallons of landfill leachate from eight different landfills located in Michigan. One of the landfills was found to have polychlorinated biphenyls (PCBs) in its leachate. PCBs are known to be hazardous to human health and the environment.
Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD) and Acting U.S. Attorney Saima Mohsin of the Eastern District of Michigan thanked the U.S. Environmental Protection Agency Criminal Investigation Division as well as the Michigan Department of Natural Resources-Law Enforcement Division-Environmental Investigations Section and Coast Guard Investigative Service for their work in this investigation.
The case is being prosecuted by Assistant U.S. Attorneys Ann Nee and Jules DePorre of the U.S. Attorney’s Office for the Eastern District of Michigan and ENRD Senior Counsel Kris Dighe.
Orange Park Man Pleads Guilty to Offering Child Sex Abuse Photos for Sale on the InternetRead the Press Release
Jacksonville, Florida – Antony Eugene Woody (33, Orange Park) has pleaded guilty to a federal charge of advertising images depicting the sexual abuse of children for sale using the internet. Woody faces a mandatory minimum penalty of 15 years, and up to, 30 years in federal prison, and a potential life term of supervised release.
According to court documents, in February 2019, the FBI discovered that an online user named “imsoofreakyy” was using a particular social media application to offer child sex abuse images for sale on the internet. Meanwhile, the Clay County Sheriff’s Office (CCSO) received a Cybertip from the National Center for Missing and Exploited Children that the same user “imsoofreakyy” was using a particular email address to advertise images of children being sexually assaulted. CCSO detectives were able to identify this individual as Antony Eugene Woody, who resided in Orange Park.
On March 22, 2019, CCSO officers and FBI agents executed a search warrant at Woody’s residence and made contact with him. During an interview with law enforcement, Woody admitted that he downloaded child sex abuse images from the internet, labeled these images with titles, prices, and his online contact information, and then re-posted them for sale using a social media app. Woody also admitted that online customers responded to his advertisements, that he would receive money for these sales using Venmo, and that he defrauded some of these customers by taking their money but refusing to send them the contraband images that they had purchased. Woody received at least $995 in profits from these sales through the Venmo app. A search of Woody’s cellular telephone revealed 33 videos and 40 images depicting the sexual abuse of children. Two of these images bore superimposed advertising language that was created and placed on them by Woody.
This case was investigated by the Clay County Sheriff’s Office, the Westbrook (Maine) Police Department, the Broward County (Florida) Sheriff’s Office, and the Federal Bureau of Investigation (Boston and Jacksonville), with the assistance of the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case 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 Attorneys’ 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Olean Man Going to Prison for Receiving Naked Pictures of Young Girls on Social MediaRead 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 Shane Guay, 30, of Olean, NY, who was convicted of receipt of child pornography, was sentenced to serve 144 months in prison and 10 years supervised release by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Meghan A. Tokash and Laura A. Higgins, who handled the case, stated that in November 2016, the defendant solicited minor victims through the Instagram application to produce images of child pornography. On November 6, 2016, the defendant received an image of Victim 1, who was 12 years old at the time. On November 8, 2016, Guay received two images of Victim 2, who was 13 years old at the time.
During the investigation, law enforcement officers recovered 154 images and five videos of child pornography on electronic devices seized from the defendant. Some of the images included prepubescent children, as well as depictions of violence.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the HSI Office of International Affairs in S. Africa; the New York State Police, under the direction of Major James Hall; the Olean Police Department, under the direction of Chief Jeff Rowley; the Harris County, GA Sheriff’s Office, under the direction of Sheriff Mike Jolley; and the Ayer, Massachusetts Police Department, under the direction of Chief William A. Murray.
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North Carolina Risk Consultant Sentenced to Prison for Tax Fraud and Illegally Possessing a FirearmRead the Press Release
A North Carolina businessman was sentenced today to three years in prison for tax fraud and illegal possession of a firearm.
According to court documents and statements made in court, Charles Agee Atkins, of Chapel Hill, controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management LLC, Risk Assessment & Management LLC, and Ram Omni LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the IRS. Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several prior years. In total Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12-gauge shotgun, which Atkins could not legally possess because of his prior conviction.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Atkins to serve three years of supervised release and to pay approximately $809,115 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
The IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Tanner Kroeger of the Middle District of North Carolina and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
North Carolina Risk Consultant Sentenced to Prison for Tax Fraud and Illegally Possessing a FirearmRead the Press Release
GREENSBORO, N.C. - A North Carolina businessman was sentenced today to 36 months in prison for tax fraud and illegal possession of a firearm.
According to court documents and statements made in court, Charles Agee Atkins, of Chapel Hill, controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management LLC, Risk Assessment & Management LLC, and Ram Omni LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the IRS. Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several prior years. In total Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12-gauge shotgun, which Atkins could not legally possess because of his prior conviction.
In addition to the term of imprisonment, United States District Judge Catherine C. Eagles ordered Atkins to serve three years of supervised release and to pay approximately $809,115 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
The IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Tanner Kroeger of the Middle District of North Carolina and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
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Norfolk Man Responsible for Fatal Overdose Pleads Guilty to Fentanyl, Heroin, and Firearm ChargesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to conspiring to distribute fentanyl and heroin, and to possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, Christopher McKinley Barnes, 36, sold heroin and fentanyl from late 2016 until he was arrested on April 16, 2019. During that time, Barnes sold a total of over a kilogram of heroin in the Hampton Roads area and to users from the Outer Banks region of North Carolina. In July 2018, he sold a mixture of heroin and fentanyl that led to the fatal overdose of a victim in Nags Head. During a search of the defendant’s residence, officers recovered heroin and a loaded handgun, among other items.
Barnes is the fourth and final member of the conspiracy to plead guilty. Deshawn Jones, 29, of Portsmouth; James Boone, 48, of Eure, North Carolina; and Grey Miller, 32, of Kill Devil Hills, North Carolina, pleaded guilty and were sentenced to prison in the Eastern District of Virginia. The group was responsible for selling fentanyl and heroin to individuals in Portsmouth, Norfolk, and the Outer Banks. At least two fatal overdoses and several non-fatal overdoses have been linked to the group.
Barnes is scheduled to be sentenced on Oct. 8. He faces a mandatory minimum sentence of 15 years in prison and a maximum of life. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Col. K.L. Wright, Chief of Chesapeake Police; and Phil Webster, Chief of the Nags Head Police Department, made the announcement after U.S. District Judge John A. Gibney accepted the plea.
Assistant U.S. Attorneys Andrew Bosse and William B. Jackson are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-163.
New Jersey Man Sentenced for BriberyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Atlantic City, New Jersey, man convicted of Bribery Concerning Programs Receiving Federal Funds was sentenced on May 10, 2021, by U.S. District Judge Charles B. Kornmann.
Anthony Bertino, age 60, was sentenced to 20 months in federal prison, followed by three years of supervised release. Bertino must pay a fine in the amount of $95,000 and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bertino was indicted by a federal grand jury on April 2, 2019. He was found guilty as a result of a federal jury trial in Aberdeen on October 30, 2020.
The conviction stemmed from incidents between May 7, 2014, and August 4, 2014, when Bertino, who was an agent of the Dakota Nation Gaming Enterprise (DNGE), corruptly accepted something of value from another person, intending to be influenced and rewarded in connection with a transaction and series of transactions of the DNGE.
The Sisseton-Wahpeton Oyate Tribe (SWO) operates the DNGE, which oversees the tribally-run gaming establishments. Bertino was employed as the Corporate Marketing Officer for the DNGE. Bertino’s employment agreement included provisions stating that self-dealing is cause for termination, that he was not to engage in actions motivated by self-interest, and that he was not to work in any other capacity without first obtaining written consent from the DNGE.
In 2014, Bertino negotiated the DNGE’s purchase of equipment from a 66,000 square foot sprung casino facility in Indiana. On May 21, 2014, the DNGE Advisory Committee approved the purchase for $900,000. After the DNGE wired the money to the seller, Bertino received three kickbacks from the seller totaling $104,909.78.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
This case was investigated by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Bertino has been allowed to self-report to the custody of the U.S. Marshals Service by July 3, 2021.
Nebraska Man Sentenced for Assault with a Dangerous Weapon and Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Lincoln, Nebraska, man convicted of Assault With a Dangerous Weapon and Failure to Register as a Sex Offender was sentenced by Chief Judge Roberto A. Lange, U.S. District Court.
Dwaine Walter Little Elk, age 36, was sentenced on May 11, 2021, to 46 months in federal prison, followed by 5 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The conviction stems from an assault in St. Francis, South Dakota, on June 21, 2020. Little Elk assaulted an individual with a knife, with the intent to do bodily harm to the individual. Little Elk was also a sex offender by reason of a conviction under federal law, and knowingly failed to register and update his registration from June 17, 2020, to August 11, 2020.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Little Elk was immediately remanded to the custody of the U.S. Marshals Service.
NDTX Round up: May 7- 13Read the Press Release
GUILTY PLEA – CARLOS ENREIQUE MEJIA CACERES A.K.A “MACHETE”
On May 11, Carlos Enreique Mejia Caceres, 37, plead guilty to aiding and abetting interference with commerce by robbery and aiding and abetting the using and carrying a firearm during a crime of violence. Mejia Caceres assisted in planning the robbery of a Dallas western wear store which he observed from another location. Following the robbery, Mejia Caceres met with his other co-conspirators and a portion of the proceeds from the robbery. He now faces up to 25 years in federal prison for his crimes. The FBI conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
GUILTY PLEA – JOSE ANGEL REYES
On May 11, Jose Angel Reyes, 36, pleaded guilty to conspiracy to distribute a substance containing a detectable amount of cocaine base. Reyes purchased 552.825 grams of cocaine base and 921.375 grants of cocaine over the course of one year for further distribution to his customers. In October 2018, agents arrested Reyes at his residence where they located a loaded 9mm handgun and two cell phones. He now faces up to XX years in federal prison for the crimes. The DEA conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
GUILTY PLEA – JUSTIN LAJUAN BRITTAIN
On May 11, Justin Lajuan Brittain, 46, pleaded guilty to possession of a firearm by a convicted felon and possession with intent to distribute a controlled substance. Brittain was stopped by Dallas police officers for speeding. When they approached the car, they noticed a marijuana cigarette in the ashtray and a mason jar with additional marijuana. During a search of Brittain’s vehicle, a .380 caliber pistol was recovered between the center console and the driver’s seat. Brittain admitted that he was a felon and knew he was not supposed to possess firearms. He now faces up to 30 years in federal prison for the crimes. The ATF and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney John Boyle prosecuted the case.
GUILTY PLEA – CHRISTOPHER BOWLING
On May 12, Christopher Bowling, 50, pleaded guilty to conspiracy to commit bank fraud. Bowling and his co-conspirators data mined PII from victims from publicly available websites and from the darkweb. He then took out lines of credit using the victims PII. In January 2019, Bowling and other co-conspirators went to a Dallas area retail store to apply for a line of credit using a victim’s PII. In March 2019, Bowling fraudulently applied for a line of credit using a victim’s PII to purchase a Rolex watch and ring. He now faces up to 30 years in federal prison for the crimes. The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Monmouth County Woman Charged with Witness Tampering and Retaliating Against WitnessRead the Press Release
TRENTON, N.J. – A Monmouth County woman has been charged with witness tampering and retaliating against a witness or informant, Acting U.S. Attorney Rachael A. Honig announced today.
Kaitlyn R. Powers, 32, of Aberdeen, New Jersey, is charged by complaint with two counts of retaliating against a witness or informant and one count of witness tampering. Powers is expected to appear by videoconference later today before U.S. Magistrate Judge Tonianne J. Bongiovanni.
According to documents filed in this case and statements made in court:
During an FBI investigation, a confidential source working at the direction and supervision of law enforcement conducted multiple controlled purchases of suspected narcotics, including crack cocaine, from Richard N. Edwards Jr., of Old Bridge, New Jersey. During one of the controlled purchases, Powers distributed suspected narcotics to the confidential source after the confidential source arranged to purchase the suspected narcotics from Edwards. On April 6, 2021, special agents of the FBI arrested Edwards and one of his narcotics suppliers, Jamil J. Yasin of East Orange, New Jersey, on a complaint that charged Edwards and Yasin each with distribution and possession with intent to distribute crack cocaine. The next day, Powers confronted the confidential source in a parking lot of a convenience store in Cliffwood Beach and threatened, among other things, to have the confidential source killed in retaliation for Edwards’s and Yasin’s arrests. Powers also threatened to kill the confidential source in the event Powers were to be charged with a federal crime. Two days later, Powers again confronted the confidential source in the parking lot of a commercial establishment in Cliffwood, New Jersey, and again threatened the confidential source for the confidential source’s assistance during law enforcement’s investigation of Edwards and Yasin.
The charges of retaliating against a witness or informant each carry a maximum sentence of 20 years in prison and a fine of up to $250,000. The charge of witness tampering carries a maximum sentence of 20 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the Matawan, New Jersey, Police Department, under the direction of Chief of Police Thomas J. Falco Jr., for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the defendants are merely accusations and they are presumed innocent unless and until proven guilty.
Minnesota Man Sentenced to More Than Twelve Years in Federal Prison for Florida Investment FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul Byron has sentenced Jeremy Kee Anderson (50, Minnesota) to 12 years and 7 months in federal prison for conspiracy to commit mail and wire fraud, and mail and wire fraud. Anderson had pleaded guilty on February 26, 2021.
According to court documents, Anderson led a conspiracy that defrauded more than 200 victims, most of them elderly, and who had invested a good portion of their life savings, out of more than $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Anderson was founder and principal owner of Tri-Med Corporation.
The investment scheme involved the alleged purchase of medical receivables by Tri-Med, and involved services that were provided to accident victims who were represented by personal injury attorneys. Payment of those medical receivables was supposed to be made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was also supposed to be secured by a “Letter of Protection,” a letter that is provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. The letter is a contract involving a patient, the patient’s attorney, and the medical services provider by which the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.
To fund Tri-Med’s alleged purchases of medical receivables, Anderson and his conspirators solicited individuals to participate in an “investment program” in which investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Anderson and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.” Those representations were false.
Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The vast majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses, while approximately $2.3 million was paid as distributions to investors as “interest payments” to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.” The result was that more than 200 victims lost over $10.3 million in this scheme.
Anderson is the fourth person to be charged and sentenced as part of this conspiracy. Previously, the following individuals were charged and sentenced to federal prison terms for their roles in this conspiracy: Anthony Nicholas, Jr. (63, Hudson) received 11 years and 3 months and Eric Ager (78, Orlando) and Irwin Ager (84, Orlando) each were sentenced to 24 months’ imprisonment.
“The Secret Service, along with our many law enforcement partners, including the Florida Office of Financial Regulation, remains committed to bringing fraudsters such as Anderson to justice,” said U.S. Secret Service Special Agent in Charge Caroline O’Brien Buster. “To prey on our most vulnerable citizens is egregious, amoral and incredibly cruel. The Secret Service will not tolerate such crimes and will actively pursue justice, especially in these cases.”
This case was investigated by the United States Secret Service and the State of Florida’s Office of Financial Regulation. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Roger B. Handberg, III.
Minnesota Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Pipestone, Minnesota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Benjamin Douglas Lorenzen, age 30, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on Lorenzen, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between January 12, 2021, and March 9, 2021.
The charge is merely an accusation and Lorenzen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Lorenzen was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Pleads Guilty to Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced May 12, 2021 that FELIPE MARTINEZ-RIVERA, age 50, pled guilty on May 12, 2021 to a one-count bill of information for reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. § 1326(a)and (b)(1).
According to the bill of information, MARTINEZ-RIVERA reentered the United States after he was previously deported on November 9, 1998. Furthermore, on or about May 18, 2010, MARTINEZ-RIVERA was convicted of illegal possession of less than one gram of cocaine in Harris County Texas – a felony under Texas law.
U.S. District Court Judge Sarah S. Vance set sentencing for July 14, 2021. MARTINEZ-RIVERA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Irene Gonzalez is in charge of the prosecution.
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McLaughlin Man Sentenced on Assault ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a McLaughlin, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury was sentenced on May 11, 2021, by Judge Charles B. Kornmann, U.S. District Court.
Frank One Feather, Jr., age 32, was sentenced to 60 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims fund in the amount of $400.
One Feather was indicted by a federal grand jury on December 10, 2019. A superseding indictment was filed on July 16, 2020. He pled guilty on January 13, 2021.
On November 8, 2019, in McLaughlin, One Feather assaulted two people with a bottle and shod feet after starting an argument. One Feather knocked out each victim and assaulted them again when they regained consciousness.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
One Feather was immediately remanded to the custody of the U.S. Marshals Service.
Massachusetts Man Sentenced to 150 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Steven Lessard, 34, of Lowell, Massachusetts, was sentenced on Thursday to 150 months in federal prison for participating in a fentanyl trafficking conspiracy, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, a drug trafficking organization (DTO) led by Sergio Martinez operated in the Lawrence, Massachusetts area. The DTO sold fentanyl to customers from various New England states including New Hampshire. The DTO operated two sets of telephones to serve large and small customers. These customers placed fentanyl orders by phone and were directed by DTO members to various distributors located in and around Lawrence to obtain the fentanyl.
The DTO also had a third set of larger customers. These customers purchased kilogram quantities of fentanyl from the DTO and were able to contact Martinez directly on his personal telephone. For those customers, Martinez would arrange for a member of the DTO to deliver the drugs to the customer instead of requiring the customer to come meet a DTO member to obtain the drugs. Lessard was one of these customers who purchased kilogram quantities of fentanyl.
Beginning January 29, 2018 and ending March 14, 2018, Lessard was intercepted on wiretaps communicating with Martinez and arranging to obtain fentanyl deliveries. On March 14, 2018, the two spoke and arranged for Martinez to deliver two kilograms of fentanyl to Lessard later that night. After the delivery, the Lowell Police Department obtained a search warrant for Lessard’s residence. Officers seized over two kilograms of fentanyl and multiple firearms. In addition, officers located a scale, several thousand dollars, and the telephone that Lessard used to contact Martinez.
Lessard previously pleaded guilty on September 30, 2019. Martinez is serving a 45-year prison sentence.
“Fentanyl is such an extremely dangerous drug that even a small amount can lead to a deadly overdose,” said Acting U.S. Attorney Farley. “By trafficking in kilogram quantities of fentanyl, Lessard was seeking to profit by selling a product that jeopardized many lives. To protect the citizens of the Granite State, we will continue to work closely with our law enforcement partners to put drug traffickers like Lessard out of business.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
The case was a collaborative investigation that involved the Drug Enforcement Administration; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. MacDonald and Seth R. Aframe.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man Sentenced to 210 Months in Methamphetamine and Cocaine Distribution ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Fermin Heredia-Lopez, 29, was sentenced today in federal court in Omaha, Nebraska for conspiracy to distribute methamphetamine and cocaine. United States District Judge Robert F. Rossiter, Jr. sentenced Heredia to 210 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Heredia is from Sinaloa, Mexico and will be deported at the completion of his prison term.
In 2019, Heredia was identified by investigators as a cell head for a Mexico-based drug trafficking organization responsible for the distribution of methamphetamine and cocaine in the Omaha metropolitan area. Investigators obtained authorization to wiretap defendant’s cell phone, which began on December 27, 2019. During the wiretap, investigators intercepted incriminating communications between Heredia and his Mexico-based source of supply and determined that Heredia was in possession of a significant quantity of methamphetamine.
Investigators obtained search warrants for two residences in Omaha associated with the defendant and executed the warrants on January 11, 2020. Heredia was arrested at that time. Investigators seized over 32 lbs. of methamphetamine, 455 grams of cocaine, and $10,300 in drug proceeds. Additionally, they collected several kilogram quantity wrappings for cocaine, and wrappings for multiple additional pounds of methamphetamine.
“Today’s sentencing clearly highlights the significant damage that Fermin Heredia-Lopez inflicted in our communities,” DEA Omaha Division Special Agent in Charge Justin C. King said. “The amount of methamphetamine and cocaine that he was distributing is alarming and we know that because of his actions, several families are now suffering. Our investigators successfully tied Heredia to a cartel operating in Mexico and in doing so, made a small dent in the drug trafficking organization. Heredia will spend the next 17-and-a-half years in prison and will no longer be able to cause pain and suffering on the more vulnerable members of our communities.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was primarily investigated by the Drug Enforcement Administration, Omaha Field Division.
Man Pleads Guilty to Million Dollar Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – After three days of trial before a federal jury, an Owings Mills, Maryland man pleaded guilty to wire fraud and identity theft in connection with a fraudulent investment scheme worth approximately $1.26 million.
“In the midst of a jury trial, the defendant admitted that he deceived victims into believing they were investing more than $1.2 million in a high-end fabric design business, when in reality, he fraudulently used their money to fund personal expenses,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office is grateful to the FBI and prosecution team for uncovering and piecing together the evidence that exposed this investment fraud scheme. We will continue to hold accountable those who seek to swindle honest investors.”
According to court records and evidence presented at trial, Manish Singh, 48, entered into an agreement in 2016 with a married couple to create a business that would design and sell high-end fabrics. The couple was to provide the capital for the business, and Singh was to contribute his expertise and contacts in the fabric industry.
Singh represented to the victim investors that their money was being used for numerous expenses related to the business, such as the manufacture of fabric in India. In reality, Singh was using the victims’ money almost entirely for personal expenses, mostly to view live pornography online. Based on Singh’s misrepresentations, the victims gave him approximately $1.26 million for the fraudulent joint business venture.
Singh pleaded guilty to wire fraud and identity theft and faces a maximum penalty of 20 years in prison when sentenced on July 30. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea.
Assistant U.S. Attorneys Grace L. Hill and Heidi B. Gesch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-59.
Lyon County Man Faces Federal Child Pornography and Firearms ChargesRead the Press Release
PADUCAH, Ky. – Acting United States Attorney Michael A. Bennett announced that a Federal Grand Jury returned an indictment on May 11, 2021, charging Kenneth Swartz, 63, of Eddyville, Kentucky with possession of child pornography and being a felon in possession of a firearm.
According to a Criminal Complaint filed on April 21, 2021, law enforcement officials opened an investigation into Swartz after receiving a complaint alleging that Swartz, a registered sex offender, attempted to photograph a minor while shopping at a local store on May 28, 2020. The Eddyville Police Department confirmed the events after reviewing store security footage. On May 29, 2020, a search warrant was executed on Swartz’ residence. Law enforcement recovered a Savage Arms, Stevens model 94 shotgun, along with several cell phones. On June 24, 2020, law enforcement became aware that Swartz possessed an additional cell phone which he kept hidden under a sink at a residence. A second search warrant was obtained, and the additional phone was seized.
The Paducah Police Department subsequently conducted forensic imaging of the data on the cell phones. Homeland Security Investigations (HSI) further analyzed the data and located over 200 images of child pornography.
Swartz has previous felony convictions in Kentucky for the offenses of sexual abuse, first degree, in Bath County in 1998, possession of matter portraying a sexual performance by a minor in Fayette County in 2010, and failure to comply with sex offender registration in Lyon County in 2016.
If convicted at trial, and due to his prior conviction for sexual abuse, Swartz faces not less than 10 years and not more than 20 years in prison for possession of child pornography and not more than 10 years in prison for being a felon in possession of a firearm. There is no parole in the federal system. The case is next scheduled for arraignment on May 27, 2021 at 10:30 a.m. before Magistrate Judge Lanny King.
This case is being prosecuted by Assistant United States Attorneys Raymond McGee and Leigh Ann Dycus. The Eddyville Police Department with the assistance of the Lyon County Sheriff’s Office, the Paducah Police Department, and Homeland Security Investigations conducted the investigation.
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A Criminal Complaint and Indictment are accusations only and
the person is presumed innocent until and unless proven guilty.####
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 Attorneys' 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.
Knoxville Man Arrested for Federal Firearms ViolationRead the Press Release
KNOXVILLE, Tenn. – On May 14, 2021, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Tennessee Bureau of Investigation (TBI) arrested Kelvon Foster, 21, of Knoxville, TN, on a federal criminal complaint charging Foster with making false or fictitious statements in connection with the purchase of a firearm in violation of Title 18, United States Code, Section 922(a)(6). Violations of that statutory provision are sometimes referred to informally as “straw purchasing.” The complaint was issued by the Honorable H. Bruce Guyton, United States Magistrate Judge for the Eastern District of Tennessee. Foster later appeared before Judge Guyton, entered a not-guilty plea, and was released on conditions of supervision. If convicted, Foster could face imprisonment of up to 10 years and other penalties.
According to documents filed with the court, the firearm at issue was recovered by law enforcement in connection with the officer-involved shooting at Austin-East Magnet High School on April 12, 2021.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and Resident Agent in Charge Keith Jordan of the ATF’s Knoxville Field Office made the announcement.
This prosecution is the result of an ongoing investigation by the ATF and the TBI. The United States Attorney’s Office wishes to thank the Knox County Attorney General’s Office for its support of this federal investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
Members of the public are reminded that the charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Kissimmee Accountant Sentenced to 15 Years in Federal Prison for Embezzling Funds from EmployersRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Kavita L. Harack (35, Kissimmee), aka Kavita Harrack or Sara Harack, to 15 years in federal prison for two counts of wire fraud. The court also ordered Harack to forfeit the $604,637.25 in proceeds which she obtained as a result of the fraud, and to pay restitution to the victims of the offenses. In addition, the court ruled that Harack attempted to obstruct justice during her judicial proceedings by submitting fraudulent documentation to the U.S. Attorney’s Office and making multiple false statements to the court.
Harack had pleaded guilty on October 19, 2020.
According to court documents, in May 2017, Harack was hired to work in the Orlando office of a display services company as an accountant. Between April 2018 and May 2019, Harack directed 74 fraudulent payments from the company to four bank accounts held in her or her husband’s name. Harack disguised the transfers to these personal accounts as vendor payments. After Harack was terminated by the display services company in May 2019, she was hired to work in the accounting department of a project design company in Orlando. Between July 2019 and December 2019, Harack directed four fraudulent payments from the project design company into two of her personal accounts, again disguising the transactions as vendor payments.
In total, between 2018 and 2019, Harack fraudulently paid herself $604,637.25 from accounts belonging to the display services and project design companies. Harack used those funds for personal expenditures, including the purchase of a home, home improvements, travel, retail purchases, restaurants, and beauty expenses.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Judge sentences Cape Girardeau man to 214 months for robbery and firearm chargesRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh sentenced Steven Edmonds to 214 months in prison today. The 36-year-old Cape Girardeau, Missouri, resident pleaded guilty, in February, to two counts of Interference with Commerce by Robbery and two counts of Possession and Brandishing of a Firearm in Furtherance of a Crime of Violence.
On April 24, 2020, at around 4:30 p.m., Steven D. Edmonds walked into the Domino’s Pizza restaurant located at 1028 North Sprigg Street in Cape Girardeau, Missouri. Edmonds pulled a silver handgun from his waist, pointed it at store employee, and demanded money from the cash register. The employee opened the register, took the cash out and gave it to Edmonds, who then walked out of the store. The employee gave the money to Edmonds because he was afraid of being shot if he refused. The amount of cash taken in the robbery was approximately $60.
On April 25, 2020, at around 11:55 a.m., Steven D. Edmonds walked into the CVS Pharmacy located at 1550 Wentzville Parkway in Wentzville, Missouri. Edmonds shopped for a while, then approached the store cashier. Edmonds pulled a small black handgun from his waistband and displayed it to the clerk. Edmonds demanded money from the register. The cashier reached in the register and gave approximately $216 in cash to Edmonds. The cashier did so because he was afraid of being shot if he refused. Edmonds walked out of the store after receiving the cash.
This case was investigated by the Cape Girardeau Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Keith Sorrell handled the prosecution.
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Iowa Man Sentenced to more than 12 Years’ Imprisonment for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that John Bourisaw, age 29, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm. United States District Court Judge Robert F. Rossiter, Jr. sentenced Bourisaw to 145 months’ imprisonment. After completing his term of imprisonment, Bourisaw will be required to serve a 5-year term of supervised release. There is no parole in the federal system. Bourisaw’s prison sentence was extended by 5 years as he possessed a firearm in connection with his drug dealing.
On January 22, 2020, Omaha Police officers received information that wanted fugitive Bourisaw was in the area of 36th and Orchard Avenue in Omaha. Surveillance was set up in the area and Bourisaw was observed arriving in a vehicle and then exiting it. Thereafter, officers approached and ordered him to the ground. Bourisaw refused and fled on foot. During a chase, officers saw him discard a handgun and keys to the vehicle he had arrived in, which turned out to be stolen. Bourisaw was captured and a search of his person revealed approximately 34 grams of actual methamphetamine. A search of the vehicle revealed drug paraphernalia and a rifle.
This case was investigated by the Omaha Police Department. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Iowa Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux City, Iowa, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jacob Lee Schmidt, age 33, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Schmidt, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between February 1, 2021, and May 4, 2021.
The charge is merely an accusation and Schmidt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Schmidt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 10 was:
Buddy Jonathan Shaw Jr., 49, of Belgrade, on charges of conspiracy to distribute and possession with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Shaw faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Shaw was detained pending further proceedings. The Bozeman Missouri River Drug Task Force – FBI, Bozeman Police Department, Gallatin County Sheriff’s Office, Drug Enforcement Administration and U.S. Postal Service investigated the case. PACER case reference. 21-17.
Appearing on May 13 and pleading not guilty was:
Zachary Christopher Hillis, 28, of Sand Springs, on charges of illegal reentry. If convicted of the most serious crime, Hillis faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release. Hillis was detained pending further proceedings. Immigration and Customs Enforcement investigated the case. PACER case reference. 21-31.
Appearing on May 14 and pleading not guilty was:
Colton Thomas Jens, 38, of Billings, on charges of distribution of meth. If convicted of the most serious crime, Jens faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Jens was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 20-123.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on May 11 was:
Ray Dean Bird, 42, of Starr School, on charges of aggravated sex abuse of a child, abusive sexual contact and other crimes. If convicted of the most serious crime, Bird faces life in prison, a $250,000 fine and five years to life of supervised release. Bird was released pending further proceedings. The FBI and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-30.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 12 was:
Tommy Plante, 32, of Edmonton, Alberta, Canada, on charges of prohibited person in possession of a firearm and illegal entry into the United States. If convicted of the most serious crime, Plante faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Plante was detained pending further proceedings. The U.S. Border Patrol, Montana Department of Fish, Wildlife and Parks, Lincoln County Sheriff’s Office and FBI investigated the case. PACER case reference. 21-22.
Appearing on May 14 and pleading not guilty was:
Brandie Rae Hulford, 42, of Bozeman, on charges of conspiracy to distribute and possession with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Hulford faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hulford was released pending further proceedings. The Bozeman Missouri River Drug Task Force – FBI, Bozeman Police Department, Gallatin County Sheriff’s Office, Drug Enforcement Administration and U.S. Postal Service investigated the case. PACER case reference. 21-16.
Ciara Lee Ann Creason, 29, of Helena, on charges of conspiracy to distribute and possession with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Creason faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Creason was released pending further proceedings. The Bozeman Missouri River Drug Task Force – FBI, Bozeman Police Department, Gallatin County Sheriff’s Office, Drug Enforcement Administration and U.S. Postal Service investigated the case. PACER case reference. 21-15.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hudson County Man Sentenced to 27 Months in Prison for Role in Wire Fraud Scheme to Defraud Financial Institution CustomersRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey man has been sentenced to 27 months in prison for participating in a scheme that involved defrauding financial institution customers of almost half a million dollars, Acting U.S. Attorney Rachael A. Honig announced today.
Ramon Herrera, 37, of Jersey City previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of wire fraud. Judge Hayden imposed the sentence May 13, 2021, in Newark federal court.
According to documents filed in this case and statements made in court:
Between May 2015 and January 2018, Herrera used his position as a registered broker and financial advisor at a clearing services company associated with “Financial Institution-1” to meet and learn confidential information about Financial Institution-1 customers in the Hudson County area, for whom he was ostensibly providing advice and brokerage services. Herrera caused the Financial Institution-1 customers he was advising, many of whom were elderly or communicated with Herrera in Spanish, to sign blank withdrawal slips, which Herrera then completed and presented to bank tellers at Financial Institution-1 branches. Herrera directed the bank tellers to withdraw the money from the customers’ accounts in the form of cashier’s checks, which enabled Herrera to then apply the checks against the various personal accounts that Herrera and a family member maintained at Financial Institution-1. Herrera stole more than $450,000 from approximately 40 Financial Instiution-1 customers. He used the stolen funds for his own purposes without the customers’ knowledge or authorization.
In addition to the prison term, Judge Hayden sentenced Herrera 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, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Gulfport Man Sentenced under Project EJECT to Nearly 4 Years in Prison for Firearms OffenseRead the Press Release
Gulfport, Miss. – A Gulfport man was sentenced today under Project EJECT for being an unlawful user of a controlled substance in possession of a firearm and ammunition, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration.
Kevin Jaquan Willis, 23, of Gulfport, was sentenced to 43 months in federal prison. He pled guilty to the charges on February 11, 2021.
Willis was arrested on October 7, 2020, when law enforcement officers with the Gulfport Police Department conducted a traffic stop on a vehicle he was driving. A subsequent search of the vehicle resulted in the discovery of 98 grams of marijuana, a digital scale, and a Smith and Wesson M&P 15 assault style rifle. The rifle was loaded with 24 rounds of ammunition. Willis was taken into custody. After being advised of his Miranda Rights, Willis admitted to regularly smoking marijuana for several years. He also indicated that he smoked about an ounce of marijuana per day. Finally, Willis admitted to possessing both the marijuana and the rifle.
This case was investigated by the DEA and the Gulfport Police Department.
Assistant U.S. Attorney Jonathan Buckner prosecuted the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.