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Friday 14 May 2021
Georgia Man Sentenced for Possession of a Stolen Firearm and Failure to AppearRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Cornelia, Georgia, man convicted of Possession of a Stolen Firearm and Failure to Appear was sentenced on May 10, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Jamecus Lushawn Hodges, age 42, was sentenced to 90 months in federal prison on the firearm offense and 30 months in federal prison on the failure to appear offense, to run consecutive for a total of 120 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Hodges was indicted by a federal grand jury on February 13, 2019, and again on November 10, 2020. He pled guilty in both cases on May 10, 2021.
The firearm conviction stemmed from an incident that occurred on December 8, 2018. During a traffic stop on Interstate 90, a South Dakota Highway Patrol Trooper found marijuana, cocaine, and a stolen firearm in Hodges vehicle. Hodges became uncooperative and combative and ran into the oncoming lane of traffic, stalling traffic on the interstate, prior to being taken into custody. Hodges was eventually released on bond and entered into a plea agreement relating to the traffic stop. Hodges then knowingly failed to appear for his change of plea and sentencing on October 5, 2020. He was charged with failure to appear in November 2020 and taken into federal custody on March 19, 2021, in Georgia.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is 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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the South Dakota Highway Patrol, Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Hodges was immediately turned over to the custody of the U.S. Marshals Service.
Four-times Convicted Felon Pleads Guilty to Federal Gun Law ViolationRead the Press Release
PITTSBURGH, PA - A resident of Wilkinsburg, PA, pleaded guilty in federal court to a charge of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
Jacque Butler, 26, pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon, before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Mr. Butler was a passenger in a vehicle during a traffic stop of September 8, 2020. During the traffic stop, officers with the City of Duquesne Police Department detected the strong odor of burnt marijuana and conducted a search of the vehicle. A backpack in Mr. Butler’s possession contained a loaded handgun containing 15 rounds of ammunition, a separate pistol magazine containing an additional 15 rounds of ammunition, Mr. Butler’s driver’s license, and Mr. Butler’s social security card.
The court was further advised that Mr. Butler has four prior felony convictions. On April 30, 2018, Mr. Butler pled guilty in three separate criminal cases in the Court of Common Pleas of Allegheny County to one count of receiving stolen property and two counts of firearms not to be carried without a license. On April 1, 2019, Mr. Butler pled guilty in the Court of Common Pleas of Allegheny County to Firearms Not to Be Carried without a License. Under federal law, convicted felons are prohibited from possessing firearms and ammunition.
Judge Bissoon scheduled sentencing for Sept. 2, 2021 at 10:00 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Mr. Butler remains detained pending sentencing.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The City of Duquesne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Mr. Butler.
Fort Thompson Man Sentenced for Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on May 10, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Dawson Donner, age 23, was sentenced to 37 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.
Donner was indicted by a federal grand jury on September 9, 2020. He pled guilty on February 22, 2021.
The conviction stemmed from an incident that occurred in February 2020, in Fort Thompson. Donner knowingly engaged in sexual acts with a minor victim who had not attained the age of 16, when at the time Donner was more than four years older than the victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley prosecuted the case.
Donner was immediately turned over to the custody of the U.S. Marshals Service.
Former Watertown Woman Sentenced for Misuse by a Representative PayeeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a former Watertown, South Dakota, woman charged with Misuse by a Representative Payee pled guilty and was sentenced on May 10, 2021, by U.S. District Judge Charles B. Kornmann.
Marilyn Ruth Holley, age 41, was sentenced to 60 months of probation, restitution in the amount of $12,158.64, and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that took place between November 19, 2015, and April 1, 2019, when Holley, who was appointed to be the representative payee for a minor child, received the child’s Title XVI Supplemental Security Income benefits payments and converted some of them to her own use, including gambling.
The investigation was conducted by the Social Security Administration, Cooperative Disability Investigation Unit. The case was prosecuted by Assistant U.S. Attorney Ann M. Hoffman.
Former North Platte Man Convicted for Transportation of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Nathanael J. Brown, 28, formerly of North Platte, Nebraska, was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for transportation of child pornography. Brown was sentenced to 6 years and 6 months in prison and 7 years of supervised release with special conditions. There is no parole in the federal system. Brown was additionally ordered to pay $3,500 in restitution.
This case began when Homeland Security Investigations (“HSI”) in Nebraska received a cybertip indicating that Kik user “antin5” (later identified as Brown) uploaded a child pornography file on April 29, 2019. On February 26, 2020, HSI and Nebraska State Patrol (“NSP”) agents conducted a knock and talk at Brown’s home in North Platte. Brown admitted to law enforcement that he viewed child pornography. Brown said that he used his phone and laptop to browse and download child pornography content, but that he never really saved the files. He also admitted to sharing both image and video content. He admitted sharing content as recent as the week before speaking with law enforcement. Brown gave law enforcement written consent to search his cell phone. A review of Brown’s cell phone revealed at least six (6) videos of child pornography, as well as 31 images containing possible or suspected child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the Nebraska State Patrol.
Former Mid-State Securities Broker Sentenced to Federal Prison for Stealing from Elderly ClientsRead the Press Release
NASHVILLE – A former Investments Vice President at Raymond James & Associates, Inc. (Raymond James), was sentenced yesterday to five years in prison for stealing $933,500 from two elderly clients, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Fredrick M. Stow, 66, of Franklin, Tennessee, was charged in June 2020 with securities fraud, wire fraud, and aggravated identity theft and pleaded guilty in August. In a separate action, the U.S. Securities and Exchange Commission (SEC) filed a civil action against Stow, alleging violations of the antifraud provisions of the Securities Exchange Act of 1934.
In sentencing Stow, U.S. District Judge Aleta A. Trauger issued a stern rebuke of those in a position of trust who manage investments for others, especially the elderly, and choose to steal from them. Judge Trauger also ordered a forfeiture money judgement in the amount of $933,500.
According to Court records, beginning in 1982, Stow acted as the registered representative for three brokerage accounts owned by a client who was a retired airline pilot and WWII era veteran. Stow changed investment firms several times and the client elected to move his accounts with Stow each time, ultimately transferring his accounts to Raymond James when Stow joined the firm in 2013. Over time, Stow inserted himself into the financial affairs of this client and in the later years of the client’s life, he visited him at his home. Relatives at the hearing testified that the client died believing that his dwindling investment accounts were caused solely by stock market activity.
In October 2015, Stow began misappropriating funds from this client’s IRA account by forging wire transfer letters of authorization to permit transfers from the client’s IRA account to a SunTrust Bank account that Stow owned jointly with his wife. To accomplish the transfers, Stow sold securities in the client’s IRA account.
At the time of this client’s death at the age of 98 in March 2018, Stow had made 74 unauthorized transfers and had stolen more than $900,000 from him. Within weeks of this client’s death, Stow stole $32,000 from another elderly brokerage customer, by transferring money from the customer’s brokerage account to another SunTrust bank account that Stow owned.
This case was investigated by the United States Secret Service and the SEC. Assistant U.S. Attorney Stephanie N. Toussaint prosecuted the case.
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Former Fall River Mayor Convicted of Extorting Marijuana Vendors and Defrauding InvestorsRead the Press Release
BOSTON – Jasiel F. Correia II, the former Mayor of Fall River, Mass., was convicted by a federal jury today in connection with a scheme to defraud investors and extorting marijuana vendors for thousands of dollars.
Correia, 29, was convicted of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 20, 2021.
Correia was first indicted on wire fraud and filing false tax returns in October 2018. He was subsequently charged in a superseding indictment in September 2019 with, among other crimes, extortion conspiracy and extortion.
“Jasiel Correia made many promises in business and politics, but today’s verdict speaks the truth: Correia defrauded people who trusted him, he lied on his taxes, and he extorted hundreds of thousands of dollars in bribes as the mayor of Fall River,” said Acting United States Attorney Nathaniel R. Mendell. “With this prosecution, the U.S. Attorney’s Office has again fulfilled its role to find, investigate and prosecute public corruption in Massachusetts. We do not campaign, we do not run for office. We prosecute public corruption without fear or favor. The people of Massachusetts deserve a U.S. Attorney’s office that works that way, we are proud to do this work, and we’re not stopping.”
“Today’s verdict makes it crystal clear that you can’t trade on your office, embrace a corrupt pay-to-play culture and get away with it. Jasiel Correia was only a two-term mayor, but he has done lasting damage to the trust bestowed upon him by the citizens of Fall River,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “In lying to investors and extorting hundreds of thousands of dollars in bribes to support his lavish lifestyle, he put his own selfish interests above those he was elected to serve. We thank the jurors for their service and thoughtful deliberations and remind the public that cases like this only fuel the FBI’s commitment to tackling public corruption at all levels of government.”
“Elected officials are rightly held to a higher standard and should set the example of honesty and adherence to the rule of law. As a business owner and as a mayor, Mr. Correia, betrayed the trust of both his clients and the voters who put him in office. The jury's decision today will now hold him accountable for his actions,” said Assistant Special Agent in Charge David Toy of the Internal Revenue Service-Criminal Investigation. “Today’s verdict proves that government employees, including elected officials, will be held accountable when they violate the public's trust, particularly in the performance of their official duties.”
“Today’s verdict proves that government employees, including elected officials, will be held accountable when they violate the public's trust, particularly in the performance of their official duties,” said Massachusetts Inspector General Glenn A. Cunha.
In 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. Seven individuals invested a total of approximately $360,000 in SnoOwl. Correia used approximately $230,000 – 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.
To conceal his theft of funds from investors, Correia refused to provide the company’s financial records and gave false positive updates on SnoOwl’s status. Additionally, in May 2017, Correia instructed an accountant to file amended 2013 and 2014 personal tax returns in an effort to conceal his fraudulent activity from the IRS.
After taking office as Fall River Mayor in January 2016, Correia agreed to issue non-opposition letters to marijuana vendors in return for cash bribes and other payments. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River. In addition, applicants seeking marijuana licenses are required to enter into host community agreements, between the marijuana company and the local government, stating that the company will give up to 3% of its gross sales to the local government.
Four marijuana vendors agreed to pay bribes ranging from over $75,000 up to $250,000 in cash, campaign contributions and mortgage discharges to Correia and his co-conspirators in return for non-opposition letters and host community agreements.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charges of extortion and extortion conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.\
Acting U.S. Attorney Mendell; FBI Boston SAC Bonavolonta; IRS-CI Assistant SAC Toy; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Massachusetts Inspector General Cunha made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Mendell’s Criminal Division, and David Tobin, of Mendell’s Major Crimes Unit, are prosecuting the case.
Former Cell Service Associates and Co-Conspirator Facing Federal Indictment for Aggravated Identity Theft, Conspiracy to Commit Wire Fraud, and Wire FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging four individuals for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The indictment was returned on April 29, 2021 and unsealed on May 13, 2021 upon the arrest of the final defendant. The four defendants are:
Reginald McElrath, age 40, of Cockeysville, Maryland;
Chantelle Harris, age 33, of Hyattsville, Maryland;
Robert Patterson age 21, of Odenton, Maryland and;
Danisha Thomas age 37, of Bladensburg, Maryland.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to the indictment, from July 2019 to January 2020, McElrath, Harris, Patterson, and Thomas allegedly used the identifying information of at least 17 individuals to obtain new cell phones. McElrath, Harris, and Patterson worked in Maryland for a vendor contracted by a multinational retail corporation to handle all contractual wireless phone transactions in their stores. As cell service associates, McElrath, Harris, and Patterson were required to obtain the personal identifying information (PII) of customers in order to initiate a new account or upgrade an existing account. The indictment alleges that McElrath, Harris, and Patterson used their positions to apply for new cell phone accounts with various carriers and to apply for upgraded cell phones on existing cell phone accounts in the victims’ names using the PII of the victims without their knowledge or permission. McElrath, Harris, and Patterson allegedly charged purchases of new cell phones to fraudulent cell phone service accounts they opened in the victims’ names and none of the costs were borne by members of the conspiracy.
The indictment also alleges that co-conspirators, including Thomas, would receive the fraudulently obtained cell phones directly from McElrath, Harris, Patterson and others from inside the retail store. One or more of the co-conspirators allegedly distributed the fraudulently obtained cell phones to other co-conspirators at the cost of the identity theft victims.
In sum, the defendants allegedly used the stolen PII of 17 individual victims to fraudulently obtain at least $537,000 worth of cell phones.
If convicted, the defendants face a maximum sentence of 20 years in prison for wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentenced imposed, for aggravated identity theft. 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. Thomas had an initial appearance yesterday in U.S. District Court in Baltimore. The other three defendants previously had initial appearances on a related federal criminal complaint.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and Matthew J. Maddox, who are prosecuting the case.
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Former Army Green Beret Sentenced for Russian Espionage ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former Army Green Beret was sentenced today to 188 months in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
“Debbins flagrantly and repeatedly sold out his country, including while he served as a Captain in the U.S. Army Special Forces,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendant’s brazen disclosures to Russian intelligence agents jeopardized U.S. national security and threatened the safety of his fellow servicemembers. This prosecution underscores our firm resolve to hold accountable those who betray their sworn oath and bring them to justice for their exceptionally serious crimes.”
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 46, of Gainesville, a former member of the U.S. Army, conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces, and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy,” said John C Demers, Assistant Attorney General for National Security. “His conduct is a personal betrayal of colleagues and country, and it reflects the threat of Russian intelligence operations targeting our military. Today’s almost 16-year sentence reflects the seriousness of his conduct. It should also serve as a warning to those who would be tempted to do the same.”
“The Green Berets epitomize heroics, leadership, and bravery, but Debbins was just the opposite,” said Alan E. Kohler, Jr., Assistant Director of Counterintelligence for the FBI. “Debbins’ actions in this case show a complete disregard for his fellow soldiers and for his country. The FBI will do everything in its power to identify those who choose to betray our country and bring them to justice.”
“The betrayal of fellow U.S. citizens and servicemembers is inexcusable, and today Debbins was sentenced for his reprehensible and dangerous actions,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “He was entrusted to serve his country and protect his fellow Special Forces team, but instead he chose to provide classified national defense information to his own country’s adversary. This investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to diligently and doggedly counter national security threats to the U.S.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents encouraged him to join and pursue a career in the Special Forces, where he attained the rank of Captain.
Over the course of the conspiracy, Debbins provided Russian intelligence agents with information he obtained as a member of the U.S. Army, including sensitive details about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with names of and information about several his former Special Forces team members for the purpose of allowing the agents to recruit them to conspire with the Russian intelligence service.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; John C. Demers, Assistant Attorney General for National Security; Alan E. Kohler, Jr., Assistant Director of Counterintelligence for the FBI; and Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office; made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Acting U.S. Attorney Parekh and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service, and MI5.
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-193.
Former Army Green Beret Sentenced for Russian Espionage ConspiracyRead the Press Release
WASHINGTON – A Virginia man and former Army Green Beret was sentenced today to 188 months in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
Peter Rafael Dzibinski Debbins, 46, of Gainesville, admitted to conspiring with agents of a Russian intelligence service. According to court documents, from December 1996 to January 2011, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces, and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit them as spies,” said Assistant Attorney General John C. Demers for the Justice Department's National Security Division. “His conduct is a personal betrayal of colleagues and country, and it reflects the threat of Russian intelligence operations targeting our military. Today’s almost 16-year sentence reflects the seriousness of his conduct. It should also serve as a warning to those who would be tempted to do the same.”
“Debbins flagrantly and repeatedly sold out his country, including while he served as a Captain in the U.S. Army Special Forces,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The defendant’s brazen disclosures to Russian intelligence agents jeopardized U.S. national security and threatened the safety of his fellow servicemembers. This prosecution underscores our firm resolve to hold accountable those who betray their sworn oath and bring them to justice for their exceptionally serious crimes.”
“The betrayal of fellow U.S. citizens and servicemembers is inexcusable, and today Debbins was sentenced for his reprehensible and dangerous actions,” said Assistant Director in Charge Steven M. D’Antuono for the FBI Washington Field Office. “He was entrusted to serve his country and protect his fellow Special Forces team, but instead he chose to provide classified national defense information to his own country’s adversary. This investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to diligently and doggedly counter national security threats to the U.S.”
“The Green Berets epitomize heroics, leadership, and bravery, but Debbins was just the opposite,” said Assistant Director Alan E. Kohler Jr. for the FBI’s Counterintelligence Division. “Debbins' actions in this case show a complete disregard for his fellow soldiers and for his country. The FBI will do everything in its power to identify those who choose to betray our country and bring them to justice.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents encouraged him to join and pursue a career in the Special Forces, which he did, where he served at the rank of Captain.
Over the course of the conspiracy, Debbins provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, a number of his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump for the Eastern District of Virginia and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Acting U.S. Attorney Parekh and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service and MI5.
Florida Man Sentenced for Evading Taxes on Millions in Secret Offshore Bank AccountsRead the Press Release
A resident of Palm Beach County, Florida, was sentenced to 24 months in prison for not reporting his foreign financial accounts from 2006 through 2015 and for willfully evading the assessment of millions in taxes from 2007 through 2014.
According to court documents, from 2003 through 2009, Dusko Bruer owned and operated a company that bought U.S.-made agricultural machinery and parts and sold them throughout the world. Bruer’s company had numerous employees and reaped millions of dollars in annual gross receipts. Despite its success, Bruer’s company did not file employment or corporate tax returns, nor did the company pay employment or income taxes. Furthermore, from 2003 forward, the company never paid Bruer a salary. Instead, Bruer directed that millions of dollars from the company’s bank accounts be used to pay his personal expenses, to make foreign investments, and to transfer funds to his family members.
To conceal his income from the IRS, from 2006 through at least 2015, Bruer owned and controlled bank accounts held at financial institutions in Croatia, Germany, Serbia, and Switzerland, which he did not report, in violation of the law. Between 2007 to 2011 alone, Bruer transferred $5.8 million from domestic accounts to these foreign financial accounts. In total, between 2007 and 2014, Bruer did not report receiving $7,726,213 in income, nor did he pay $2,789,538 in taxes. Bruer used his unreported offshore accounts to fund his lifestyle, including the purchase of foreign property, a $1,350,000 yacht, and a 3,200 square foot home in Lake Worth, Florida, with 100 feet of frontage on the Intracoastal Waterway for $1,650,000.
In addition to the term of imprisonment, Senior U.S. District Court Judge Kenneth A. Marra ordered Bruer to serve two years of supervised release and to pay approximately $2,789,538 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 Juan Antonio Gonzalez for the Southern District of Florida made the announcement. Further, Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Gonzalez would like to thank the Ministry of Justice of the Republic of Croatia for their assistance in this matter. The Justice Department’s Office of International Affairs provided significant assistance.
The IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Mark F. Daly of the Tax Division and Assistant U.S. Attorney Aurora Fagan of the Southern District of Florida are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Man Sentenced for Evading Taxes on Millions in Secret Offshore Bank AccountsRead the Press Release
Miami, Fl. – A resident of Palm Beach County, Florida, was sentenced to 24 months in prison for not reporting his foreign financial accounts from 2006 through 2015 and for willfully evading the assessment of millions in taxes from 2007 through 2014.
According to court documents, from 2003 through 2009, Dusko Bruer owned and operated a company that bought U.S.-made agricultural machinery and parts and sold them throughout the world. Bruer’s company had numerous employees and reaped millions of dollars in annual gross receipts. Despite its success, Bruer’s company did not file employment or corporate tax returns, nor did the company pay employment or income taxes. Furthermore, from 2003 forward, the company never paid Bruer a salary. Instead, Bruer directed that millions of dollars from the company’s bank accounts be used to pay his personal expenses, to make foreign investments, and to transfer funds to his family members.
To conceal his income from the IRS, from 2006 through at least 2015, Bruer owned and controlled bank accounts held at financial institutions in Croatia, Germany, Serbia, and Switzerland, which he did not report, in violation of the law. Between 2007 to 2011 alone, Bruer transferred $5.8 million from domestic accounts to these foreign financial accounts. In total, between 2007 and 2014, Bruer did not report receiving $7,726,213 in income, nor did he pay $2,789,538 in taxes. Bruer used his unreported offshore accounts to fund his lifestyle, including the purchase of foreign property, a $1,350,000 yacht, and a 3,200 square foot home in Lake Worth, Florida, with 100 feet of frontage on the Intracoastal Waterway for $1,650,000.
In addition to the term of imprisonment, Senior U.S. District Court Judge Kenneth A. Marra ordered Bruer to serve two years of supervised release and to pay approximately $2,789,538 in restitution to the United States.
Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. Further, Acting U.S. Attorney Gonzalez and Acting Deputy Assistant Attorney General Goldberg would like to thank the Ministry of Justice of the Republic of Croatia for their assistance in this matter. The Justice Department’s Office of International Affairs provided significant assistance.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Aurora Fagan of the Southern District of Florida and Senior Litigation Counsel Mark F. Daly of the Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-80013.
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Florida Man Sentenced for $1.3 Million Securities Fraud SchemeRead the Press Release
A Florida man was sentenced today to more than four years in prison for operating an investment scheme in which he used investor funds to repay other investors and misappropriated funds for himself.
David C. Coggins, 42, of Miami, pleaded guilty to one count of securities fraud on March 2, 2021. According to court documents, Coggins solicited investors to his investment fund between 2015 and 2020 by touting the fund’s successful performance and total assets under management. Over time, the fund lost money and Coggins used money from new investors to pay other investors. Coggins also misappropriated funds for his personal purposes. To conceal the fund’s actual losses and persuade investors to part with their money, Coggins fabricated reports purportedly showing the fund’s successful performance and created a fraudulent independent auditor’s report. By the end of 2020, the net asset value of the fund was nearly zero.
In addition to the prison sentence, Coggins was also ordered to pay $1,305,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; and Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
The U.S. Postal Inspection Service’s Criminal Investigations Group investigated the case.
Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section prosecuted the case.
Final Defendants Sentenced in Red River County Methamphetamine Trafficking ConspiracyRead the Press Release
TEXARKANA, Texas – The final two defendants in a Clarksville methamphetamine conspiracy have been sentenced to federal prison in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
According to court documents, Jacory Dewayne Coulter, 35, pleaded guilty on Oct. 5, 2020, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 102 months in federal prison on May 13, 2021, by U.S. District Judge Robert W. Schroeder III.
Brandon Charles Nickerson, 42, pleaded guilty on July 1, 2020, to the same charges and was sentenced to 70 months in federal prison on April 21, 2021 by Judge Schroeder.
“Today’s sentences close the book on a methamphetamine trafficking operation, and makes the Red River County area a safer place to live and work,” said Acting U.S. Attorney Nicholas J. Ganjei. “This operation also showcases how effective a joint federal, state, and local law enforcement operation can be. Expect to see similar operations in the near future.”
The U.S. Attorney’s Office will never stop fighting against the scourge of methamphetamine distribution that destroys so many lives,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are grateful to our law enforcement partners who have also worked tirelessly to identify and disrupt these dangerous organizations.”
Operation Big Red is a multiyear methamphetamine trafficking investigation in Red River County that has led to federal convictions of 11 men. From at least January 2016, Counter and Nickerson were part of that conspiracy which distributed large amounts of methamphetamine in the Clarksville area. Previously, Judge Schroeder sentenced other Mavin Earl Baty to 92 months in prison; Gregory Lamont Dillard to 102 months; Victor Gonzales to 63 months; Miguel Angel Hernandez to 78 months; Neopholis Dontray Scales to 70 months; Brian Bradley Beers to 70 months; Kevin Wayne Guess to 57 months; James Wayne Johnson to 145 months; and Billy Carl Webb, Jr., to 120 months in prison.
The Texas Department of Public Safety-CID and the Red River County Sheriff’s Office investigated the case. Assistant U.S. Attorney Jonathan R. Hornok prosecuted the case.
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Federal Grand Jury Indicts Buffalo Man for Being A Felon-In-Possession of A FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned an indictment charging Kaylen Edwards, 23, of Buffalo, NY, with being a felon-in-possession of a firearm. The charge carries carry a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the indictment and a previously filed complaint, on November 7, 2020, Cheektowaga Police Officers responded to Pinehurst Avenue, where a limousine bus party was being let out, following a report of disorderly persons. According to the complaint, earlier that day, the defendant was identified on social media flashing a black and silver handgun and wearing a distinct black and red jacket inside the limousine bus. A member of law enforcement sent a photo of the social media post to responding officers.
While on Pinehurst Avenue, officers observed Edwards getting into the front passenger seat of a vehicle with Georgia license plates and leave the area. The officers then observed the vehicle in violation of multiple vehicle and traffic infractions and conducted a traffic stop. The officers observed a marijuana cigar end in the center console area and immediately detected the odor of burnt marijuana emanating from the vehicle. Officers identified Edwards as the passenger. The defendant was detained. During a pat frisk, an officer felt and observed a handgun in Edwards’ side waist band. The handgun was loaded with a magazine containing seven .45 caliber rounds and one .45 caliber round in the chamber. In November 2017, the defendant was convicted of Attempted Criminal Possession of a Weapon in New York State Court, and as a result of that conviction, he is prohibited from legally possessing a firearm.
The indictment is the result of an investigation by the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Court Permanently Shuts Down Mississippi Tax PreparerRead the Press Release
A federal court in the Northern District of Mississippi has permanently enjoined a Senatobia, Mississippi, tax return preparer from preparing returns for others and from owning, operating, or franchising any tax return preparation business in the future.
According to the court’s order, Kathy R. Moton and K&M Tax Essentials LLC consented to entry of the injunction, which permits the United States to conduct full post-judgment discovery to monitor compliance. The terms of the order require that Moton and K&M Tax Essentials send notice of the injunction each person for whom they prepared federal tax returns, other tax forms, or claims for refund after Jan. 1, 2018, and to advertise the injunction on social media for one year. The civil complaint filed against defendants alleged that their fraudulent activities resulted in a loss to the Treasury of over $1 million.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County Man Indicted for Possessing Semi-Automatic Rifle and a Large Quantity of OxycodoneRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted for possessing a semi-automatic rifle loaded with a high-capacity magazine, several rounds of ammunition, and a large quantity of oxycodone, Acting U.S. Attorney Rachael A. Honig announced today.
Shaquille Hankerson, aka “Jaquil L. Tukes,” 30, of Newark, is charged with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute oxycodone, and one count of possession of a firearm in furtherance of a drug trafficking crime. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On Sept. 22, 2020, law enforcement officers were conducting patrol when they observed Hankerson, who appeared to be sleeping in the driver’s seat of a running vehicle. As the officers approached Hankerson, he jumped up in his seat and began shuffling around the front center area of the vehicle. The officers then observed a prescription pill bottle with no label containing an unknown substance in the front center cup holder. The officers searched the vehicle and recovered the following: one .223 caliber Bushmaster Carbon-15 semi-automatic rifle loaded with a high capacity magazine that contained 26 rounds of .223 caliber ammunition; one magazine loaded with 10 rounds of .40 caliber ammunition; 317 oxycodone pills; and one bag containing marijuana. The officers also recovered $542.75 from Hankerson.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.
This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, 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 (ATF) 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 ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division; and members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara, with the investigation leading to the charges and arrest.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations against the defendant are merely accusations, and he is presumed innocent unless and until proven guilty.
Eleven Defendants Charged with Murder in Indian CountryRead the Press Release
A federal grand jury in the Eastern District of Oklahoma has returned separate indictments charging 11 defendants with murder and other various violent crimes arising out of Indian Country.
Over the course of a three-day grand jury session in the U.S. District Court for the Eastern District of Oklahoma, trial attorneys with the Justice Department’s Organized Crime and Gang Section, working with and in support of the U.S. Attorney’s Office for the Eastern District of Oklahoma, obtained the indictments charging the 11 defendants. These indictments followed the reversal or dismissal of state cases as a result of the U.S. Supreme Court’s decision in McGirt v. Oklahoma.
In July 2020, the U.S. Supreme Court determined in McGirt v. Oklahoma that the historical boundaries of the Muscogee (Creek) Nation were never disestablished by Congress and therefore that the State of Oklahoma did not have jurisdiction to prosecute Jimcy McGirt for first degree rape and other state crimes. On March 11, the Oklahoma Court of Criminal Appeals ruled that the Cherokee reservation and the Chickasaw reservation were likewise never disestablished. Similar rulings affecting the Seminole and Choctaw reservations were issued by the Oklahoma Court of Criminal Appeals on April 1. As a result of these decisions, the United States has primary federal jurisdiction to prosecute major crimes committed by—or against—Native Americans occurring within the 26 counties of the Eastern District of Oklahoma.
The following indictments were returned by the federal grand jury and filed in the U.S. District Court for the Eastern District of Oklahoma:
United States v. Gregory Gamblin – Murder in Indian Country.
United States v. Gunnar Mathew Hemingway – Murder in Indian Country; using, carrying, and discharging a firearm during and in relation to a crime of violence; causing the death of a person.
United States v. Cody Nash James –Murder in Indian Country; causing the death of a person.
United States v. Brian Mack – Murder in Indian Country.
United States v. Robert Mitchell – Murder in Indian Country.
United States v. Clifton Parish – Murder in Indian Country; kidnapping resulting in death in Indian Country.
United States v. Jeffrey Pierce – Murder in Indian Country.
United States v. Tyas Short – Second degree murder in Indian Country; using, carrying, and discharging a firearm during and in relation to a crime of violence; causing the death of a person.
United State v. Devin Sizemore – Murder in Indian Country; second degree murder in Indian Country; voluntary manslaughter in Indian Country; child abuse in Indian Country; assault resulting in serious bodily injury in Indian Country; and assault on a police officer in Indian Country
United States v. John Duncan Stubbs – Murder in Indian Country; using, carrying, and discharging a firearm during and in relation to a crime of violence; causing the death of a person.
United States v. Johnson Wisdom – Murder in Indian Country.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma; and Special Agent in Charge Melissa R. Godbold of the FBI’s Oklahoma City Field Office made the announcement.
The FBI is investigating the cases.
Trial Attorneys Gerald Collins, Rebecca Dunnan, Alex Gottfried, Lisa Man, Matthew Mattis, Christina Taylor, Christopher Taylor, and Kristen Taylor of the Criminal Division’s Organized Crime and Gangs Section are prosecuting the cases with the U.S. Attorney’s Office for the Eastern District of Oklahoma.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Doctor Sentenced to 38 Months for Unlawful Drug Distribution and Identity TheftRead the Press Release
ALBANY, NEW YORK – Scott McMahon, age 52, of Clifton Park, New York, was sentenced today to 38 months in prison for distributing controlled substances outside the course of professional practice and for no legitimate medical purpose, and to misusing personal information in the course of fraudulently obtaining controlled substances.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
Senior United States District Judge Thomas J. McAvoy also ordered McMahon to forfeit $6,774.76, and to serve a 3-year term of supervised release.
Today, McMahon also agreed to surrender his New York State medical license, as well as his DEA registration that had allowed him to prescribe controlled substances. McMahon has been in custody since September 10, 2020.
In 2019, McMahon had a medical practice in Clifton Park, having previously maintained offices in Albany and other locations in the Capital Region. He specialized in psychiatry and addiction treatment.
In pleading guilty, McMahon admitted that from at least December 2018 through August 2019, he provided certain patients with prescriptions for the Schedule II controlled substance methylphenidate – the generic of Ritalin – with the intent of having them kick back a portion of each prescription to him for his own personal use. As part of the scheme, McMahon obtained the names and birthdates of the children of a patient. McMahon used that information to issue methylphenidate prescriptions in the children’s names. The patient picked up these prescriptions in his children’s names, and split the methylphenidate with McMahon.
In a separate civil case brought by the United States, McMahon agreed to pay $43,225.24 to settle claims arising from his improper prescribing of ketamine and failure to keep proper records of ketamine treatment.
In the civil case, McMahon admitted that he improperly prescribed ketamine intranasal spray to an individual who had no legitimate medical need for it. A sampling of McMahon’s records showed that he failed to record the amount of ketamine injected for each patient on each treatment date, the name of each patient who was injected, and the person who injected the ketamine. McMahon also failed to conduct an initial inventory when he began dispensing ketamine.
The criminal case was investigated by the DEA Albany District Office’s Tactical Diversion Squad and its Capital District Drug Enforcement Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
The DEA Tactical Diversion Squad also investigated the civil case, in which Assistant U.S. Attorney Christopher R. Moran represented the United States.
Also assisting in the investigations were the New York State Police, the New York State Bureau of Narcotic Enforcement, and the DEA Resident Office in Burlington, Vermont.
Deputy U.S. Marshal Charged with Cyberstalking and PerjuryRead the Press Release
A federal grand jury in the Central District of California returned an indictment Wednesday charging a Deputy U.S. Marshal with conspiracy to commit cyberstalking, cyberstalking, and perjury.
According to the indictment, Ian R. Diaz, 43, of Brea, California, who serves as a Deputy U.S. Marshal with the U.S. Marshals Service, along with his former wife, who is alleged to be an unindicted co-conspirator, agreed to and did pose as a person with whom Diaz was formerly in a relationship (Jane Doe) and, in that guise, sent to themselves harassing and threatening electronic communications that contained apparent threats to harm Diaz’s former wife; solicited and lured men found through Craigslist “personal” advertisements to engage in so-called “rape fantasies” in an attempt to stage a purported sexual assault on Diaz’s former wife; and staged one or more hoax sexual assaults and attempted sexual assaults on Diaz’s former wife. Diaz and his then-wife then reported this conduct to local law enforcement, falsely claiming that Jane Doe posed a genuine and serious threat to Diaz and his then-wife, and thereby caused local law enforcement to arrest, charge, and ultimately detain Jane Doe in jail for nearly three months for conduct for which they framed her and in fact perpetrated themselves.
According to the indictment, Diaz and his former wife also allegedly took steps to conceal their conduct, including using falsely registered email accounts, using virtual private networks to access the internet anonymously, and communicating with each another using encrypted messaging services.
Diaz is charged with one count of conspiracy to commit cyberstalking, one count of cyberstalking, and one count of perjury for his false testimony in a deposition in connection with a federal civil lawsuit brought by Jane Doe. The defendant was arrested Thursday and made his initial court appearance before U.S. Magistrate Judge Douglas F. McCormick of the U.S. District Court for the Central District of California, Southern Division. If convicted, he faces a maximum penalty of five years in prison on each of the counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General Cyber Investigations Office made the announcement.
The Department of Justice Office of the Inspector General is investigating the case.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dentists to Pay $3.1 Million to Resolve Allegations They Submitted False Claims for Services Not Provided to Underprivileged ChildrenRead the Press Release
Two North Texas dentists, their dental management companies, and certain affiliated pediatric dental practices have paid the United States $3.1 million to resolve allegations that they defrauded the Texas Medicaid program and violated the False Claims Act by knowingly billing for pediatric dental services that were not rendered or that falsely identified the person who provided the service, announced Acting U.S. Attorney Prerak Shah of the Northern District of Texas.
“These defendants knowingly defrauded Medicaid, a program that provides medical coverage for more than 4 million low-income Texans,” said Acting U.S. Attorney Shah. “If they thought they could get away with this scam by targeting underprivileged populations, they were sorely mistaken.”
Drs. Gunjan Dhir, 43, and Gaurav Puri, also 43, have owned and operated dental clinics and dental management companies throughout Texas since 2009. The clinics serve primarily low-income children enrolled in the Texas Medicaid program; the dental management companies provide management and administrative services to the clinics. After opening their first dental clinic in 2009, Drs. Dhir and Puri rapidly expanded their operation to include 35 dental clinics operating statewide by 2015.
This settlement resolves allegations that between May 30, 2011 and May 30, 2017, Drs. Dhir, Puri, and their affiliated management companies and pediatric dental clinics submitted or caused the submission of false claims for payment to the Texas Medicaid Program for fillings in children that were not actually performed. The settlement also resolves allegations that they submitted or caused the submission of claims using erroneous Medicaid provider numbers misrepresenting the dentists who performed pediatric procedures.
Funded jointly by the states and the federal government, Medicaid is intended to serve low-income families and children. The State of Texas paid for part of the Medicaid claims at issue and will receive approximately half of the government’s share of the settlement amount.
Part of the allegations resolved by this settlement were originally filed under the qui tam, or whistleblower, provisions of the False Claims Act by relators Sandy Puga, Nelda Torres-Brown, and Sonia Cardoso, all former employees of the implicated dental management companies and/or pediatric dental practices, who will receive a fraction of the settlement. (The Act permits private persons with evidence of fraud to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.)
The case was handled for the government by Assistant U.S. Attorneys Kenneth Coffin and Braden Civins on behalf of the Department of Health & Human Services Office of Inspector General and the State of Texas, with assistance from the Texas Attorney General’s Office, Civil Medicaid Fraud Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.Customs officer admits to helping undocumented nanny enter the countryRead the Press Release
LAREDO, Texas – A 40-year-old Laredo woman has entered a guilty plea to conspiracy to encourage or induce a foreign national to enter the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Walker was a Customs and Border Protection (CBP) officer at the time of the offense.
On Jan. 2, she improperly used another officer’s computer login information to help the Mexican woman enter the United States through the Laredo Port of Entry, scanning her immigration documents before entry. The woman had no legal status to reside or work in the United States. However, Walker intended for the woman to illegally enter the country and work for her as a housekeeper and nanny.
Walker also lied to authorities. She falsely stated Trevino was her biological aunt and denied processing her entry or employing her in her home.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 9. At that time, Walker faces up to 10 years in prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Connecticut Man Pleads Guilty to Stolen Firearms Offenses and Making False StatementsRead the Press Release
BOSTON – A Connecticut man pleaded guilty yesterday in federal court in Springfield to a variety of charges in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents.
Christian Castro, 31, of New Britain, Conn., pleaded guilty to one count each of theft of firearm from a Federal Firearms Licensee; being a felon in possession of firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 23, 2021
In September 2020, Castro was charged by criminal complaint with co-defendant Fernando Rivera, who pleaded guilty on May 5, 2021 and is pending sentencing.
Castro was a felon on state probation for two prior convictions in Connecticut for larceny and possessing narcotics with intent to distribute. Shortly after midnight on or about Aug. 29, 2020, Castro and Rivera engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts or attempted thefts and culminated in the theft of 17 firearms from a federal firearms licensee in West Springfield, Mass.
On Sept. 18, 2020, federal agents arrested Rivera and Castro at their homes in Connecticut. During interviews with investigators Castro admitted that he drove to and from several ATM robberies and the gun store robbery, but falsely stated he never received, kept or even touched any of the stolen guns.
During a search of Rivera’s phone investigators identified several photographs and videos depicting Rivera (and Castro in one instance) with many of the stolen firearms. A forensic extraction of the defendants’ phones allegedly revealed communications indicating that on Sept. 4, 2020, Rivera discovered that he was a suspect in the thefts and then traveled with Castro to New York to sell at least three of the firearms.
The firearms charges each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of making false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Co-Defendants Plead Guilty in Southwest Georgia Drug Trafficking CaseRead the Press Release
ALBANY, Ga. – Multiple co-defendants involved in a high-volume drug trafficking operation located in a southwest Georgia city have pleaded guilty to their crimes in federal court this week.
On Thursday, May 13, James Malone, 51, of Albany, pleaded guilty to distribution of methamphetamine. Malone faces a maximum sentence of life in prison and a $10,000,000 fine. Laura Ann Dungee-Ali, 49, of Albany, pleaded guilty to maintaining a drug-involved premises. Dungee-Ali faces a maximum sentence of twenty years in prison and a $1,000,000 fine. William Cook, 46, of Albany, pleaded guilty to possession with intent to distribute hydrocodone. Cook faces a maximum sentence of twenty years in prison and a $1,000,000 fine.
On Wednesday, May 12, Patricia Odom, 50, of Albany, pleaded guilty to possession with intent to distribute methamphetamine. Odom faces a maximum sentence of twenty years in prison and a $1,000,000 fine.
On Tuesday, May 11, Sherrod Winchester, 39, of Albany, pleaded guilty to conspiring to distribute controlled substances. Winchester faces a maximum sentence of life in prison and a maximum $10,000,000 fine.
Previously, Shannon Marie Mason, 39, of Leesburg, Georgia, pleaded guilty to distribution of methamphetamine. If convicted, Mason faces a maximum sentence of life in prison and a $10,000,000 fine. Anthony Dewayne Pearson, 42, of Sylvester, Georgia, pleaded guilty to conspiracy to possess with intent to distribute hydrocodone. Pearson faces a maximum sentence of twenty years in prison and a $1,000,000 fine.
The hearings were presided over by U.S. District Judge Leslie Gardner.
According to court documents, in 2019, Albany-Dougherty Drug Unit (ADDU) detectives identified defendants Malone and Winchester as significant distributors of methamphetamine and heroin. As a result, GBI, DEA and FBI initiated a joint investigation into the distribution of controlled substances at 520 9th Avenue, Albany, Georgia. The location was an open-air drug market run by Malone and Winchester, dispensing diverted pharmaceutical medications, heroin, methamphetamine, cocaine and other controlled substances. On a daily basis, the location maintained a large volume of foot and vehicle traffic, approximately twenty cars or more, with the visits lasting no more than a few minutes. Customers would approach a covered shelter to acquire illegal drugs, in a manner similar to a drive-thru window at a fast-food restaurant. Confidential sources were recorded making purchases of these illegal drugs from several of the co-defendants. Co-defendant Mason admitted to transporting large quantities of illegal substances at the behest of Winchester. Mason was taken into custody with more than a kilo of cocaine and more than a kilo of crystal methamphetamine in her vehicle. More than $40,000 in drug proceeds were seized from Malone’s residence.
The case was investigated by the FBI, DEA, GBI and the Albany-Dougherty Drug Unit.
Assistant U.S. Attorney Leah McEwen is prosecuting the case.
Cavour Man Indicted on Child Pornography and Enticement ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Cavour, South Dakota, man has been indicted by a federal grand jury for Attempted Production of Child Pornography, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
David Robert Farrell, age 39, 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 life in federal prison and/or a $250,000 fine, life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 22, 2021, Farrell knowingly attempted to employ, use, persuade, induce, entice, and coerce a minor female to engage in sexually explicit conduct for the purpose of producing visual depictions. Such images would be then transported in interstate and foreign commerce with a computer.
The Indictment also alleges that on or about April 27, 2021, Farrell knowingly traveled to engage in sexual conduct with the same minor. Farrell again used his cellular telephone to attempt to knowingly persuade that minor to engage in sexual activity.
Finally, the Indictment alleges that between April 22, 2021, and April 23, 2021, Farrell also used his cellular telephone to transfer and attempt to transfer obscene materials to the minor female, who had not attained the age of 16.
The charges are merely accusations and Farrell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Farrell was released on bond pending trial. A trial date has not been set.
Cattle rustling scheme sends Bozeman man to prisonRead the Press Release
MISSOULA – A Bozeman man accused in a cattle rustling scheme of stealing cattle and embryos while defrauding a bank and a business partner was sentenced today for conviction in the case to 30 months in prison, followed by three years of supervised release and was ordered to pay $450,993 restitution, Acting U.S. Attorney Leif M. Johnson said.
Joshua James Chappa, 45, pleaded guilty on Jan. 21 to conversion of secured property and to wire fraud.
U.S. District Judge Dana L. Christensen presided. Judge Christensen allowed Chappa to self-report to prison.
In court documents filed in the case, the government alleged that Chappa was a ranch manager and worked for Hayes Ranch, LLC, in Wilsall, from 2008 until 2017. Chappa also formed Cold Smoke Cattle, LLC, in 2015. While working for Hayes Ranch, Chappa had access to the cattle, embryos and other items. When the owners were out of the country, Chappa began dealing in cattle, including stealing cattle from the Hayes Ranch and selling them as if they were his own.
The government alleged that in 2015, Chappa signed two security agreements with Northwest Farm Credit Services, PCA, which is a member of the Farm Credit System. Chappa pledged his cattle as collateral. Between 2015 and 2017, Chappa intended to defraud Northwest by selling cattle in which Northwest had a security interest without remitting the proceeds as promised. Chappa defaulted on the loan and Northwest suffered a loss.
The government further alleged that Chappa partnered with Willers Mitten Brand, in Norfolk, Nebraska, in various cattle ventures and failed to remit payment to Willers Mitten Brand when selling the cattle. In a cattle sale at Billings Livestock Commission in January 2017, Chappa requested that payment of $41,262 be made to his company, Cold Smoke Cattle, saying that Willers Mitten Brand had “already signed the brand release for that to happen.” When questioned by Willers Mitten Brand about the payment, Chappa deceived it, ensured he received the full amount and failed to split the proceeds.
The government alleged that between 2015 and 2017, Chappa stole cattle and embryos, and sold cattle in which Northwest Farm Credit Services had a security interest, resulting in a total loss of approximately $481,805.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the FBI and the Montana Department of Livestock.
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Buffalo Man Pleads Guilty to His Role in Three Armed Credit Union RobberiesRead 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 Adrian D. Applewhite a/k/a Boons, 33, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to three counts of aggravated bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that the defendant robbed three credit unions:
• On the morning of October 26, 2017, Applewhite and two other associates robbed the Lakeshore Federal Credit Union on Erie Road in Evans, NY. Applewhite planned the robbery and provided instructions and a firearm to Khalil Holland to assist the robbery. Holland entered the Lakeshore Federal Credit Union wearing a mask and brandishing a semi-automatic pistol while Applewhite waited in a car nearby. Holland approached the teller and demanded money; however, the alarm was activated, and Holland left without taking any money. Holland was arrested shortly thereafter and subsequently convicted by the Erie County District Attorney’s Office. Applewhite also fled the scene but was not apprehended.
• On July 24, 2019, Applewhite entered the South Towns Community Federal Credit Union on South Park Avenue in Lackawanna, NY while co-defendant Ronald Morris, a/k/a Cracks, waited outside. Inside the credit union, Applewhite approached the teller, asked a question, and “cased” the credit union. The next day, on July 25, 2019, Morris and another associate entered the credit union wearing dark colored clothing and face masks and conducted a bank robbery with pepper spray and a pistol while Applewhite, the getaway driver, sat in a car nearby. Morris and the associate traversed the teller’s counter, sprayed the tellers with pepper spray, and went to the unlocked safe. Morris and the associate took $290,500 in United States currency. Applewhite took a share of the proceeds for his role.
• On October 31, 2019, Applewhite entered the Clarence Community and School Federal Credit Union on Sheridan Drive in Clarence, NY. Applewhite approached the teller and asked whether the credit union had an ATM. Applewhite’s sole purpose in entering the credit union was to “case” it and facilitate a future effort by him and his associates to rob it. On November 7, 2019, Morris, and co-defendant Carl Wilson, a/k/a Baby C, armed with a pistol and donning masks and gloves, entered the credit union, and conducted a bank robbery while Applewhite, the getaway driver, sat in a car nearby. Morris and Wilson ordered all the employees to the ground and demanded money. Wilson went behind the teller line and went through teller’s drawers. Morris went to the vault. A total of $148,793.90 in United States currency was taken. The defendant took a share of the proceeds for his role.
Carl Wilson was previously convicted and is awaiting sentencing. Charges remain pending against Ronald Morris. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the New York State Police, under the direction of Major James Hall; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Lackawanna Police Department, under the direction of Chief Mark Packard; the Evans Police Department, under the direction of Chief Douglas J. Czora; the Tonawanda Police Department, under the direction of Chief James P. Stauffiger; and the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing will be scheduled at a later date.
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Brooklyn Man Sentenced for Stealing Mail in LiverpoolRead the Press Release
SYRACUSE, NEW YORK – Kevin Ronny Williams, age 24, of Brooklyn, New York, was sentenced yesterday to serve six-months of home detention, followed by three-years supervised release announced Acting United States Attorney Antoinette T. Bacon, Joseph Cronin, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service, and Matthew Modafferi, Special Agent in Charge of the United States Postal Service, Office of Inspector General-Northeast Region. Williams was also ordered to perform 120 hours of community service.
On September 16, 2020, Williams pled guilty to one count of possession with the intent to unlawfully use a United States Postal Service key, and one count of theft of mail.
As part of his guilty plea Williams admitted that on March 5, 2020 into the early morning hours of March 6, 2020, he used a United States Postal Service (“USPS”) arrow key that he obtained from a USPS employee, to open blue mail collection boxes in Liverpool, New York. Williams wore a USPS letter carrier uniform jacket and carried a USPS mail satchel that he obtained from USPS employee Quayshaun Mitchell. Once the mail collection boxes were opened, Williams stole the contents, including 49 pieces of first-class mail. All of the mail was recovered from Williams. The USPS employee, Quayshaun Mitchell, also pled guilty to one count of possession with the intent to unlawfully use a United States Postal Service key, and one count of theft of mail. Mitchell will be sentenced on August 11, 2021.
This case was investigated by the United States Postal Inspection Service (USPIS) and the United States Postal Service-Office of Inspector General (USPS-OIG), and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
Boston-Area Real Estate Developer Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Tewksbury real estate developer pleaded guilty yesterday in federal court in Boston to defrauding the government of more than $480,000 by engaging in a multi-year tax evasion scheme.
Arnold Martel, 61, pleaded guilty to one count of tax evasion. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for Sept. 22, 2021. Martel was charged on April 9, 2021.
For tax years 2014 through 2017, Martel personally received more than $1.2 million in payments for upgrades to condominiums his company sold. Martel deposited the payments into his personal accounts or cashed them, but did not report this income on this tax returns.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Martel is also required to pay restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and David Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Boone County Woman Pleads Guilty to Federal Methamphetamine ChargeRead the Press Release
CHARLESTON, W.Va. – A Boone County woman pleaded guilty today to a federal methamphetamine charge.
According to court documents, Sherri Hill, 57, admitted that she possessed more than 100 grams of methamphetamine on June 25, 2020, on U.S. 119 in Boone County. Law enforcement officers stopped Hill shortly after she purchased the methamphetamine. Hill was subsequently interviewed and admitted to having dealt methamphetamine for several years throughout the state.
Hill pleaded guilty to possession with intent to distribute methamphetamine and faces a minimum of 5 years and up to 40 years in prison when she is sentenced on August 18, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the West Virginia State Police and the DEA. Assistant United States Attorney L. Alexander Hamner is prosecuting the case.
Senior United States District Judge John T. Copenhaver, Jr. 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. 2:20-cr-0194.
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Baltimore Man Facing Federal Indictment for Using Female Aliases on Social Media and Messaging Applications to Entice Boys to Send Him Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Matthew K. Walsh, age 23, of Baltimore, Maryland, for the federal charges of sexual exploitation of a minor; coercion and enticement of a minor to engage in sexually explicit conduct; and receipt of child pornography. The indictment was returned on May 12, 2021, and unsealed today upon Walsh’s arrest. Walsh had an initial appearance today in U.S. District Court in Baltimore before U.S. Magistrate Judge Boardman. Walsh consented to detention pending a detention hearing which will be held on May 20, 2021 at 11:30 a.m.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the six-count indictment, beginning no later than November 2019, Walsh used text messaging, an internet-based social media company, and a messaging application for mobile devices to meet and communicate online with minor males. The indictment alleges that Walsh often posed as a female in these communications, using the aliases “Linamarie” or “Mariel” on social media and “lslow6_5” on the messaging application. Walsh allegedly used his online female aliases to cause and attempt to cause minor males to produce sexually explicit images of themselves and send those images to Walsh.
Specifically, the indictment alleges that from November 4, 2019 through December 23, 2020, Walsh, using his online female aliases, enticed and coerced Victim 1, who was a 14 to 15-year-old minor male, to produce a series of sexually explicit visual depictions of Victim 1, including several video files, which Victim 1 sent to Walsh. Further, the indictment alleges that from March 8, 2020 through March 12, 2020, Walsh, using his online female aliases, enticed and coerced Victim 2, a 15-year-old minor male, to produce a series of sexually explicit visual depictions of himself, which he sent to Walsh.
If you believe you or a loved one was a victim of Walsh please contact the FBI Baltimore Field Office at (410) 265-8080.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
If convicted, Walsh faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for each of two counts of sexual exploitation of a minor; a maximum sentence of life in federal prison for each of two counts of enticement and coercion of a minor to engage in sexually explicit conduct; and a mandatory minimum of five years in federal prison and a maximum sentence of 20 years for each of two counts of receipt of child pornography. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Armed Career Criminal Sentenced to 200 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an Armed Career Criminal to 200 months in prison, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Abdul K. Kallon sentenced Preston Chyenne Johnson, 38, for being a felon in possession of a firearm. Johnson, who was prohibited from having a firearm because of prior felony convictions, unlawfully possessed an Anderson AM-15 5.56mm rifle on October 31, 2019. Johnson pleaded guilty to the charge in January.
ATF investigated the case along with the Alabama Law Enforcement Agency and several other local law enforcement agencies. Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted the case.
Acting U.S. Attorney Clay Joyner Recognizes Police WeekRead the Press Release
Oxford, Miss.— In honor of National Police Week, Acting U.S. Attorney Clay Joyner recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said United States Attorney General Merrick B. Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Law enforcement officers are deserving of our gratitude and respect, particularly during this time when we honor those who have lost their lives in the line of duty,” remarked Acting United States Attorney Clay Joyner. “I am constantly humbled to be able to work with these men and women who run towards danger rather than away from it, and by the sacrifices that they and their families make in service to their communities and their country.”
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.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
Aberdeen Man Sentenced for Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Aberdeen, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on May 10, 2021, by U.S. District Judge Charles B. Kornmann.
Juan Smith, age 28, was sentenced to 37 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to forfeit a .380 caliber pistol, magazine clips, and .380 caliber ammunition.
The conviction stems from Smith, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Sturm, Ruger & Company Incorporated .380 caliber pistol in March 2020 in Aberdeen. At the time, Smith possessed the firearm, three pistol magazines, and some .380 caliber ammunition at his residence in Brown County when law enforcement officers conducted a state probation search because Smith had been using drugs.
This case is 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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, 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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Aberdeen Police Department, and the Brown County Sheriff’s Office. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Smith was immediately remanded to the custody of the U.S. Marshals Service.
Thursday 13 May 2021
Woman Charged with Bringing More Than 5 Kilo of Cocaine on Flight from Puerto Rico to ConnecticutRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston, today announced that HECMARIELIZ CRUZ-ACEVEDO, 22, of Bayamon, Puerto Rico, has been charged in a federal criminal complaint with possession with intent to distribute five kilograms or more of cocaine.
As alleged in court documents, on May 9, 2021, HSI received information from U.S. Department of Agriculture inspectors at San Juan International Airport that Cruz-Acevedo had boarded a flight to Baltimore-Washington International Airport, with a final destination of Bradley International Airport, and had checked a piece of luggage that contained five rectangular-shaped objects consistent with narcotics packages. After the flight landed at Bradley Airport, a Connecticut State Police canine detected the presence of narcotics in the checked bag. Investigators stopped Cruz-Acevedo when she retrieved the bag at baggage claim. A search of the bag revealed five individual parcels, each containing slightly more than one kilogram of cocaine, located between articles of clothing.
Cruz-Acevedo, who has been detained since her arrest on May 9. She appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was released on a $100,000 bond.
The charge of possession with intent to distribute five kilograms or more of cocaine carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Alexander Cleveland King, of New Martinsville, West Virginia, was sentenced today to 30 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
King, also known as “Alex,” 35, pleaded guilty in March 2021 to one count of “Unlawful Possession of Firearm.” King, a person prohibited from having a firearm because of a conviction, admitted to having .45 caliber pistol in January 2021 in Wetzel County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Westford Man Agrees to Plead Guilty to Bank Fraud Conspiracy and National Firearms Act ViolationRead the Press Release
BOSTON – A Westford man has agreed to plead guilty to conspiring to commit bank fraud and possessing an unregistered firearm.
Bin Lu, 49, has agreed to plead guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. Lu was arrested and charged in January 2021 with conspiracy to violate provisions of the National Firearms Act (NFA).
According to the charging documents, Lu and a co-conspirator sought to build a large indoor shooting range, which would service both regional and international customers, as well as offer shooting clinics and other services. Lu and his co-conspirators brought in a Chinese investor, who contributed several million dollars to the project. However, in applying for loans from federally insured financial institutions, Lu and his co-conspirators hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.
Lu also knowingly possessed a firearm that had been modified by the addition of a folding stock, resulting in its classification as a short-barreled rifle (SBR) under the NFA. The SBR was not registered to Lu in the National Firearms Registration and Transfer Record as required by the NFA.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waite Park Man Charged in St. Cloud Bank Robbery, Hostage SituationRead the Press Release
MINNEAPOLIS – A federal criminal complaint was filed yesterday charging a Waite Park man in connection to a St. Cloud bank robbery and hostage situation.
According to court documents, on May 6, 2021, Ray Reco McNeary, 35, entered a Wells Fargo Bank in St. Cloud and alleged that there was fraud on his bank account. After the bank manager was unable to locate any accounts belonging to McNeary, McNeary became enraged and demanded that $60,000 in cash be taken from the vault and placed in a bank bag. The bank manager activated the silent panic alarm, notifying law enforcement of a problem at the bank.
According to court documents, upon arrival, St. Cloud police officers learned that five employees of the bank were being held hostage by McNeary. Multiple times throughout the incident, McNeary held a pair of scissors against the bank manager’s neck and back. FBI hostage negotiators spoke with McNeary repeatedly during what turned out to be an eight-hour standoff. During the course of negotiations, four of the employees were allowed to leave the bank. The standoff ended at approximately 10:24 p.m. when the bank manager fled the bank and law enforcement moved into the bank and arrested McNeary.
McNeary is charged with one count of bank robbery. If convicted, McNeary faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney W. Anders Folk of the District of Minnesota; and Special Agent in Charge Michael Paul of the FBI’s Minneapolis Field Office made the announcement.
This case is the result of an investigation conducted by the FBI and the St. Cloud Police Department.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney's Office Cautions Taxpayers to Beware of Fraudulent Tax PreparersRead the Press Release
CHARLOTTE, N.C. – With this year’s tax filing deadline approaching quickly, Acting U.S. Attorney William T. Stetzer urges taxpayers to beware of fraudulent return preparers and warns dishonest preparers that violating federal tax laws can lead to criminal actions and stiff monetary penalties.
The IRS’s Dirty Dozen Tax Scams represents the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. Unscrupulous tax preparers are once again listed as one of the most common tax fraud schemes.
“Taxpayers rely on tax return preparers for their expertise and assistance with filing honest and accurate tax returns. When crooked preparers violate that trust, federal prosecutors will be there to hold them accountable,” said Acting U.S. Attorney Stetzer.
To highlight its message of deterrence to those who engage in the preparation of fraudulent tax returns, commit tax fraud and potentially expose their clients to serious consequences, the U.S. Attorney’s Office highlights the following criminal actions against tax preparers who have violated federal law:
On March 25, 2021, Aminta Smith, of Charlotte, was sentenced to 30 months in prison and one year of supervised release and ordered to pay $171,017 as restitution to the IRS. According to the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax & Insurance Group, LLC. Between 2011 to 2016, Smith prepared fraudulent income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2011 to 2015, and in some years failing to disclose that she was in engaged in the operation of a tax preparation business. In total, Smith caused more than $1 million in tax loss to the IRS.
On August 28, 2020, Elizabeth Pigatt, of Charlotte, was sentenced to four months in prison for filing false tax returns. According to court documents Pigatt owned and operated Pigatt Taxes Quick, a return preparation business in Charlotte. Beginning in at least 2012 and continuing through 2016, the defendant prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns also falsely claimed education credits and the incorrect filing status. The tax loss associated with the offense was more than $250,000 but less than $550,000.
In July 2020, Joseph Octave, Vonyeda Carson, Wendia Courtois, Melissa Greene, Natisha Holloman, Kimberly Joline, and Whitney Vargas-Medrano, all of Charlotte, were charged with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns. According to court documents, Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte. Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits. Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns. The training material provided to employees included scripts and cheat sheets. Furthermore, Carson and Courtois filed false personal tax returns. All seven defendants have pleaded guilty and are awaiting sentencing.
The U.S. Attorney’s Office reminds taxpayers to visit IRS’s website for tips on choosing a preparer, and to obtain information on how to avoid unethical tax preparers. The U.S. Attorney’s Office also urges taxpayers to protect themselves against a wide range of other tax schemes. In addition to tax preparer fraud, taxpayers are urged look out for and to avoid the following common schemes:
- Phishing
- Fake Charities
- Threatening Impersonator Phone Calls
- Social Media Scams
- EIP or Refund Theft
- Senior Fraud
- Scams Targeting Non-English Speakers
- Offer in Compromise Mills
- Fake Payments with Repayment Demands
- Payroll and HR Scams
- Ransomware
IRS Criminal Investigation works closely with the Department of Justice to shut down scams and to prosecute the criminals behind them. Education is the best way to avoid these common schemes.
To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax return preparer’s misconduct or improper tax preparation practices you can file a complaint here.
Two Maryland Men Facing Federal Indictment on Charges Related to the Illegal Importation of Iranian Currency and Fraudulent Wire Transfers to Purchase Foreign CurrencyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Richard Allan Boyd, age 58, and Lee Ryan Fondiller, age 50, both of Eldersburg, Maryland, for the federal charges of conspiracy to commit bank and wire fraud and wire fraud, in connection with a scheme to import foreign currencies, including the Iranian rial and Iraqi dinar, from suppliers outside the United States. Boyd is also charged with violation of the International Emergency Economic Powers Act, and making false statements under oath in a bankruptcy proceeding. The indictment was returned on April 29, 2021 and unsealed at Boyd’s initial appearance in U.S. District Court in Baltimore on May 10, 2021. Fondiller had his initial appearance on May 12, 2021. Both defendants were released pending trial.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Jamie Mazzone of the U.S. Department of Transportation-Office of Inspector General.
According to the 32-count indictment, from at least January 30, 2017 until at least October 17, 2018, Boyd, Fondiller, and others conspired to defraud financial institutions to effect transfers of funds in payment for foreign currency banknotes, while misrepresenting and concealing the true purpose of the payments.
Specifically, the indictment alleges that Boyd caused his business, Amoyeshua Enterprises, to market foreign currencies to customers in the United States and elsewhere and accepted orders for foreign currencies from customers through the Internet, telephone, and other means. Boyd allegedly arranged for shipments of foreign currencies into the United States by, in part, making payments to foreign suppliers of the currencies through wire transfers of funds. The indictment alleges that Boyd facilitated customers’ purchases of foreign currency by accepting funds from the purchasers via interstate wire transfers. Boyd and Fondiller allegedly made payments to foreign suppliers of the foreign currencies by submitting requests and orders to banks where they had business accounts for international wire transfers to the foreign sellers. According to the indictment, Boyd, Fondiller, and others concealed the true purpose of the international wire transfers to their banks by falsely representing that the wire transfers were for jewelry, watches, and/or other items. The indictment alleges that Boyd, Fondiller, and others caused fraudulent wire transfers totaling more than $300,000 to be sent to banks in Jordan.
As detailed in the indictment, in requesting and directing payment for foreign currencies, Boyd instructed customers by email, text message, and other means, not to indicate or note to any intermediary financial institution or payment processor that the customer's payment was made in exchange for currency. In addition, Boyd allegedly fabricated invoices reflecting purchases of watches and jewelry in order to disguise the true purpose of the payments to his foreign currency supplier via international wire transfer, and sent the invoices to the foreign supplier by email as false documentation of the payments.
The indictment also alleges that Boyd violated the trade embargo against The Islamic Republic of Iran (“Iran”) by importing Iranian rial banknotes between 2016 and 2018. The rial is the currency of Iran and is issued by the Central Bank of Iran, which is owned by the Government of Iran. The importation of Iranian rial banknotes ("rials") into the United States was prohibited by the International Emergency Economic Powers Act (“IEEPA”) and the Iran Transactions and Sanctions Regulations (“ITSR”). The indictment alleges that between 2015 and 2018, Boyd imported Iranian rials into the United States, marketed rials via the Internet and other means (including under trade names such as Amoyeshua Enterprises and BuyNewDinar.com), and distributed rials to customers in the United States and elsewhere.
In about February 2016, officers of United States Customs and Border Protection (“CBP”) stationed at the John F. Kennedy International Airport in New York examined several packages shipped from Amman, Jordan. Some of the packages were addressed to Boyd at his residence and others were addressed to customers, family members, and associates of Boyd. CBP officers found that the packages contained Iranian rials. After confirming with the Office of Foreign Assets Control (“OFAC”) that the importation of Iranian rials was prohibited by IEEPA and the ITSR, CBP officers seized the rials and packaging materials.
Between March and April 2016, Boyd, his customers, family members, and associates received letters from CBP notifying them of seizures of Iranian rials in February 2016 and stating that the importation of Iranian currency to the United States was prohibited by law. The indictment alleges that after being notified and acknowledging that the importation of Iranian rails weas illegal, Boyd continued to import Iranian rials into the United States, advertise the sale of Iranian rials on the Internet, accept orders and payments from customers for rials, and sell and distribute rials to customers in the United States, all without any license or authorization from OFAC.
Finally, the indictment alleges that on August 1, 2018, Boyd made false statements under oath during his bankruptcy proceeding. Specifically, Boyd allegedly stated that he had closed his currency selling business in July 2018, and had no intention of reopening the business. In addition, Boyd allegedly stated that he did not try to import any more Iranian currency after CBP seized the currency shipment in January 2016. In fact, Boyd caused Iranian rial to be brought into the United States in 2017 and 2018, and continued to direct and conduct transactions of foreign currencies after August 1, 2018.
If convicted, Boyd and Fondiller each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud and a maximum of 30 years in federal prison for each count of wire fraud affecting financial institutions. Boyd also faces a maximum of 20 years in federal prison for each of 10 counts of violation of the International Emergency Economic Powers Act; and a maximum of five years in federal prison for each of two counts of false oath in a bankruptcy proceeding. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI and DOT OIG for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting this case.
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Tomah Man Convicted of Producing & Possessing Child PornographyRead the Press Release
MADISON, WIS. – A federal jury in Madison, Wisconsin, has found Shannon R. Donoho, 44, Tomah, Wisconsin, guilty of child pornography crimes. The verdict was announced by Acting U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. The jury reached a verdict this afternoon after two hours of deliberation following two days of testimony.
The jury convicted Donoho of seven counts of producing child pornography, one count of attempting to produce child pornography, and one count of possessing child pornography. The jury found that Donoho produced child pornography on seven occasions between September 2015 and October 2017 and attempted to produce child pornography on June 28, 2018. The jury also found that on July 25, 2018, he possessed a hard drive containing images of child pornography, and that at least one image was of a minor who had not attained 12 years of age.
Evidence presented at the trial established that in 2016, Donoho hid Go Pro cameras in the bathroom at a residence of a family friend and made several recordings of a 9-year-old girl in the shower. Donoho was visible in several of the videos interacting with the girl while she was showering and after she exited the shower in the bathroom. Additionally, in June 2018, Donoho placed a Go Pro camera in the bathroom of the trailer where he resided in Tomah and recorded another young girl urinating. Videos and images of these two girls were discovered after law enforcement executed a search warrant at the trailer. Law enforcement also discovered Donoho had a substantial collection of other images and videos of child pornography that he had downloaded from the Internet.
U.S. District Judge William M. Conley scheduled Donoho’s sentencing for July 28, 2021. Donoho faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the production charges, and a maximum penalty of 20 years on the possession charge.
The charges against Donoho are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and the Tomah Police Department. The prosecution of the case is being handled by Assistant U.S. Attorneys Julie Pfluger and Taylor Kraus.
Texas Man Is 64th Defendant Charged in Nationwide Telemarketing SchemeRead the Press Release
MINNEAPOLIS – A Texas man was arraigned in federal court today on charges of wire fraud and violating the Senior Citizens Against Marketing Scams Act of 1994 (the “SCAMS Act”).
According to court documents, Jeremy Wade Wilson, 39, of Fort Worth, Texas, was the owner and operator of Publishers Elite, a Texas-based company involved in fraudulent magazine sales. Publishers Elite operated a telemarketing call center in Arlington, Texas, and from 2013 through 2019, Wilson provided his telemarketers with scripts containing fraudulent sales pitches for use in defrauding victim-consumers, many of whom were elderly or otherwise vulnerable, out of hundreds or even thousands of dollars. The fraudulent sales pitches were designed to induce consumers, through a series of lies and misrepresentations, into unwittingly signing up for expensive magazine subscriptions.
According to court documents, Wilson obtained lists of consumers who had active and ongoing magazine subscriptions through other companies. Wilson directed his telemarketers to claim—falsely—that they were calling from the victim-consumers’ existing magazine subscription company and about an existing magazine subscription. Wilson’s script directed the telemarketers to claim—again falsely—to be calling with an offer to renew the victim-consumer’s existing magazine subscription, often at a reduced cost. In reality, Wilson and his company had no existing relationship with most of the victim-consumers and his telemarketers were not calling about an existing magazine subscription. Instead they were calling to defraud them by tricking them into unwittingly signing up for entirely new magazine subscriptions.
According to court documents, Wilson and his company defrauded more than 14,000 victims across the United States, including more than 200 victims in Minnesota. Between 2013 and 2019, his company received more than $4.5 million from victims of his scheme.
Wilson is charged with six counts wire fraud and violating the Senior Citizens Against Marketing Scams Act of 1994 (the “SCAMS Act”). Wilson is the 64th defendant charged to date as part of a nationwide telemarketing scheme that targeted elderly and vulnerable victims. Wilson was arraigned today in U.S. District Court before Magistrate Judge Tony N. Leung. Acting U.S. Attorney W. Anders Folk of the District of Minnesota made the announcement.
This indictment is related to the cases United States v. Rahm, et al., 20-cr-232; United States v. Timmerman et al., 20-cr-233; United States v. Mathias et al., 20-cr-231; United States v. Olberg, 20-cr-285, United States v. Dahl, 18-cr-305 and United States v. Oelrich, 20-cr-128.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tangipahoa Parish Sheriff’s Captain Charged with Defrauding Office by Receiving Unearned PayRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on May 11, 2021 KEVIN STIMAGE, age 44, has been charged by a Bill of Information with Theft from Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). If convicted, STIMAGE faces up to ten years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
According to the Bill of Information, in 2019 and 2020, STIMAGE was employed as a deputy assigned to the transportation division of the Tangipahoa Parish Sheriff’s Office (TPSO), an organization which received federal funds in excess of $10,000 annually during that time period. Although STIMAGE reported working 40 hours a week for TPSO during this time frame, in actuality STIMAGE was working another job for a different employer, a detail at an apartment complex in Tangipahoa Parish, while purportedly on-duty for TPSO. In 2020, STIMAGE was promoted to Captain.
STIMAGE subsequently submitted false and fraudulent payroll sheets to TPSO which fraudulently overstated his actual work hours. As a result, TPSO paid STIMAGE over $5,000 to which he was not entitled in both 2019 and 2020.
U. S. Attorney Evans stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation on this matter. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
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Stebbins Man Sentenced to Prison for Illegally Possessing a FirearmRead the Press Release
FAIRBANKS – Dwayne Thrasher, 33, from Stebbins, Alaska, was sentenced to 28 months in federal prison followed by three years of supervised release for illegally possessing a firearm.
According to court documents, Thrasher was intoxicated in his home on January 21, 2020, when he became angry at his domestic partner. After throwing a pot of boiling hot soup to the floor, he pulled out a .22-caliber handgun and fired it inside the home until it was empty. When he began to reload the firearm, his partner was able to grab the gun and hide it before fleeing the house in fear for her life.
Thrasher has a long history of assaulting multiple women stretching back over 13 years. As someone previously convicted of a felony offense, Thrasher is prohibited from possessing firearms or ammunition.
The Federal Bureau of Investigation (FBI) and the Alaska State Troopers investigated the case.
Assistant U.S. Attorney Daniel Doty prosecuted the case.
This case is part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative to increase engagement, coordination and action on public safety in Alaska Native communities. Led by the U.S. Attorney’s Office, it encourages extensive collaboration among law enforcement at all levels, rural communities, Alaska Native groups, victim service organizations and care providers.
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Statement of U.S. Attorney's Office for the District of Columbia Before D.C. Council Regarding Measures to Strengthen Protections for Victims-Survivors of Domestic ViolenceRead the Press Release
Chairman Allen and Members of the Council:
My name is Elana Suttenberg, and I am the Special Counsel for Legislative Affairs at the United States Attorney’s Office for the District of Columbia (USAO). I am accompanied today by my colleagues, Sharon Marcus-Kurn, Chief of the Sex Offense and Domestic Violence Section, and Ryan Creighton, a Senior Assistant United States Attorney in that Section who spearheads our Office’s Intimate Partner Violence Prevention Initiative, who are available to assist in answering the Committee’s questions. I thank you for the opportunity to appear at today’s public hearing on the proposed legislation.
Our Office is committed to protecting victims and survivors, providing support to these individuals and their families as they navigate the criminal justice process, and prosecuting those who harm others. We are committed to preventing intimate partner violence and, in 2019, our Office launched an Intimate Partner Violence Prevention Initiative, a focused effort within our Office to recognize intimate partner violence as a specific type of violence requiring unique tools to address, and increase the prosecutorial and advocacy resources devoted to the issue.[1]
Bill 24-0116, the “Victims’ Protection Amendment Act of 2021”
Consistent with this commitment, we are proud to support the Victims’ Protection Amendment Act of 2021, introduced by Mayor Muriel Bowser. This bill would create a felony offense of strangulation and create an offense for violating a post-conviction stay away or no contact order, both of which would protect victims—particularly victims of intimate partner violence.
Felony Strangulation
A felony offense of strangulation will enable the District of Columbia to combat and prosecute strangulation in a manner proportionate with the seriousness of the conduct. By enacting this important piece of legislation, the District will join the overwhelming majority of states—48 at present—in making this extremely dangerous—and potentially life-threatening—type of assault a felony.
Current law in the District creates three tiers of assault: felony aggravated assault that requires proof of serious bodily injury, punishable by a maximum of 10 years’ imprisonment;[2] felony assault that requires proof of significant bodily injury, punishable by a maximum of 3 years’ imprisonment;[3] and misdemeanor simple assault that requires no proof of any level of injury, punishable by a maximum of 180 days’ imprisonment.[4] Because injuries stemming from non-fatal strangulation rarely qualify as either “serious bodily injury” or “significant bodily injury,” virtually all non-fatal strangulation cases can be prosecuted only as misdemeanor simple assault.[5]
But strangulation is widely recognized as one of the most lethal forms of domestic violence, and categorizing that conduct as a misdemeanor does not adequately reflect that lethality. Strangulation is extremely dangerous: because it restricts the victim’s breathing and circulation of the blood, a victim can lose consciousness within 5-10 seconds and die within minutes.[6] A major strangulation study in San Diego made the following findings: “Most strangulation cases produce minor or no visible injury. Many victims suffer internal injuries, including permanent brain damage. Signs and symptoms do exist and can be documented even without visible injury… Most abusers do not strangle to kill. They strangle to show they can kill. Victims often suffer major long-term emotional and physical impacts. Surviving victims are much more likely to die later if their abuser has strangled them.”[7] The San Diego strangulation study also noted that “[o]ne study has shown that the odds of becoming a victim of attempted homicide increased by 700%, and the odds of becoming a homicide victim increased by 800%, for women who had been strangled by their partner.”[8]
The District is in the distinct minority of jurisdictions by not having either a separate felony offense of strangulation or a means of criminalizing strangulation as a felony offense. Twenty-one (21) states have separate laws criminalizing strangulation as a stand-alone felony offense.[9] Twenty-seven (27) other states have made strangulation a felony by including strangulation as a means of committing a felony-level offense, such as assault.[10] Aside from the District, Ohio and South Carolina are the only states that do not have a felony strangulation law.[11]
Creating a stand-alone felony offense of strangulation is preferable to categorizing strangulation-related injuries as a type of felony assault. A stand-alone offense of strangulation more appropriately captures and describes the conduct that is the subject of the offense. In addition, a stand-alone offense does not require proof of any level of injury, but rather focuses solely on the conduct. This recognizes that strangulation often results in no visible injuries, and should be classified as a felony regardless of the level of injury.[12]
Further, consistent with the bill as introduced, strangulation should be categorized as a “crime of violence” under D.C. Code § 23-1331(4). This reflects the seriousness and violent nature of the offense of strangulation. In addition, this would make strangulation eligible for pretrial preventative detention under D.C. Code § 23-1322(b)(1)(A). Allowing pretrial preventative detention will in turn help to protect victims who have been strangled. This is particularly important given the elevated lethality risk to the victim following strangulation.[13]
Creation of an Offense for Violating a Post-Conviction Stay Away or No Contact Order
To further protect victims of intimate partner violence, it is necessary to eliminate a legal loophole under current District law, and to create an offense for violating a post-conviction stay away or no contact order.
Under D.C. Code § 23-1329(c), contempt sanctions may be imposed if a person “intentionally violate[s] a condition of his release,” which would include a violation of a stay away/no contact order.[14] This contempt sanction, however, only applies to individuals who have been released prior to trial or sentencing.[15] Individuals who violate a condition of their release—including stay away provisions—while they are on probation, supervised release, or parole are not subject to contempt liability either under D.C. Code § 23-1329(c) or under the general contempt provision in D.C. Code § 11-944(a).[16]
This situation creates an illogical and potentially fatal loophole in the D.C. Code. Under current law, there is no meaningful immediate enforcement mechanism for violation of a condition of post-disposition release. If a defendant is alleged to have violated a condition of their probation, the defendant’s supervising officer at the Court Services and Offender Supervision Agency (CSOSA) may present an Alleged Violation Report (AVR) to the presiding judge. The presiding judge may issue a “show cause order,” which orders the defendant to appear in court and to show cause why their probation should not be revoked. This situation does not, however, permit law enforcement to make an immediate, on-the-scene arrest, which may be appropriate, if not essential. If a defendant is at that moment violating a stay away or no contact order, that violation directly implicates the safety of the community, and could impact the life or safety of the victim whom the order is intended to protect.[17] To permit an officer to make a warrantless arrest for this offense, a conforming amendment to D.C. Code § 23-581 is required.
The tragic and brutal murder of Paula Coles illustrates the serious flaws in the current system. On September 27, 2017, Paula Coles was murdered by her abusive former romantic partner. At the time of her murder, the defendant was on probation after being convicted of assaulting Ms. Coles and their 9-month-old son on July 5, 2017. A specific court-ordered condition of his probation was that he was to stay away from, and have no contact with, Ms. Coles.
On September 15, 2017, the defendant was released from custody after serving his sentence. Less than 12 hours before the murder, in the late hours of September 26, 2017, Ms. Coles called 911 to report an argument that had erupted between the defendant and Ms. Coles, and between the defendant and an individual with whom Ms. Coles was now romantically involved. The defendant fled the scene before police arrived.
Ms. Coles showed responding MPD officers a copy of the pretrial stay away order that had been previously imposed, as well as the judgment and commitment order in the criminal case that contained the stay away order. Police checked certain electronic records and were not able to locate a stay away order in the system against the defendant.[18] Critically, because a violation of a post-conviction stay away order is not a stand-alone offense, even if police had been able to confirm the presence of the properly issued probationary stay away order, they could not have immediately arrested the defendant for violating that order. Instead, their only remedy would be to return to their office, request that CSOSA file an AVR, and wait for the court to schedule a show cause hearing.
After police left, the defendant continued to call Ms. Coles throughout the night. Several people overheard the defendant telling Ms. Coles that he would kill her. The following morning, the defendant stabbed Ms. Coles to death. The defendant was later arrested and ultimately pled guilty and admitted to murdering Ms. Coles.
Bill 24-0075, the “Expanding Supports for Crime Victims Amendment Act of 2021”
As to the Expanding Supports for Crime Victims Amendment Act of 2021, we believe that victims, survivors, and their families should be supported as they navigate the aftermath of a traumatic experience. To that end, our Office’s Victim/Witness Assistance Unit—which includes 16 highly experienced victim advocates who work within the Office and have specialties that include working with child victims, domestic violence victims, and families of homicide victims—provides support to victims throughout the criminal justice process.
We support the bill’s expansion of access to Crime Victims Compensation Program funds, which will allow victims to receive financial assistance and reimbursement for necessary expenses such as funeral costs, medical and mental health expenses, and temporary shelter. We also support providing access to the Crime Victims Compensation Program for victims who are impacted by post-conviction litigation, including where motions have been filed under the Incarceration Reduction Amendment Act or for compassionate release. These motions—filed years after the original sentencing—may cause victims to reopen and relive a painful chapter in their lives, and these victims and their families deserve access to services such as therapy. In our written testimony, we have proposed redline changes to the relevant provisions.
As to the bill’s proposal to expand victim access to confidential advocates, we support some of the goals of this proposal, but have concerns about these provisions as drafted. First, as to the creation of a right to a confidential advocate for a victim who has suffered gunshot or stabbing wounds during any interview with law enforcement at the hospital, we are concerned that this may inadvertently hamper law enforcement when they have an immediate need to speak with the victim about what happened to resolve an ongoing emergency (such as ascertaining the whereabouts of a suspect), ascertain what happened and locate crucial evidence or witnesses, or conduct initial investigative steps (such as securing a crime scene). Second, as to the expansion of these advocacy services to be confidential, a victim’s initial statements to another person about what happened are often a crucial part of an investigation, and making that conversation confidential may, similarly, impede a time-sensitive criminal investigation. This could be equally true if that conversation included inculpatory information—such as a victim’s emotional accounting of the offense—or exculpatory information—such as a victim contradicting a statement later made to law enforcement. To be clear, USAO believes that victims should be supported throughout the criminal justice process, and community-based advocates can play an important role in that support. We believe, however, that support can exist without some of the proposed expansions.
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We appreciate the Committee holding this hearing today and recognizing the importance of these issues. We believe that the Victims’ Protection Amendment Act will save lives, and we look forward to continuing to work with the Council on ways to protect and support victims and prevent violence.
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The U.S. Attorney’s Office proposes the following additional modifications to D.C. Code § 4-506(a) to allow victims who are impacted by post-conviction litigation to access the Crime Victims’ Compensation Program:
§ 4–506. Eligibility for compensation.
(a) A victim or secondary victim is eligible to receive compensation under this chapter if he or she:
(1) Suffered personal injury as a result of a crime;
(2) Filed a claim under this chapter within 1 year after the crime occurred, or 1 year after learning of the Program with an adequate showing that the delay in learning of the Program was reasonable, 1 year after the filing of or during the pendency of an application for a sentence modification pursuant to D.C. Code § 24-403.03 or § 24-403.04 or any other post-conviction motion in a case in which he or she was a victim or secondary victim; and
(3) Reported the crime to a law enforcement office within 7 days of its occurrence. If the crime cannot be reasonably reported within that time period, the crime must be reported within 7 days from the time a report can reasonably be made.
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The U.S. Attorney’s Office proposes the following language for D.C. Code § 14-307(b)(4), which creates an exemption for elderly persons and vulnerable adults who are the victims of fraud or exploitation, whether prosecuted under D.C. Code § 22-933.01 or otherwise.
§ 14-307. Confidential information.
(b) . . .
(4) In a grand jury, criminal, delinquency, or civil proceeding where a person is alleged to have defrauded: (a) the District of Columbia or federal government in relation to receiving or providing services under the District of Columbia medical assistance program authorized by title 19 of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.); or (b) a health care benefit program; or (c) an elderly person or vulnerable adult, as those terms are defined in 203a of the Criminal Abuse and Neglect of Vulnerable Adults Act of 2000, effective June 8, 2001 (D.C. Law 13-301; D.C. Official Code § 22-932); or
[1] Mr. Creighton, who leads this Initiative, collaborates with community partners to address intimate partner violence and further develop our Office’s expertise in investigating and prosecuting domestic violence cases. As a result of this Initiative, we have conducted trainings and community outreach events focused on informing the public of the resources that are available to combat domestic violence and to meet the security, emotional, and other needs of the survivors. We believe that continued education is crucial to both recognizing the dangers of strangulation and preventing intimate partner violence. For example, in 2020, our Office’s Intimate Partner Violence Prevention Initiative organized a training focused on identifying, investigating, and prosecuting cases involving strangulation. This training was developed in partnership with the Training Institute on Strangulation Prevention and was mandatory for all prosecutors at the U.S. Attorney’s Office who focus on prosecuting crimes involving sex offenses and domestic violence. We have also partnered with DC Forensic Nurse Examiners to conduct training for prosecutors at the U.S. Attorney’s Office.
[2] See D.C. Code § 22-404.01. “Serious bodily injury” is an injury that involves a substantial risk of death, unconsciousness, extreme physical pain, protracted and obvious disfigurement, or protracted loss or impairment of the function of a bodily member, organ, or mental faculty. See Nixon v. United States, 730 A.2d 145, 150 (D.C. 1999) (adopting definition of “serious bodily injury” from D.C. Code § 22-3001(7) for purposes of aggravated assault statute). The D.C. Court of Appeals has held that, to qualify as “extreme physical pain” for purposes of the aggravated assault statute, “the level of pain necessary to constitute serious bodily injury must be exceptionally severe if not unbearable,” and has suggested “that a victim’s physical pain may have to be so severe as to be immobilizing to satisfy the serious bodily injury requirement.” Jackson v. United States, 940 A.2d 981, 987–88 (D.C. 2008) (internal citations omitted).
[3] See D.C. Code § 22-404(a)(2). “Significant bodily injury” is defined as “an injury that requires hospitalization or immediate medical attention.” Id. The D.C. Court of Appeals has interpreted “immediate medical attention” to refer to “treatment”; “in other words, the ‘attention’ required is not satisfied by mere diagnosis. This treatment, in turn, must be aimed at one of two ends—preventing long-term physical damage and other potentially permanent injuries or abating pain that is severe instead of lesser, short-term hurts. Such treatment must exceed first-aid remedies such as ice packs, bandages, and over-the-counter medications, even if administered by a medical professional. The standard is objective: the relevant inquiry is not whether a person in fact receives immediate medical attention but whether medical treatment beyond what one can administer himself is immediately required to prevent long-term physical damage, possible disability, disfigurement, or severe pain.” In re D.P., 122 A.3d 903, 911–12 (D.C. 2015) (internal citations omitted).
Further, even where strangulation results in loss of consciousness, the D.C. Court of Appeals has held that a brief loss of consciousness of approximately a minute or less does not qualify as a “significant bodily injury.” D.P., 122 A.3d at 913; see also Vaughn v. United States, 93 A.3d 1237, 1269 n.39 (D.C. 2014) (questioning but not deciding whether any loss of consciousness, however brief, could amount to the requisite serious bodily injury to sustain an aggravated assault conviction (cited in D.P., 122 A.3d at 913 n.10)). Moreover, if the victim is the only witness to the loss of consciousness, the victim may not be able to ascertain how long they were unconscious or be able to establish that the loss of consciousness lasted more than a “brief” time.
[4] See D.C. Code § 22-404(a)(1).
[5] If a person used a dangerous weapon to commit strangulation, that conduct could be prosecuted as felony assault with a dangerous weapon, punishable by a maximum of 10 years’ imprisonment. See D.C. Code § 22-402.
[6] See Training Institute on Strangulation Prevention, Strangulation in Intimate Partner Violence Fact Sheet (2017) (available at https://www.familyjusticecenter.org/resources/strangulation-intimate-partner-violence-fact-sheet/).
[7] Gael Strack and Casey Gwinn, Strangulation and Domestic Violence: The Edge of Homicide, Domestic Violence Report, at 90 (August/September 2014) (available at https://www.familyjusticecenter.org/wp-content/uploads/2019/05/DV-Report-8.2014.pdf) (emphasis in original; internal citations omitted).
[8] Id. at 93. Similarly, research conducted by Nancy Glass, PhD, MPH, RN at Johns Hopkins University found that “[w]omen who were the victims of completed or attempted homicide were far more likely to have a history of strangulation compared to the abused control women.” Nancy Glass et al., Non-Fatal Strangulation Is an Important Risk Factor for Homicide of Women, Journal of Emergency Medicine, 35(3) (2008) (available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2573025/). Glass’s research found that “strangulation is a relatively prevalent form of violence toward women who experience physical violence in an abusive relationship (a finding consistent with the sparse literature on the subject) and is a significant predictor for future lethal violence.” Id.
In her book No Visible Bruises: What We Don’t Know About Domestic Violence Can Kill Us, Rachel Louise Snyder also focuses on the dangers of strangulation: “Those strangled to the point of losing consciousness are at their highest risk of dying in the first twenty-four to forty-eight hours after the incident from strokes, blood clots, or aspiration (choking on their own vomit). Such incidents can cause brain injury—mild or traumatic—not only by cutting off oxygen to the brain, but because they are often accompanied by blunt force trauma to the head. Still, domestic violence victims are not routinely screened for strangulation or brain injury in emergency rooms, and the victims themselves, who tend to have poor recall of the incident, are often not even aware that they’ve lost consciousness.” Snyder at 65–66 (citations omitted).
[9] Those states are: Alabama, Ala. Crim. Code § 13A-6-138; Connecticut, Conn. Gen. Stat. § 53a-64aa; Delaware, Del. Code Ann. tit. 11, § 607; Florida, Fla. Stat. § 784.041; Idaho, Idaho Code § 18-923; Indiana, Ind. Code § 35-42-2-9; Kentucky, Ky. Rev. Stat. Ann. § 508; Massachusetts, Mass. Gen. Laws ch. 265, § 15D; Michigan, Mich. Comp. Laws. § 750.84; Minnesota, Minn. Stat. § 609.2247; Montana, Mont. Code Ann. § 45-5-215; Nebraska, Neb. Rev. Stat. § 28-310.01; New York, N.Y. Penal Law §§ 121.11 – 121.13; North Carolina, N.C. Gen. Stat. § 14-32.4; Oregon, Or. Rev. Stat. § 163.187; Pennsylvania, Pa. Cons. Stat. § 2718; Rhode Island, RI. Code R. § 11-5-2.3; Virginia, Va. Code Ann. § 18.2-51.6; West Virginia, W. Va. Code § 61-2-9d; Wisconsin, Wis. Stat. § 940.235; and Wyoming, Wyo. Stat. Ann. § 6-2-509.
[10] Those states are: Alaska, Alaska Stat. §§ 11.41.201 et seq.; 11.81.900 (including strangulation as a means of committing felony-level assault); Arizona, Ariz. Rev. Stat. § 13-1204 (same); Arkansas, Ark. Code § 5-13-204 (same); California, Cal. Penal Code § 273.5 (including strangulation-related injury in a domestic violence context as a means of committing felony-level offense); Colorado, Colo. Rev. Stat. § 18-3-202 (including strangulation-related serious bodily injury as a means of committing felony-level assault); Georgia, Ga. Code § 16-5-21 (including strangulation as a means of committing felony-level assault); Hawaii, Haw. Rev. Stat. § 709-906 (including strangulation in a domestic violence context as a means of committing felony-level offense); Illinois, Il. Comp. Stat. § 5/12-3.3 (same); Iowa, Iowa Code § 708.2A (including strangulation in a domestic violence context as a means of committing aggravated misdemeanor, or as a means of committing felony-level offense if strangulation resulted in bodily injury); Kansas, Kan. Stat. Ann. § 21-5414 (including strangulation in a domestic violence context as a means of committing felony-level offense); Louisiana, La. Stat. Ann. § 14:35.3 (same); Maine, Me. Rev. Stat. tit. 17-A, § 208 (including strangulation-related injury as a means of committing felony-level assault); Maryland, Md. Code Ann., Crim. Law § 3-202 (including strangulation as a means of committing felony-level offense); Mississippi, Miss. Code § 97-3-7 (including strangulation in a domestic violence context as a means of committing felony-level assault); Missouri, Mo. Rev. Stat. § 565.073 (including strangulation in a domestic violence context resulting in physical injury as a means of committing felony-level assault); Nevada, Nev. Rev. Stat. § 200.481 (including strangulation as a means of committing felony-level offense); New Hampshire, N.H. Rev. Stat. § 631:2 (including strangulation as a means of committing felony-level assault); New Jersey, N.J. Rev. Stat. § 2c:12-1 (including strangulation as a means of committing felony-level assault); New Mexico, N.M. Stat. § 30-3-16 (including strangulation in a domestic violence context as a means of committing felony-level offense); North Dakota, N.D. Cent. Code §§ 12.1-01-04(27), 12.1-17-02 (including strangulation-related injury as a mean of committing felony-level assault); Oklahoma, Okla. Stat. tit. 21, § 644 (including strangulation in a domestic violence context as a means of committing felony-level assault); South Dakota, S.D. Codified Laws § 22-18-1.1 (including strangulation as a means of committing felony-level assault); Tennessee, Tenn. Code § 39-13-102 (same); Texas, Tex. Penal Code Ann. § 22.01 (including strangulation in a domestic violence context as a means of committing felony-level assault); Utah, Utah Code § 76-5-103 (including strangulation as a means of committing felony-level assault); Vermont, Vt. Stat. tit. 13, § 1024 (same); Washington, Wash. Rev. Code Ann. § 9A.36.021 (same). Federal law also criminalizes strangulation as a felony, 18 U.S.C. § 113(a)(8), and U.S. Sentencing Commission Guidelines create an enhancement for an aggravated assault that involved the use of strangulation. U.S. Sentencing Guidelines Manual § 2A2.2(b)(4) (U.S. Sentencing Comm’n 2018). A survey of all state laws regarding strangulation can be found on the website of the Training Institute on Strangulation Prevention, located at https://www.strangulationtraininginstitute.com/resources/legislation-map.
[11] In their final recommendations to the Mayor and Council, the D.C. Criminal Code Reform Commission (CCRC) made strangulation-related injuries eligible for felony prosecution by defining “significant bodily injury” to include “a contusion, petechia, or other bodily injury to the neck or head sustained during strangulation or suffocation.” Report #70—Criminal Code Reform Commission (CCRC) Recommendations for the Council and Mayor (Voting Draft) at 57. “Bodily injury” is defined as “physical pain, physical injury, illness, or impairment of physical condition.” Id. at 44. “Strangulation or suffocation” is defined as “a restriction of normal breathing or circulation of the blood by applying pressure on the throat or neck or by blocking the nose or mouth.” Id. at 58. In recommending that strangulation-related injuries qualify as felony conduct, the CCRC’s Commentary states: “The including of a contusion (bruise) or other bodily injury to the neck or head sustained during ‘strangulation or suffocation,’ as defined in RCC § 22E-701, reflects the heightened seriousness of such injuries, particularly in light of research indicating such injuries are often linked to more serious patterns of violence.” Report #70 – CCRC Recommendations for the Council and Mayor, Commentary on Subtitle I. General Part, Chapter 7, at 647–48 (citing to Nancy Glass et al., Non-Fatal Strangulation Is an Important Risk Factor for Homicide of Women).
[12] As Dr. Glass found, “[n]on-fatal strangulation, as opposed to other severe forms of physical violence such as striking with fists or another object, frequently leaves little in the way of observable injury, yet can result in serious physical and mental health consequences.” Nancy Glass et al., Non-Fatal Strangulation Is an Important Risk Factor for Homicide of Women.
[13] In her book No Visible Bruises, Ms. Snyder stated that, according to Casey Gwinn, “every jurisdiction that has prosecuted strangulation as a felony with a multidisciplinary team has seen a drop in homicides.” Snyder at 68.
[14] This violation is punishable by up to 6 months’ imprisonment, and up to a $1,000 fine. D.C. Code § 23-1329(c).
[15] The applicability of this provision is limited to “[a] person who has been conditionally released pursuant to section 23-1321.” D.C. Code § 23-1329(a). As its heading indicates, D.C. Code § 23-1321 applies to those who are released “prior to trial.” D.C. Code § 23-1321 also applies to those who are on release awaiting sentencing. See D.C. Code § 23-1325(b).
[16] In Jones v. United States, the D.C. Court of Appeals held that the use of the general contempt power in D.C. Code § 11-944(a) was “inappropriate” to punish a violation of a condition of probation, and that “violation of a condition of probation may be sanctioned only through revocation of probation and imposition of all or part of the original sentence.” 560 A.2d 513, 517 (D.C. 1989).
[17] This is particularly true in the intimate partner violence context, where research has shown that victims of intimate partner violence experienced a greater percentage of repeat violence than victims of other types of criminal behavior. See Barbara A. Oudekerk and Jennifer L. Truman, U.S. Dep’t of Justice, Bureau of Justice Statistics, Repeat Violent Victimization, 2005–14, at 6 (2017), available at bjs.gov/content/ pub/pdf/rvv0514.pdf. In addition, research shows that, for domestic violence abusers who reoffend, a majority do so shortly after their release from incarceration. See U.S. Dep’t of Justice, National Institute of Justice, Practical Implications of Current Domestic Violence Research: For Law Enforcement, Prosecutors and Judges, at 21 (June 2009), available at https://www.ncjrs.gov/pdffiles1/nij/225722.pdf.
[18] At that time, the WALES law enforcement database only included stay away orders issued as part of civil protection orders pursuant to D.C. Code § 16-1001 et seq. The WALES database did not include stay away orders issued as part of a criminal case, either pre-trial or post-disposition, so these stay away orders would not have been visible to MPD through this database. In addition, all documents in connection with criminal cases whose parties meet the definition of “intrafamily offense,” as that term is defined in D.C. Code § 16-1001(9) (which this case would), are not included in the Superior Court’s public website called “CourtView,” although those documents are available in the JUSTIS database. Accordingly, it would have been difficult for the responding officers to locate the post-conviction judgment and commitment order (with the stay away as a condition of probation and the term of probation). To rectify this issue, USAO personnel (including Intimate Partner Violence Prevention Initiative Ryan Creighton and others) have been actively working with Superior Court and MPD to have all stay away orders put into WALES so that law enforcement can access these orders through that system.
State Street Corporation to Pay $115 Million Criminal Penalty and Enter into Deferred Prosecution Agreement in Connection with Scheme to Overcharge Custody CustomersRead the Press Release
BOSTON – Massachusetts-based global financial services company State Street Corporation entered into a deferred prosecution agreement and agreed to pay a $115 million criminal penalty to resolve charges that it engaged in a scheme to defraud a number of the bank’s clients by secretly overcharging for expenses related to the bank’s custody of client assets.
“State Street defrauded its own clients of hundreds of millions of dollars over decades in a most pedestrian way: they tacked on hidden markups to routine charges for out-of-pocket expenses,” said the Acting United States Attorney Nathaniel R. Mendell. “The resolution requires State Street to take responsibility for the damage it caused and is a signal from us that financial giants will be held accountable for fraudulent conduct.”
“With today’s settlement, State Street Corporation is finally acknowledging that it has defrauded its clients out of more than $290 million, through a deceitful scheme that was in practice for 17 years,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The consequences for companies who cheat the marketplace and American consumers are significant and clear. The FBI will aggressively investigate those who engage in illegal business practices while ensuring their activity is brought to a halt.”
According to State Street’s admissions, between 1998 and 2015, bank executives conspired to add secret markups to “out-of-pocket” (OOP) expenses charged to the bank’s clients while letting clients believe that State Street was billing OOP expenses as pass-through charges on which the bank was not earning a profit. These markups were charged on top of fees that the clients had agreed to pay the bank, and despite written agreements that caused clients to believe the expenses would be passed through to them without a mark-up. State Street executives also took steps to conceal the mark-ups from clients, including by not disclosing the details underlying OOP expenses on invoices and by misleading clients when they inquired about what they were being charged for OOP-related activities. Through this scheme, State Street defrauded its clients out of more than $290 million.
State Street entered into a deferred prosecution agreement in connection with a criminal information charging the company with one count of conspiracy to commit wire fraud. Pursuant to the agreement, State Street agreed to pay a criminal penalty of $115 million. State Street also agreed to continue to cooperate with the U.S. Attorney’s Office in any ongoing investigations and prosecutions relating to the conduct, to enhance its compliance program, and to retain an independent corporate compliance monitor for a period of two years.
This resolution is based on a number of factors, including that State Street voluntarily disclosed the misconduct, fully cooperated with the investigation, and agreed to fully reimburse the victims of the misconduct for amounts they were overcharged.
Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement today. Valuable assistance was provided by the U.S. Securities and Exchange Commission. Assistant U.S. Attorneys Justin D. O’Connell, of Mendell’s Securities, Financial & Cyber Fraud Unit, and Abraham George, of Mendell’s Affirmative Civil Enforcement Unit, are prosecuting the case.
St. Paul Man Sentenced to Prison, $12 Million in Restitution for Minneapolis Police Third Precinct ArsonRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced today to 36 months in prison for his role in the arsons at the Minneapolis Police Department’s Third Precinct building.
According to court documents, on the night of May 28, 2020, Davon De-Andre Turner, 25, went to the Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. Turner and an individual unknown to him at the time (later identified as co-defendant Bryce Michael Williams) worked together to light an incendiary device which they intended to be used to start or further accelerate a fire. The incendiary device was taken into the Third Precinct headquarters by Turner and was used to start a fire.
“Mr. Turner’s actions on the night of May 28, 2020 contributed to the near total destruction of the Minneapolis Police Department’s Third Precinct building,” said Acting U.S. Attorney Anders Folk. “Those actions were dangerous to community, to law enforcement, and to the many peaceful protestors exercising their first amendment rights. Today’s sentence underscores the seriousness of those actions.”
“ATF is committed to investigating the civil unrest arsons of 2020 that occurred throughout the Twin Cities,” said Special Agent in Charge Terry Henderson, of the ATF St. Paul Field Division. “Arson, being inherently violent, is a serious crime that puts our community members and first responders at risk, and it cannot be tolerated.”
“Today’s sentencing sends a clear message—when you are intent on conducting a violent act that breaks federal law, the FBI and our law enforcement partners will move with speed to hold you accountable,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “That behavior puts our entire community in danger, and we simply will not let it go unaddressed.”
On January 22, 2021, Turner pleaded guilty to one count of conspiracy to commit arson. As part of his sentencing, Turner was ordered to serve two years of supervised release and pay $12 million in restitution.
Co-conspirator Dylan Shakespeare Robinson, 23, was sentenced on April 28, 2021, to 48 months in prison. Co-conspirator Branden Michael Wolfe, 23, was sentenced on May 4, 2021, to 41 months in prison. Both Robinson and Wolfe, who had each previously pleaded guilty to one count of conspiracy to commit arson, were also ordered to serve two years of supervised release and pay $12 million in restitution for their roles in the conspiracy. Co-conspirator Bryce Michael Williams is currently scheduled to be sentenced on June 7, 2021 before District Court Judge Patrick J. Schiltz. Williams plead guilty to one count of conspiracy to commit arson on November 11, 2020.
This case was the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
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Skowhegan Man Indicted for COVID-19 Relief FraudRead the Press Release
BANGOR, Maine – A federal grand jury in Bangor returned an indictment today charging a Skowhegan man with filing fraudulent Paycheck Protection Program (PPP) loan applications and other offenses, Acting U.S. Attorney Donald E. Clark announced.
The indictment charges Nathan Reardon, 43, with five counts of bank fraud, three counts of attempted wire fraud, two counts of making false statements to financial institutions and one count of perjury.
According to the indictment, Reardon submitted several fraudulent applications for PPP loans that were guaranteed by the Small Business Administration (SBA). He also allegedly submitted fraudulent applications for direct loans from the SBA and provided false information in applications seeking disbursement of PPP loan funds.
The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and another $284 billion in December 2020.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use at least a certain percentage of the funds for payroll expenses.
The Treasury Inspector General for Tax Administration and the SBA Office of Inspector General are investigating the case.
An indictment is merely an allegation. Like all defendants, Reardon is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
Shiprock man sentenced to eight years in federal prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Dieter D. Douglas, 35, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was sentenced on May 11 in federal court to eight years and 4 months in prison for assaulting his ex-girlfriend.
Douglas pleaded guilty to two counts of the offense on July 14, 2020. In his plea agreement, Douglas admitted to assaulting the victim, identified in court records as Jane Doe, on Oct. 3, 2018, and again on May 14, 2019, at a home in Shiprock on the Navajo Nation. During these incidents Douglas covered the victim’s mouth and strangled her with his hands. As a result, Douglas caused the victim to lose consciousness during both incidents.
Upon his release from prison, Douglas will be subject to three years of supervised release.
The FBI investigated this case with assistance from the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Romanian Nationals Sentenced to Federal Prison for ATM SkimmingRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that Ioan Georgel Cristian Flore, a Romanian national who is illegally present in the United States, was sentenced to 75 months in federal prison for his role in an ATM skimming fraud that resulted in $587,529.50 in losses to financial institutions located in Michigan, Nebraska, and Iowa.
Flore pled guilty to conspiracy to commit financial institution fraud and aggravated identity theft in November 2020. Flore admitted that, between September 2019 and May 2020, he engaged in a conspiracy to defraud financial institutions by stealing money from federally insured financial institution customer accounts in Michigan and elsewhere. The members of the conspiracy accomplished the fraud by obtaining devices and cameras that were designed to secretly record account data, including account numbers and personal identification numbers, from debit and credit cards that bank and credit union customers used to withdraw cash, make deposits, and conduct other transactions. The conspirators installed those devices on automated teller machines (ATMs), and then retrieved the devices after they had recorded account data of bank and credit union customers. These devices are commonly called ATM skimming devices. Thereafter, the conspirators, including the Defendant, used the stolen account data of the bank and credit union customers to unlawfully create and possess access devices, including re-encoded cards, and then used those access devices to fraudulently withdraw cash from the accounts of the bank and credit union customers. Flore was illegally present in the United States having overstayed a visa.
At the sentencing hearing in Lansing, Michigan, United States District Judge Hala Y. Jarbou also imposed two years of supervised release following imprisonment and a restitution order of $587,529.50. Additionally, Flore was ordered to forfeit $16,230 in U.S. currency that was seized from his vehicle during a traffic stop in Indiana when the two were found in possession of tools used to commit ATM skimming.
Flore’s co-conspirator, Marius Adrian Mastan, also a citizen of Romania and a legal resident of Illinois, was sentenced by the Court on March 25, 2021, to serve 53 months in prison for his role in the scheme, ordered to repay $587,529.50 to the 17 victims, and forfeit the $16,230 in seized currency.
U.S. Attorney Andrew Birge stated, “This is the third crew of ATM skimmers using the same modus operandi that my office has prosecuted in the last three years. We are relentless in our pursuit of lengthy prison sentences for anyone who steals and uses other people’s debit and credit card numbers and PIN numbers, which harms both the cardholder and the financial institution that ultimately suffers the loss. At the same time, residents who use ATMs and other debit and credit card readers should remain vigilant in detecting evidence of tampering or anything unusual about the machine. If you suspect tampering has occurred, do not use it and report it immediately.”
“Innocent people in this case had their personal information taken and their money stolen by criminals who believed there would be few consequences for their crimes. The lengthy sentences in this case send a message to anyone engaged in this type of theft that the FBI, along with our federal, state, and local partners will find them and hold them accountable,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “We encourage anyone who believes they may have been a victim of identity theft to report it to the FBI or their local law enforcement agency.”
The investigation was conducted by the Federal Bureau of Investigation in Kalamazoo and St. Joseph, Michigan; the Michigan State Police; the Hobart Indiana Police Department; and the U.S. Customs and Border Protection. The investigation of other co-conspirators is ongoing.
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