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Friday 23 April 2021
Acting U.S. Attorney Urges Mainers to Dispose of Unused Prescription Medications During Take Back Day on SaturdayRead the Press Release
PORTLAND, Maine: Acting U.S. Attorney Donald E. Clark joined the U.S. Drug Enforcement Administration in announcing that DEA will be conducting its 20th National Prescription Drug Take Back Day on Saturday, April 24. Between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at 142 collection sites throughout Maine, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local police department. To find a collection site near you go to deatakeback.com.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 83,544 Americans overdosing during the 12-month period ending July 1, 2020, the most ever recorded in a 12-month period. The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, but accelerated significantly during the first months of the pandemic.
The public can drop off potentially dangerous prescription medications at collection sites that will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
“I urge all Mainers to take advantage of Drug Take Back Day,” said Acting U.S. Attorney Clark. “Misuse of prescription drugs leads to addiction and overdose deaths. We can all do our part to prevent these tragic results by disposing of unwanted, unused or expired prescription medications in our homes.”
Learn more about the event at www.deatakeback.com, or by calling 800-882-9539.
Thursday 22 April 2021
Yankton Man Sentenced for Possession of a Controlled SubstanceRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Yankton, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on April 19, 2021, by U.S. District Judge Karen E. Schreier.
Michael Wayne Zephier, age 40, was sentenced to 3 years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Zephier was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on March 3, 2020. He was found guilty of the lesser offense of Possession of a Controlled Substance as a result of a federal jury trial in Sioux Falls on March 3, 2021.
The conviction stemmed from an incident on February 2, 2020, when Zephier got the car he was driving stuck in a ditch near Marty, South Dakpta. A Yankton Sioux Tribal Law Enforcement officer found the car and noticed it had expired license plates. While the officer was waiting for a tow truck, Zephier arrived in another vehicle and stated the stuck car belonged to a friend who was not from Marty. Zephier then left, but then returned to tell the officer that his friend did not want to come back to his car.
When the officer asked Zephier for his name, Zephier provided a false name. However, the officer knew the actual person whose name Zephier used so the officer instructed Zephier not to leave. Zephier then fled on foot. The officer pursued Zephier on foot, quickly subdued and arrested him. When searched, Zephier had several bags of methamphetamine on him. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, and the Yankton Sioux Law Enforcement. Special Assistant U.S. Attorney Mark Hodges prosecuted the case.
Winterville Man Arrested on Federal Firearm Charge After Attempting to Kill WomanRead the Press Release
GREENVILLE, N.C. – A Winterville man was arrested today on charges of possession of a firearm as a convicted felon after allegedly attempting to kill a woman.
Errol Rahnell Taheim Baston, 36, of Winterville, North Carolina, was arrested by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and is charged by complaint with one count of possessing a firearm as a convicted felon. Baston faces a maximum penalty of 120 months’ imprisonment if convicted. Baston will make his first appearance in federal court today before U.S. Magistrate Judge Kimberly A. Swank, in Greenville, North Carolina.
On April 19, 2021, members of the Greenville Police Department’s Violent Criminal Apprehension Team (VCAT), Emergency Response Team (ERT), and K-9 Unit attempted to serve arrest warrants at Baston’s residence in the 3800 block of Sterling Pointe Drive, Greenville, North Carolina. The charges stem from a domestic incident over the weekend in which Baston reportedly held a woman against her will, repeatedly assaulted and choked her, and attempted to drown her in a bathtub. After a brief standoff, Baston attempted to flee the scene through the rear door of the residence but was ultimately apprehended by a K-9 officer. Officers seized a .40 caliber handgun, a 12-gauge shotgun, and an AR-15 style semi-automatic rifle from the residence. Baston has prior felony convictions for robbery and assault from Kings County, New York.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Greenville Police Department are investigating the case. Assistant U.S. Attorney Aakash Singh is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
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Wheeling man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Lewis Smith, of Wheeling, West Virginia, has admitted to selling cocaine near a local school, Acting U.S. Attorney Randolph J. Bernard announced.
Smith, also known as “Duck,” 50, pleaded guilty today to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Smith admitted to selling cocaine base or “crack” near St. Michael Parish School in January 2018 in Ohio County.
Smith faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterbury Man Sentenced to 29 Months in Federal Prison for Role in Fentanyl and Heroin Trafficking RingRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ERIK RAFAEL POLANCO, also known as “Chino,” 24, of Waterbury, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 29 months of imprisonment, followed by five years of supervised release, for his role in a heroin and fentanyl trafficking ring.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.
On May 18, 2019, Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge. On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin. Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The investigation revealed that Francis Aybar-Peguero received narcotics from members of the Sosa-Ortiz organization and sold them out of his business, the Corner Mini market located on East Farm Road in Waterbury. Polanco worked with Aybar-Peguero to distribute fentanyl and heroin to other drug distributors and customers.
Polanco, Aybar-Peguero and several co-defendants were arrested on October 29, 2019. On that date, investigators executed five search warrants and seized approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash.
On June 2, 2020, Polanco pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin and fentanyl.
Polanco, who is released on a $50,000 bond, is required to report to prison on May 30, 2021.
Sixteen individuals were charged as a result of this investigation. Sosa-Ortiz and Aybar-Peguero pleaded guilty and await sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Lauren Clark and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington Man Sentenced to 10 Years for Drug Distribution in KetchikanRead the Press Release
JUNEAU – Spencer Hill, 24, of Blaine, Washington, was sentenced to 10 years in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine and heroin in Ketchikan, Alaska.
According to court documents, Ketchikan Police Department (KPD) searched the Alaska residence of Hill in November 2019, as part of a drug investigation. During the search, officers found 228 grams of methamphetamine, drug paraphernalia, a money counting machine, a stolen Kel-Tec .22 caliber pistol and keys to a safety deposit box. After obtaining a search warrant for Hill’s safety deposit box, KPD found an additional 1,485 grams of methamphetamine and 815 grams of heroin. In total, Hill had 3.7 pounds of methamphetamine which is the equivalent of 8,410 dosage units and 1.78 pounds of heroin or 8,130 doses – more than the entire population of the Ketchikan Borough.
Records indicate Hill began travelling to Ketchikan in September 2019 to direct the possession and distribution of large amounts of methamphetamine and heroin. Hill collected drug proceeds from others which he then used to purchase more methamphetamine and heroin from his supply source in Washington via the U.S. Postal Service.
Separately, Hill is wanted on a felony warrant in South Dakota involving the trafficking of 22 pounds of marijuana.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The Ketchikan Police Department, U.S. Postal Inspection Service, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Coast Guard Investigative Service, Alaska State Troopers and the Juneau Police Department investigated this case.
This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
This case is part of the U.S. Attorney’s Office, District of Alaska Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative’s ongoing efforts to increase engagement, coordination and action on public safety in Alaska Native communities. The case is also part of Alaska’s High Intensity Drug Trafficking Area (HIDTA) program and the South East Alaska Cities Against Drugs (SEACAD) task force. HIDTA was established in 2018 to enhance and coordinate efforts among local state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska.
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United States Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that the U.S. Attorney’s Office for the District of South Carolina and the Department of Justice’s Office for Victims of Crime is joining communities nationwide in observing National Crime Victims’ Rights Week, an annual celebration of victims’ rights, protections and services. This year’s observance takes place April 18-24 and features the theme, “Support Victims. Build Trust. Engage Communities.”
“A very important part of the U.S. Attorney’s Office is working hand-in-hand with victims of crime, supporting their needs and protecting their rights, while ensuring justice is served for them,” said Acting U.S. Attorney DeHart. “As the theme of this year’s National Crime Victims’ Rights Week highlights, successes in our office come from, in part, the partnership with not only other law enforcement agencies but also with the public. Particularly during this week, we celebrate those in our community who, though victims of crime, remain engaged and stand firm in partnership with law enforcement to ensure justice is realized.”
“Advocacy through community engagement is key to fully serving victims,” said Clarissa Whaley, the U.S. Attorney’s Office’s Victim Services Manager. “While we seek the public’s involvement throughout the year, we especially encourage community partners during National Crime Victims’ Rights Week. Be it through education initiatives or advanced training opportunities, the community has the ability to make a major impact on supporting victims and seeking justice.”
This year marks the 40th annual observance of Victims’ Rights Week, proclaimed first in 1981 by President Ronald Reagan to put crime victims' rights, needs and concerns in a prominent spot on the American agenda. President Reagan’s establishment of the President’s Task Force on Victims of Crime laid the groundwork for a national network of services and legal safeguards for crime victims.
Today, the Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. In South Carolina, the U.S. Attorney’s Office works not only with its federal partners but also its state partners including the South Carolina State Human Trafficking Task Force, the South Carolina Victims Assistance Network, and the South Carolina Attorney General’s Office of Crime Victims’ Compensation to provide essential services to victims, victim compensation, and many other resources.
Despite the COVID-19 pandemic, the United States Attorney’s Office for the District of South Carolina provided over 9,000 victim services, including 200 community events, in 2020.
“The last year has undoubtedly been challenging,” said Office for Victims of Crimes Acting Director Katherine Darke Schmitt. “Victims were often isolated from family, friends, and support systems, and victim service providers grappled with strained resources and formidable barriers to victim outreach and care. So I am particularly proud to once again celebrate the accomplishments of the victims’ rights movement, and to honor the strength and resiliency of victims and service providers.”
“This year’s theme—Support Victims. Build Trust. Engage Communities.—emphasizes the importance of leveraging community support to help victims of crime,” continued Acting Director Schmitt. “Criminal justice and victim service professionals, businesses, healthcare providers, educators, policymakers, houses of worship, and a host of other social and civic groups can work together to ensure that survivors of crime receive the holistic services and support they need. This not only helps the individual heal, but it also improves community safety and wellbeing. In recognition of National Crime Victims’ Rights Week, we invite you to join us in renewing your commitment to respond to crime and violence by helping victims find not only support, recovery, and justice, but also a sense of hope for their future.”
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U.S. Attorney’s Office and FBI Warns Lowcountry and Pee Dee Residents of Telephone Scammers Impersonating Law EnforcementRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart and Federal Bureau of Investigations Special Agent in Charge Susan Ferensic announced today that South Carolinians, particularly those in the Lowcountry and Pee Dee Region, should be on alert for scammers impersonating law enforcement to steal money and identities of victims.
It has been recently reported that callers will “spoof,” or fake their phone numbers, so the calls appear to come from a local police department. They will also provide information like the names of actual law enforcement officers and badge numbers. These scammers sometimes research professional and personal information of the victim, on social media or other open-information sources, to gain trust or make their schemes more believable.
When trust is established, the scammers will attempt to collect money with prepaid debit cards like GreenDot MoneyPak or gift cards to rectify whatever situation the victims are told they are in – such as failing to report for jury duty, failure to appear as an expert witness to a court hearing, or other offenses. The scammers then stay on the phone with the victim, while the victim is instructed to purchase and until the victim provides the prepaid debit card to satisfy the fine.
Although these types of scams have historically targeted the elderly, the recent iteration has primarily focused on professionals, including threatening professionals with the loss of their professional credentials in addition to the identity and monetary theft.
“The best defense to these scams is knowledge and vigilance,” said FBI Special Agent in Charge Ferensic. “Citizens should understand law enforcement will not demand payment of money by way of phone call or email. Suspicious solicitations of this type should be reported to the police or IC3.GOV, a web site maintained by the FBI. We will continue to investigate these complaints and track down the perpetrators.”
To avoid falling victim to such crimes and to help prevent further fraud of this type, Acting U.S. Attorney DeHart offers the following tips:
- Make your social media accounts private and only accept requests and messages from people you know.
- Be wary of answering phone calls from unrecognizable numbers.
- Call, on another phone, the number that you were called from to confirm the legitimacy of the caller and reason for the call.
- Know that a police department or law enforcement officer will never solicit money – particularly through gift cards – from the public.
- Never give your personal information, including banking information – to someone over the phone.
- Do not send money to people or organizations that you do not personally know and trust.
- If you receive a call that appears to be government impersonation fraud, disconnect without providing any personal information and without adhering to the caller’s instructions
- Contact your local police department immediately to report the fraud by calling 911.
- Submit complaints to the FBI at ic3.gov and the Federal Trade Commission, which collects fraud reports nationwide, at reportfraud.ftc.gov.
- Warn family, friends, and associates about the scam, so they can be on high alert.
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U.S. Attorney’s Office and Community Partners Invite the Public to Attend “A Community Day of Hope,” a Public Safety and Victim Resource Event, April 23, 10 am to 2 pmRead the Press Release
The U.S. Attorney’s Office and our partners at Tulsa Metropolitan Ministry, Tulsa County Sheriff’s Office, Tulsa Crime Stoppers, and the Family Safety Center invite the public to attend a public safety and victim resource event:
“A Community Day of Hope,”
Friday April 23, from 10 am to 2 pm
Tulsa’s Promenade Mall (4107 South Yale Ave.).
Will be held outside the mall due to COVID-19 considerations
Acting U.S. Attorney Clint Johnson and Oklahoma Governor Kevin Stitt will attend from 10- 10:30 am.
“On Friday, April 23, from 10 am to 2 pm, I invite the public to join my office and our partners as we show support to victims of crime and share public safety information,” said Acting U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office for the Northern District of Oklahoma stands with victims of crime and their families. We also recognize the unwavering support and vital work that our law enforcement and community partners perform every day to secure victims’ rights and support survivors.”
Approximately 40 law enforcement, victim services and community agencies will share public safety and victim resource information. The Tulsa Fire Department will also distribute 200 backpacks to the public. The Family Safety Center is accepting donations: hygiene products, new stuffed animals, stress balls, pop-top tuna & microwavable mac n cheese, individually wrapped snacks.
Communities nationwide are observing National Crime Victims’ Rights Week, April 18-24, 2021. The week promotes victims' rights, celebrates progress made in the field, and honors crime victims. This year’s theme is “Support Victims. Build Trust. Engage Communities”.
* Throughout the week, the public is also invited to join the U.S. Attorney’s Office and our partners virtually as we observe National Crime Victims’ Rights Week on the U.S. Attorney’s Office’s social media sites (FB: @usaondok; Twitter: @USAO_NDOK).
* Also, in honor of crime victims, several Tulsa businesses have illuminated the sky with pink, purple, or yellow in honor of victims of crime. Businesses include ONEOK, ONE GAS, Oklahomans for Equality, and KJRH Ch. 2. Other businesses are also welcome to join in support.
* Nationally, the Justice Department’s Office for Victims of Crime recognizes individuals and organizations that demonstrate outstanding service in supporting victims. The 2021 National Crime Victims’ Service Awards Ceremony will be held virtually on April 23, 2021, from 3:00 to 4:30 pm eastern time. Learn more and register to watch the ceremony live. #NCVRW2021 https://go.usa.gov/xH3zv
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
Agencies participating in “A Community Day of Hope” on April 23, from 10 am to 2 pm at Tulsa’s Promenade Mall include:
U.S. Attorney’s Office for the Northern District of Oklahoma
Tulsa Crime Stoppers
Tulsa Metropolitan Ministry
Tulsa County Sheriff’s Office
Family Safety Center
Counseling & Recovery Services of Oklahoma
AAA
American Dream Center
Muscogee (Creek) Nation Family Violence Prevention Program
CASA
Oklahoma Department of Human Services - Adult Protective Services
Tulsa Fire Department
Traffic Safety Division/Oklahoma County Sheriff's Office/Oklahoma Highway Safety Office
FBI
Sand Springs Police Department
Tulsa Police Department Victim Witness Unit
Tulsa Police Department Community Engagement Unit
LIFE Senior Services
Oklahoma Highway Patrol
The Coffee Bunker
Surayya Anne Foundation
Tulsa County District Attorney’s Office/Victim Witness Center
Wyandotte Nation Family Violence Prevention Program
SANE Program/Forensic Nursing
211 Eastern Oklahoma, Community Service Council
Marsy's Law of Oklahoma
Camp Hope
Legal Aid Services of Oklahoma
Cherokee Nation One Fire Victim Services
The Tristesse Grief Center
Equality Center of Oklahoma
YWCA
Parkside Psychiatric Hospital & Clinic
Ascension St. John
DVIS (Domestic Violence Intervention Services)
BACA: Bikers Against Child Abuse
The SA Foundation
Camp Hope
U.S. Attorney Announces Extradition of United Kingdom Citizen for His Role in an International Carbon Credit Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that CHRISTOPHER WRIGHT, a citizen of the United Kingdom, was extradited today from Spain. WRIGHT is charged with wire fraud and money laundering relating to his role in a telemarketing scheme involving the fraudulent sale of purported “carbon credits” to victims in the United Kingdom. WRIGHT was arrested in Spain on January 27, 2021, and is the second defendant charged in the case. WRIGHT is expected to be presented on Friday, April 23, 2021, before U.S. Magistrate Judge James L. Cott. WRIGHT’s case is assigned to U.S. District Judge Jesse M. Furman.
U.S. Attorney Audrey Strauss said: “As alleged, Wright and his codefendants deceived retirees in the United Kingdom with false promises of big returns on restricted stock and environmentally friendly ‘carbon credits.’ Many of the victims lost their life savings, while Wright and his criminal associates allegedly hid the proceeds in the United States and overseas. Thanks to the IRS and international cooperation, Wright is now in U.S. custody and facing charges in this District.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The charges in this case are particularly troubling because this scam allegedly targeted the elderly and retirees, many of whom as a result have lost their hard-earned nest eggs. This case is a painful reminder that cold-callers promising substantial investments are almost always looking to prey on the elderly. For those with elderly loved ones, take the time to warn them about these scams.”
According to the allegations in the Indictment:[1]
From in or about 2009 up to and including in or about 2015, WRIGHT and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds of the fraud through bank accounts in the United States and foreign countries. WRIGHT used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily elderly or retired individuals residing in the United Kingdom. Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious. Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more. In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by one of Wright’s co-conspirators. WRIGHT assisted in mailing and emailing of documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims. Victims who tried to sell their investments found they were unable to do so. The victims never received a refund on their principal or any return on their investments.
In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, WRIGHT and his co-conspirators set up overseas bank accounts in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies, which were used to launder a substantial portion of the fraud proceeds.
The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time. From in or about 2009 until in or about 2011, WRIGHT and his co-conspirators sold the stock of Florida-based corporation DirectView Holdings, Inc. (“DirectView”), to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time. In fact, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”
From in or about 2011 until in or about 2015, WRIGHT and his co-conspirators engaged in the sale of fraudulent “carbon credits.” “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere. “Carbon offsets,” which are tied to particular carbon-dioxide emissions reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.” The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return. In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.
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WRIGHT, 48, a citizen of the United Kingdom, is charged with conspiracy to commit mail and wire fraud, substantive mail fraud, and substantive wire fraud, with a penalty enhancement for telemarketing, each of which carries a maximum sentence of 30 years; conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years; and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum sentence of 10 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein and Olga I. Zverovich are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the indictment, and the description of the indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two-Time Felon Sentenced to More Than Six Years for Illegally Possessing FirearmsRead the Press Release
JUNEAU – Jeremy Beebe, 47, of Sitka, Alaska, was sentenced today to 78 months in prison followed by three years of supervised release for illegally possessing firearms.
At the sentencing hearing, U.S. Chief District Judge Timothy M. Burgess noted that the most important sentencing factor in this case was protecting the public from the potential of further crimes by Beebe. Judge Burgess stated that the defendant’s extensive criminal history and the defendant’s possession of firearms along with illegal drugs was a dangerous mix that required a significant sentence to protect the public.
According to court documents, the Sitka Police Department searched the home of Beebe as part of a drug investigation in October 2019. During the search, officers found two rifles, two handguns and other explosive devices as well as methamphetamine, heroin and drug paraphernalia.
Beebe was convicted in 2015 of misconduct involving a controlled substance in the fourth degree and in 2002 he was convicted of sexual assault in the second degree. As someone previously convicted of a felony offense, Beebe is prohibited from possessing firearms or ammunition.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The Sitka Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Jack S. Schmidt prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
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Two key defendants in middle Georgia drug trafficking conspiracy sentenced to federal prisonRead the Press Release
STATESBORO, GA: Two Vidalia, Ga., men who played key roles in an expansive, gang-related drug trafficking ring in middle Georgia each have been sentenced to more than a decade in federal prison.
Justin Adams, a/k/a “Ace,” 40, of Vidalia, and Andre Jackson, a/k/a “Dre,” 31, of Vidalia, were sentenced by U.S. District Court Judge R. Stan Baker, said Acting U.S. Attorney David H. Estes. Adams was sentenced to 165 months in prison, followed by three years of supervised release, while Jackson was sentenced to 188 months in prison, followed by five years of supervised release. There is no parole in the federal system.
Adams, a regional leader in the Gangster Disciples criminal street gang, was sentenced as an armed career criminal after pleading guilty to Distribution of Cocaine and Possession of a Firearm by a Convicted Felon. Jackson pled guilty to Conspiracy to Possess with Intent to Distribute More Than 5 Grams of Methamphetamine, and Quantities of Marijuana and Cocaine.
“These sentences represent significant milestones in the prosecution of Operation Ace in the Hole, a multi-agency investigation disrupting a major source of illegal drugs and guns in the greater Toombs County area,” said Acting U.S. Attorney Estes. “The community is much safer with these defendants behind bars.”
Operation Ace in the Hole, whose name was derived from Adams’ alias, was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated in August 2018 in response to increasing levels of gang violence and drug-related activities in the Vidalia area. Investigators from the Georgia Bureau of Investigation (GBI), working with federal and local law enforcement agencies, identified Deltinaud Toussaint, a/k/a “Black,” a/k/a “Tino,” a/k/a “Tino Black,” 44, of Vidalia, as the primary supplier of the organization’s narcotics – including methamphetamine, cocaine, MDMA or “Ecstasy,” and marijuana – through connections in Atlanta.
In June 2019, investigators executed search warrants at eight houses used for stashing or distributing narcotics in Atlanta and Vidalia, seizing more than two kilos of cocaine, four kilos of marijuana, half a kilo of methamphetamine, more than two kilos of MDMA, pints of Codeine, 600 grams of Xanax, pill presses, and surveillance equipment. The drugs were hidden in such items as children’s backpacks and baby-formula bottles. Investigators also seized 20 firearms, including a fully automatic machine gun and several assault-style rifles, a trove of gang-related documents, and nearly $50,000 in cash.
The investigation culminated in a sealed, 61-count federal indictment returned in January 2020 with 26 defendants charged.
Including Adams, Jackson, and Toussaint, 22 of the 26 defendants have entered guilty pleas; 12 of them have been sentenced, with terms of up to 141 months in prison. Toussaint is among seven defendants awaiting sentencing, while three defendants are awaiting trial. One defendant, Torey Johnny Lee Washington, a/k/a “Fool,” 40, of Vidalia, is a fugitive.
“Illegal guns and drugs have no place in Georgia. They are dangerous and threaten the safety of our communities,” said Vic Reynolds, Director of the GBI. “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations.”
“These sentences reinforce our strong commitment to dismantle gangs that plague our communities with drugs, guns and violence, and threaten the safety of the citizens who live in them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Toombs County residents can take comfort in these two sentences, and many more to follow, that will keep this predatory gang off their streets.”
“These violent, gang-related drug dealers can no longer peddle poison in Vidalia, Ga., and the surrounding community,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration Atlanta Field Division. “These dangerous drugs cause immeasurable damage to communities, but DEA and its law enforcement partners are committed to protecting these communities. Both defendants will serve well-deserved time in prison.”
‘This case is the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The OCDETF case was investigated by the ATF, the DEA, the FBI, the GBI, the Georgia Department of Community Supervision, the Toombs County Sheriff’s Office, the Lyons Police Department, the Oconee Drug Task Force, and the Liberty County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorneys Joseph McCool. And E. Greg Gilluly Jr.
Two Texas Men and One Oregon Man Charged with Fraud Scheme to Obtain over $14 Million in Covid-Relief LoansRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Amaleka McCall-Brathwaite, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA”), Jonathan D. Larsen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Stephen Donnelly, Acting Special Agent in Charge of the Office of the Inspector General of the Board of Governors for the Federal Reserve announced that APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” were charged with participating in a fraudulent scheme to obtain over $14 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. TOUSSAINT and MUNDENDI are expected to be presented tomorrow before a U.S. magistrate judge in the Northern District of Texas. BELLA was arrested on March 18, 2021 in the Eastern District of Virginia. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Audrey Strauss said: “Apocalypse Bella and his co-defendants are charged with engaging in a scheme to obtain over $14 million in fraudulent loans from the government. The Coronavirus pandemic has profoundly affected the global economy, and Government-funded Coronavirus loan programs provide much-needed economic relief to individuals, families, and businesses suffering economic hardships. This Office and our law enforcement partners will continue to ensure the watchful protection of these critical funds from fraud.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged in the indictment, the defendants in this case are charged with fraudulently securing loans intended to help honest small businesses and their employees deal with the pandemic’s economic effects. Our actions should serve as a reminder of our steadfast commitment to bringing justice to those who would seek to illegally leverage government programs for selfishly personal gains. These defendants now face a personal reckoning - the result of which may be an extended stay in federal prison for each of them.”
IRS-CI Special Agent-in-Charge Jonathan Larsen said: “The CARES Act and the Payroll Protection Program have been a life line to help sustain the many small and large businesses who were impacted by the pandemic. The defendants are accused of fraud against these programs solely to enrich themselves, a flagrant and reprehensible abuse of these programs, which has kept so many American businesses afloat. Today’s charges make it clear that IRS-CI and our partners will continue to aggressively root alleged abusers of these programs.”
Acting Special Agent in Charge, Eastern Region, OIG for the Federal Reserve Board and CFPB Stephen Donnelly said: “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.”
SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite said: “Law enforcement will identify all conspirators to pull fraud schemes out by the roots. SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to the Indictment[1] unsealed today in Manhattan federal court:
APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processes loan applications under the SBA’s Paycheck Protection Program (“PPP”), in order to obtain at least approximately $14 million in government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the novel coronavirus/COVID-19 pandemic.
This scheme resulted in the approval of fraudulently procured loans for two companies (“Company-1” and “Company-2”), both located in the Southern District of New York, totaling approximately $4 million, and the distribution of the proceeds of these fraudulently obtained funds to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA.
The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds to the fraud scheme. Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies for the Economic Injury Disaster Loan (“EIDL”) program just months earlier. For instance, the PPP loan application for Company-1 represented that Company-1 had over 100 employees. However, an earlier EIDL loan application for Company-1 dated on or about March 30, 2020, represented that Company-1 had only four employees.
BELLA, TOUSSAINT, and MUNDENDI devised and executed this fraudulent scheme by conspiring with individuals who own, operate or otherwise are affiliated with businesses, such as Company-1 and Company-2. BELLA, TOUSSAINT, MUNDENDI, and other co-conspirators supervised and coordinated the submission of fraudulent PPP loan applications for those businesses, and in some cases, completed and/or submitted the fraudulent applications themselves.
* * *
BELLA, 36, of Clackamas, Oregon, TOUSSAINT, 39, of Irving, Texas, and MUNDENDI, 32, of Dallas, Texas, are charged with one count of conspiracy, which carries a maximum sentence of five years in prison, one count of major fraud against the United States, which carries a maximum sentence of ten years in prison, and one count of wire fraud and wire fraud conspiracy, each of which carry a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the FBI, SBA-OIG, IRS-CI, and the OIG for the Federal Reserve.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorneys Dina McLeod and Eun Young Choi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the indictment, and the description of the indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Pulaski County Men Convicted After Cocaine Conspiracy TrialRead the Press Release
LITTLE ROCK—After a three-day trial, a federal jury has found two Pulaski County men guilty of their involvement in a cocaine distribution conspiracy. James “Richie Rich” Richards, 52, of Wrightsville, and Isaac May, 42, of Sweet Home, were found guilty on all counts when the jury returned their verdict late Wednesday evening. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Richards and May at a later date.
Both Richards and May were charged with and convicted of one count of conspiracy to distribute five kilograms or more of cocaine and several counts of using a phone to facilitate a drug trafficking crime. Richards was also convicted of conspiracy to distribute 28 grams or more of crack cocaine, and one count of distribution of cocaine.
Richards and May were originally charged in August 2018 with nine other defendants, all of whom have already pleaded guilty. The investigation revealed that in December 2017, Richards began supplying May with cocaine that Richards obtained from supplier and codefendant John Garner. In January 2018, Garner began dealing with May directly. Garner supplied May with cocaine two to three times per week until April of 2018.
Garner had a longer relationship with Richards and began using Richards’ home in Little Rock as a base of distribution in 2010. Garner supplied Richards with cocaine on a daily basis, in significant amounts large enough for Richards to distribute to other sellers, including kilogram and ounce quantities. A confidential informant recorded transactions in which he bought cocaine from Richards, and Richards discussing his cocaine distribution activities, and those recordings were played at trial.
At trial, Garner testified against his former customers. He stated that the approximately seven kilograms of cocaine found in his home and at his storage unit during the execution of a search warrants in June 2018 was part of the supply he was using to distribute to Richards and May, among other customers. Had Garner not been arrested, he would have continued distributing to Richards and May from this supply.
In July 2020, Garner was sentenced to 180 months in prison. Other codefendants who have been sentenced in the case include Larry Clark, Jr. – 262 months, Antwan Hardaway – 12 months and 1 day, and Bridgette Williams – 36 months. All remaining defendants, including Richards and May, are awaiting sentencing.
The statutory penalty for conspiracy to distribute more than five kilograms of cocaine is not less than 10 years and not more than life imprisonment, a fine of not more than $10 million, and not less than five years of supervised release. The statutory penalty for distribution of less than 500 grams of cocaine is not more than 20 years’ imprisonment, a fine of not more than $1 million, and not less than three years of supervised release. The statutory penalty for using a phone in furtherance of a drug trafficking crime is not more than four years’ imprisonment, a fine of not more than $250,000, and not more than one year of supervised release. The investigation was conducted by the FBI with assistance from the Arkansas State Police and Arkansas National Guard Counter Drug. The case was prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Two Men Indicted in Rockford on Charges of Illegally Possessing Machine GunsRead the Press Release
ROCKFORD — A federal grand jury returned indictments in separate cases charging two men with illegally possessing machine guns.
The defendants are charged with possessing devices that were used to convert a conventional semi-automatic pistol into a fully automatic firearm. The devices are commonly referred to as “switches,” “auto-sears,” or “conversion devices,” among other names.
The indictments were returned Tuesday in U.S. District Court in Rockford.
In one case, JAVAUGHN A. HIXSON, 21, of Rockford, was charged with three counts of possessing a conversion device, and one count of illegal possession of a firearm as a convicted felon. Hixson pleaded not guilty to the charges during arraignment this afternoon before U.S. Magistrate Judge Lisa A. Jensen. Hixson was ordered to remain detained in federal custody pending trial. According to the indictment, Hixson knowingly possessed conversion devices on Oct. 22, 2020, Nov. 5, 2020, and Dec. 8, 2020. Hixson illegally possessed the firearm - a loaded Glock pistol - on Jan. 4, 2021, the indictment states.
In the other case, MARCUS D. WILLIAMS, 25, of Loves Park, was charged with one count of possessing a firearm that had been converted into a machine gun. According to the indictment, Williams on Jan. 7, 2021, knowingly possessed a loaded Glock .40-caliber firearm that had been converted into a machine gun by an aftermarket “switch” device. Williams is currently in the custody of the Illinois Department of Corrections. His arraignment in federal court has not yet been scheduled.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and Dan O’Shea, Chief of the Rockford Police Department. The government is represented in the Hixson case by Assistant U.S. Attorney Talia Bucci, and in the Williams case by Assistant U.S. Attorney Jessica Maveus.
Each of the counts charged in the indictments carry a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Two Charleston Men Plead Guilty to Federal Gun ChargesRead the Press Release
CHARLESTON, W.Va. – Two Charleston men that were arrested on criminal complaints in February 2021 pleaded guilty today to federal gun charges.
According to court documents, Devonte Lavauhn Andrews, 28, was stopped by officers with the Charleston Police Department on January 24, 2021 while walking on Hale Street. At the time, Andrews had a Taurus PT 738 .380 ACP loaded firearm behind his back. Andrews has a 2016 federal felony conviction for distribution of heroin and is prohibited from possessing firearms.
Also according to court documents, on February 10, 2021, law enforcement officers executed a search warrant at the Charleston residence of William Edward Byers II, 44, and located five firearms. Byers is prohibited from possessing firearms due to a 2016 felony conviction in Kanawha County Circuit Court for conspiracy to manufacture, deliver or possess a controlled substance with the intent to manufacture or deliver a controlled substance.
Andrews and Byers both pleaded guilty to being a felon in possession of a firearm and are scheduled to be sentenced on July 22 and July 21, 2021, respectively. Each faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Lisa G. Johnston of the Southern District of West Virginia made the announcement.
The long-term investigation, dubbed the “Woo Boyz,” resulted in federal charges against 15 individuals and was conducted by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team (MDENT), with assistance from the U.S. Marshals Service and the West Virginia State Police. The Appalachia High Intensity Drug Trafficking Area (AHIDTA) provided critical support to the investigative agencies.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearings. Assistant United States Attorney Monica D. Coleman is prosecuting the cases.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 2:21-cr-00046 (Andrews) and 2:21-cr-00047 (Byers).
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Turlock Man Charged for Large-Scale Drug Trafficking OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Luis Armando Romero Jr., 20, of Turlock, charging him with distribution of methamphetamine.
Acting U.S. Attorney Phillip A. Talbert and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon made the announcement with the California Department of Justice.
According to court documents, on Jan. 28, in Merced County, Romero sold approximately 1 kilogram of a mixture containing methamphetamine. Subsequently, on April 6, law enforcement officers executed a search warrant at Romero’s residence in Huntington Beach and found approximately 280 pounds (127 kilograms) of methamphetamine, 55 pounds (25 kilograms) of cocaine, 20 pounds (9 kilograms) of fentanyl pills, 6.6 pounds (3 kilograms) of fentanyl powder, and 2 pounds (907 grams) of heroin. Agents also seized more than $73,000 in cash.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Area Gang and Narcotic Enforcement Team, the Merced County Sheriff’s Office, and the Los Angeles County Sheriff’s Office. Assistant U.S. Attorneys Antonio J. Pataca and Kathleen Servatius are prosecuting the case.
If convicted, Romero faces a mandatory minimum of 10 years in prison and a maximum of up to life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation, the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Transnational Drug Trafficker Sentenced to 26 Years in Federal Prison for Conspiracy to Distribute Fentanyl, Heroin, Methamphetamine, Cocaine and for Money LaunderingRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Reynaldo Perez Munoz, age 41, of Pasco, Washington, was sentenced after having pleaded guilty on August 28, 2020, to Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, 5 Kilograms or More of Cocaine and 1 Kilogram or More of Heroin, two counts of Money Laundering, and Possession with Intent to Distribute 400 Grams or more of Fentanyl. Senior United States District Judge Edward F. Shea sentenced Reynaldo Perez Munoz to a 26-year term of imprisonment, to be followed by a 7-year term of court supervision after he is released from federal prison. Pursuant to forfeiture proceedings, no additional fine was imposed.
According to information disclosed during court proceedings, this case arose from a Federal Bureau of Investigation (FBI) Task Force investigation in Southern California. The Task Force identified a transnational drug trafficking organization (DTO) and worked in an undercover capacity to identify the DTO’s money laundering activities and locations in the United States where the DTO was trafficking narcotics. Munoz, and other co-conspirators were identified by the FBI as members of the DTO.
The Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington executed several search warrants and seized over 19,000 Fentanyl-laced pills, 40 pounds of heroin, 4 pounds of methamphetamine, 23 pounds of cocaine, and $170,000 in U.S. currency. They found items consistent with packaging large amounts of U.S. currency, multiple firearms, multiple identifications, and other indicia of drug trafficking. In terms of the significance of this drug trafficking organization to which he played a role, the cash money drops further corroborate that in less than one month, this organization was able to hand deliver over $1.25 million in drug cash proceeds. This case involved one of the single largest drug seizures in the Eastern District of Washington. It also involved one of the largest Fentanyl pill seizures at the time.
During court proceedings, it was disclosed that FBI cryptoanalysis analyzed drug ledgers seized from Munoz and determined they reflected an additional $6 million collected in drug cash proceeds and several hundred kilograms of controlled substances to include fentanyl laced pills.
Senior District Judge Shea found that Munoz was the leader organizer of a cell with the Sinaloa Cartel in the Eastern District of Washington. As a leader of the cell operating here, Munoz was responsible for coordinating drug shipments and collecting large amounts of drug cash proceeds that would be sent back to cartel leaders in Mexico.
Acting United States Attorney Harrington said, “This case highlights the joint commitment, dedication, and partnership between our state and federal partners in combatting drug trafficking in our community. I commend their outstanding work. This investigation made a substantial mark upon a large-scale organization that had chosen Eastern Washington as a point of operation. It is these types of investigations that bring into focus the dangers drug trafficking organizations pose to our community.”
"In just a short period of time, Munoz and his co-conspirators coordinated vast shipments of drugs and cash across state and international borders," said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. "Removing these dangerous drugs from Washington state will no doubt save lives and families from the pain of addiction. This sentence reflects the severity of Munoz's actions, and he will have decades in prison to consider the impact of his decisions."
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington, Cross Border Violence Task Force (CBVTF) in San Diego CA, Kennewick Police Department, Richland Police Department, Pasco Police Department, Benton County Sheriff’s Office, and Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Ten Individuals Charged with Disaster Assistance FraudRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned ten separate indictments charging ten individuals with fraudulently applying for disaster benefits from the Federal Emergency Management Agency (FEMA), which is a department of the United States Department of Homeland Security.
In August 2016, severe flooding impacted south Louisiana and a Presidential Disaster Declaration was issued on August 14, 2016 under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The incident period covered August 11, 2016 through August 31, 2016. FEMA was authorized to provide transportation assistance for repair or replacement of a primary vehicle damaged by the disaster.
The indictments allege that on certain dates between September 22, 2016 and November 14, 2016 each of the defendants, acting in concert with others, made false statements and representations to FEMA in an application for transportation benefits and provided certain documentation required by FEMA to process the claim in connection with the Presidential Disaster Declaration for the Louisiana Severe Storms and Flooding. Each application for Disaster Assistance was submitted on behalf of each defendant claiming their vehicle sustained flood damage in Iberia and Lafayette Parishes in Louisiana, when each of them was a resident of St. Mary Parish, Louisiana, which was not included as a designated parish for assistance.
The indictments further allege that each defendant submitted a signed letter to FEMA stating the subject vehicle belonged to the defendant, was their only means of transportation, and was no longer operable. In each case, the repair estimates submitted by each defendant, which ranged from $6,291 to 8,736, were all from repair shops that did not exist. A list of the defendants and the charges they face are as follows:
Defendant Name
Charges
Brittany Nicole Hawkins, 29,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Shannan Latreice Johnson, 45,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Tasha Jesse Louis, 39,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Jarnell Wayne Payne, a/k/a Jernell W. Payne, 43,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Kevin Callery, 54,
Baldwin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Leo Green, Jr., 55,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Robert Joseph Johnson, Jr., 33,
Patterson, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Derrick Shawn Kirt, 44,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Jarmaine Scott Thomas, Jr., 25,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Johnathan D. Wilson, 38,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
If you have any information to report concerning potential FEMA fraud, please call the National Center for Disaster Fraud at 1-866-720-5721.
This investigation is ongoing and is being conducted by the U.S. Department of Homeland Security – Office of Inspector General. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
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Tehama County Man Indicted for Possession with Intent to Distribute Fentanyl and Illegal Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Austreberto Santamaria-Valencia, 25, of Red Bluff, charging him with possession with intent to distribute fentanyl and being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 6, law enforcement officers responded to a report of a suspected overdose by a motel guest in Red Bluff. When officers entered the room, they found Santamaria-Valencia sitting in a chair, unconscious but breathing. On the bed near him, officers saw multiple plastic bags containing what appeared to be blue pills, of the type sold as counterfeit oxycodone pills, but which often contain fentanyl. Officers were able to wake Santamaria-Valencia. In response to their questions, Santamaria-Valencia indicated that he had taken fentanyl. Medical personnel tended to Santamaria-Valencia and confirmed he was not in danger of overdosing. A records check indicated that Santamaria-Valencia had a warrant out for his arrest, and officers arrested him at that time.
Pursuant to an authorized search warrant, after Santamaria-Valencia had been taken to the Tehama County Jail, officers searched Santamaria-Valencia’s room and car and seized approximately 1,000 counterfeit M-30 Oxycodone pills, a loaded Taurus G3C 9 mm semi-automatic pistol, two bottles containing a total of 170 Farmapram (Alprazolam-Xanax) pills, five packets of suboxone strips, 90 grams of marijuana, approximately $7,000 in cash, and other items commonly used in street sales of narcotics.
This case is the product of an investigation by Homeland Security Investigations, the Red Bluff Police Department, the Tehama County Major Crimes Unit, and the Tehama County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Santamaria-Valencia faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the charge of possession with intent to distribute fentanyl. If convicted for being a felon in possession of a firearm, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Syracuse Man Pleads Guilty to Sexual Exploitation of a Child and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Austin Pratt, age 24, of Syracuse, pled guilty today in federal court to both counts of an indictment charging him with Sexual Exploitation of a Child and Distribution of Child Pornography, announced Acting United States Attorney Antionette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Acting New York State Police Superintendent Kevin P. Bruen.
In entering his guilty plea, Pratt admitted that he used the Instagram name “redneck_pratt” to message with a person who represented themselves to be a 15-year-old girl, but who law enforcement later confirmed was an adult male from Nevada. Pratt admitted that the “girl” sent sexually explicit images to him and asked Pratt to produce and send explicit images of himself with young girls. Pratt admitted that he then sexually abused a 10-year-old child, produced images and a video of that abuse, and sent the images and video to the person he believed to be a 15-year-old girl.
Pratt will be sentenced by Hon. David N. Hurd in Utica, NY on August 26, 2021. The terms of Pratt’s plea agreement call for a sentence of at least 20, and up to 30 years imprisonment to be followed by no less than 20 years supervised release. He also faces a fine of up to $250,000, will be required to pay restitution to his victim, forfeit the phone he used to produce and send the images and video of the abuse, and will have to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation, Syracuse Resident Agency and the New York State Police as a part of the Mid-State Child Exploitation Task Force, in cooperation with the Syracuse Police Department and the Onondaga County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Steven A. Humphries Sentenced to Life in Prison for Producing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 21, 2021, Steven A. Humphries, age 51, currently of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, to life imprisonment for producing and possessing child pornography.
Humphries pleaded guilty to an indictment charging him with one count of production of child pornography in violation of 18 U.S.C. § 2251(a) and (e) and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B). Humphries had previously been convicted of sexual offenses against minors and was on state parole and registered as a sex offender at the time of the offenses.
On October 21, 2018, law enforcement officers searched Humphries’ home and found a large cache of child pornography, including depictions of the defendant molesting a prepubescent minor. Humphries had been hiding his child pornography in a waterproof container in the pond behind his home.
“The United States is committed to vigorously investigating and prosecuting child sex predators,” stated Acting U.S. Attorney Francis M. Hamilton III. “This prosecution and sentence demonstrate that registered sex offenders will be prosecuted to the fullest extent of the law if they reoffend.”
The Federal Bureau of Investigation investigated this case.
Assistant United States Attorney Jennifer Kolman represented the United States in Court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Statement by Attorney General Merrick B. Garland on Earth DayRead the Press Release
On April 22, 1970, millions of people across America came together and sparked a movement that led to the enactment of many of our nation’s foundational environmental laws, including the Clean Air Act, the Endangered Species Act, the Clean Water Act, and the Safe Drinking Water Act. Today, as billions of people around the world celebrate Earth Day, I want to acknowledge Department of Justice attorneys, investigators, and professional staff who work every day to advance the cause of justice by enforcing those laws.
Although environmental crime and injustice can happen anywhere, communities of color, low-income communities, and tribal communities often bear the highest burden of the harm caused by environmental crime, pollution, and climate change. Earlier this week, I was proud to join EPA Administrator Michael Regan in announcing the nation’s first-ever Environmental Crime Victim Assistance Program.
This joint effort, which will empower environmental crime victims to participate fully and equally in our justice system, was developed and will be coordinated by the Justice Department’s Environment and Natural Resources Division and the EPA, with financial support from DOJ’s Office for Victims of Crime. The program will help ensure that victims of federal environmental crimes are properly identified, that their rights are protected, and that they receive the services and support they need — from the opening of an investigation through the final adjudication of the case.
For 151 years, the Justice Department’s mission has been to ensure equal justice under law. On this 51st Earth Day celebration, we honor our mission by advancing the cause of environmental justice.
Read the Attorney General’s remarks at the DOJ-EPA Listening Session on Promoting Justice for Victims of Environmental Crime here.
St. Francis Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on April 19, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Charles Cordier, III, age 22, was sentenced to 10 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cordier was indicted by a federal grand jury on January 14, 2020. He pled guilty on February 1, 2021.
The conviction stemmed from an incident that occurred in the afternoon of November 5, 2019, in Rosebud, South Dakota. On that date, Cordier was arrested by a Rosebud Sioux Tribe Law Enforcement Services Officer for assaulting his girlfriend and placed in a patrol vehicle. As the arresting officer was preparing to depart the scene, Cordier began kicking the patrol vehicle window. The officer opened the door to restrain Cordier, at which point Cordier head-butted and kicked the officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Cordier was immediately turned over to the custody of the U.S. Marshals Service.
St. Croix Man Apprehended with Gun, Ammunition, Drugs and Money Sentenced to 5 Years in Prison on Federal Firearm ChargeRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Rakem Hendrickson, 29, of St. Croix, appeared before Chief Judge Wilma A. Lewis, in District Court on April 21, 2021, and was sentenced on the charge of Use of a Firearm During a Drug Trafficking Crime. Chief Judge Lewis sentenced Hendrickson to a 5-year prison term, a 4-year period of supervised release, a fine of $1,000, and assessed a special assessment of $100.
According to court documents, on February 16, 2018, the Virgin Islands Police Department (VIPD) received a tip from a concerned citizen that Hendrickson was selling drugs from his Jeep Wrangler, that Hendrickson was known to carry a firearm, and that he routinely parked the Jeep in the vicinity of Dynasty (Paul’s) Grocery Store. VIPD officers established surveillance at that location and thereafter observed Hendrickson park and exit his vehicle. Officers observed drug paraphernalia consisting of a clear plastic bag containing multiple vials in plain view, located in the back of Hendrickson’s Jeep. Shortly thereafter, officers obtained and executed a search warrant. As a result, officers located and confiscated a loaded Glock 22 Austria handgun, 2 additional magazines, 82 rounds of ammunition, approximately 133 grams of marijuana, drug paraphernalia in the form of 94 plastic vials, a digital scale, 2 mason jars, plastic baggies, and $2,584 cash. The foregoing occurred within 1,000 feet of the Lew Muckle Elementary School.
The Virgin Islands Police Department and Homeland Security Investigations investigated the case. The DEA Southeast Laboratory in Miami analyzed the marijuana.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Southern Illinois Professor Indicted for Grant FraudRead the Press Release
CARBONDALE, Ill. – A mathematics professor and researcher at Southern Illinois
University – Carbondale (SIUC) is under federal indictment for grant fraud. Mingqing Xiao, 59,
of Makanda, Illinois, is accused of fraudulently obtaining $151,099 in federal grant
money from the National Science Foundation (NSF) by concealing support he was receiving
from an arm of the Chinese government and a Chinese public university. Xiao is charged with
two counts of wire fraud and one count of making a false statement.
The prosecution is part of the Justice Department’s ongoing China Initiative. Led by the
Department’s National Security Division (NSD), the China Initiative is an effort to safeguard
American intellectual property and research programs and counter the multi-faceted threat posed by
the PRC government to U.S. national security.While the Chinese government maintains ambitious strategic goals to dominate certain
global economic sectors, its ability to achieve those goals is hampered by its lack of domestic
innovation. Comments made by Chinese Premier Li Keqiang at a Communist Party gathering in March
2019 underscore this dilemma: “Our capacity for innovation is not strong and our weakness in terms
of core technologies for key fields remains a salient problem.”¹ Given this identified weakness,
China resorts to various forms of economic aggression to achieve its strategic goals, including
hacking, theft, espionage, and recruiting “non-traditional collectors” in academia to acquire U.S.
technologies and intellectual property. The China Initiative works with academia and private
industry to combat the PRC government’s diverse counterintelligence threats.“Again, an American professor stands accused of enabling the Chinese government’s
efforts to corruptly benefit from U.S. research funding by lying about his obligations to, and
support from, an arm of the Chinese government and a Chinese public university,” said John C.
Demers, Assistant Attorney General for National Security. “Honesty and transparency about funding
sources lie at the heart of the scientific research enterprise. They enable U.S. agencies to
distribute scarce grants for scientific research fairly and equitably. And they allow other
researchers to evaluate potential conflicts of interest and conflicts of commitment. When
researchers fall short of fulfilling these core academic values in ways that violate the
law, the Department stands ready to investigate and prosecute.”
1
Source: http://www.china.org.cn/china/NPC_CPPCC_2019/2019-03/16/content_74578930.htm“We know that China exploits American universities to further the aims of the Chinese Communist
Party,” said U.S. Attorney Steven D. Weinhoeft. “That’s one reason why the National
Science Foundation requires applicants to disclose all sources of support, including foreign ties,
as a condition to receive federal grant funding. Prosecutions like this one play a critical role,
not just in protecting American investments in academic research from foreign exploitation,
but also in combating the growing threat that China poses to our national security.”
“The FBI takes seriously its commitment to work with our partners in academia to
protect U.S. research funded grants,” said Sean M. Cox, FBI-Springfield’s Special Agent
in Charge. “This investigation, like so many others, should serve as a reminder that failure to
be truthful and transparent on an application for U.S. funded grants is a violation of the law. In
this case the applicant allegedly failed to disclose his affiliation with China. Individuals who
fail to disclose their affiliation with any foreign nation will be held accountable.”According to the indictment, Xiao has worked in SIUC’s mathematics department since
2000, focusing his research on partial differential equations, control theory, optimization theory,
dynamical systems, and computational science. In that position, Xiao (who is an American citizen)
allegedly applied for and received NSF grant funds for a project set to run from 2019 to 2022
without informing NSF about another, overlapping grant he had already received from the Natural
Science Foundation of Guangdong Province, China. Xiao also allegedly failed to inform NSF that he
was on the payroll of Shenzhen University, a public university in Guangdong Province, and
that he had already committed to teaching and conducting research at Shenzhen University from
2018 to 2023.The indictment further alleges that in March 2019, while his NSF grant proposal was still pending,
Xiao submitted another grant proposal to the Natural Science Foundation of China. According to the
indictment, Xiao allegedly applied for the funds as an employee of Shenzhen University and did not
disclose the new Chinese proposal to NSF. Xiao is charged with falsely certifying to SIUC that his
NSF grant proposal was true, complete, and accurate.Before awarding the grant, NSF questioned Xiao about any current or pending funding
from “worldwide sources,” including specifically whether he held any position outside the United
States or had obtained funding from any non-US funding sources. The indictment accuses Xiao of
falsely reporting to NSF that he had nothing else to disclose.The defendant’s initial court appearance has not yet been scheduled. If convicted, Xiao
faces a maximum penalty of 20 years in prison on each count of wire fraud and 5 years in prison
for making a false statement. All three charges are also punishable by a fine of up to $250,000. A
federal district court judge will determine any sentence after considering the U.S. Sentencing
Guidelines and other statutory factors.FBI-Springfield, the IRS, and the Department of Homeland Security are investigating the
case. Assistant U.S. Attorney Peter T. Reed is prosecuting the case, with assistance
from NSD’s Counterintelligence & Export Section.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.
xiao_indictment.pdf
Six Language Recruiters Indicted for Recruiting Unqualified Linguists for Deployment with U.S. Armed Forces in AfghanistanRead the Press Release
UPDATE
The indictment described in the press release below was dismissed without prejudice by U.S. District Court Judge Leonie M. Brinkema on June 23, 2021.
ALEXANDRIA, Va. – A federal grand jury in the Eastern District of Virginia returned an indictment Wednesday charging six former employees of a government contractor for their role in a conspiracy to commit wire fraud in connection with a U.S. government contract to recruit and deploy qualified linguists to Afghanistan where they would provide language services in Dari and Pashto to the U.S. military, including interacting with Afghan civilians and military forces.
According to court documents, Mezghan N. Anwari, 41, of Centerville, Virginia, Abdul Q. Latifi, 45, of Irvine, California, Mahjoba Raofi, 47, of San Diego, California, Laila Anwari, 54, of Fredericksburg, Virginia, Rafi M. Anwari, 54, of Centerville, Virginia, and Zarghona Alizai, 48, of Annandale, Virginia, were employed as linguist recruiters for the Arlington, Virginia-based government contractor, which performed subcontract services such as recruiting linguists to serve in support of U.S. military operations, pursuant to a U.S. government prime contract valued in excess of $700 million.
“As alleged in the indictment, the defendants exploited the trust placed in them by the U.S. military and recruited unqualified linguists to be deployed to Afghanistan,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who undermine the integrity of the procurement process and potentially jeopardize the United States’ mission overseas.”
The indictment alleges, among other things, that the defendants knowingly recruited linguists who lacked the minimum language proficiency in Dari or Pashto. The defendants arranged for other individuals with stronger language skills to fraudulently impersonate the unqualified linguist candidates during oral proficiency interviews, which were tests independently conducted by another government contractor to ensure that candidates identified by the defendants met minimum proficiency standards. In so doing, the defendants sought to make it appear that the linguist candidates possessed stronger language skills than was the case and to ensure that their unqualified linguist candidates would receive passing scores. At times, the defendants themselves fraudulently impersonated candidates during interviews. During the scheme, the defendants received a base salary plus a series of incentive-based bonuses determined by how far through a multi-step vetting process a recruited candidate progressed.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves at the expense of American soldiers and military operations in Afghanistan,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Fraud and abuse of U.S. government contracts paid for by the American taxpayer, and designed to support our men and women uniform, will not be tolerated.”
“This indictment alleges serious crimes that threatened to put American troops at greater risk in a combat zone,” said John F. Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud that SIGAR special agents and their investigative partners got to the bottom of this alleged scheme. We remain committed to protecting our country’s investment in Afghanistan reconstruction, and to pursuing justice anytime that investment is put at risk.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Department of Defense’s procurement system” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for DCIS. “The special agents of DCIS along with our investigative partners will vigorously investigate contractors who attempt to rig the system for their own ill-gotten gain. Illicit conduct of this sort deprives our military forces of crucial services and cheats the American taxpayer. We remain steadfast in our mission to root out fraud against U.S. Department of Defense and bring those responsible to justice.”
Mezghan Anwari is charged with conspiracy to commit wire fraud and six counts of wire fraud. Latifi is charged with conspiracy to commit wire fraud and five counts of wire fraud. Raofi is charged with conspiracy to commit wire fraud and two counts of wire fraud. Laila Anwari is charged with conspiracy to commit wire fraud and two counts of wire fraud. Rafi Anwari is charged with conspiracy to commit wire fraud and three counts of wire fraud. Alizai is charged with conspiracy to commit wire fraud and two counts of wire fraud.
The defendants are scheduled for arraignment on May 5, before U.S. District Court Judge Anthony J. Trenga in the Eastern District of Virginia. If convicted, each of the defendants face a maximum of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Special Inspector General for Afghanistan Reconstruction (SIGAR), the U.S. Army Criminal Investigation Command, and DCIS are investigating the case.
Assistant U.S. Attorney Matthew Burke and Trial Attorneys Michael McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-85.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Six Language Recruiters Indicted for Recruiting Unqualified Linguists for Deployment with U.S. Armed Forces in AfghanistanRead the Press Release
UPDATE
The indictment described in the press release below was dismissed without prejudice by U.S. District Court Judge Leonie M. Brinkema on June 23, 2021.
A federal grand jury in the Eastern District of Virginia returned an indictment Wednesday charging six former employees of a government contractor for their role in a conspiracy to commit wire fraud in connection with a U.S. government contract to recruit and deploy qualified linguists to Afghanistan where they would provide language services in Dari and Pashto to the U.S. military, including interacting with Afghan civilians and military forces.
According to court documents, Mezghan N. Anwari, 41, of Centerville, Virginia, Abdul Q. Latifi, 45, of Irvine, California, Mahjoba Raofi, 47, of San Diego, California, Laila Anwari, 54, of Fredericksburg, Virginia, Rafi M. Anwari, 54, of Centerville, Virginia, and Zarghona Alizai, 48, of Annandale, Virginia, were employed as linguist recruiters for the Arlington, Virginia-based government contractor, which performed subcontract services such as recruiting linguists to serve in support of U.S. military operations, pursuant to a U.S. government prime contract valued in excess of $700 million.
The indictment alleges, among other things, that the defendants knowingly recruited linguists who lacked the minimum language proficiency in Dari or Pashto. The defendants arranged for other individuals with stronger language skills to fraudulently impersonate the unqualified linguist candidates during oral proficiency interviews, which were tests independently conducted by another government contractor to ensure that candidates identified by the defendants met minimum proficiency standards. In so doing, the defendants sought to make it appear that the linguist candidates possessed stronger language skills than was the case and to ensure that their unqualified linguist candidates would receive passing scores. At times, the defendants themselves fraudulently impersonated candidates during interviews. During the scheme, the defendants received a base salary plus a series of incentive-based bonuses determined by how far through a multi-step vetting process a recruited candidate progressed.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves at the expense of American soldiers and military operations in Afghanistan,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Fraud and abuse of U.S. government contracts paid for by the American taxpayer, and designed to support our men and women uniform, will not be tolerated.”
“As alleged in the indictment, the defendants exploited the trust placed in them by the U.S. military and recruited unqualified linguists to be deployed to Afghanistan,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who undermine the integrity of the procurement process and potentially jeopardize the United States’ mission overseas.”
“This indictment alleges serious crimes that threatened to put American troops at greater risk in a combat zone,” said John F. Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud that SIGAR special agents and their investigative partners got to the bottom of this alleged scheme. We remain committed to protecting our country’s investment in Afghanistan reconstruction, and to pursuing justice anytime that investment is put at risk.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Department of Defense's procurement system” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for DCIS. “The special agents of DCIS along with our investigative partners will vigorously investigate contractors who attempt to rig the system for their own ill-gotten gain. Illicit conduct of this sort deprives our military forces of crucial services and cheats the American taxpayer. We remain steadfast in our mission to root out fraud against U.S. Department of Defense and bring those responsible to justice.”
Mezghan Anwari is charged with conspiracy to commit wire fraud and six counts of wire fraud. Latifi is charged with conspiracy to commit wire fraud and five counts of wire fraud. Raofi is charged with conspiracy to commit wire fraud and two counts of wire fraud. Laila Anwari is charged with conspiracy to commit wire fraud and two counts of wire fraud. Rafi Anwari is charged with conspiracy to commit wire fraud and three counts of wire fraud. Alizai is charged with conspiracy to commit wire fraud and two counts of wire fraud. The defendants are scheduled for initial court appearances on May 5, before U.S. District Court Judge Anthony J. Trenga of the U.S. District Court for the Eastern District of Virginia. If convicted, each of the defendants face a maximum of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
SIGAR, the U.S. Army Criminal Investigation Command, and DCIS are investigating the case.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
Trial Attorneys Michael McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Burke of the Eastern District of Virginia are prosecuting the case. Trial Attorney Daniel Butler of the Fraud Section contributed significantly to the investigation of this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Arrested in $1M Payroll Fraud SchemeRead the Press Release
SAN ANTONIO – Six defendants were arrested in San Antonio on criminal charges related to their alleged participation in a scheme to defraud two transportation companies of over $1 million.
According to court documents, Veronica Rios, 42, of Salado; Pedro Guillen, 48, of San Antonio; Mario Martinez, 48, of Von Ormy; Guadalupe Alsidez, 47, of San Antonio; Amanda Hernandez, 23, of San Antonio; and Maira Vargas, 37, of San Antonio defrauded the transportation companies of over $1,407,000 through a payroll scheme. According to the indictment, Rios processed payroll for the companies. In 2017, Rios started overpaying employees in exchange for some of the overpayment. To further the scheme, Rios also added non-employees to the payroll who gave Rios part of the payments they received.
Rios, Martinez, and Alsidez were arrested on April 19. Guillen, Hernandez and Vargas were arrested on April 21. Guillen, Hernandez and Vargas are on bond. Rios, Martinez and Alsidez are in custody pending detention hearings.
Veronica Rios is charged with 18 counts of wire fraud for fraudulent payments she made to various employees. Each of the remaining defendants is charged with three counts of wire fraud for fraudulent payments they received from Rios. If convicted, the defendants face a maximum penalty of 20 years in prison on each count.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Christopher Combs, San Antonio Division, made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Daphne Newaz is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sacramento Area Home Health Care and Hospice Agencies Owner Pleads Guilty to Conspiring to Defraud MedicareRead the Press Release
SACRAMENTO, Calif. — Liana Karapetyan, 41, of El Dorado Hills, pleaded guilty today to one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Karapetyan and another individual owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Karapetyan and another individual certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Karapetyan and another individual paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Karapetyan and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies at least over $2 million for services purportedly provided to beneficiaries referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case is a product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Troy L. Nunley is scheduled to sentence Karapetyan on Aug. 26. Karapetyan faces maximum statutory penalties of 10 years in prison for the health care fraud conspiracy charge and five years in prison for the kickback conspiracy charge. She also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on April 19, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Phillip Little Hoop, age 38, was sentenced to 120 months in federal prison, followed by 7 years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Hoop was indicted by a federal grand jury on September 10, 2019. He pled guilty on February 1, 2021.
The conviction stemmed from an incident that occurred on August 25, 2019, in Rosebud, wherein Little Hoop sexually assaulted a six-year-old child.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Little Hoop was immediately turned over to the custody of the U.S. Marshals Service.
Rock Island Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa — On Wednesday, April 21, 2021, United States District Court Judge Stephanie M. Rose sentenced Donovan Ryan Schmacht, age 40, of Rock Island, Illinois, to 30 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Schmacht was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
In April 2020, Davenport Police Department officers made contact with Schmacht after he and his friend had confronted two individuals near Locust and Main Street in Davenport with what appeared to be firearms concealed under their shirts. When officers responded to the area, Schmacht noticed the officers, and walked behind a dumpster. As officers approached Schmacht, he fled on foot disregarding verbal commands to stop. Officers were able to catch Schmacht and a physical struggle ensued. Once arrested, officers recovered a loaded black Taurus nine-millimeter semi- automatic pistol behind the dumpster where Schmacht had thrown it. As a convicted felon, Schmacht is prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Robeson County Man Convicted of Firearm Charges and Assault on Federal OfficersRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Robeson County man yesterday on multiple firearm charges and for assaulting two federal officers.
According to court records and evidence presented at trial, Gary Lynn Gatlin, 50, was charged with a 3-Count Superseding Indictment on April 15, 2020. Evidence presented at trial showed that on February 8, 2019, two Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) agents were conducting surveillance on Water Tower Road in Orrum, North Carolina on suspicion of firearm trafficking. While sitting in their vehicle, they were approached by the defendant, Gary Gatlin, who accused them of being on his property and threatened to blow their heads off. Gatlin left and returned a few minutes later carrying a pump action shotgun. Gatlin fired a shot into the air and then fired two more shots at the vehicle. Both officers identified themselves as police. In response, Gatlin crouched down, reloaded his shotgun, and fired two more shots into the vehicle before the officers escaped.
Officers with the Robeson County Sheriff’s Office arrived on the scene to search for Gatlin and recover evidence. While searching the property, they recovered five empty 12-gauge shotgun shell cartridges. They also recovered a Mossberg Maverick Model 88 shotgun. A firearm examiner determined that the Model 88 shotgun fired the shells recovered on the scene. In addition, officers executed a search warrant at 888 Water Tower Road, Gatlin’s residence, and recovered additional firearms.
A review of Gatlin’s criminal history shows that he pled guilty to common law robbery in Robeson County in 2008, which is a class G felony.
Gatlin faces a mandatory minimum of 120 months in prison when sentenced during the September 7, 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms & Explosives, Robeson County Sheriff’s Office, Harnett County Sheriff’s Office, Cumberland County Sheriff’s Office, and the State Bureau of Investigation are investigating the case and Assistant U.S. Attorneys Chad E. Rhoades and Robert J. Dodson are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:19-cr-00033-FL-1.
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Residents of Davis, Sacramento and Roseville Indicted for International Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Parampreet Singh, 55, of Davis; Ranvir Singh, 38, of Sacramento; and Amandeep Multani, 33, of Roseville, charging them with conspiracy to distribute and possess with intent to distribute at least 5 kilograms of cocaine, at least 1 kilogram of a mixture containing heroin, opium, and ketamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, no later than August 2020, an investigation began into a drug trafficking organization that was based in Sacramento and extended to the greater Toronto Area in Canada. Parampreet Singh, Ranvir Singh and Multani allegedly were facilitating the trafficking of cocaine, heroin, opium, and ketamine across international borders. Between October 2020 and March 2021, the defendants arranged multiple kilogram-level drug deals with a Canadian undercover officer using encrypted applications on their cellphones.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the York Regional Police in Canada, the Royal Canadian Mounted Police, and the Placer County Special Investigations Unit. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Parampreet Singh was ordered to be released upon posting a $6 million secured bond. Ranvir Singh was ordered to be released upon posting a $700,000 secured bond. Amandeep Multani was ordered detained pending trial.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Reno Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
RENO, Nev. – A Reno man is in federal custody for receipt and possession of child pornography after making his initial court appearance on Monday, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
According to court documents, beginning on or about April 24, 2018, Ryan Thomas Eley, 24, received and possessed USB flash drives, an external hard drive, and a cell phone that contained images of minors engaged in sexually explicit conduct. Some of these images were of prepubescent minors and minors under twelve years of age.
A federal grand jury had returned an indictment charging Eley with one count of receipt of child pornography and one count of possession of child pornography. Eley made his initial court appearance before U.S. Magistrate Judge William G. Cobb, who scheduled a jury trial to start on June 21, 2021 before Chief U.S. District Judge Miranda M. Du.
If convicted, Eley faces a maximum statutory sentence of 20 years in prison.
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, Washoe County Sheriff’s Office, Sparks Police Department, Homeland Security Investigations, and the Nevada Attorney General’s Office. Assistant U.S. Attorney Randolph J. St. Clair is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Reagor Dykes Owner Indicted for Bank FraudRead the Press Release
Reagor Dykes Auto Group owner Bart Reagor has been charged with lying about using business loans for personal expenses, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Thursday, a federal grand jury indicted Bart Wade Reagor, 55, on two counts of bank fraud and one count of making false statements to a bank insured by the FDIC. He will make his initial appearance before U.S. Magistrate Judge Lee Ann Reno in Amarillo on Monday at 2 p.m.
“Even as his businesses struggled financially, Mr. Reagor diverted business loan funds into his personal bank accounts, expressly violating his agreement with the bank,” said Acting U.S. Attorney Prerak Shah. “Lying to an FDIC-insured financial institution is a federal crime, one we will not abide. We are determined to hold to account every Reagor Dykes employee who engaged in financial misconduct.”
“Mr. Reagor used his executive influence to allegedly defraud a lending institution and cause the loss of a significant amount of money,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Corporate fraud schemes, like those that involve diverting millions of dollars to personal funds, have the potential to cause immeasurable damage to the public’s confidence in our economy.”
According to the indictment, in the first quarter of 2017, one of Reagor Dykes’ floorplan lenders conducted an audit that placed the auto group in a weak cash position.
In order obtain cash to continue operations, D & R Acquisitions, a limited liability company formed to hold Reagor Dykes’ real estate assets, entered into a loan agreement with International Bank of Commerce (IBC). The agreement included a $10,000,000 working capital loan, which was distributed by IBC to D&R in two tranches: $5,000,000 in July 2017 and another $5,000,000 in February 2018, to be disbursed to the various RDAG entities.
However, in applying for the loan, Mr. Reagor allegedly misrepresented its purpose, concealing from IBC the fact that he planned to divert some of the proceeds from the working capital loan into his own personal account for personal expenses. (The loan agreement expressly prohibited Mr. Reagor and others from diverting loan proceeds to their personal bank accounts, and IBC would not have approved the loan if Mr. Reagor or anyone else had disclosed to IBC that some of the loan proceeds would be diverted to Mr. Reagor’s personal bank accounts.)
In total, Mr. Reagor diverted more than $1.7 million to his personal account at Prosperity Bank -- $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money.
Prior to Mr. Reagor’s indictment, 15 of his employees pleaded guilty to various crimes involving dummy flooring and check kitting at Reagor Dykes, including:
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud; he is slated to be sentenced on July 27.
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 20.
- Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 13.
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
- Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
- Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 6.
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud; she is slated to be sentenced on May 13.
- Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony; she is slated to be sentenced on May 6.
- Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud; he is slated to be sentenced May 6.
- Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony; he is slated to be sentenced June 22.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Reagor is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Reagor faces up to 90 years in federal prison, and will be required to forfeit any property traceable to the offense.
The Federal Bureau of Investigation’s Dallas Field Office and Internal Revenue Services - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case.
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud; he is slated to be sentenced on July 27.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced Jeffrey L. Viken, District Judge.
Marvin Brings Plenty, age 30, was sentenced on April 16, 2021, to 30 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Brings Plenty, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Hi-Point 9mm Luger semi-automatic pistol in May 2020 at Rapid City, which was found after Brings Plenty came into contact with law enforcement during a traffic stop.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Brings Plenty was immediately remanded to the custody of the U.S. Marshals Service.
Prescription Drug “Take Back Day” to Take Place Saturday, April 24th in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Saturday, April 24, 2021, from 10:00 a.m. to 2:00 p.m. is National Prescription Drug “Take Back Day.” This year marks the 20th biannual event in the ten-year history of the Drug Take Back initiative. Drug Take Back Day gives the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous, expired, unused, and unwanted prescription drugs.
The United States Attorney’s Office for the Eastern District of Washington will be partnering this Saturday with the Drug Enforcement Administration (DEA), Spokane Police Department, and other community partners at Northtown Mall, 4750 North Division, located in the northwest corner of Division Street and Queen Avenue in Spokane. To keep everyone safe, collection sites will follow local COVID-19 guidelines and regulations.
At its last Take Back Day in October 2020, DEA collected nationally a record-high amount of expired, unwanted, and unused prescription medications, with the public turning in close to 500 tons of unwanted drugs. Over the 10-year span of Take Back Day, DEA has brought in more than 6,800 tons of prescription drugs. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential. Of those numbers, Washington State collected 13,842 pounds of prescription drugs at approximately 56 collections sites operated by the DEA and 61 of its state and local law enforcement partners. In its previous events, Washington State alone has collected 270,260 pounds of prescription drugs. Overall, in its 19 previous Take Back events, DEA and its partners have taken in 13,684,848 pounds (6,842.4 tons) of pills.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic. The increase in drug overdose deaths appeared to have begun prior to the COVID-19 health emergency but accelerated during the pandemic.
Acting U.S. Attorney Harrington said, “Participating in drug take-back events is one step that individuals can do to help positively impact the opioid crisis and protect their loved ones. We now face a national epidemic reaching every corner of America. Opioid overdoses have skyrocketed since the late 1990’s, becoming the worst drug epidemic in modern American history. The United States is seeing an increase in overdose deaths during the COVID-19 pandemic. Prescription drug misuse and overdose deaths do not discriminate – they can impact anyone of any age, race, gender or demographic.”
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day. The FDA provides information on how to properly dispose of prescription drugs. To find out where year-round disposal sites are located, go to https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.
For more information about Annual Prescription Drug Take Back Day, go to www.DEATakeBack.com
Pittsburgh Felon Sentenced to 8 Years in Prison for Illegally Possessing a Stolen Rifle and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to eight years (96 months) in prison on his conviction of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Cheron Shelton, age 34.
According to information presented to the court, on March 12, 2016, Shelton possessed a stolen .22 caliber rifle and ammunition that was recovered from his mother’s residence by Allegheny County Police Homicide Detectives. The rifle and ammunition were recovered during the investigation into the March 9, 2016 murder of five people in Wilkinsburg, PA. The rifle was not used in the March 9, 2016 mass shooting.
Assistant United States Attorneys Doug Maloney and Brendan Conway prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the efforts of the Allegheny County District Attorney’s Office, the Allegheny County Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The resolution of this case was the result of the collaborative effort of these agencies.
Ph.D. Chemist Convicted of Conspiracy to Steal Trade Secrets, Economic Espionage, Theft of Trade Secrets and Wire FraudRead the Press Release
WASHINGTON – A federal jury in Greeneville, Tennessee, convicted a U.S. citizen today of conspiracy to steal trade secrets, economic espionage and wire fraud.
Following a twelve-day trial, Dr. Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage, and wire fraud. You was originally indicted in February 2019 for trade secret offenses and wire fraud, and was charged in a superseding indictment with economic espionage and conspiracy to commit economic espionage in August 2020.
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, Georgia, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, and cost nearly $120,000,000 to develop.
According to court documents and evidence presented at trial, You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). Documents related to You’s Thousand Talents Program application were admitted at trial; those documents, and other evidence presented at trial, showed the defendant’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
You is scheduled to be sentenced on Nov. 1 at 10:30 a.m.
Assistant Attorney General John C. Demers of the National Security Division; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case.
Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. April Denard and Bryan Brandenburg of the U.S. Attorney’s Office for the Eastern District of Tennessee provided technical assistance at trial.
Ph.D. Chemist Convicted of Conspiracy to Commit Economic Espionage, Theft of Trade Secrets, and Wire FraudRead the Press Release
GREENEVILLE, Tenn. Following a twelve-day trial, Dr. Xiaorong You, a/k/a Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit economic espionage, conspiracy to steal trade secrets, possession of stolen trade secrets, economic espionage, and wire fraud. Dr. You was originally indicted in February 2019 for trade secret offenses and wire fraud, and a superseding indictment adding economic espionage and conspiracy to commit economic espionage issued in August 2020. Sentencing has been set for November 1, 2021 at 10:30 a.m., before the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
According to court documents and evidence presented at trial, Dr. You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. Evidence introduced at trial proved that Dr. You stole these trade secrets for the purpose of establishing a global can-coating manufacturer in China with a Chinese chemical company called the Weihai Jinhong Group. Dr. You’s plan was designed to benefit the Chinese Communist Party, the Chinese government, the government of the Shandong Province, and the government of the City of Weihai – a city of 2.5 million people on the Northeast Coast of China – by advancing the Made in China 2025 Initiative and the 13th Five-Year Plan.
Dr. You was granted access to the trade secrets while working at the Coca-Cola company in Atlanta, Georgia, and Eastman Chemical company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical company, and cost nearly $120,000,000 to develop.
According to court documents and evidence presented at trial, Dr. You stole the trade secrets to set up a new BPA-free coating company in China. Dr. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). Documents related to Dr. You’s Thousand Talents Program application were admitted at trial; those documents, and other evidence presented at trial, showed the defendant’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through Aug. 31, 2017, Dr. You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of Dr. You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, Dr. You was employed as a packaging application development manager for Eastman Chemical company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
Assistant Attorney General John C. Demers of the National Security Division; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case investigated the case.
Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. April Denard and Bryan Brandenburg of the U.S. Attorney’s Office for the Eastern District of Tennessee provided technical assistance at trial.
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Paterson Man Admits Distributing Heroin that Caused Death of New York ResidentRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man today admitted possessing and distributing heroin that caused the death of a Warwick, New York, resident, Acting U.S. Attorney Rachael A. Honig announced.
Shameik Byrd, 31, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of distribution and possession with intent to distribute heroin relating to the overdose death of a 25-year-old man, identified in court documents as Victim-1.
According to the documents filed in this case and statements made in court:
On April 1, 2016, Byrd sold Individual-1 and Individual-2 five glassine envelopes of heroin stamped “Trap Queen.” The next day, Byrd sold Individual-1 and Inidividual-2 approximately 13 additional glassine envelopes of heroin stamped “Trap Queen.” Immediately following each purchase, Individual-1 and Individual-2 sold the same heroin they had obtained from Byrd to Victim-1. On April 3, 2016, officers from the Warwick Police Department responded to a residence on a report of an unresponsive male, Victim-1, who was later pronounced dead at the scene. Law enforcement agents observed nine empty glassine envelopes stamped “Trap Queen” and eight glassine envelopes of heroin stamped “Trap Queen.” An autopsy was later conducted on Victim-1, whose cause of death was determined to be “acute heroin intoxication.”
The count of possession and distribution of heroin carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 14, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the New Jersey Division of Criminal Justice, Gangs and Organized Crime Bureau, under the direction of Director Veronica Allende; detectives from the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and detectives from the Warwick Police Department, under the direction of Chief Thomas McGovern Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill, of the Office’s Health Care Fraud Unit.
North Carolina Man Sentenced for COVID-19 Relief Fraud SchemesRead the Press Release
A North Carolina man was sentenced today to 63 months in prison for perpetrating three fraud schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s Economic Injury Disaster Loan program (EIDL), created to assist small business owners during the pandemic.
Brandon Lewis, 35, of Greensboro, pleaded guilty to two counts of wire fraud and one count of making a false statement to the Small Business Administration (SBA) on Aug. 31, 2020.
According to court documents, in March 2020, Lewis created a fake website for orders for pandemic-critical goods, defrauding consumers of hundreds of thousands of dollars. Lewis also created a fake “COVID-19 Relief Fund,” which he used to defraud dozens of small business owners, and submitted approximately 68 fraudulent applications for loans and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; Acting Special Agent in Charge Mona Passmore of the IRS Criminal Investigation (IRS-CI); Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General’s Eastern Region; and Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA. Trial Attorney David A. Stier, formerly of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Meredith C. Ruggles prosecuted the case with valuable assistance from the Fraud Section’s Victim Assistance Unit.
In light of the large volume of victims, the court set a deadline of July 21, 2021, for issuance of a final order of restitution. Victims may find additional information here: https://www.justice.gov/criminal-vns/case/brandon-lewis, and may contact the Victim Assistance Line toll-free at (888) 549-3945 or by email at [email protected].
North Carolina Man Is Indicted for $1.5 Million Covid-Relief FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted a North Carolina man for fraudulently obtaining more than $1.5 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP), announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Mona Passmore, Acting Special Agent in Charge of the of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations in the federal indictment, Maurice Kamgaing, 41, of Archdale, N.C., and a former Charlotte resident, fraudulently obtained more than $1.5 million in COVID-relief funds, by submitting fraudulent PPP loan applications to a federally insured financial institution on behalf of two businesses. The indictment alleges that the two PPP loan applications contained false and misleading information and fraudulent supporting documentation about the two businesses, including fake federal tax filings and payroll reports.
As alleged in the indictment, on April 7, 2020, Kamgaing filed a fraudulent application for a PPP loan for Apiagne, Inc. (Apiagne). The Apiagne PPP application allegedly included false information about the company’s purported payroll, and fraudulent documentation about its monthly payroll disbursements. For example, according to the indictment, Apiagne’s PPP loan application falsely represented that the company had an average monthly payroll of $260,000 and needed the loan to support its ongoing operation and its 46 employees. As a result of the fraudulent representations, on or about May 6, 2020, Apiagne received a PPP loan for $856,463, which Kamgaing used for unauthorized purposes and for his personal benefit.
According to allegations in the indictment, on April 27, 2020, Kamgaing filed another fraudulent PPP loan application on behalf of AKC Solutions, which falsely represented that the company had 23 employees, and had an average payroll of $260,000. As a result of the fraudulent representations, a PPP loan for $650,000 was disbursed by a financial institution on May 5, 2020, and within days of receiving the loan Kamgaing allegedly used the proceeds for improper purposes and personal expenses.
Kamgaing is charged with wire fraud in relation to a disaster benefit which carries a maximum prison sentence of 30 years in prison; two counts of making false statements to a bank which carry a maximum penalty of 30 years in prison per count; and two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years per count.
The charges in the indictment are allegations. The defendant is innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and IRS-CI for their investigation of this case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
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. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Newton Man Charged with Defrauding Federal Agency by Inflating Expenses and Submitting Fake BidsRead the Press Release
BOSTON – A Newton man was charged yesterday in connection with defrauding the General Services Administration.
Benedetto Valente, 60, was charged and has agreed to plead guilty to one count of wire fraud. A plea hearing has not yet been scheduled by the court.
According to the charging documents, Valente engaged in a scheme to defraud the U.S. General Services Administration (GSA), as well as the company he worked for, by causing expenses to be billed that neither GSA nor the company actually incurred. Valente allegedly did so by inflating payroll expenses and charging items he used in his personal business and then creating fake documents to make it appear that those items were intended for GSA. Valente also allegedly arranged to award contracts for scaffolding and masonry repair to a family member, including by submitting fake bids so his family member could obtain the contracts, and by diverting a subcontract awarded to another contractor to his family member at an inflated price.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph Dattoria, Special Agent in Charge of the General Services Administration, Office of Inspector General, Boston Field Investigations Office made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Man Facing Federal Indictment in Maryland for Cyberstalking and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late yesterday charging Desmond Babloo Singh, age 19, of New York, New York, for the federal charges of cyberstalking and aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“HSI remains committed to protecting the public from cyberstalking and other online harassment,” said Special Agent in Charge James R. Mancuso of Homeland Security Investigations Baltimore field office. “The internet and social media platforms are not safe havens for criminal conduct and we will continue to pursue and hold the individuals accountable for their crimes.”
According to the four-count indictment, Singh, the younger brother of a former middle school classmate of Victim 1’s, began following Victim 1 on multiple social media platforms after Singh’s family moved from Maryland to Texas. Between approximately 2014 to February 14, 2020, Victim 1 and Singh exchanged limited communications online, but there was never a romantic relationship of any sort between Singh and Victim 1; in fact, Victim 1 had never met Singh in person. Despite this, on Valentine’s Day 2020, Singh shared with Victim 1 a private social media post in which he professed his love for Victim 1. He also shared with Victim 1 a separate online posting in which he further expressed his romantic interest in Victim 1. Victim 1 rebuffed his advances and eventually asked him not to contact her any further.
The indictment alleges that over the course of the next 10 months, Singh orchestrated and executed a relentless cyberstalking and harassment campaign against Victim 1. Singh carried out a similar cyberstalking campaign against Victim 2, an associate of Victim 1’s, whom Singh perceived to be a romantic rival. Specifically, the indictment alleges Singh used more than 100 different social media, electronic communication, and phone accounts to send Victim 1 harassing communications, some of which included express or implied threats of death or bodily injury, sexualized violence. The communications also contained racial slurs directed at Victim 1. The indictment further alleges that Singh used images of Victim 1 in the harassing communications, in which he denigrated Victim 1’s appearance and character and encouraged others to harass Victim 1. The indictment further alleges Singh posted identifying information of Victim 1 including her address, phone number, school, social media identities, birth date, and other identifying information. One post containing Victim 1’s identifying information included the text, “UGLY [racial slur] GIRL PLS DO MORE TO HER”.
According to court documents, Victim 1 pleaded with Singh and his immediate family members to cease the online harassment, but to no avail. Victim 1 told Singh that if he did not cease the harassment, she would seek a no-contact order. In response, Singh allegedly sent a text message to Victim 1 stating, “You think I’m kidding I’m genuinely never going to stop, its going to be really funny…”
On July 19, 2020, a harassing account, allegedly created by Singh, posted Victim 1’s parents’ Maryland address and stated there would be a party at that address the following day. On July 20, 2020, Victim 1’s parents’ address was the subject of a false bomb threat, which was reported anonymously to the Baltimore County Police. The following day, Singh allegedly texted Victim 1 from an anonymous phone number, writing “you’re getting swatted.”
As detailed in court documents, Singh’s alleged harassment campaigns also involved gaining unauthorized access to Victim 1’s social media accounts. Specifically, Singh is alleged to have gained unauthorized access to two such accounts. Singh used his unauthorized access to those accounts to obtain private photos of Victim 1, which he then posted online. Singh also posted pictures of himself from one of Victim 1’s accounts, along with the text, “omg he’s so hot!!!”.
Finally, Singh allegedly conducted a similar cyberstalking and harassment campaign targeting Victim 2, which included creating social media accounts to denigrate Victim 2’s character, post Victim 2’s identifying information, and threats to engage Victim 2 in physical violence. For instance, Singh allegedly posted a video to social media platforms, which showed an unidentified person knocking on front door of a residence where Victim 2 previously lived. In this communication and others, Singh allegedly threated to seek out and fight Victim 2.
If convicted, Singh faces a maximum sentence of five years in federal prison for each of two counts of cyberstalking and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Singh is currently detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christopher M. Rigali and Zachary A. Myers, who are prosecuting this case.
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New York City Council Member Pleads Guilty to Tax FraudRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced that CHAIM DEUTSCH, a New York City Council Member, was charged and pled guilty today in Manhattan federal court to filing a false tax return in connection with outside income he received from his real estate management corporation. DEUTSCH pled guilty before United States Magistrate Judge James L. Cott.
U.S. Attorney Audrey Strauss said: “New York City Council Member Chaim Deutsch admitted today that he defrauded the IRS in connection with his real estate business. As an elected official and community leader, Deutsch had a particular responsibility to follow the law. Instead, over a multi-year period, Deutsch concealed his true business income to avoid paying his fair share of taxes. My Office will continue to work tirelessly with our law enforcement partners to hold our elected officials accountable when they break the law for their own financial benefit.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “The defendant’s admissions today are the result of the hard work of a talented and dedicated cadre of IRS CI special agents and federal prosecutors. This investigation should also make it clear that no one is above paying their fair share of taxes, even those who occupy elected office.”
DOI Commissioner Margaret Garnett said: “It is dispiriting when a sitting City Councilmember is convicted of a crime. Rather than set an example of integrity and fidelity to the rule of law, this City Councilman’s actions placed personal advantage over the public interest, and undermined public trust in elected officials. DOI was pleased to work side-by-side with our partners at the IRS and the U.S. Attorney’s Office for the Southern District of New York on this investigation.”
According to the allegations contained in the Information, other court filings, statements made during court proceedings, and publicly available information:
Since in or about 2014, DEUTSCH has served as the New York City Council Member for the 48th District, which includes portions of Brooklyn. During at least a portion of that time, DEUTSCH was the sole owner of Chasa Management, Inc., a real estate management business. In or about March 2016, DEUTSCH filed a personal tax return for calendar year 2015 that included false and fraudulent information concerning his income and business expenses in connection with operating Chasa Management. In total, during the tax years 2013 through 2015, DEUTSCH’s failure to properly pay taxes on his income from Chasa Management evaded approximately $82,076 in taxes due to the IRS. Effective on or about January 1, 2017, New York City Council Members were prohibited from earning most outside income.
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DEUTSCH, 52, of Brooklyn, New York, pled guilty to a single count of filing a false tax return for the tax year 2015, and agreed to restitution in the amount of at least $82,076 plus interest. DEUTSCH is scheduled to be sentenced before Judge Cott on July 29, 2021, at 10:00 a.m.
The charge against DEUTSCH carries a maximum sentence of one year in prison, a maximum term of one year of supervised release, a maximum fine of $100,000, and an order of restitution. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Ms. Strauss praised the outstanding work of IRS-CI and the Special Agents of the U.S. Attorney’s Office. Ms. Strauss also thanked the New York City Department of Investigation for its assistance in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
Nevada Man Sentenced to 18 Months in Prison for Defrauding Banks in $9 Million Shotgun Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Henderson, Nevada, man was sentenced today to 18 months in prison for his role in a scheme to use bogus information and simultaneous loan applications at multiple banks – known as “shot-gunning” – to attempt to obtain home equity lines of credit (HELOCs), Acting U.S. Attorney Rachael A. Honig announced.
Joseph A. Gonzalez, 46, previously pleaded guilty before U.S. District Judge John Michael Vazquez to Count One of an indictment charging him with one count of conspiracy to commit bank fraud. Judge Vazquez imposed the sentence today by videoconference. Gonzalez is the sixth person to plead guilty as part of the scheme.
According to documents filed in the case and statements made in court:
From 2010 through 2018, Jorge Flores and Simon Curanaj, a real estate broker in the Bronx who has previously pleaded guilty and is awaiting sentencing, ran a mortgage fraud scheme in which they applied for more than $9 million in HELOCs from banks on residential properties in New Jersey and New York.
Gonzalez and Flores used a property in Jersey City, New Jersey, as part of the scheme. Gonzalez had been allowed by the owner of the property to live there in exchange for management services, but neither he nor Flores owned the property. Gonzalez also recruited an individual with good credit to act as a straw buyer (Individual 1). Unbeknownst to the owner of the property, a “quitclaim” deed – which contains no warranties of title – was prepared transferring the property to Individual 1. The signatures on the deed were forged.
Gonzalez and Flores then applied for two HELOCs from multiple banks using the Jersey City property as collateral in Individual 1’s name. They concealed the fact that the property offered as collateral was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Individual 1’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the property was less than the amount of the HELOC loans for which Gonzalez and Flores applied.
The victim banks eventually issued loans to Individual 1 in excess of $500,000. After the victim banks funded the HELOCs and deposited money into Individual 1’s bank account, Individual 1 disbursed almost all of it to Gonzalez, Flores, and others. Gonzalez used $43,000 of the illicit proceeds to buy a luxury car. Individual 1 eventually defaulted on both HELOC loans.
In addition to the prison term, Judge Vazquez sentenced Gonzalez to three years of supervised release and ordered him to pay restitution of $512,500.
Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Jason S. Gould, Acting Chief of the Violent Crimes Unit, and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
Monongalia County man sentenced for role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dylan Conaway, of Morgantown, West Virginia, was sentenced today to three years of probation for his role in a firearms conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Conaway, age 27, pled guilty in December 2020 to one count of “Conspiracy to Violate Federal Firearms Laws.” Conaway admitted to working with others to illegally purchase firearms in May 2018 in Monongalia County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexico Extradites Accused Money Launderer and Methamphetamine Dealer to Colorado for ProsecutionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Raul Rodriguez-Romero, 32, formerly of Colorado Springs, Colorado, was extradited from Mexico to Denver, Colorado, so he can face money laundering and drug charges. The defendant made his initial appearance in federal court in Denver yesterday before U.S. Magistrate Judge Scott T. Varholak.
The indictment charges the defendant with distributing more than 500 grams of methamphetamine in November 2015. It also charges the defendant with eleven counts of money laundering, alleging that between May and October 2015, the defendant took money that was represented to be the proceeds of methamphetamine trafficking and then used checks drawn on bank accounts to conceal and disguise the fact that it was drug money. If convicted of distributing methamphetamine, the defendant faces not less than 10 years in prison, as well as up to a $10,000,000 fine. If convicted of money laundering, the defendant faces not more than 20 years in prison and a fine of up to $500,000 on each count.
The charges in the indictment are allegations and the defendant is presumed innocent until proven guilty.
The investigation in this case was conducted by the United States Drug Enforcement Administration. The prosecution is being handled by Assistant U.S. Attorneys Bryan Fields and Candyce Cline, District of Colorado, Denver, with substantial assistance from the Department of Justice’s Office of International Affairs in Washington, D.C.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 16-cr-266
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