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29 June 2021
Judge sentences Chesterfield man for sex traffickingRead the Press Release
ST. LOUIS – United States District Judge Audrey G. Fleissig sentenced Jeremy Rogers, 45, of Chesterfield, Missouri, to 10 years imprisonment on today’s date. Rogers pleaded guilty, in February, to one count of sex trafficking of a child.
Rogers, in the summer of 2019, contacted the child victim, via a social media application, utilizing an alias. By utilizing the alias, Rogers was able to hide his status as a registered sex offender. During the course of their communications, Rogers was made aware of the victim’s age. In July of 2019, Rogers persuaded the victim to meet him. Rogers drove the victim to his residence in Chesterfield where he subjected her to various sexual acts including sexual intercourse.
Prior to sentencing and by way of an impact statement, the child victim told the Court the following: “What happened has greatly hurt the way I value and view myself. It has caused anxiety and great emotional distress. I feel if he had not been caught, he definitely would have attempted this with some other innocent and naive person who doesn’t know any better.” The victim also stated, “He clearly had no regard for my age, or level of comfort. It will most likely be a very long while, if ever, before I gain complete closure, but knowing that this man will not be able to do this to anybody else will greatly help to give me peace of mind.”
On October 9, 2018, in an unrelated state case, Rogers pleaded guilty, in the Circuit Court of Boone County, Missouri, to the felony offense of attempted sexual exploitation of a minor in violation of Section 573.023, RSMo; after which, Rogers was sentenced to eight years of imprisonment. The execution of that sentence was suspended. Rogers was placed on five years of probation. Due to this state conviction, Rogers was required to register as a sex offender under federal law and the laws of the state of Missouri.
The above sex trafficking of a child case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jillian Anderson is handling the case.
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Jacksonville Man Sentenced to More Than 10 Years for Leading Cocaine Trafficking ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Paublo “Chandito” Rondon Quinones (30, Jacksonville) to 10 years and 1 month in federal prison for conspiring to possess with the intent to distribute and to distribute five or more kilograms of cocaine.
Quinones had pleaded guilty on January 24, 2019. As part of his plea agreement, Quinones agreed to the administrative forfeiture of an assortment of jewelry and numerous vehicles, including two jet skis, four motorcycles, two sport utility vehicles, a Porsche Panamera luxury sedan, and a Ferrari F430 sports car.
According to court documents, Quinones led a drug trafficking organization that supplied kilo-quantities of cocaine to drug dealers in Jacksonville. His organization had multiple sources of supply and obtained shipments of cocaine via couriers and through the U.S. Mail from suppliers in Puerto Rico and Orlando.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Florida Highway Patrol, and the North Florida High Intensity Drug Trafficking Area Task Force. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jackson Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Jackson man pled guilty today to possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Jeffery Rivers, Jr., 39, of Jackson, sold almost a half kilogram of methamphetamine on March 2, 2020. The drugs were analyzed by the Drug Enforcement Administration Laboratory and confirmed to be 437.5 grams of pure methamphetamine.
Rivers pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine. He is scheduled to be sentenced on October 6, 2021 and faces a mandatory minimum of 10 years and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Jackson Safe Streets Task Force investigated the case.
Assistant U.S. Attorney Keesha D. Middleton is prosecuting the case.
The case is the result of an extensive investigation, dubbed “Hailstorm,” which began as an operation targeting illegal methamphetamine distribution in central Mississippi.
Iowa Man Sent Back to Federal Prison for the Third Time Following his Second Escape from CustodyRead the Press Release
A man who escaped from federal custody twice in just over two years was sentenced today to nearly three years in federal prison.
Gabriel Mangum, age 45, from Iowa City, Iowa, received the prison term after a December 31, 2020 guilty plea to one count of escape from custody.
Evidence from Mangum’s plea and sentencing hearings showed that he was previously convicted of being a felon in possession of a firearm in federal court in 2009 and sentenced to seven years in prison. In June 2017, Mangum escaped from federal custody while in a halfway house. He was arrested approximately one month later and sentenced to another 18 months’ imprisonment.
Beginning on July 12, 2019, Mangum was in custody and under supervision at the halfway house again. On July 31, 2019, Mangum left the halfway house without permission and escaped from custody for the second time. Mangum remained on the loose and his whereabouts were unknown until October 25, 2020, when he was arrested by law enforcement.
Mangum has a long criminal history. This is his third federal conviction. He was first convicted of robbery in state court and sentenced to 25 years in prison when he was 18. He also has convictions involving drugs, thefts, forgery, and disorderly conduct.
Mangum was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mangum was sentenced to 33 months’ imprisonment, consisting of 18 months in prison for violating his supervised release conditions and 15 months in prison for his most recent escape. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mangum is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-97, 17-CR-56, and 09-CR-2008.
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Indictment targets large-scale drug trafficking operation in Coastal Georgia areaRead the Press Release
SAVANNAH, GA: More than a dozen defendants are charged in a major drug-trafficking conspiracy alleged in a 22-count indictment unsealed in U.S. District Court in the Southern District of Georgia.
Operation Snowplow II follows a series of indictments starting in June 2018 of 14 defendants in Operation Snowplow, an Organized Crime Drug Enforcement Task Force investigation into cocaine trafficking and money laundering in the Coastal Georgia area and beyond, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Building on the prosecutions in Operation Snowplow, the 29-page indictment in Operation Snowplow II, USA v. Gallegos et. al, charges 16 defendants with participating in a widespread, large-scale cocaine-trafficking conspiracy, and charges an additional defendant with trafficking marijuana.
Conviction on the conspiracy charge carries a statutory minimum sentence of 10 years in federal prison, with a maximum sentence of life. There is no parole in the federal system.
“In collaboration with our federal, state and local law enforcement partners in the Southern District, we continue to relentlessly pursue those who would gain profit from spreading poison in our communities,” said Acting U.S. Attorney Estes. “The indictments in Operation Snowplow II demonstrate the results of that commitment.”
“This organization’s alleged drug trafficking activities in association with gun violence, presented a clear and present danger to the safety and security of Savannah, Georgia residents,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Now that these individuals have been indicted, citizens of the Coastal Georgia area can sleep better at night. This investigation was a success because of spirited law enforcement cooperation between DEA and its law enforcement partners.”
“Those charged in this indictment allegedly harmed our community by spreading toxins throughout the area and further endangered our residents by allegedly using guns to do so,” said Chatham-Savannah Counter Narcotics Team Director Michael G. Sarhatt. “I am grateful for the support CNT continues to receive from our partners at the federal, state, and local levels. The cooperation in this case allowed CNT to conduct the far-reaching investigation necessary to keep our community safe.”
As alleged in the indictment, as early as April 2019, the defendants in the conspiracy coordinated shipments of kilogram quantities of cocaine into the Savannah area for distribution. The 14 firearms seized during the investigation were used to protect the drug trade and its proceeds.
Initial court appearances for the defendants charged in USA v. Gallegos et. al have been held, and all are awaiting further proceedings. Those charged in the indictment, and their charges, include:
- Victory Hugo Gallegos, 43, of San Antonio, Texas, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Robert Canseco, 39, of Houston, Texas, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Adam Mathias Garcia, a/k/a “Flako,” of Decatur, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; two counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; and two counts of Possession of a Firearm by a Convicted Felon;
- William Richard Moore, a/k/a “Billy,” 43, currently incarcerated at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; and Possession with Intent to Distribute Marijuana;
- Aubrey Rodriquez Williams, a/k/a “Gab,” charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and Possession with Intent to Distribute Cocaine;
- Raphael Samuel Smith, a/k/a “Ray Ray,” 50, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine and Marijuana; two counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Possession of a Firearm by a Convicted Felon;
- Japheth Charles Orr, a/k/a “Fatz,” 41, of Pooler, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Eric Lavar Brown, a/k/a “Boss,” 37, of Pooler, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession of Cocaine with Intent to Distribute; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Harold Jenkins Jr., a/k/a “Pound,” 44, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and three counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Suzana Salinas-Garza, a/k/a “Suzy,” 41, of Houston, Texas, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Christopher Joseph Shoemake, a/k/a “Shoe,” 44, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Ebony Antonia Perry, a/k/a “Eb,” charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and Possession with Intent to Distribute Cocaine;
- Reginald Java Brown, a/k/a “Spot,” a/k/a “Red,” 46, currently incarcerated at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Nolan Sental Smith, a/k/a “Hot,” a/k/a “Dredd,” 40, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Vernest Cleveland, a/k/a Peanut,” a/k/a “Vito,” 40, of Springfield, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Antonio Terez Graham, a/k/a “Weezy,” 36, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and,
- Tamika Lashaun Huff, 38, of Scottsdale, Ga., charged with Possession with Intent to Distribute Marijuana.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies involved in the investigation include the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, the FBI, the Savannah Police Department, the Chatham County Police Department, the Chatham County Sheriff’s Office, the Chatham County Aviation Unit, and the Clayton County Sheriff’s Office, with assistance from the U.S. Marshal’s Service.
The case is being prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and OCDETF Coordinator Marcela C. Mateo, and Special Assistant U.S. Attorney Tim Ruffini.
Honduran National Extradited to Eastern District of Texas Sentenced for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SHERMAN, Texas – A Honduran man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Oscar Ruiz Colon, 41, pleaded guilty on Feb. 4, 2021, to conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States and was sentenced to168 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
“The great work of law enforcement in this case demonstrates that criminals cannot avoid federal prosecution by conducting their activities abroad,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to aggressively fight the scourge of drug trafficking at the source, no matter how far away or well-concealed the offenders might be.”
“Criminals who attempt to broker and facilitate cocaine shipments into the United States will meet swift justice through DEA’s tireless efforts to dismantle Transnational Criminal Organizations across the world,” said DEA Special Agent in Charge Eduardo A. Chávez. “We applaud our South American counterparts to remain committed to the rule of law and the DEA will continue to work together to ensure consequences come to those who profit from illicit drugs in our neighborhoods.”
According to information presented in court, beginning sometime in 2017, Colon, a resident and national of Honduras, was a member of a drug trafficking organization responsible for multi-ton cocaine shipments which originated from Colombia, Ecuador, Panama, Costa Rica, Guatemala, and Mexico for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. A federal grand jury returned an indictment charging Colon with federal drug trafficking violations on August 8, 2018.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Hendersonville Man Pleads Guilty to Federal Arson Charges in Connection to Metro Courthouse FireRead the Press Release
NASHVILLE – A Hendersonville, Tennessee man charged last year with the malicious destruction of property at the Metro Courthouse pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. Wesley Somers, 26, was charged in a criminal complaint on June 3, 2020, following protests which escalated to acts of violence and intimidation on the evening of May 30, 2020. Somers was indicted by a federal grand jury on October 14, 2020.
On the afternoon of May 30, 2020, protesters gathered in downtown Nashville following the death of George Floyd in Minneapolis, Minnesota. Later in the evening, several persons gathered in front of the Nashville City Hall, also known as the Metro Courthouse, and began smashing the windows of the premises and spraying graffiti on the Courthouse facade. One or more fires were also set inside of the Courthouse at this time.
Numerous video clips and photographs of the destruction at the Courthouse were posted on social media websites, on the websites for news outlets, and on other Internet sites. Somers is depicted in video clips and photographs from that evening attempting to smash windows of the Courthouse. One photograph depicted Somers holding an unknown accelerant, which had been set on fire, and placing the accelerant through the window of the Courthouse.
Somers was quickly identified by the Metropolitan Nashville Police Department – Specialized Investigation Division, after receiving numerous tips from citizens.
Somers will be sentenced on December 1, 2021, and faces a mandatory minimum of five years and up to 20 years in prison.
This case was investigated by the Metropolitan Nashville Police Department; the FBI; and the Bureau of Alcohol, Tobacco, Firearms & Explosives; Assistant U.S. Attorney Ben Schrader; and Trial Attorney Justin Sher of the Department’s Counterterrorism Section are prosecuting the case.
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Helena man admits to meth trafficking, firearm crimesRead the Press Release
GREAT FALLS – A Helena man accused of trafficking methamphetamine and of possessing a stolen gun admitted charges on Monday, Acting U.S. Attorney Leif M. Johnson said today.
Robert Raymond Fasuga, 38, pleaded guilty during an arraignment and plea change hearing to conspiracy to possess with intent to distribute meth and to possession of a stolen firearm as charged in a superseding information. Fasuga faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the conspiracy charge and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the firearm charge.
Chief U.S. District Judge Brian M. Morris presided and set sentencing for Oct. 13. Fasuga was detained pending further proceedings.
In court documents filed in the case, the prosecution alleged that on June 14, 2020, Fasuga possessed at least one stolen firearm after he fled from law enforcement, pulled two firearms from his person and pointed them to his head. Officers talked him down, and Fasuga later told agents that he assumed the guns were stolen because he paid $50 for each one. Mountain Man Trading Post in Belgrade was the lawful owner of a .380 pistol recovered from Fasuga on that date. In addition, the government alleged that further investigation determined that Fasuga was a meth dealer. On March 24, 2021, during the execution of a federal search warrant, agents found about one pound of meth that Fasuga intended to sell and $6,779 in U.S. currency believed to be drug proceeds.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office investigated the case.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Georgia Woman Going to Prison for Providing Local Gang Members with Illegal GunsRead 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 Brittany Hutcherson, 30, of Lawrenceville, GA, who was convicted of transferring firearms to an out-of-state resident, was sentenced to serve six months in prison by U.S. District Judge John L. Sinatra Jr.
“Though theirs may not be the finger that pulls the trigger, straw purchasers, such as this defendant, help to put guns in the hands of criminals who use them for bad purposes,” noted U.S. Attorney Kennedy. “As such, they are deserving of federal criminal prosecution and being locked-up in federal prison right alongside those trigger pullers who they helped to arm.”
Assistant U.S. Attorney Meghan E. Leydecker, who handled the case, stated that on April 22, 2016, the defendant, a Georgia resident, purchased four firearms from Deaton’s Gun Shop, Inc. in Loganville, Georgia. Between April 22 and July 17, 2016, Hutcherson gave two of the firearms to an individual living in New York State who was a member of the BFL/CBL gang. The defendant knew the individual was a member of the gang and knew it would be unlawful for that individual to possess a firearm in New York State.
On July 17, 2016, Cheektowaga Police Officers conducted a traffic stop of the car Larell Watkins was driving. In the trunk of that vehicle was one of the firearms purchased by Hutcherson on April 22, 2016. Watkins was subsequently convicted for his role in the criminal activities of the BFL/CBL Gang.
On July 29, 2016, another one of the firearms purchased by the defendant was recovered by Buffalo Police Officers from Maurice Rice, another convicted CBL/BFL gang member.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Gary Man ChargedRead the Press Release
HAMMOND- Hailey Gist-Holden, age 26, of Gary, Indiana, has been charged by way of a criminal complaint with armed bank robbery, using, carrying, brandishing and discharging a firearm during the armed bank robbery, and causing death, that being a murder of the bank security guard, announced Acting U.S. Attorney Tina L. Nommay.
According to the complaint filed today, and charges filed in Cause No. 2:21-CR-71, on June 11, 2021, Gist-Holden and James Anthony King Jr. allegedly participated in the armed robbery of First Midwest Bank on Ridge Road in Gary, Indiana, where the use of a firearm resulted in the death of Richard Castellana. On June 17, 2021, co-defendant James Anthony King, Jr., age 24, of Miami, Florida, was indicted for armed bank robbery and for using, carrying, brandishing and discharging a firearm during that robbery causing the death of the security guard, such killing being a murder. Gist-Holden was arrested in Georgia in the early morning hours of June 18, 2021, following a police chase.
“The murder of Richard Castellana was a senseless act of violence,” said Acting United States Attorney Tina Nommay. “Our hearts go out to Mr. Castellana’s family and those other victims terrorized by these criminal acts. Thanks go out to all our law enforcement partners locally and around the country in their determined efforts to apprehend King and Gist-Holden.”
The United States Attorney’s Office emphasizes that both a complaint and indictment are merely allegations, and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This investigation was led by the Federal Bureau of Investigation Gang Response Investigative Team with the assistance of the Lake County Sheriff’s Department; the Lake County Prosecutor’s Office; the Indiana State Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gary Police Department. Additional investigative assistance was provided by FBI Chicago, FBI Miami, and FBI Atlanta along with the Georgia State Police, the Atlanta Police Department and the Lowndes County (GA) Sheriff’s Department. In addition, the U.S. Attorney’s Offices in the Northern District of Georgia, Middle District of Georgia and Middle District of Florida were involved in this cooperative effort. This case is being prosecuted by Assistant United States Attorneys Caitlin Padula, David Nozick, and Kevin Wolff.
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Gang members charged with trafficking young girls for sexRead the Press Release
HOUSTON – Four Houston-area gang members are in custody following the return of a federal indictment on allegations of human trafficking, announced Acting U.S. Attorney Jennifer B. Lowery.
Clarence Chambers aka Chris, 29, is expected to appear today before U.S. Magistrate Judge Peter Bray at 2 p.m. Also charged are Javon Opoku aka Glizzy, 20, Damarquis McGee aka Lil Blue, 23, and Andres Portillo aka Andro, 20. Portillo is set for an initial appearance on July 1 at 2 p.m., while McGee and Opoku are set for their initial appearances on July 6 at 10 a.m.
The defendants are charged with trafficking young runaway girls on what it known as the “Blade” or the Bissonnet Track. This is an area near Southwest 59 Freeway and Bissonnet Street in Houston where traffickers commonly place their victims, according to the charges.
According to the indictment, the defendants worked to recruit underage teenage girls and forced them to engage in sex acts for money in cars and hotels around the Blade. They allegedly passed around or reassigned victims amongst one another, taught each other “the pimp game” and required the young girls to walk the Blade and sell their bodies. They also kept the proceeds, according to the charges.
The indictment further alleges if any of the girls wanted to switch between pimps, they would have to pay an exit fee or get “beat out” to do so.
Some of the defendants also allegedly required daily quotas each night from their victims. If the victims failed to meet their daily quotas, they were severely punished through beatings and humiliation, according to the indictment.
If convicted, Chambers and the others face a minimum of 15 years and up to life in federal prison.
The Houston Police Department initiated the investigation and later partnered with Homeland Security Investigations and the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard Bennett and Kate Suh are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Four L.A. County Residents Found Guilty of Fraudulently Obtaining Millions of Dollars from COVID-Relief ProgramsRead the Press Release
LOS ANGELES – A federal jury has found four Los Angeles-area residents guilty of criminal charges for scheming to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
At the conclusion of an eight-day trial, the following defendants were found guilty on June 25:
- Richard Ayvazyan, 42, of Encino;
- Richard Ayvazyan’s wife, Marietta Terabelian, 37, of Encino;
- Richard Ayvazyan’s brother, Artur Ayvazyan, 41, of Encino;
- Vahe Dadyan, 41, of Glendale.
All four defendants were found guilty of one count of conspiracy to commit bank fraud and wire fraud, 11 counts of wire fraud, eight counts of bank fraud and one count of conspiracy to commit money laundering. Richard Ayvazyan also was found guilty of two counts of aggravated identity theft. Artur Ayvazyan also was found guilty of one count of aggravated identity theft. Vahe Dadyan also was found guilty of one count of money laundering.
On June 28, the jury found the defendants must forfeit bank accounts, jewelry, watches, gold coins, three residential properties and approximately $450,000 in cash.
According to the evidence presented at trial, the defendants used fake, stolen and synthetic identities – including the created identities of “Iuliia Zhadko” and “Viktoria Kauichko” – to submit fraudulent applications for PPP and EIDL loans guaranteed by the Small Business Administration (SBA) under federal law. In support of the fraudulent applications, the defendants often submitted false and fictitious documents to lenders and the SBA, including fake identity documents, tax documents and payroll records.
The defendants then used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags, clothing, and a Harley-Davidson motorcycle. The conspirators obtained more than $18 million in COVID-relief funds.
United States District Judge Stephen V. Wilson has scheduled a September 13 sentencing hearing, at which time each defendant will face decades in federal prison.
Prior to the verdict, the following defendants pleaded guilty to criminal charges in this case:
- Manuk Grigoryan, 46, of Sun Valley, pleaded guilty on June 7 to one count of bank fraud and one count of aggravated identity theft. Judge Wilson has scheduled a September 13 sentencing hearing, at which time Grigoryan will face a statutory maximum sentence of 32 years in federal prison.
- Edvard Paronyan, 40, of Granada Hills, pleaded guilty on June 11 to one count of wire fraud. He will face a statutory maximum sentence of 20 years in federal prison at his August 30 sentencing hearing.
- Tamara Dadyan, 39, of Encino, Artur Ayvazyan’s wife and Vahe Dadyan’s cousin, pleaded guilty on June 14 to one count of conspiracy to commit bank fraud and wire fraud, one count of aggravated identity theft and one count of conspiracy to commit money laundering. She will face up to 52 years in federal prison at her September 27 sentencing hearing.
- Arman Hayrapetyan, 41, of Glendale, pleaded guilty on June 21, to one count of conspiracy to commit money laundering. He will face up to 20 years in federal prison at his sentencing hearing, which is scheduled for September 20.
“Seeking quick riches, the defendants stole federal funds intended to help Americans harmed by the COVID-19 pandemic and the economic carnage left in its wake,” said Acting United States Attorney Tracy L. Wilkison. “The verdicts in this case are the first in this district resulting from a pandemic-related fraud scheme, and we are prepared to bring additional defendants to justice as we continue our efforts to safeguard our nation’s disaster-relief programs.”
The FBI, IRS Criminal Investigation, the Small Business Administration’s Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General investigated this matter.
Assistant United States Attorneys Scott Paetty and Catherine S. Ahn of the Major Frauds Section, Assistant United States Attorney Brian R. Faerstein of the Environmental and Community Safety Crimes Section, Assistant United States Attorney Daniel G. Boyle of the Asset Forfeiture Section, and Trial Attorney Christopher Fenton of the Fraud Section of the Justice Department’s Criminal Division are prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Four California Residents Found Guilty of Scheming to Fraudulently Obtain Millions of Dollars in COVID-19 Relief ProgramsRead the Press Release
A federal jury convicted four California residents on June 25, for scheming to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
After an eight-day trial, Richard Ayvazyan, 42, his wife Marietta Terabelian, 37, and his brother Artur Ayvazyan, 41, all of Encino, were each found guilty of one count of conspiracy to commit bank fraud and wire fraud, 11 counts of wire fraud, eight counts of bank fraud, and one count of conspiracy to commit money laundering. Richard Ayvazyan was also found guilty of two counts of aggravated identity theft and Artur Ayvazyan was found guilty of one count of aggravated identity theft. Vahe Dadyan, 41, of Glendale was found guilty of one count of conspiracy to commit bank fraud and wire fraud, six counts of wire fraud, three counts of bank fraud, one count of conspiracy to commit money laundering, and one count of money laundering.
On June 28, the jury found the defendants must forfeit bank accounts, jewelry, watches, gold coins, three residential properties, and approximately $450,000 in cash.
According to the evidence presented at trial, the defendants used fake, stolen, or synthetic identities – including the created identities of “Iuliia Zhadko” and “Viktoria Kauichko” – to submit fraudulent applications for the loans. In support of the fraudulent loan applications, the defendants also submitted false and fictitious documents to lenders and the Small Business Administration (SBA), including fake identity documents, tax documents, and payroll records. The defendants then used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale, and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags, clothing, and a Harley-Davidson motorcycle. The conspirators obtained more than $18 million in COVID-19 relief funds.
Sentencing is scheduled for Sept. 13.
Prior to the verdict, the following defendants pleaded guilty to criminal charges in this case:
- Manuk Grigoryan, 46, of Sun Valley, pleaded guilty on June 7, to one count of bank fraud and one count of aggravated identity theft. The court has scheduled sentencing for Sept. 13. Grigoryan faces up to 32 years in federal prison.
- Edvard Paronyan, 40, of Granada Hills, pleaded guilty on June 11, to one count of wire fraud. The court has scheduled sentencing for Aug. 30. Paronyan faces up to 20 years in federal prison.
- Tamara Dadyan, 39, of Encino, Artur Ayvazyan’s wife and Vahe Dadyan’s cousin, pleaded guilty on June 14, to one count of conspiracy to commit bank fraud and wire fraud, one count of aggravated identity theft, and one count of conspiracy to commit money laundering. The court has scheduled sentencing for Sept. 27. Dadyan faces up to 52 years in federal prison.
- Arman Hayrapetyan, 41, of Glendale, pleaded guilty on June 21, to one count of conspiracy to commit money laundering. The court has scheduled sentencing for Sept. 20. Hayrapetyan faces up to 20 years in federal prison.
Acting Assistant Attorney General Nicholas L. McQuaid and Acting U.S. Attorney Tracy L. Wilkison of the Central District of California made the announcement.
The FBI, IRS Criminal Investigation, the SBA’s Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General investigated this matter.
Trial Attorney Christopher Fenton of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Scott Paetty, Brian Faerstein, and Catherine Ahn of the Central District of California are prosecuting the case. Assistant U.S. Attorney Dan Boyle of the Central District of California is handling the forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fort Dodge Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 25, 2021, to more than 8 years in federal prison.
Joshua Minich, 43, from Fort Dodge, Iowa, received the prison term after a January 22, 2021, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Minich admitted his involvement from August 2017 through February 2018 in a conspiracy that distributed more than 50 grams of pure methamphetamine in the Fort Dodge area. Evidence showed that on three occasions in 2017 and 2018, Minich distributed meth to individuals cooperating with law enforcement. Evidence further showed that Minich possessed various firearms at various times in 2017 and 2018, including during the time period of his participation in the methamphetamine trafficking conspiracy.
Minich was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Minich was sentenced to 105 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Minich is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa State Patrol, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3034.
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Fort Dodge Man Sentenced to Federal Prison for Drug and Gun CrimesRead the Press Release
A man who possessed a firearm on two occasions while he was prohibited was sentenced on June 24, 2021, to more than 4 years in federal prison.
Kwane Demarchel Wheat, age 27, from Fort Dodge, Iowa, received the prison term after a January 22, 2021, guilty plea to one count of possession of a firearm by a prohibited person and one count of possession of a firearm by a drug user.
At the guilty plea, Wheat admitted that on May 30, 2020, he was in possession of a firearm despite being prohibited under a June 6, 2019, protection order in Webster County. At that time, law enforcement also found marijuana in Wheat’s vehicle. During an April 27, 2019, traffic stop, Wheat was found in possession of a gun, two plastic baggies of marijuana, and cocaine.
Wheat was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Wheat was sentenced to 52 months’ imprisonment. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Wheat is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3031.
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Former U.S. Congressional Candidate Indicted for Federal Election Campaign Act Violations and False StatementsRead the Press Release
BOSTON – A former candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts was arrested today on charges of violating the Federal Election Campaign Act and false statements.
Abhijit Das, a/k/a “Beej,” 47, of North Andover, was indicted on one count of accepting excessive campaign contributions, one count of conduit contributions, one count of conversion of campaign funds, one count of engaging in a scheme to falsify, conceal, and cover up material facts and two counts of making a false statement. Das was arrested today and will make his initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal at 2:30 p.m.
“Mr. Das allegedly solicited illegal campaign donations, used the money for his own business expenses and debts, and then attempted to conceal his actions,” said Nathaniel R. Mendell, Acting United States Attorney for the District of Massachusetts. “We are committed to prosecuting this kind of criminal conduct, because doing so protects the election process and vindicates every voter’s right to law-abiding campaigns and transparent elections.”
“Today, we arrested Abhijit Das for allegedly soliciting his friends and family for at least $125,000 in illegal campaign contributions, repeatedly dipping into his campaign coffers to pay outstanding debts related to his hotel business, and falsifying campaign finance reports to try and cover his tracks,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We believe Mr. Das engineered this calculated scheme to show he was a viable candidate for office, at the expense of voters and the election process. The FBI will continue to investigate allegations of campaign finance abuse like these to ensure openness and fairness in our elections so that everyone’s interests are protected.”
“Campaigns funds are governed by strict federal rules so political contributions aren’t used as personal slush funds, among other reasons,” said Ramsey E. Covington, Boston Field Office Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division. “Today’s indictment alleging campaign finance violations for the personal benefit of the defendant, represent a flagrant violation of those laws and blatant betrayal of the public trust.”
According to the indictment, Das was a candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts in the 2017-2018 election. In order to overcome a fundraising deficit, Das allegedly devised a scheme in or about December 2017 to solicit personal loans from friends and close associates in excess of the legal limit. On or about Dec. 17, 2017, Das allegedly emailed a contributor asking for a friend to support his campaign to reach a specific fundraising goal of over $450,000 by the end of the year and indicated that reaching that goal might need “some engineering.” It is alleged that Das advised a member of his campaign that he would “aggregate” the loans into “one batch” and execute a main transfer into the campaign account.
The indictment further alleges that Das caused three different individuals to contribute approximately $125,000 to his campaign and structured the contributions as personal loans to a family member to circumvent Federal Election Commission (FEC) reporting requirement and contribution limits. Das allegedly concealed the excessive campaign contributions from the FEC, falsely claimed that the funds from the excessive contributions were his own personal funds and engaged in illegal conduit contributions to his campaign.
In addition, the indictment also alleges that between January and May 2018, Das withdrew approximately $314,500 in funds from his campaign account and used at least $267,000 of these funds to pay outstanding debts for his hotel business relating to vendors, the hotel’s yacht and real estate taxes unrelated to his congressional campaign. In making these withdrawals, Das allegedly sought to conceal his conversion of campaign funds by instructing bank tellers to report the withdrawals as separate withdrawal and deposit transactions, rather than direct transfers.
Das allegedly aided and abetted in the submission of false information in quarterly reports to the FEC by overstating the amount of cash-on-hand the Das-for-Congress Campaign had in its campaign bank account. For example, on June 30, 2018, Das allegedly reported that his campaign’s total amount of cash-on-hand was approximately $440,000, when in fact the amount of cash-on-hand in the campaign bank account was less than $5,000.
Each of the charges provide for a sentence of up to five years in prison, three years of supervised release and fine of $250,000, or twice the gross gain or loss, whichever is greater. 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 and IRS-CI Acting SAC Covington made the announcement today. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Corrections Officer Sentenced for BriberyRead the Press Release
Jackson, Miss. – A former federal corrections officer from Lauderdale County, Mississippi, was sentenced to 18 months in federal prison for bribery, announced Acting U.S. Attorney Darren J. LaMarca and James Boyersmith, Special Agent in Charge of the U.S. Department of Justice, Office of the Inspector General.
According to court documents, in approximately July 2018, Ashley Lovett began accepting payments in exchange for smuggling contraband into the Federal Prison in Yazoo County, Mississippi, where she was employed as a corrections officer. Lovett was paid approximately seven thousand dollars by inmates and others for delivering the contraband to inmates inside the facility.
Lovett was indicted and pled guilty to accepting bribe payments in exchange for bringing contraband items into the Yazoo City Federal Corrections Complex.
The case was investigated by the U.S. Department of Justice, Office of Inspector General
The case was prosecuted by Deputy Criminal Chief Dave Fulcher.
Former FEMA Employee Pleads Guilty to Fraudulently Obtaining the Proceeds of Covid-19 Paycheck Protection Program LoanRead the Press Release
Baltimore, Maryland – Tyrese Carter, age 21, of Baltimore, Maryland, pleaded guilty today to wire fraud, in connection with a scheme to obtain the proceeds of a COVID-19 Paycheck Protection Program Economic Injury Disaster Loan from a victim business owner.
The guilty plea 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; Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General; and Inspector General Joseph V. Cuffari, Department of Homeland Security Office of Inspector General.
According to his guilty plea, Carter was employed by the Federal Emergency Management Agency as an Emergency Management Specialist since at least 2018. On April 9, 2020, Carter was detailed to work in a Small Business Administration (SBA) virtual call center, as part of FEMA’s response to the COVID-19 pandemic. Carter was assigned to assist potential disaster loan applicants by answering questions about the SBA’s Economic Injury Disaster Loan (EIDL) program.
As detailed in the plea agreement, Victim A runs a small organic skin care and event center business based in Colorado. In order to maintain her business during the COVID-19 pandemic, Victim A applied for both a Paycheck Protection Program (PPP) loan and an EIDL. On April 4, 2020, Victim A submitted an online EIDL application and requested an advance of $9,000. On April 13, 2020, concerned that the first application did not go through successfully Victim A submitted a second EIDL application. Unbeknownst to Victim A, the second EIDL application was rejected as a duplicate application.
Meanwhile, at the request of Victim A, another bank submitted a PPP application on Victim A’s behalf, which was subsequently approved. On April 30, 2020, Victim A received the proceeds of the PPP loan into her bank account. The next day, Victim A received the proceeds from her original EIDL application into her bank account.
Victim A was confused as to whether the funds from SBA deposited into her bank account was from the PPP or EIDL programs and was concerned that she may have mistakenly been granted two EIDL advances as a result of filing two online EIDL applications. Victim A called the SBA’s helpline on May 4, 2020, to report what she believed may have been an excess payment. Victim A spoke to Carter, telling him that she may have been overpaid by the SBA and requested information on the procedure for returning the excess funds. Carter stated he was not sure how Victim A could return the funds but told her a supervisor would call Victim A with further instructions. Approximately thirty minutes thereafter, Carter telephoned Victim A from a blocked telephone number and falsely identified himself as SBA supervisor Michael Valdes. In fact, there is no one working at SBA by that name. Carter, posing as Valdes, told Victim A that he would send her an email providing directions for returning the funds. That next day, Carter sent an email to Victim A from an email account he had created in the name of [email protected]. The email contained logos appearing to be those of the U.S. Department of the Treasury and the SBA. The email directed Victim A to send $8,738.00 to a PayPal account in the name of “SBA Financial” within one week. Based on the email, on May 5, 2020, Victim A directed her assistant to send $8,738 to the SBA Financial PayPal account as directed in the email. Carter created the SBA Financial PayPal account on May 4, 2020 and closed it on May 20, 2020.
According to the plea agreement, after Victim A sent the payment, she suspected the transaction may have been a fraud and contacted PayPal and her bank. Victim A’s bank reimbursed Victim A. The bank was never reimbursed, sustaining a loss of $8,738. On May 8, 2020, Victim A reported the suspected fraud to the SBA.
Carter admitted that on May 19, 2020, he attempted to transfer the funds from the SBA Financial PayPay account to a bank account he opened, but the transfer was initially held up by the bank. As Victim A was working with her bank to cancel the transaction, Carter again contacted Victim A, posing as Michael Valdes, and asked Victim A to provide an update on the PayPal transfer. In addition, Carter called Victim A posing as another fictitious SBA employee, Nathaniel Williams, in an effort to find out who Victim A had spoken to, purportedly so that Williams could “close her account.” Carter then emailed Victim A from a purported SBA email address Carter created in the name of Nathaniel Williams.
On October 19, 2020, Carter’s bank returned the funds to PayPal, which deposited the funds into a second PayPal account belonging to Carter, since the SBA Financial PayPal account had been closed. Carter then transferred to the funds to another bank account he controlled. The next day, Carter withdrew $6,600 in cash at the bank counter, and another $1,000 from an ATM.
A review of Carter’s phone records reveal that Carter called or attempted to call Victim A’s telephone number six times in May 2020, blocking his caller identification information in each instance.
“Those employed in the federal government make a commitment to serve their country,” stated Acting U.S. Attorney Jonathan F. Lenzner. “Taking advantage of a national emergency in this manner is not only criminal but it is also shameful and unpatriotic. Tyrese cater will now face the legal and financial consequences for exploiting a pandemic that has seriously impacted our nation”.
“This investigation and resulting guilty plea demonstrate our commitment to working with our law enforcement partners to detect, and hold accountable, corrupt Federal employees,” said Inspector General Joseph V. Cuffari. “There is no place in the Federal service for those who take advantage of the citizens they are sworn to protect.”
As part of his plea agreement, Carter will be required to forfeit and pay $8,738 in restitution.
Carter faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Ellen L. Hollander has scheduled sentencing for October 8, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the SBA OIG and the DHS OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, who are prosecuting the case.
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Former City of Rochelle Employee Sentenced to Two Years in Prison for Fraudulently Obtaining $150,000 from Non-Profit Business AssociationRead the Press Release
ROCKFORD — A former employee of the city of Rochelle was sentenced today in federal court before U.S. District Judge Iain D. Johnston for wire fraud.
SCOTT KOTESKI, 58, of Rochelle, was sentenced to two years in federal prison and ordered to pay restitution in the amount of $150,332.17.
Koteski pleaded guilty to the wire fraud charge on March 9, 2021. According to a plea agreement, starting in 2011, Koteski was selected to sit on the board of directors of a non-profit business association and serve as the association's treasurer. As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012, Koteski had signatory authority on the association’s bank account. From September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent. Koteski wrote numerous checks to himself from the association’s bank account, and he deposited the checks into his personal bank account for his personal benefit. Koteski concealed his acts by writing false information on the memo line of the checks to make it appear they were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement.
Additionally, according to the plea agreement, in 2018 Koteski made online payments from the association’s bank account to pay for a personal credit card and a personal loan.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Illinois State Police assisted in the investigation. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former Branch Manager Charged with Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Derline Cunningham, 60, of Greece, NY, was arrested and charged by criminal complaint with bank fraud and conspiracy to commit bank fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from July 2014 to March 2017, the defendant was employed as a bank branch manager, initially at Bank of America and later at Citizens Bank. One of Cunningham’s largest clients was Lucian Development, including Perry Santillo, Christopher Parris, and various entities they controlled, through which they are alleged to have operated a massive, decade-long Ponzi scheme. At the behest of Lucian Development, the defendant repeatedly lied to another bank, which extended millions of dollars of revolving credit to Santillo and Parris, regarding the extent of their assets. Santillo and Parris used the credit to finance the operations of their Ponzi scheme, and but for their access to such credit, the scheme would have collapsed years earlier. The victim bank ultimately lost approximately $335,968 to Santillo and Parris.
Cunningham made an initial appearance today before U.S. Magistrate Judge Mark W. Pedersen was released.
The criminal complaint is the result of an investigation by United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua W. McCallister of the Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the Federal Deposit Insurance Corporation, Office of Inspector General, under the direction of Shimon Richmond, Special Agent-in-Charge Mid-Atlantic Region, and Patricia Tarasca, Special Agent-in-Charge New York Region; and the Securities and Exchange Commission.
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 Jury Convicts Albert Lea Sex Offender for Online Child Sexual ExploitationRead the Press Release
ST. PAUL, Minn. – A federal jury convicted an Albert Lea man on charges related to sextortion and child pornography, announced Acting U.S. Attorney W. Anders Folk.
Following a six-day trial before Judge Wilhelmina M. Wright, Travis Kyle Mayer, 32, was convicted on two counts of production and attempted production of child pornography, one count of distribution of child pornography, one count of possession of child pornography, one count of receipt of child pornography, one count of coercion and enticement of a minor, one count of committing a felony offense involving a minor while required to register as a sex offender, and one count obstruction of justice.
According to the evidence presented at trial, in 2017, Mayer downloaded and received child pornography from a Russian-based child pornography distribution website. In 2018, Mayer sexually exploited a 15-year-old girl, through persuasion and coercion, into producing child pornography, which he then possessed and distributed. This entire time, Mayer was required to register as a sex offender. Between June 20, 2019, and October 11, 2019, Mayer attempted to obstruct the administration of justice by requesting a witness to testify falsely regarding the child sexual exploitation investigation.
Mayer faces up to life in prison. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the FBI and the Albert Lea Police Department.
This case was tried by Assistant U.S. Attorneys Alexander D. Chiquoine and Joseph H. Thompson.
Ex-Mayor of Columbia SentencedRead the Press Release
Columbia, Ill. – The former mayor of Columbia, Illinois, Kevin Hutchinson, was sentenced on Monday to two years’ probation, a $500 fine, and 40 hours of community service for lying to federal investigators about referral commissions he received on city contracts.
Hutchinson, 56, had been charged with one count of making a false statement to the federal Southern Illinois Public Corruption Task Force, also referred to as the Metro-East Public Corruption Task Force. He resigned as mayor of the Monroe County town after his indictment by a federal grand jury in February. Hutchinson pled guilty to the charge in March.
The federal indictment described Hutchinson as a licensed insurance agent who owned a closely held Illinois corporation called BMC Associates, Inc. Unbeknownst to the city council or the city manager, Hutchinson and his corporation received referral commissions from certain insurance contracts the city of Columbia placed with two other companies.
Under the Illinois Public Officer Prohibited Activities law, Hutchinson was prohibited from having a personal financial interest (direct or indirect) in any contract, work, or business of the municipality. Hutchinson failed to disclose his referral commissions on an annual ethics form filed with the county clerk in 2018. The following year, when questioned by an FBI agent and a federal task force officer, he falsely reported that he had no personal financial interest in the city’s insurance contract with one of the two companies.
FBI-Springfield investigated the case.
Assistant U.S. Attorney Norman R. Smith prosecuted the caseEl Departamento de Justicia Resuelve una Investigación sobre Acceso al Idioma y Represalias en los Tribunales del Condado de Fort Bend, TexasRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy un acuerdo con el Condado de Fort Bend (FBC) para mejorar el acceso de personas con dominio limitado del inglés (LEP) a sus tribunales.
Este acuerdo resuelve una investigación del Departamento de Justicia sobre las acusaciones de que los tribunales del FBC discriminaban a los usuarios con LEP por su país de origen, y tomaban represalias contra un denunciante, ambas en infracción al Título VI de la Ley de Derechos Civiles de 1964. El Título VI prohíbe la discriminación por raza, color o país de origen por parte de los beneficiarios de ayuda financiera federal, como el FBC. La investigación del departamento puso de manifiesto la existencia de barreras lingüísticas que dificultaban el acceso de personas con LEP al sistema judicial. Estas barreras incluían el requisito de que los acusados con LEP utilizaran un abogado bilingüe en lugar de un intérprete calificado durante los procesos de declaración de culpabilidad, así como políticas que daban lugar a mayores costos judiciales para padres con LEP en casos de custodia de sus hijos.
“Las personas con dominio limitado del inglés pueden sufrir la pérdida de sus hijos, sus hogares y sus derechos fundamentales cuando enfrentan barreras lingüísticas que les impiden un acceso significativo a nuestro sistema judicial”, dijo la Fiscal General Adjunta de la División de Derechos Civiles, Kristen Clarke. “La División de Derechos Civiles seguirá luchando para garantizar que los tribunales eliminen las barreras que niegan a las personas el acceso a la justicia en condiciones de igualdad. Felicito al condado de Fort Bend por tomar las medidas necesarias para garantizar el acceso lingüístico a los usuarios de tribunales en cumplimiento con el Título VI de la Ley de Derechos Civiles.”
“Fort Bend es uno de los condados con mayor diversidad en nuestro Distrito”, dijo el Fiscal Federal Interino del Distrito Sur de Texas, Mark Donnelly. “Este acuerdo garantizará que todas y todos tengan acceso a nuestros tribunales, independientemente de su país de origen o de su dominio limitado del inglés”.
En virtud del acuerdo, el FBC proporcionará servicios de interpretación sin costo a personas con LEP para casos civiles y penales en los tribunales del FBC. Los tribunales del FBC también revisarán sus planes de acceso lingüístico durante el próximo año, desarrollarán una capacitación obligatoria sobre el Título VI para los tribunales del FBC, proporcionarán capacitación sobre el Título VI en materia de represalias, y emitirán avisos públicos que expliquen la política de no discriminación del Título VI, así como el procedimiento para presentar denuncias en idiomas distintos del inglés. El departamento supervisará estos y otros requisitos durante dos años. El FBC también aceptó pagar una indemnización por daños y perjuicios a un usuario de tribunales con LEP por costos judiciales y a un individuo que alegó haber recibido represalias.
La aplicación del Título VI es una de las principales prioridades de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, consulte su sitio web: www.justice.gov/crt. La información sobre el dominio limitado del inglés y el Título VI está disponible en: www.lep.gov. Los ciudadanos pueden denunciar posibles violaciones de derechos civiles en: https://civilrights.justice.gov/report/.
Downtown Pittsburgh Tax Preparer Charged with Preparing False Income Tax ReturnsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, Acting United States Attorney Stephen R. Kaufman announced today.
The 10-count Indictment named Jessica D. Washington, age 34, as the sole defendant.
According to the Indictment, during 2018, Washington worked as a tax preparer at a tax preparation business in Pittsburgh called EasyTax Refund. It is alleged that Washington prepared tax returns that falsified Schedules C income, and claimed earned income tax credit and an unlawful tax refund.
The law provides for a sentence total sentence of not more than three 30 years imprisonment and a fine of $2,500,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant Pleads Guilty to Stealing $24 Million in COVID-19 Relief Money Through Fraud Scheme that Used Synthetic IdentitiesRead the Press Release
Miami, Fl. -- Today, Hasan Hakim Brown, 45, pled guilty in Ft. Lauderdale federal district court to working with co-conspirators to steal $24 million of COVID-19 relief money by using synthetic identities and shell companies they had created years earlier to commit other bank fraud.
Criminals manufacture synthetic identities by using the personal and financial information of real people (such as stolen social security numbers) with fraudulent, made-up information (such as fake names and dates of birth). They use the new, synthetic identities to open fraudulent bank and credit card accounts and commit other fraud.
Years before the pandemic, Brown and his co-conspirators used complex computer data storage and virtualization machines to manufacture synthetic identities, automatically open bank accounts and shell companies, and monitor bank activity tied to the synthetic (as well as stolen) identities. In 2017, they used the synthetic and stolen identities and associated bank accounts and shell companies to steal money from a bank in Texas.
Then came the COVID-19 pandemic. In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the Paycheck Protection Program, which has authorized hundreds of billions of dollars in forgivable loans to small businesses to use for payroll, rent, utility, and other approved expenses.
Brown and his co-conspirators used their already-established synthetic identities and associated shell companies to fraudulently apply for financial assistance under PPP. They applied for and received $24 million dollars in PPP relief. The money was paid to companies registered to Brown and his co-conspirators, as well as to companies registered to synthetic identities that Brown and his co-conspirators controlled.
Brown pled guilty today to one count of conspiring to commit bank fraud. Brown’s sentencing hearing is scheduled for September 9, 2021, before U.S. District Judge Singhal. Brown faces up to 30 years in federal prison.
The following defendants have also been charged for their role in this scheme: Kevin Kirton and Jean Renald Fleuridor (20-20262-CR-Singhal), and Raul Mauricio Gonzalez (21-mj-02959-EGT). To date, law enforcement has seized approximately $11.5 million dollars in fraudulently obtained funds from members of the conspiracy, as well as Rolex, Baume & Mercier, Hubolt, and Cartier watches.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspection General - Investigations (FDIC-OIG), Atlanta Region; Brian Swain, Special Agent in Charge, United States Secret Service (USSS); Amaleka McCall-Brathwaite, Special Agent in Charge, Small Business Administration, Investigations Division (SBA-OIG), Eastern Regional Office; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Rod Owens, Special Agent in Charge, Social Security Administration, Office of the Inspector General; and Joseph W. Cronin, Inspector in Charge, Miami Division, United States Postal Inspection Service, USPIS, made the announcement.
FDIC-OIG, USSS Miami, SBA-OIG, FBI Miami, SSA-OIG, and USPIS handled the investigation, with assistance from Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Brooke Watson is prosecuting the case. Assistant U.S. Attorney Nicole S. Grosnof is handling asset forfeiture.
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.
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case n21-cr-20262.
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Colorado woman faces bank robbery charges in AlbuquerqueRead the Press Release
ALBUQUERQUE, N.M. – Keylee Rose Moore, 21, of Hesperus, Colorado, made an initial appearance on June 28 in federal court facing a charge of bank robbery. Moore will remain in custody pending a detention hearing scheduled for June 30.
According to a criminal complaint, on June 1, Moore allegedly entered a bank on Louisiana Avenue in Albuquerque and handed a demand note to a teller. After the teller handed money to Moore, Moore allegedly walked out of the bank and fled. On June 6, the FBI received a tip identifying Moore as the person who allegedly robbed the bank. Moore was arrested at her residence in Hesperus on June 17.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Moore faces up to 20 years in prison.
The FBI Albuquerque Division and the FBI Denver Division’s Durango Resident Agency are investigating this case with the assistance of the Colorado Bureau of Investigation, the Rocky Mountain High Intensity Drug Trafficking Area Southwest Drug Task Force, the La Plata County Sheriff’s Department and the Albuquerque Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting this case.
Clay County Man to Federal Prison for Possessing Stolen GunsRead the Press Release
A man who illegally possessed stolen firearms was sentenced June 23, 2021, to almost 6 years in federal prison.
Travis Grote, 43, from Webb, Iowa, pled guilty January 22, 2021, to possessing stolen firearms and possessing firearms as a prohibited person.
Evidence at the hearings, showed that on June 25, 2019, Grote was involved in a transaction to sell multiple stolen firearms to an undercover law enforcement officer. Grote also admitted that he knew he had previously been convicted of conspiracy to manufacture and distribute methamphetamine, in the United States District Court for the Northern District of Iowa, on or about December 19, 2001, and therefore was a felon and prohibited from possessing firearms.
Grote was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Grote was sentenced to 70 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, DCI Crime Laboratory, and Spencer Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4014.
Follow us on Twitter @USAO_NDIA.
Cheektowaga Man Pleads Guilty to Possession of Child PornographyRead 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 James Neyerlin, 36, of Cheektowaga, NY, pleaded guilty before U.S. District Judge John L. Sinatra to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and $250,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that on August 2, 2019, a search warrant was executed at the defendant’s home and several electronic devices were seized. A review of the devices recovered approximately 7,284 images of child pornography, including images of prepubescent minors under the age of 12 engaged in sexually explicit conduct. Neyerlin used the peer-to-peer application BitTorrent to acquire and share videos of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger; and the Town of Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
Sentencing is scheduled for October 28, 2021, at 4:00 p.m. before Judge Sinatra.
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Charleston Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to a federal drug charge.
According to court documents and statements made in court, on December 10, 2017, Drema Setliff, 37, sold a fentanyl and heroin mixture to an individual in South Charleston which resulted in the individual dying from a drug overdose.
Setliff pleaded guilty to distribution of heroin and fentanyl and faces up to 20 years in prison when she is sentenced on September 29, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department.
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Monica Coleman is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00077.
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Camden Man Convicted of Illegal Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Camden man was convicted today of unlawfully possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Marshall Onuorah, 31, of Camden, New Jersey, was convicted on one count of possession of a firearm and ammunition by a previously convicted felon. The jury deliberated two hours before returning the guilty verdict following a four-day trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 29, 2020, Camden County police officers patrolling in their marked patrol car observed Onuorah, a previously convicted felon, appearing to use his hands to conceal an object from the officers’ view. As one of the officers exited the car to approach Onuorah, Onuorah fled. Both officers pursued Onuorah on foot for several blocks before Onuorah surrendered. During his flight, Onuorah discarded a 50-round drum magazine loaded with 46 rounds of ammunition and a firearm with a Glock slide and polymer frame that had been modified to fire as an automatic weapon.
The felon in possession of a firearm and ammunition charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Acting Special Agent in Charge Toby C. Taylor in Newark; officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Senior Trial Counsel Jason Richardson of the U.S. Attorney’s Office in Camden.
California’s Second-Largest Skilled Nursing Facility Operator Pays $450,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Skilled nursing facility operator Plum Healthcare Group LLC and its entity Azalea Holdings LLC, dba McKinley Park Care Center have agreed to pay more than $451,439 to resolve allegations that they violated the False Claims Act, Acting U.S. Attorney Phillip A. Talbert announced today.
Specifically, Plum Healthcare Group agreed to resolve allegations that an employee at its McKinley Park Care Center knowingly created billing records for services that were not actually provided. According to the settlement agreement, Plum Healthcare Group then used these false records to bill Medicare, leading it to obtain Medicare reimbursements that were higher than warranted. The government also alleges that the management of Plum Healthcare Group learned of the extent of these false billings to Medicare, did not conduct an adequate investigation into this conduct, and then failed to submit a refund to Medicare for the full amount management knew had been overbilled or otherwise disclose its false billings to the government.
“Medicare participants who fail to voluntarily disclose fraud risk significant consequences,” said Acting U.S. Attorney Talbert. “As this settlement makes clear, knowingly retaining Medicare funds obtained by fraud is itself a violation of the law, and this office is committed to pursuing enforcement actions to remedy this conduct.”
“It’s unacceptable to stick taxpayers with a bill for health care services that were never provided and for health care executives to look the other way when these false claims were submitted to Medicare,” said Special Agent in Charge Steven J. Ryan of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, we will continue to protect the integrity of Federal health care programs and investigate false billing allegations.”
“The FBI is committed to working with our partners to identify and investigate fraud, especially when it defrauds taxpayer-funded programs,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This settlement serves as a warning to Medicare participants to carefully audit and investigate records and billing to ensure their business operations are not in violation of federal law.”
The settlement with Plum Healthcare Group resolves allegations originally brought in a lawsuit filed by a former employee under the whistleblower provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower will receive over $90,000 as her share of the recovery from Plum Healthcare Group. The whistleblower’s claims for retaliation and attorneys’ fees are not resolved by this settlement.
This case was the result of an investigation by the HHS Office of the Inspector General, the Federal Bureau of Investigation, along with the U.S. Attorney’s Office for the Eastern District of California. Assistant U.S. Attorney Steven Tennyson handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Caldwell Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
BOISE – Conrad Hull, 30, of Caldwell, pleaded guilty to two counts of sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Hull was indicted by a Boise federal grand jury on November 10, 2020.
According to court records, in October 2020, the Idaho Internet Crimes Against Children (ICAC) Task Force received a Cybertip from Kik Messenger. According to the Cybertip, child pornography had been uploaded to a Kik account that was later identified as belonging to Hull.
A state magistrate judge issued a search warrant for Hull’s residence in Caldwell. Law enforcement executed the search warrant and seized a cellphone belonging to Hull. A forensic examination of the cellphone revealed several files of child pornography, including files depicting a 5-year-old child and a 7-year-old child that Hull admitted producing. Hull told law enforcement that he used his cellphone to take explicit images of the two children so that he would have more files to trade on Kik. Hull admitted to distributing the images of the two children to obtain additional files of child pornography.
Hull is scheduled to be sentenced on September 16 and faces a mandatory minimum of 15 years and up to 30 years in federal prison. U.S. District Judge B. Lynn Winmill will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of his plea agreement, Hull agreed to forfeit the cellphone he used in the commission of the offense.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Idaho ICAC Task Force, Caldwell Police Department, and the Canyon County Prosecutor’s Office, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Bộ Tư Pháp kết thúc cuộc điều tra về tiếp cận ngôn ngữ và các hành động trả đũa của các tòa án ở Quận Fort Bend, TexasRead the Press Release
WASHINGTON - Hôm nay, Bộ Tư pháp đã công bố một thỏa thuận dàn xếp với Quận Fort Bend (FBC) về cải thiện khả năng tiếp cận tòa án cho những người có trình độ tiếng Anh hạn chế (LEP).
Thỏa thuận này đưa ra kết luận cho một cuộc điều tra của Bộ Tư pháp về các cáo buộc rằng các tòa án FBC phân biệt đối xử với LEP vì nguồn gốc quốc gia của họ và trả đũa người khiếu nại, cả hai hành vi nói trên đều vi phạm Tiêu đề VI của Đạo Luật Dân Quyền năm 1964. Tiêu đề VI nghiêm cấm những đơn vị nhận hỗ trợ tài chính liên bang, ví dụ như FBC, phân biệt chủng tộc, màu da hoặc nguồn gốc quốc gia. Cuộc điều tra của Bộ Tư pháp đã phát hiện ra những rào cản ngôn ngữ khiến LEP khó tiếp cận hệ thống tòa án một cách hiệu quả. Những rào cản này bao gồm các yêu cầu bắt buộc các bị cáo LEP trong các vụ án hình sự phải sử dụng luật sư song ngữ thay vì thông dịch viên hữu thệ trong thủ tục bào chữa cũng như các chính sách dẫn đến việc các bậc phụ huynh LEP phải chịu án phí cao hơn trong các vụ tranh chấp quyền nuôi con.
Trợ Lý về Dân Quyền của Bộ Trưởng Bộ Tư Pháp Kristen Clarke cho biết: “Những người có trình độ tiếng Anh hạn chế có thể bị mất con cái, nhà cửa và các quyền cơ bản khi họ gặp phải rào cản ngôn ngữ mà khiến họ mất quyền tiếp cận hệ thống tư pháp của chúng ta một cách hiệu quả. Bộ phận Dân quyền sẽ tiếp tục đấu tranh để đảm bảo rằng các tòa án loại bỏ các rào cản khiến tất cả mọi người không thể tiếp cận công lý một cách bình đẳng. Tôi xin dành lợi khen cho Quận Fort Bend vì đã thực hiện các hành động cần thiết để đảm bảo quyền tiếp cận ngôn ngữ cho mọi người dân, tuân thủ Tiêu đề VI của Đạo Luật Dân Quyền.”
Quyền Luật sư Hoa Kỳ Mark Donnelly làm việc cho Hạt phía Nam của Texas cho biết: “Fort Bend là một trong những quận đa dạng nhất trong Hạt của chúng tôi. Thỏa thuận này sẽ đảm bảo tất cả mọi người đều có quyền tiếp cận các tòa án của chúng tôi bất kể nguồn gốc quốc gia của họ là gì hay trình độ tiếng Anh của họ ở mức độ nào.”
Theo thỏa thuận, FBC sẽ cung cấp dịch vụ thông dịch miễn phí cho LEP trong các vụ án dân sự và hình sự tại các tòa án của FBC. Các tòa án của FBC cũng sẽ xem xét các kế hoạch tiếp cận ngôn ngữ của mình trong năm tới, phát triển các khóa đào tạo Tiêu đề VI bắt buộc cho các tòa án FBC, cung cấp khóa đào tạo trả đũa Tiêu đề VI và đưa ra các thông báo công khai giải thích về chính sách không phân biệt đối xử và quy trình khiếu nại của Tiêu đề VI bằng các ngôn ngữ không phải tiếng Anh. Bộ Tư pháp sẽ giám sát các yêu cầu này và các yêu cầu khác trong hai năm. FBC cũng đồng ý bồi thường thiệt hại về án phí cho một LEP đã từng sử dụng dịch vụ của tòa án và cho cá nhân khiếu nại rằng mình bị trả đũa.
Việc thực thi Tiêu đề VI là ưu tiên hàng đầu của Bộ Phận Dân Quyền. Quý vị có thể tìm hiểu thêm thông tin về Bộ phận Dân quyền trên trang web của họ tại www.justice.gov/crt, và thông tin về trình độ tiếng Anh hạn chế và Tiêu đề VI tại www.lep.gov. Tất cả mọi người đều có quyền báo cáo các hành vi vi phạm dân quyền tại https://civilrights.justice.gov/report/.
Brownsville, PA Man Gets Lengthy Sentence for Producing and Possessing Sexually Exploitive Visuals of MinorsRead the Press Release
PITTSBURGH - A former resident of Washington County, Pennsylvania, has been sentenced in federal court to 28 years’ incarceration, consecutive to any state court sentence, and lifetime supervised release on his conviction of Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Sean Houston, age 48, of Brownsville, Pennsylvania. As part of his sentence, the Court ordered Houston to pay $13,709.60 in restitution and a $15,000 special assessment under the Justice for Victims of Trafficking Act of 2015 (JVTA).
According to information presented to the court, on May 20, 2016 and from July 22, 2017 through October 2018, Houston produced and attempted to produce visual depictions of the sexual exploitation of a minor. Additionally, on October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Kaufman commended the Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department, and the Washington County District Attorney’s Office for the investigation leading to the successful prosecution of Houston.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Birmingham Man Sentenced to 60 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced yesterday for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and U.S. Marshal Martin Keely.
United States District Judge Madeline H. Haikala sentenced Lionel Caffey, 27, to 60 months in prison for being a felon in possession of a firearm. Caffey pleaded guilty to the charge in December 2020.
On April 28, 2020, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force went to a Birmingham hotel to arrest Caffey on an outstanding state warrant for attempted murder. According to testimony at his sentencing, Task Force officers encountered Caffey after he walked out of his third-floor hotel room. Caffey fought with officers and reached for his waistband during the struggle. One officer felt a pistol in Caffey’s waistband and alerted the other officers. Caffey broke free from the officers and kicked in the door of another third-floor hotel room. He then attempted to jump out of a closed window at the back of that room, but the window did not break. At that point, officers were able to gain control of him. Even after being cuffed, Caffey continued to reach for his waistband. The pistol was found on the floor in the room where he was handcuffed.
“Convicted felons who possess firearms are among those who are most likely to commit a violent crime,” U.S. Attorney Escalona said. “Prosecuting the drivers of violence in our communities is a top priority of my office.”
The United States Marshals Service Gulf Coast Regional Fugitive Task Force investigated the case. Assistant U.S. Attorney Alan Baty prosecuted the case.
28 June 2021
Winchester Man Pleads Guilty to Robbing and Assaulting Federal Postal Worker and Cocaine PossessionRead the Press Release
BOSTON – A Winchester man pleaded guilty today to robbing and assaulting a federal postal worker and possessing cocaine.
Raymond Acevedo, 29, pleaded guilty in federal court in Boston to one count of robbing a federal postal worker, one count of assaulting a federal postal worker and one count of possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 26, 2021. Acevedo was arrested and charged in November 2019.
On Oct. 24, 2019, a U.S. postal worker attempted to deliver an Express Mail package from Puerto Rico to an addressee in Dorchester. The postal worker was unable to locate the addressee and was returning to his vehicle when another individual, later determined to be Acevedo, approached the postal worker and demanded the package. When the postal worker would not give Acevedo the package, Acevedo assaulted the postal worker, took the package, and a fight ensued. As the postal worker and Acevedo were fighting over the package, police arrived and eventually arrested Acevedo. The postal worker was transferred to a local hospital for the injuries he received during the altercation.
On Oct. 25, 2019, law enforcement officers opened the package pursuant to a federal search warrant and seized approximately 1.390 kilograms of cocaine.
The charge of robbery of United States’ property provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. The charge of assaulting a federal postal worker provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of distribution of cocaine provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
Wilmington Man Sentenced to over 3 Years in Federal Prison for Heroin SmugglingRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that Jose E. Mateo-Nina, 33, of Wilmington, Delaware, was sentenced to 37 months in federal prison today. Mateo-Nina previously pled guilty to possessing over 500 grams of heroin with the intent to distribute. Or, as the Honorable Maryellen Noreika summarized, “You helped to import a lot of heroin—which is a deadly drug.”
According to court documents, on May 1, 2020, U.S. Customs and Border Protection (CBP) officers identified a parcel being sent from Mexico to Wilmington, Delaware. The parcel contained a wheelchair. A search warrant was obtained for the parcel, and over 600 grams of heroin were discovered in the tires of that wheelchair. Homeland Security Investigations (HSI) Agents arrest the Defendant with the parcel after it was delivered.
U.S. Attorney Weiss commented, “During the pandemic, law enforcement officers have seized increasing quantities of illegal drugs transported via the U.S. Postal Service. My office will continue to work with HSI, CBP and other state and federal investigative agencies to disrupt drug trafficking and hold those involved responsible for their actions.”
“Homeland Security Investigations is fully committed to disrupting and dismantling networks engaged in the trafficking of illicit drugs.” said Brian L. Jones, Resident Agent in Charge for Homeland Security Investigations Delaware. “Cases like this are only possible because of the hard work and dedication of our agents, officers and law enforcement partners assigned to the First State Border Enforcement Security Taskforce.
This case was investigated by the HSI Border Enforcement Security Taskforce, which is comprised of agents and task force officers from the Elsmere Police Department, Newport Police Department, Delaware State Police, Army National Guard and United States Postal Inspection Service. HSI was also assisted by the New Castle County Police Department. Assistant U.S. Attorney Christopher L. de Barrena-Sarobe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 01:20-cr-60.
Waterloo Woman Pleads Guilty to Falsifying ATF FormRead the Press Release
A woman who falsely claimed that she was purchasing a firearm for herself pled guilty on June 25, 2021, in federal court in Cedar Rapids.
Jamie Marie Graham, age 23, from Waterloo, Iowa, was convicted of one count of making a false statement during the purchase of a firearm.
At the plea hearing, Graham admitted that she purchased firearms from Mr. Guns in Waterloo in December 2020. Graham admitted that, in connection with those purchases, she filled out a form indicating that she was the actual purchaser of the firearms. She further admitted that those statements were knowingly false, as another person was actually buying the guns.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Graham remains free on bond previously set pending sentencing. Graham faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Safe Streets Task Force and Waterloo Police Department. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-115-CJW.
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Upper Darby Man Pleads Guilty to Straw Purchasing 20+ Handguns Last Summer at Dealers in Southeast PARead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Nafez Hutchings, 22, of Upper Darby, PA, entered a plea of guilty before United States District Court Judge Anita Brody to an Indictment charging 12 counts of providing false information to a federal firearms licensee.
Between June and August 2020, the defendant fraudulently purchased 23 handguns over 12 separate transactions with several different Federal Firearms Licensees (licensed gun stores) in Philadelphia, Montgomery, and Delaware Counties. During each purchase, Hutchings falsely reported his address and declared on Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was the actual purchaser of the firearms, when in reality it was not his intention to keep possession of the weapon. Before his arrest, the defendant admitted to ATF agents that he provided a false address and falsely certified on the ATF forms that he was buying the firearms, when in fact he was buying them on behalf of other individuals.
“Our Office is doing all we can to stem the tide of violent crime in Philadelphia, including indicting and prosecuting criminals who possess firearms when they’re prohibited by law from doing so. But the efforts of law enforcement to keep guns out of the wrong hands are thwarted every time someone straw purchases a weapon like this defendant did, 23 times over,” said Acting U.S. Attorney Williams. “Make no mistake -- If you knowingly buy a handgun for someone else who cannot legally purchase one, and they use it to commit a crime, it is no better than if you had fired that gun yourself. And that is exactly how you will be treated by the federal authorities.”
“Knowingly buying and selling firearms without a license is a violation of federal law, and by doing so, Hutchings circumvented the laws which are designed to protect communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The investigation of firearms diversion from the legal to the illegal market place is ATF’s top priority, and we are committed to working alongside our law enforcement partners to seek justice above anything.”
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 the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Union County Man Charged with Transacting in Criminal Proceeds of a Romance ScamRead the Press Release
NEWARK, N.J. – A Union County man was arrested at Dallas Fort Worth International Airport for transacting in the criminal proceeds of an elaborate romance scam, Acting U.S. Attorney Rachael A. Honig announced today.
Eseosa Obaseki, 36, of Linden, New Jersey, is charged by complaint with engaging in monetary transactions in property derived from wire fraud. He appeared this afternoon before U.S. Magistrate Judge Jeffrey L. Cureton in federal court in the Northern District of Texas and was released in the custody of a third-party custodian pending his initial appearance in the District of New Jersey.
According to documents filed in this case and statements made in court:
Obaseki was the owner of MKO Deliveries Inc. (MKO), a New Jersey-based corporation, and the signatory on a bank account held at Bank-1 (the “Bank-1 account.”) Victim-1 was a resident of Washington State. Individual-1 was a fictious online persona created to defraud Victim-1 and others on online dating and social media applications.
In March or April 2019, Victim-1 was contacted by Individual-1 while playing an internet-based word-game. The pair continued the conversation on a separate internet-based communications platform. Individual-1 and Victim-1 communicated for months on the platform before Individual-1 began asking Victim-1 for money in July 2019. Individual-1, under false pretenses, convinced Victim-1 of his romantic interest in Victim-1, and in doing so, gained Victim-1’s trust.
In June 2019, Individual-1 utilized the communications platform to ask Victim-1 for money. Individual-1 falsely stated to Victim-1 that the money was for business expenses and shipping expenses for a package containing a “box of valuables” that he said he intended to ship to Victim-1. Individual-1 sent Victim-1 emails and messages containing false invoices from a fake shipping company for various fictitious customs fees related to the package.
In January 2020, Individual-1 asked Victim-1 to transfer $100,000 into the Bank-1 account, which only contained $0.41 at the time. Individual-1 falsely represented to Victim-1 that this payment was for expenses associated with the “box of valuables.” On Jan. 9, 2020, based on the fraudulent pretenses, representations, and promises of Individual-1, Victim-1 arranged to have $100,000 wire-transferred from her bank account to the Bank-1 account.
Over the next several weeks, Obaseki systematically drained the Bank-1 account through a series of withdrawals, cashier’s checks, and other transactions. For instance, on Jan. 15, 2020, Obaseki withdrew $12,370 from the Bank-1 account at a branch in Elizabeth, New Jersey, in the form of cash, cashier’s checks, and bank fees.
On Feb. 6, 2020, based on the fraudulent pretenses, representations, and promises of Individual-1, Victim-1 arranged to have $210,000 wire-transferred from her bank account to the Bank-1 account. Again, Obaseki systematically drained the funds from the Bank-1 account through a series of withdrawals, cashier’s checks, and other transactions. For instance, on or about February 7, 2020, Obaseki withdrew $24,394 from the Bank-1 account at a branch in Newark, in the form of cash, cashier’s checks, and bank fees.
Victim-1 never received a package from Individual-1, including any package containing the “box of valuables.” On Feb. 21, 2020, an investigator employed by Bank-1 contacted Obaseki to discuss the wire transfers that occurred in January and February 2020. In a recorded call, Obaseki falsely stated that the recent $210,000 wire transfer had come from someone with whom he had just started working in his car part business.
Each charge of transacting in criminal proceeds is punishable by a maximum potential penalty of 10 years or twice the amount of criminally derived property involved in the transaction.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of George M. Crouch Jr., with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Shawn Barnes and Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney's Office and Fulton County District Attorney launch Summer Initiative to support youth as part of violence-prevention strategyRead the Press Release
ATLANTA – The Atlanta Police Foundation’s At Promise Center hosted the inaugural event for the Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Intervention”), a joint project of the U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office.
“We know from experience that intensive mentoring, such as that provided by our PSN Credible Messenger partners, decreases recidivism and bolsters community safety,” said Acting U.S. Attorney Kurt R. Erskine. “The enthusiasm for this project highlights the recognition among our partners, as well as the law enforcement leaders who support these youth, that prevention and violence interruption must play a central role in making Atlanta safer.”
“Our partnership with the At Promise Youth Center is an important part of our effort to provide young people in Fulton County with a better path forward. We are thrilled that the U.S. Attorney's Office and the Atlanta Police Foundation are working with us this summer to prevent violence through intensive engagement with at risk young people. This program will help the participants live better lives and make our community safer and stronger,” said Fulton County District Attorney Fani Willis.
The Summer Intervention will engage up to 20 youth between the ages of 13 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and an evidenced-based, cognitive-behavioral, life-skills session utilizing the Forward Thinking and Project EGRESS Curriculum. Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from the Arthur M. Blank Family Foundation.
This initiative is being implemented by a team of Southeast Credible Messengers, in connection with the PSN Prevention and Reentry strategy of the U.S. Attorney’s Office. Southeast Credible Messengers are a Community-Based Collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative, led by the Offender Alumni Association (OAA), includes Freedom is a Choice, Inc., EGRESS Consultants & Services, LLC., Mothers Against Gang Violence, Inc., Jump Forward, Inc., and Offender Alumni Association, Inc.
We would also like to thank leadership from the Atlanta field offices of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department for their attendance and support of this inaugural event to provide encouragement to the invited youth.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two men indicted on tax fraud and operating an unlicensed money transmitting businessRead the Press Release
ALBUQUERQUE, N.M. – David Wellington, 62, of Albuquerque, and Jerry Shrock, 46, of Meadowview, Virginia, were indicted on June 23 by a federal grand jury charging them with conspiracy to defraud the United States. Wellington faces an additional count of operation of an unlicensed money transmitting business. Shrock is scheduled for an arraignment on July 15, while Wellington is scheduled to make an initial appearance on July 7.
According to the indictment, since at least 2005, Wellington and his business partner operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services allegedly would open bank accounts under the names and IRS employer identification numbers (EIDs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts.
Since at least 2006, Shrock was a client of Wellington and National Business Services. Through National Business Services, Wellington allegedly created multiple LLCs in New Mexico for Shrock, including White Top Enterprise LLC. National Business Services allegedly opened a bank account in the business name and EID of White Top Enterprise and provided Shrock with access to the funds in the account. Between May 9, 2011, and June 30, 2015, Shrock allegedly deposited and withdrew approximately $4,875,940, of which at least $4,347,101 was income for which Shrock never filed a personal or business tax return with the IRS.
At the time of the deposits and withdrawals, Shrock was subject to an outstanding IRS lien for unpaid taxes, penalties and interest in the amount of approximately $1 million. Because it was not in his name, using the White Top Enterprise account allegedly allowed Shrock to generate and access income while evading both the outstanding assessment and personal and business income taxes.
An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty. If convicted, Shrock faces up to five years in prison and Wellington faces up to 10 years in prison.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Tulsa Man Found Guilty of Voluntary ManslaughterRead the Press Release
A federal jury found a Tulsa man guilty of voluntary manslaughter in Indian Country after killing an Indian man with a knife, announced Acting U.S. Attorney Clint Johnson.
Bradon Kemp, 24, of Tulsa, maliciously killed an Indian man by stabbing him in the head, neck, and torso with a knife on August 4, 2020.
“Bradon Kemp will now be held responsible for his violent criminal behavior. My office takes seriously its special trust responsibility to prosecute violent crimes in Indian Country. I’m extremely proud of the FBI and Tulsa Police Department as well as Assistant U.S. Attorneys Steven Briden and Ed Snow for their tireless preparation and successful prosecution of Mr. Kemp in federal court,” said Acting U.S. Attorney Clint Johnson.
On August 4, 2020, Tulsa Police Department officers responded to a 911 call involving a stabbing at an apartment complex. Kemp and the victim both lived within the same apartment complex. Kemp approached the Indian man through an upstairs landing outside two separate apartment units. He began attacking the male victim with a knife starting on the landing and traveling down the stairs to the sidewalk. Upon landing on the sidewalk, Kemp continued to stab the victim. The victim suffered 12 fatal stab wounds.
Another resident of the apartment complex observed the altercation and intervened to stop Kemp from fleeing the crime scene. Kemp stayed until officers arrived and took him into custody. Officers discovered the deceased victim lying next to Kemp’s knife on the sidewalk.
The victim was a citizen of the Cherokee Nation and the crime occurred within the Muscogee Nation Reservation.
The FBI and Tulsa Police Department served as the investigative agencies. Judge Claire V. Eagan presided over the case. Assistant U.S. Attorneys Steven Briden and Ed Snow prosecuted the case. Braden Bennet Kemp will be sentenced on October 5, 2021.
Target of U.S. Attorney’s Office Anti-Violent Crime Initiative Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jarrel Jakeem Joseph, 25, pleaded guilty to receipt of a firearm while under indictment today before U.S. District Judge Michael J. Truncale.
“We take violent crime seriously in Southeast Texas, and violent individuals who possess firearms will be held accountable,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s guilty plea represents another step forward in making Port Arthur a safer community.”
According to court documents, on March 31, 2021, Joseph and several other individuals were observed fighting by law enforcement in the 1600 block of Vicksburg Avenue in Port Arthur. Joseph left the fight on foot and was observed discarding an object, which was found by law enforcement and determined to be a stolen semiautomatic pistol. Further investigation revealed that on Oct. 8, 2020, Joseph was placed on probation for seven years after a deferred adjudication of guilt for felony possession of a controlled substance in Jefferson County, Texas. Joseph is prohibited from possessing or receiving firearms as part of the deferred adjudication.
Joseph was indicted by a federal grand jury on May 13, 2021. He faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.
Surgical Care Affiliates and Orlando Surgery Center Agree to Pay $3.4 Million to Settle False Claims Act LiabilityRead the Press Release
Orlando, FL – Acting United States Attorney Karin Hoppmann announces today that the Surgical Care Affiliates, LLC and Orlando Center for Outpatient Surgery, LP have agreed to pay the United States $3.4 million to resolve allegations that both companies violated the False Claims Act by submitting claims for kidney stone procedures that were not medically justified and for engaging in an illegal kickback arrangement.
The United States previously intervened in a whistleblower lawsuit against SCA and the Orlando Center on October 15, 2019. The lawsuit and settlement relate to the submission of claims for extracorporeal shock wave lithotripsy, a procedure used to break up kidney stones. According to the lawsuit, Dr. Patrick Hunter was a urologist who performed lithotripsy procedures at the Orlando Center, a facility affiliated with SCA. According to the settlement agreement, between January 2010 and April of 2016, the Orlando Center submitted claims for lithotripsy procedures performed on Medicare and TRICARE patients by Dr. Hunter that were medically unnecessary because the procedures were not medically indicated or because the patients did not have kidney stones.
The settlement agreement also resolves allegations that Dr. Hunter, SCA, and the Orlando Center engaged in an illegal kickback arrangement, where Dr. Hunter performed the lithotripsy procedures in exchange for per-procedure payments from the Orlando Center. Dr. Hunter allegedly agreed to perform his lithotripsy procedures at the Orlando Center in exchange for payments from the Orlando Center, in violation of the Anti-Kickback Statute. SCA vetted and approved the agreement. These procedures were then billed to and paid by Medicare and TRICARE in violation of the False Claims Act.
“Medicare and TRICARE patients are some of our most vulnerable populations,” said Acting U.S. Attorney Karin Hoppmann. “The United States Attorney’s Office will always pursue providers who seek and pay illegal kickbacks or bill for baseless procedures.”
“My office remains steadfast in our commitment to address illegal kickback arrangements within the federal healthcare system,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable individuals and entities who pay or receive kickbacks.”
“We owe it to our beneficiaries to ensure their needs are placed first and the commitment to their care is unwavering. Any time the government is defrauded, it is unacceptable to the American taxpayer, and in this case, Medicare also was a victim. We are grateful to the Department of Justice for working to maintain trust and transparency by ensuring medical providers continue to put their patients’ needs first,” said Defense Health Agency Director, Lt. Gen. Ronald J. Place, M.D.
The settlement resulted from a lawsuit originally filed in the United States District Court for the Middle District of Florida by Scott Thompson. Mr. Thompson sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. The United States intervened in this matter and litigated the case. Mr. Thompson will receive $748,000 of the proceeds from the settlement with SCA and the Orlando Center.
Dr. Hunter passed away in March of 2019. In November 2020, Dr. Hunter’s estate paid the United States $1.75 million to resolve the government’s claims arising from Dr. Hunter’s alleged participation in the scheme.
The United States’ intervention in and settlement of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the HHS Office of Inspector General, and the Defense Health Agency. Assistant United States Attorneys Jeremy R. Bloor and Sean Keefe led the investigation.
The case is captioned United States ex rel. Thompson v. Surgical Care Affiliates et al., Case No. 6:16-cv-2189-PGB-LRH. The settlement resolves the United States’ claims against SCA and the Orlando Center in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Stamford Man Charged with Federal Firearm OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a two-count indictment charging AMIN HASAN, 44, of Stamford, with unlawful firearm possession offenses.
The indictment was returned on March 29, 2021, and Hasan appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charges. Hasan has been detained since his arrest on related state charges in December 2020.
The indictment alleges that, on December 6, 2020, Hasan possessed a loaded Glock 9mm pistol. In May 2019, Hasan was convicted in state court of assault of public safety, emergency medical, public transport or health care personnel.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
It is further alleged that Hasan possessed the pistol while subject to a court order.
The indictment charges Hasan with one count of unlawful possession of a firearm by a felon and one count of unlawful possession of a firearm as a prohibited person. If convicted, Hasan faces a maximum term of imprisonment of 10 years on each count.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation and Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
St. Louis man pleads guilty to drug and weapon chargesRead the Press Release
ST. LOUIS – Landon Whitfield, 26, of St. Louis, Missouri, appeared before United States District Court Judge Ronnie L. White on today’s date and pleaded guilty to one count of possession with intent to distribute fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime.
On November 6, 2019, members of the St. Louis Metropolitan Police Department, while in the Mark Twain Neighborhood, observed Whitfield driving a vehicle with heavily tinted windows. Knowing that this vehicle had previously fled from the officers on several occasions, the officers attempted to conduct a traffic stop on the vehicle. Whitfield fled from the officers and committed numerous traffic violations in the process. In an effort to disable the vehicle, the officers successfully deployed spike strips, deflating two of its tires. Undeterred and causing a substantial risk of death or serious bodily injury, Whitfield continued to flee in the vehicle and almost struck a police car in the process. Whitfield eventually abandoned his vehicle and fled from officers on foot while armed with an AR-15-type firearm.
Several officers confronted Whitfield in an alley. Whitfield raised his firearm. An officer, fearing for his safety, fired one shot in response. Whitfield then dropped his firearm and a green bag he had over his shoulder. Whitfield tried to continue his escape by climbing a nearby fence. Officers deployed a department-issued Taser. allowing them to take Whitfield into custody. The firearm Whitfield possessed was a Matrix Aerospace M556-SC semi-automatic pistol. It was loaded with 22 rounds of ammunition in an extended magazine. Inside Whitfield’s green bag were 345 capsules of fentanyl weighing approximately 37 grams.
Judge White has set sentencing for September 21, 2021.
This case was investigated by the St. Louis Metropolitan Police Department.
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St. Albans Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Antoine Louis, 37, of St. Albans, was sentenced today to 100 months in prison for possession with intent to distribute methamphetamine and heroin, and eight months in prison, to run consecutively, for violating his supervised release from a previous federal drug conviction.
According to court documents and statements made in court, Louis was stopped by law enforcement in St. Albans on October 19, 2020. A police K-9 alerted to the presence of controlled substances and Louis admitted to officers that he had hidden controlled substances on his person. Louis also gave his consent for law enforcement officers to search his residence. During the search of Louis’ home, law enforcement officers located two firearms, six rounds of ammunition, approximately 27.1 grams of methamphetamine and approximately 47.3 grams of heroin. At that time, Louis was on supervised release for a previous federal drug conviction. Louis also admitted that on October 6, 2020, he sold over five grams of heroin to a confidential informant that was working with law enforcement.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney L. Alexander Hamner handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:20-cr-00195 and 3:11-00049-01.
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Reno Man Sentenced for Robbing Two Stores at GunpointRead the Press Release
RENO, Nev. — A Reno resident was sentenced on Friday to 14 years and one month in federal prison for robbing a liquor store and a convenience store at gunpoint in July 2019.
In March 2021, a federal jury convicted Edward Monet Knight, 32, of Reno, of two counts of interference with commerce by robbery and two counts of use of a firearm during and in relation to a crime of violence. Knight already had prior felony convictions, three of which stemmed from incidents where he robbed commercial establishments at gunpoint. On June 25, 2021, Chief U.S. District Judge Miranda M. Du sentenced Knight to 30 days for the two most recent robberies and the statutory mandatory minimum of 14 years for the use of a firearm during those robberies.
According to court documents and evidence presented during trial, on July 7, 2019, Knight racked the slide of a firearm while threatening a clerk at a liquor store in Sparks, Nevada. The next day, on July 8, Knight entered a convenience store and told a clerk: “what do you mean knock it off, with a real gun that’s a good way to get yourself killed.” Knight then pointed a semi-automatic handgun at the clerk and ordered the clerk to give him all the money in the cash register. After Knight fled the store with the stolen money, Sparks Police Department officers responded to the scene. A search of an abandoned vehicle that was seen fleeing the convenience store revealed: a handgun matching the description of the gun used in the robbery; Knight’s identification card; and the stolen money.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF and the Sparks Police Department. Assistant U.S. Attorneys Megan Rachow and Penelope Brady prosecuted the case.
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Real Estate Developer Convicted of BriberyRead the Press Release
UPDATE: In an opinion handed down on Aug. 23, 2022, the Fifth Circuit Court of Appeals vacated the below conviction and remanded it for further proceedings.
A Dallas real estate developer has been convicted of bribing two former Dallas City Council members, Carolyn Davis and Dwaine Caraway, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following two weeks of trial, a federal jury convicted Ruel Hamilton, the president of AmeriSouth Realty Group, of one count of conspiracy and two counts of bribery of an agent of a local government receiving federal funds.
“The people of Dallas deserve true public servants, not those bought and paid for by the city’s elite. By using money to bend elected officials to his will, Mr. Hamilton betrayed the communities he purports to hold dear,” said Acting U.S. Attorney Prerak Shah. “The U.S. Attorney’s Office will not allow a kickback culture to fester at City Hall. To anyone considering this sort of unscrupulous behavior: Think twice. Our prosecutors are tenacious, and we are determined to root out corruption wherever we find it.”
“Public corruption is one of the FBI’s top criminal priorities, it erodes the public’s trust and wastes valuable resources intended for taxpayers," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "Mr. Hamilton used his influence and money to circumvent the system by bribing two city council members to earn incentives for an affordable housing project and push an agenda to increase his political influence. The FBI and our law enforcement partners will continue to ensure that those who pay bribes, accept bribes and facilitate bribe payments are held fully accountable.”
According to evidence presented at trial, from 2013 to 2015, Mr. Hamilton shelled out tens of thousands of dollars in bribes to Carolyn Davis, who was then serving as chair of the city’s Housing Committee.
In return, Ms. Davis – who pleaded guilty to her role in the scheme prior to her death in 2019 – supported Mr. Hamilton’s Royal Crest housing project, voting to authorize a real estate development loan and resolutions supporting an award of a 9 percent tax credit for Royal Crest. Ms. Davis supported the Royal Crest housing project, despite the fact that it failed to meet the city’s enumerated multifamily housing priorities.
In an attempt to disguise the bribe payments, Mr. Hamilton funneled payments to Ms. Davis through a not-for-profit intermediary run by Jeremy “Jay” Scroggins. Mr. Scroggins – who also previously pleaded guilty – testified at trial that he cashed thousands of dollars’ worth of checks, solicited by Ms. Davis and made out to him personally or to his not-for-profit, “Hip Hop Government. Mr. Scroggins testified that he used $15,000 for a Freedom Ride Tour in November 2014, and cashed the remainder of the checks, turning most of the money over to Ms. Davis. The councilwoman told Mr. Scroggins payments would not pose a problem, because people “don’t go to prison for $2,000,” according to a recorded phone call played in court.
Evidence showed that Mr. Hamilton also paid Ms. Davis directly. Over the course of the conspiracy, Mr. Hamilton forked over cash, and on at least one occasion he invited her to accompany him to the bank to make a cash withdrawal. At Ms. Davis’ urging, Mr. Hamilton also directed campaign contributions to a political protégé. Further, Mr. Hamilton promised Ms. Davis a job once she was off the counsel. Evidence showed that Mr. Hamilton paid Ms. Davis in excess of $145,000, once she left the council.
At one point, Mr. Hamilton became concerned that a former city council member was going through their financial dealings with a “fine tooth comb,” telling Ms. Davis, “she scares me.” Even so, he continued to bribe Ms. Davis.
Three years later, in 2018, Mr. Hamilton paid a $7,000 bribe to councilman Dwaine Caraway, who Mr. Hamilton believed could persuade the mayor to put a paid sick leave referendum on the city council’s agenda. Mr. Hamilton hoped the referendum would increase turnout in the polls, advantaging his preferred political candidates.
Video admitted into evidence at trial shows the pair meeting at Mr. Caraway’s office on August 3, 2018:
“I want to do that, so… what can I do for you, right now, today?” Mr. Hamilton asks.
“You can answer that bill I just threw out there for about 62 [$6,200] today,” Mr. Caraway responds.
“Okay,” Mr. Hamilton says. “Can you follow through with the mayor?”
The pair then discuss what Mr. Hamilton should put in the memo line “for posterity” so that “if somebody ever asks, I can come up with a reference.”
[Video clips available to credentialed press upon request.]
Mr. Hamilton, who was originally charged in February 2019, now faces up to 25 years in federal prison – up to five years for the conspiracy count and up to ten years for each bribery count. (He was acquitted of count of use of an interstate facility to commit bribery in violation of the Travel Act, a count that carried a sentence of up to five years.) His sentencing has been set for Nov. 9, 2021.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Tiffany H. Eggers, Chad E. Meacham, Joe A. Magliolo, Andrew Wirmani (fmr.), and Marcus Busch prosecuted the case with support from their appellate liaison, Assistant U.S. Attorney Stephen S. Gilstrap. Chief U.S. District Judge Barbara M. G. Lynn presided over the trial.