Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 June 2021
Property Owner and Manager Charged with Failing to Properly Notify Tenants About Lead HazardsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Angel Elliot Dalfin, 57, of Baltimore, Maryland, and Paul Richard Heil, 51, of Buffalo, New York, were charged by criminal complaint with conspiracy to commit wire fraud and conspiracy to make false documents. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
“Lead-based paint can create major environmental health risks, and the actions taken by the defendants as alleged in the complaint created unnecessary risk to unsuspecting renters and purchasers,” said U.S. Attorney Kennedy. “My office will not allow dangerous disregard for the rule of law to go unchecked, and we will continue to work with our partners to protect the health of our community.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in February 2018, the Environmental Protection Agency (EPA) received a referral from the Department of Housing and Urban Development (HUD), Lead Programs Enforcement Division, Office of Lead Hazard Control and Healthy Homes, involving multiple properties owned and/or managed by the defendants. Those properties were previously cited by the Erie County Health Department with numerous violations for lead paint hazards. The health department had also received several reports of children with elevated blood lead levels residing at the properties.
According to the complaint, between 2010 and 2018, approximately 50-60% of tenants living in properties owned/operated by Dalfin and Heil did not receive lead disclosure notices required by federal law. The approximately 40-50% of tenants who did receive lead disclosure notices were tenants receiving Section 8 financial housing assistance. Those tenants received disclosures under the direction of the public housing agencies that work directly with low-income tenants and their landlords to administer the Section 8 program. However, even when tenants were provided lead disclosure forms, the disclosures repeatedly contained false statements concealing hazardous conditions and the existence of reports pertaining to lead paint hazards in the properties.
In addition to providing false lead disclosures to renters, the defendants also provided false lead disclosure statements to buyers of numerous properties they owned/operated. Many of those properties had an extensive history of lead paint violations documented by the health department.
The complaint further states that the properties owned/operated by the Dalfin and Heil have a long-documented history of lead-based paint violations and reports of children with elevated blood lead levels. Between 2013 and 2020, at least 54 of the properties identified as being owned or managed by the defendants have been cited for lead hazards or conditions conducive to lead poisoning by the health department. For example, between 2013 and 2019, at least 23 children had an elevated blood lead level while residing at these properties, and seven of those properties had multiple child elevated blood lead level referrals. The defendants received notification from the health department of the lead-based paint violations. In correspondence with potential investors, the defendants misrepresented that the health department violations had been addressed. Dalfin And Heil were well aware of potential lead-based paint hazards but continued to sell properties with false lead disclosures.
The complaint is the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-in-Charge Tyler Amon and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-In-Charge Christina D. Scaringi. Additional assistance was provided by the New York State Attorney General’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Philadelphia Man Convicted of 2017Armed Robbery of Germantown Avenue Bar in Mounty Airy NeighborhoodRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Lawrence Laws, 28, of Philadelphia, PA, was convicted today at trial of Hobbs Act robbery (robbery which interferes with interstate commerce) and using, carrying and brandishing a firearm during and in relation to a crime of violence arising from his participation in a robbery of a business in the Mount Airy section of Philadelphia.
In February 2017 at approximately 1:00 a.m., the defendant and two co-defendants laid in wait for the owner of the Mermaid Bar, located on Germantown Avenue, as he was closing the bar for the night along with his bartender. The owner of the bar approached his vehicle and, after realizing that one of the defendants was inside waiting for him, both he and the bartender took off running. The defendants caught up to the owner and bartender and ordered them onto the ground and then back to the bar at gunpoint, where they stole a firearm, cash from the register and from a safe in the basement, cartons of cigarettes and a cell phone. The defendants also took the owner’s debit card and PIN number, which they used to make multiple cash withdrawals from the bank ATM across the street before fleeing the scene together. Laws co-defendants both previously pleaded guilty to charges related to this incident.
“Lawrence Laws and his co-defendants committed a brazen armed robbery that endangered innocent lives and left a long-time business owner and one of his employees traumatized,” said Acting U.S. Attorney Williams. “These three defendants should serve as an example to others -- if you rob any kind of business in Philadelphia with a firearm, you are going to face serious federal charges. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring violent criminals to justice.”
“The FBI’s Violent Crime Task Force works closely with our local law enforcement partners to combine our resources as an effective strategy in reducing violent crime in Philadelphia,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Today's guilty verdict is a direct result of this unique collaboration and is another step towards making our communities safer.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Alison Kehner and Anthony Wzorek.
Peruvian Citizen Sentenced to 87 Months for Role in Transnational Drug Trafficking and Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Hilario Renato Mendoza Beltran, age 48, and a citizen of Peru, was sentenced today to 87 months in prison for conspiring to distribute over 5 kilograms of cocaine and conspiring to launder the proceeds of an international cocaine trafficking organization.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service (IRS)-Criminal Investigation; and Kevin Kelly, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
Between August 2014 and March 30, 2016, a money laundering and drug trafficking organization based in Montreal, Canada, collected the cash proceeds from selling marijuana in the United States and cocaine in Canada. The cash was delivered to couriers in, among other places, Albany County, Ulster County, and Montreal so that the cash could be delivered, either by a courier or by wire, to cocaine suppliers to purchase cocaine. At least $1 million was sent to Chicago, Los Angeles, Peru, Mexico and Colombia; money was also wired to China. The organization then arranged for the smuggling of cocaine back to Canada, and transported some of the cocaine through northern New York.
In pleading guilty, Mendoza Beltran admitted that between October and December 2014, he acted as a Peru-based operative for the organization by receiving and transporting approximately $472,000 in drug proceeds, and arranging for the delivery of approximately 140 kilograms of cocaine to co-conspirators in Piura, Peru. Pilots working for the organization then picked up the cocaine at a clandestine airstrip outside of Piura, and flew it to Guatemala, and then on to Mexico, where it was smuggled into the United States.
Mendoza Beltran’s guilty plea followed his formal extradition from Peru to the Northern District of New York in August 2019.
United States District Judge Mae A. D’Agostino also sentenced Mendoza Beltran to a 2-year term of post-imprisonment supervised release, to begin after he is released from prison and in the event he remains in the country.
As part of the same case, all of the following people have pled guilty to cocaine trafficking and money laundering charges before Judge D’Agostino, and several have been sentenced.
Name
Age
Residence
Convictions
Sentence and/or Sentencing Date
Iraklis Haviaropoulos
43
Montreal, Canada
Cocaine conspiracy > 5 kilograms
International money laundering conspiracy
August 6, 2021
Carlos Alberto Ocampo Garcia
58
Cali, Colombia
Cocaine conspiracy > 5 kilograms
International money laundering conspiracy
July 6, 2021
Matthew Fernandes
37
Montreal, Canada
Cocaine conspiracy > 5 kilograms
87 months
Jose Mauricio Ortiz Bolanos
32
Cali, Colombia
Cocaine conspiracy > 5 kilograms
International money laundering conspiracy
78 months
Eduardo Nunez Serna
46
Chicago, Illinois
Promotional money laundering conspiracy
57 months
James DeSantis
58
Pompano Beach, Florida
International money laundering conspiracy
37 months
This case is the result of the close cooperative efforts of the DEA, including the Albany District Office and DEA offices in Peru, Mexico, Colombia, Guatemala, Chicago, Detroit, Los Angeles, and Worcester, Massachusetts; IRS-Criminal Investigation and HSI. These federal agencies worked closely with the Sûreté du Québec, the Canada Border Services Agency, the Peruvian National Police, and the Colombian National Police. U.S. Border Patrol, the Malone Police Department, the New York State Police, the Chicago Police Department, the Massachusetts State Police, and the Watervliet Police Department also provided assistance.
This case was and is being prosecuted by Assistant U.S. Attorneys Elizabeth R. Rabe, Daniel Hanlon and Emmet J. O’Hanlon.
Owner of Carlisle Area Trucking Business Charged with Covid-Relief FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Keith McConnell, age 43, of Carlisle, Pennsylvania, was charged by criminal information with perpetrating a wire fraud and money laundering scheme that sought $467,200.00 in COVID-19 relief funds guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP).
The PPP was designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 27, 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act, PPP funds were offered in forgivable loans to small businesses for employee job retention and certain other expenses. PPP loan amounts were determined by the number of employees and average monthly payroll costs.
According to Acting United States Attorney Bruce D. Brandler, the criminal information alleges that Keith McConnell submitted fraudulent PPP loan applications and forged documents on behalf of his Carlisle-area trucking company, KB Transportation LLC. In both 2019 and 2020, KB Transportation LLC was not in business, had no employees, and had no payroll expenses. On June 5, 2020, however, McConnell falsely certified that KB Transportation LLC employed twenty-six employees and had monthly payroll expenses totaling $124,800.00. As a result of the fraud, McConnell received $312,000.00 in PPP loan proceeds. Within weeks, McConnell and his co-conspirators spent the PPP funds on unauthorized expenditures including the purchase of a residential property, two vehicles, and stock market investments. On January 20, 2021, McConnell used KB Transportation LLC to apply for a second PPP loan in the amount of $155,200.00, and again submitted false and fraudulent loan applications and documents. The second PPP loan was never disbursed.
“Covid relief fraud is a high priority for our office and the Department of Justice,” stated Acting U.S. Attorney Bruce D. Brandler. “These funds were meant to help small businesses survive the pandemic not for fraudsters to support an opulent lifestyle. Our Covid Relief Fraud Task Force will continue to investigate all credible allegations of covid fraud and prosecute any individuals who may have abused this program.”
“There are specific rules that dictate who is eligible to apply for PPP loans and how PPP loan proceeds can be used,” said Thomas Fattorusso, Special Agent in Charge of IRS-Criminal Investigation. “My office will continue to investigate cases like this involving PPP loans to ensure everyone abides by these rules.”
The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant U.S. Attorney Samuel S. Dalke.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offense charged is 30 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Omaha Man Sentenced for Possession of Crack with IntentRead the Press Release
Acting United States Attorney Jan Sharp announced that Andrew Jennings, 42, of Omaha, Nebraska, was sentenced on June 4, 2021 by United States District Judge Robert F. Rossiter, Jr. for possession of crack (cocaine base) with intent to distribute. He received a sentence of 84 months with a three-year term of supervised release to follow. There is no parole in the federal system.
On July 19, 2020, Sarpy County Sheriff’s deputies responded to a report of a vehicle swerving into a ditch on I-80, eastbound. Deputies observed the vehicle in a ditch with Andrew Jennings standing nearby. Jennings demonstrated signs of intoxication. During a search of his vehicle, deputies found 10.6 grams of crack cocaine, 10.4 grams of cocaine, and 8.9 grams of inositol, a common cutting agent for cocaine.
This case was investigated by the Sarpy County Sheriff’s Office.
Omaha Man Convicted of Attempted Enticement of a MinorRead the Press Release
Acting United States Attorney Jan Sharp announced that Santa Man Mongar, 27, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Attempted Enticement of a Minor. United States District Judge Robert F. Rossiter, Jr. sentenced Mongar to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 10-year term of supervised release. Mongar will also be required to register as a sex offender and is subject to deportation by U.S. immigration authorities when he completes his sentence of imprisonment.
In late August 2020, Mongar responded to an online prostitution advertisement by texting the phone number listed in the ad. An undercover law enforcement officer purporting to be a 15-year-old female responded to Mongar’s texts. Mongar arranged to meet the 15-year-old female at a gas station in Omaha, offering to pay the female in exchange for oral sex and agreeing to bring her alcohol. When Mongar arrived at the gas station, he was detained by law enforcement. Mongar admitted to answering the prostitution ad and texting with a person he believed to be a 15-year-old female.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force and the Douglas County Sheriff’s Office.
Nurse Practitioner Sentenced to Eleven Years in Federal Prison for Illegally Distributing Oxycodone and Money LaunderingRead the Press Release
WASHINGTON - Ivan Lamont Robinson, 50, of Washington, D.C. a licensed nurse practitioner, was sentenced today to 135 months in federal prison and ordered to forfeit $108,000. Robinson was previously found guilty by a federal jury of 42 federal charges that he distributed oxycodone outside the legitimate scope of professional practice and without a legitimate medical purpose, and two counts of money laundering.
The sentence was announced by Channing D. Phillips, Acting U.S. Attorney for the District of Columbia; Jarod A. Forget, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA); Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Christopher Dillard, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
The trial took place in July and August of 2017, in the U.S. District Court for the District of Columbia, before the Honorable Colleen Kollar-Kotelly. According to the testimony and evidence at trial, Robinson ran a pain management clinic the 2000 block of Martin Luther King Jr. Avenue SE. His practice received numerous complaints from pharmacists who suspected that he was operating a “pill mill” rather than a legitimate medical pain management practice. “Pill mill” is a shorthand terminology for a medical practice which begins selling prescriptions to customers, usually for cash.
Through his position as a nurse practitioner, under District of Columbia law, Robinson had authority to prescribe oxycodone to patients. Robinson sold prescriptions to customers in exchange for $370 in blank money orders. Customers came from outside the District of Columbia to purchase identical prescriptions, 60 tablets of 30 milligrams of oxycodone. During the trial, the government presented testimony from a medical expert who stated that Robinson provided no real medical treatment, and there was no medical basis to prescribe oxycodone. Further, the government’s evidence showed that Robinson deposited over $100,000 in money orders from customers during a four-month period in 2013.
“The opioid crisis that we are currently facing is further exacerbated by illegal pill-mill operations such as the one operated in this matter,” said Channing D. Phillips, Acting U.S. Attorney for the District of Columbia. This is a serious public health issue in which the safety of the public must be addressed and dealt with appropriately. This prosecution illustrates our office’s continued commitment, along with that of our law enforcement partners, to combat opioid abuse and bring to justice those who commit crimes regarding this issue.”
“Tens of thousands of Americans die from opioid-related overdose every year, a public health crisis only exacerbated by the COVID-19 pandemic,” said Jarod A. Forget, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration. “We will not stand for criminals such as this, who are exploiting our health care systems and fueling the overdoses crisis in our area. This case stands as an example of how the DEA and our law enforcement partners are working to put an end to such unscrupulous criminal behavior and keep our communities and the good people safe.”
“By illegally prescribing opioids, Ivan Lamont Robinson put greed over patient care,” said Christopher Dillard, Special Agent in Charge of the Mid-Atlantic Field Office for the Defense Criminal Investigative Service. “Such reckless behavior not only endangers lives, it fuels addiction and erodes the healthcare system. DCIS and its investigative partners will continue to work tirelessly to protect our service members and society from unscrupulous practitioners who abuse their positions.”
“The illegal diversion of opioids and other controlled substances often leads to drug addiction and deaths and drains resources that could otherwise be used to provide legitimate healthcare services,” said Maureen R. Dixon, Special Agent in Charge for the Office of the Inspector General, U.S. Department of Health and Human Services.
In announcing the sentence, Acting U.S. Attorney Phillips, Special Agent in Charge Forget, Special Agent in Charge Dixon, Special Agent in Charge Dillard, and Chief Contee commended the work of those who investigated the case from the DEA’s Washington Field Office, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, and the Metropolitan Police Department. They also expressed appreciation for the invaluable assistance provided by the Arlington County (VA) Police Department and the Charles County (MD) Sheriff’s Office. Assistance was also provided by Assistant United States Attorneys Arvind K. Lal and Christopher Brown, who participated in the money laundering aspect of the case. Finally, they commended the work of Paralegal Specialists Rommel Pachoca and Kate Abrey, former Paralegal Specialist Jeannette Litz, Victim/Witness Assistance Unit Specialist Tonya Jones, and Assistant U.S. Attorneys Dineen A. Baker and John P. Dominguez, who prosecuted the case.
New Orleans Man Admits to Possessing A Gun in Furtherance of Drug DealingRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that BRADLEY BRIGHT, 32, of New Orleans, Louisiana, pleaded guilty today to possessing a firearm in furtherance of a drug trafficking crime before United States District Judge Jay C. Zainey.
In February 2020, BRIGHT was indicted for various counts of distribution of heroin and cocaine base, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking.
Court documents show that as part of his plea, BRIGHT admitted that he distributed crack cocaine near a store on Basin Street outside the French Quarter. New Orleans Police Department Officers observed the sale and stopped the buyer, who had a crack pipe in her pocket and crack in her purse. After confirming the transaction had in fact been a hand to hand drug sale, the officers attempted to arrest BRIGHT, who fled. After a brief chase, the officers subdued and arrested BRIGHT. The officers found a .40 caliber handgun that had been reported stolen and that was fully loaded with 15 rounds near the location of BRIGHT’s arrest.
Sentencing is set for September 7, 2021 before District Judge Zainey. BRIGHT faces a sentence of at least 5 years imprisonment up to life, a $250,000 fine, up to five years supervised release following any term of imprisonment, and a $100 special assessment fee.
U. S. Attorney Evans praised the work of the New Orleans Police Department and the Drug Enforcement Administration in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
NDTX Round up: May 28 - June 3Read the Press Release
GUILTY PLEA – JAIME ULIZE CARCAMO
On June 1, Jaime Ulize Carcamo, 33, plead guilty to conspiracy to launder monetary instruments. During a DEA investigation, law enforcement learned that Carcamo received drug proceeds from the sale of controlled substances and transferred those proceeds to multiple individuals in Mexico. Carcamo and his co-conspirators conducted 134 wire transactions totaling $121,727 to individuals in Mexico, earning a fee for each transaction. Carcamo now faces up to 20 years in federal prison for his crimes. The DEA conducted the investigation. Assistant U.S. Attorney John Kull prosecuted the case.
GUILTY PLEA – ISRAEL COOPER
On June 1, Israel Cooper, plead guilty to possession of a firearm by a user of a controlled substance. In October 2019, Cooper was arrested by law enforcement with a .45 pistol. He admitted to law enforcement that he used marijuana prior to the offense. Cooper now faces up to 10 years in federal prison for his crimes. The ATF and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
SENTENCING – MICHAEL RACHAEL MCCOY
On June 2, Michael Rachael McCoy, 57, was sentenced to 57 months in federal prison for aiding and abetting the possession with the intent to distribute cocaine. In the early morning of January 30, 2020, DEA agents executed a search warrant at a Dallas residence. As law enforcement entered the home, they encountered McCoy with a 9mm handgun in his coat pocket. Agents continued to search the residence and located cocaine packaged for resale. The DEA conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – ISAAC LEONAR SANCHEZ CERVANTES
On June 3, Isaac Leonar Sanchez Cervantes, 25, plead guilty to possession of a firearm by an illegal alien. On March 25, 2020, Sanchez Cervantes was stopped by law enforcement for trespassing on a utility site that was under construction. Sanchez told officers that he had been cooped up with his girlfriend and had gone to “smoke a bowl and chill.” Law enforcement searched Sanchez Cervantes’ vehicle and located two 9mm pistols, two pairs of handcuffs, and approximately 275 rounds of ammunition. Sanchez Cervantes now faces up to 10 years in federal prison for his crimes. The ATF and the Irving Police Department conducted the investigation. Assistant U.S. Attorney Walt Junker is prosecuting the case.
GUILTY PLEA – JUVENAL DELBOSQUE
On May 25, Juvenal Delbosque, 23, plead guilty to conspiracy to possess with intent to distribute methamphetamine. On July 1, 2019, Delbosque and a co-conspirator received a shipment of 62 kilograms of methamphetamine which had been transported inside tires. Once it was received by Delbosque, he placed it in trash bags for further distribution. He faces up to life in federal prison for his crimes. The FBI, DEA, IRS, Secret Service, Dallas Police Department, and the IRS. Assistant U.S. Attorney George Leal is prosecuting the case.
Mission Man Indicted for Failre to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Louis Andrew Rabbitt, Jr., age 40, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 3, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Rabbitt was convicted of Sexual Abuse of a Minor in August 2001. As a result of this conviction, he is required to register as a sex offender. It is alleged that between July 21, 2019, and October 16, 2019, Rabbitt, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Rabbitt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Rabbitt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Milan Man Sentenced to 348 Months’ Imprisonment for Producing Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 3, 2021, Dyllan Rose, age 27, of Milan, Pennsylvania, was sentenced to 348 months' imprisonment to be followed by a 10-year term of supervised release by U.S. District Court Judge Matthew W. Brann for producing child pornography.
According to Acting U.S. Attorney Bruce D. Brandler, Rose sexually abused a 5-year-old child and sent images of the abuse over the internet.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab.
# # #
Maryland U.S. Attorney’s Office Warns that Scammers are Attempting to “Spoof” the Main Office Telephone Number in a Criminal Scheme to Defraud VictimsRead the Press Release
Baltimore, Maryland – Acting United States Attorney for the District of Maryland Jonathan F. Lenzner announced today that scammers are attempting to “spoof” the U.S. Attorney’s Office main office telephone number so that calls appear to originate from the U.S. Attorney’s Office on the recipient’s caller ID in a criminal scheme to defraud individuals who owe federal debts such as criminal restitution or civil student loans. In one instance, the caller, alleging to be “an agent of the U.S. Attorney’s Office,” told the victim that there was a $6,000 debt, $1,200 of which had to be paid immediately to avoid further action. The caller allegedly threatened that if the victim called an attorney, an arrest warrant would be issued.
A banner has been posted on the Maryland U.S. Attorney’s Office website warning people of the scam. Representatives of the Maryland United States Attorney’s Office will never threaten an individual for seeking or wishing to consult an attorney. If you get a call from someone claiming to be from the Maryland U.S. Attorney’s Office about a debt that you don’t know about, seeking immediate payment by credit/debit card or gift card, or otherwise behaving in a threatening manner, get their name and tell them you will call them back. Hang up, call the main office number, 410-209-4800, and ask for that person by name. If it is a legitimate call, they will take the call or reception will take a message for them. If the phone call to you was not legitimate, please report it to the Internet Crime Complaint Center (IC3) website at www.ic3.gov and/or to the FBI at https://www.fbi.gov/tips or call 1-800-CALLFBI (225-5324).
Law enforcement defines this type of scam as government impersonation fraud. The criminals, posing as government officials, often threaten to extort victims with physical or financial harm. According to the IC3, 12,334 people reported being victims of government impersonation scams in 2020, with losses totaling more than $106 million. Anyone who feels they were the victim of this or any other online scam should report the incident immediately using the IC3 website at www.ic3.gov. More information about government impersonation schemes and other online fraud schemes can be found at https://www.fbi.gov/scams-and-safety/common-fraud-schemes.
The U.S. Attorney’s Office staff will never ask for payment or personally identifying information over the phone.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md.
# # #
Maryland Tax Preparer Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
A Maryland tax return preparer was sentenced today to 30 months in prison for conspiracy to defraud the United States and aiding in the preparation of a false tax return.
According to court documents and statements made in court, Anita Fortune, 56, provided tax return preparation services under multiple business names, including Tax Terminatorz Inc. Due to a wire fraud conviction in 2007, Fortune was not eligible to have IRS e-filing privileges. Nevertheless, Fortune prepared and filed returns using IRS e-filing credentials belonging to two co-conspirators, who provided the credentials in exchange for fees and office space. For the tax years 2012 to 2018, Fortune and her associates fraudulently reduced their clients’ tax liabilities and increased their tax refunds by adding fictitious or inflated itemized deductions and business losses to the clients’ returns. The false returns included one that Fortune prepared for an undercover IRS agent. In total, Fortune caused a tax loss to the IRS of $189,748.
In addition to the term of imprisonment, U.S. District Judge Paul W. Grimm ordered Fortune to serve three years of supervised release and to pay approximately $189,748 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland made the announcement.
The IRS Criminal Investigation investigated the case.
Trial Attorney Kathryn Sparks of the Tax Division and Assistant U.S. Attorney Leah Grossi of the District of Maryland prosecuted the case.
Mark Sand & Gravel Co. to Pay $1.75 Million for Allegedly Using Substandard, Unauthorized Road Construction Materials in Violation of Federal and State False Claims ActsRead the Press Release
MINNEAPOLIS – Mark Sand & Gravel Co. has agreed to pay $1.75 million in damages for allegedly violating the federal False Claims Act and the Minnesota False Claims Act, by using unauthorized gravel materials in connection with several federally-funded road construction projects administered by the Minnesota Department of Transportation.
According to the allegations, between 2013 and 2015, Mark Sand & Gravel Co. performed substantial work on three separate federally-funded road construction projects – for portions of Trunk Highways 34, 59/10, and 78 – in or near Detroit Lakes, Minnesota. All such projects are required, by law and contract, to be performed in accordance with detailed terms and specifications using only approved materials. The government contends Mark Sand & Gravel Co. failed to follow contract specifications by using unauthorized and substandard materials, namely waste or shale rock included in the gravel mix for the projects, and making materially false claims and statements in connection with its use of those materials. The proceeds of the settlement will be divided by the federal and state governments according to the original funding of the projects.
“Failing to uphold contractual obligations by agreeing to do one thing but then doing another is not acceptable,” said Acting U.S. Attorney W. Anders Folk. “We will continue to use the False Claims Act and other tools at our disposal to ensure that contractors act with transparency and do the work they promised to do.”
“Performing road construction projects funded by the U. S. Department of Transportation comes with a set of detailed terms and specifications. When companies fail to follow contract specifications, use unauthorized materials, and make false statements concerning the quality of materials, the integrity of the work being performed is compromised,” said Andrea M. Kropf, Special Agent-In-Charge, Midwestern Region, Department of Transportation Office of Inspector General. “Today’s settlement signals our commitment to ensuring the integrity of the programs designed to maintain and improve our nation’s transportation infrastructure.”
This case was jointly investigated by the Office of Inspector General of the U.S. Department of Transportation and the Minnesota Department of Transportation, and handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota, as well as the Minnesota Attorney General’s Office.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Mapleton, ND, Man Sentenced to Federal Prison for Preparation of False Tax ReturnsRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Benjamin Boway, age 43, Mapleton, ND, to 18 months in federal prison for the charge of Aiding in Preparation of False Tax Returns. Judge Welte also sentenced Boway to 1 year of supervised released, $134,498 in restitution and $500 in special assessment fees.
Between 2015 and 2018, Boway, the sole owner and operator of a tax preparation business, Bennie Tax Services, in Mapleton, ND, knowingly filed fraudulent tax returns. Boway charged clients a fee for the preparation and filing with the Internal Revenue Service of federal individual income tax returns for the tax years of 2014, 2015, 2016, and 2017. Some of the returns he prepared on behalf of clients were false and fraudulent, representing that the taxpayers were entitled to claim credits and deductions that Boway knew were not legitimate. The tax loss attributable to the Boway’s fraudulent conduct was $134,298.
"Mr. Benjamin Boway used his tax return preparer’s knowledge and expertise against his clients and the IRS, but fortunately an IRS CI special agent was able to identify, investigate and recommend prosecution of this abusive return preparer," said Amanda Prestegard, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. "IRS Criminal Investigation and the United States Attorney’s Office remain committed to protect the integrity of the tax system and innocent victims that suffer monetary loss."
This case was investigated by the Internal Revenue Service – Criminal Investigations, and Assistant United States Attorney Megan A. Healy prosecuted the case.
######
Man Sentenced for Possessing Child Sexual Abuse MaterialRead the Press Release
A Tulsa man was sentenced today in federal court after being convicted of possessing child pornography, also known as child sexual abuse material, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced James Michael Brown, 63, to 40 months in federal prison followed by 10 years of supervised release. As required by the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018, Judge Frizzell also ordered Brown to pay $5,000 in restitution to one of the victims who was abused in the creation of the child sexual abuse material that was downloaded by Brown. At a March plea hearing, the defendant admitted that from March 27, 2019, to Sept. 30, 2019, he possessed the images and videos.
The Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
This case was brought as part of Operation Clean Sweep, a four-month long operation that concentrated law enforcement efforts on counteracting the spike in internet facilitated child-exploitation crimes in the Northern District of Oklahoma. The operation was carried out in partnership with more than a dozen local, state, tribal and federal law enforcement agencies. The case was also brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Charged after Threatening a Woman at KnifepointRead the Press Release
A Tulsa man was charged by Criminal Complaint today for assaulting a woman with a knife and threatening to kill her, announced Acting U.S. Attorney Clint Johnson.
Darian Rasean Morris, 25, of Tulsa, was charged with assault with a dangerous weapon with intent to do bodily harm in Indian Country.
The victim requested a ride from Morris on June 3, 2021. During the ride, Morris became angry and accused the victim of being disrespectful after she requested he make a stop at a retailer. According to the affidavit, Morris retrieved a knife from inside his vehicle and held it to the victim’s body, threatening to kill her if she didn’t quit her job. He stated that if she wanted to live, she should go with him and not return to work. The victim was eventually able to get away from the defendant and call 911.
This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Cymetra M. Williams is prosecuting the case. Ms. Williams is a prosecutor from the U.S. Attorney’s Office in the District of New Jersey. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee Nation and Cherokee Nation Reservations.
MS-13 Member Pleads Guilty to RICO Conspiracy and MurderRead the Press Release
BOSTON – A member of the MS-13 gang pleaded guilty today in federal court in Boston to RICO conspiracy and admitted to his participation in the murders of two teenagers in Massachusetts, one in 2016 in East Boston and the other in 2018 in Lynn.
Henri Salvador Gutierrez a/k/a “Perverso,” 22, a Salvadorian national, pleaded guilty to racketeering, also known as RICO conspiracy. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Oct. 8, 2021.
MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala. MS-13 members follow certain core rules and principles, including that members attack and attempt to kill members of rival gangs, and members do not act as informants or cooperate with law enforcement.
MS-13 is organized in Massachusetts and elsewhere in smaller groups, known as “cliques,” that operate under the larger mantle of MS-13. Gutierrez was a member of the Sykos Locos Salvatrucha clique of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence, often including murder. The evidence in this case showed that Gutierrez was a “homeboy” or full member of the MS-13 gang.
In November 2018, Gutierrez and six other MS-13 members were indicted following an investigation into the body of a teenage boy found in a park in Lynn on Aug. 2, 2018. The injuries to the victim’s body indicated that the victim had been stabbed dozens of times. Gutierrez admitted that on or about July 30, 2018, he participated in the murder while a member of the MS-13 gang. Evidence presented in court showed that Gutierrez personally stabbed the victim numerous times and showed that Gutierrez and his co-conspirators committed the murder because they believed that the victim was disloyal to the gang and may have been cooperating with law enforcement. Gutierrez is the 5th defendant in this case to plead guilty and accept responsibility for his participation in the July 2018 murder.
Gutierrez also admitted that on or about Dec. 24, 2016, while a member of the MS-13 gang, he participated in a separate murder in East Boston of a teenage boy. Among other things, the evidence summarized in court showed that Gutierrez personally stabbed the victim numerous times and that Gutierrez committed the murder because he believed that the victim may have belonged to a rival gang.
The charge of RICO conspiracy involving murder, provides for a sentence of up to life in prison, up to three years of supervised release and a fine of up to $250,000. Gutierrez will also be subject to deportation upon the completion of his sentence. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Suffolk County District Attorney Rachael Rollins; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Michael Mageary made the announcement.
The remaining defendant in this case is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Man Pleads Guilty to Identity Fraud ChargesRead the Press Release
BOSTON – A Lawrence man who has been living under a false identity pleaded guilty today in federal court in Boston to charges arising from his use of the name and Social Security number of a U.S. citizen.
An individual referred to as “John Doe” pleaded guilty to false representation of a Social Security number, making a false statement concerning a health care benefit program and aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 30, 2021. Doe was indicted by a federal grand jury in June 2020.
Beginning in approximately 2014, Doe used the identity of a U.S. citizen to apply for MassHealth benefits and Massachusetts identification documents, among other things. Between approximately 2014 and 2018, Doe received approximately $25,081 in MassHealth benefits that he was not entitled to.
The charges of false representation of a Social Security number and making a false statement concerning a health care benefit program each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Mackenzie Duane and Benjamin Saltzman of Mendell’s Major Crimes Unit are prosecuting the case.
Laurel County Woman Indicted for COVID Relief FraudRead the Press Release
LONDON, Ky. - A Corbin, Ky., woman has been indicted for a scheme to commit COVID relief fraud and identity theft.
A federal grand jury in London returned an indictment charging 35-year-old Karenda Vaughn with fraudulently obtaining funds from Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), which are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The indictment alleges that, beginning on April 30, 2020 and through March 23, 2021, Vaughn created a fake business entity, Vaughn Outdoor, and submitted numerous fraudulent applications for EIDL proceeds, making numerous false statements about the business. The indictment also alleges that Vaughn used a stolen identity and personal identifying information to create another fake business entity, Josh’s Nature Cure, and then sought and obtained fraudulent EIDL proceeds.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Treasury Inspector General for Tax Administration. The case is being handled by Assistant U.S. Attorney Kate Smith.
On the fraud charges, Vaughn faces up to 20 years in prison and a fine of no more than $250,000. On the identity theft charge, she faces a mandatory, consecutive two-year sentence. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
— END —
Latvian National Charged for Alleged Role in Transnational Cybercrime OrganizationRead the Press Release
A Latvian national was arraigned in federal court in Cleveland, Ohio, today on multiple charges stemming from her alleged role in a transnational cybercrime organization responsible for creating and deploying a computer banking trojan and ransomware suite of malware known as “Trickbot.”
Alla Witte, aka Max, 55, is charged in 19 counts of a 47-count indictment, which accuses her of participating in a criminal organization referred to as the “Trickbot Group,” which deployed the Trickbot malware. The Trickbot Group operated in Russia, Belarus, Ukraine, and Suriname, and primarily targeted victim computers belonging to businesses, entities, and individuals, including those in the Northern District of Ohio and elsewhere in the United States. Targets included hospitals, schools, public utilities, and governments. Witte, who previously resided in Paramaribo, Suriname, was arrested on Feb. 6, in Miami, Florida.
“This indictment demonstrates the strategic approach and broad reach of the Department of Justice’s Ransomware and Digital Extortion Task Force,” said Deputy Attorney General Lisa O. Monaco. “Trickbot infected millions of victim computers worldwide and was used to harvest banking credentials and deliver ransomware. The defendant is accused of working with others in the transnational criminal organization to develop and deploy a digital suite of malware tools used to target businesses and individuals all over the world for theft and ransom. These charges serve as a warning to would-be cybercriminals that the Department of Justice, through the Ransomware and Digital Extortion Task Force and alongside our partners, will use all the tools at our disposal to disrupt the cybercriminal ecosystem.”
“The Trickbot malware was designed to steal the personal and financial information of millions of people around the world, thereby causing extensive financial harm and inflicting significant damage to critical infrastructure within the United States and abroad,” said Acting U.S. Attorney Bridget M. Brennan of the Northern District of Ohio. “Federal law enforcement, along with assistance provided by international partners, continue to fight and disrupt ransomware and malware where feasible. We are united in our efforts to hold transnational hackers accountable for their actions.”
“Witte and her associates are accused of infecting tens of millions of computers worldwide, in an effort to steal financial information to ultimately siphon off millions of dollars through compromised computer systems,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Cyber intrusions and malware infections take significant time, expertise, and investigative effort, but the FBI will ensure these hackers are held accountable, no matter where they reside or how anonymous they think they are.”
The indictment alleges that beginning in November of 2015, Witte and others stole money and confidential information from unsuspecting victims, including businesses and their financial institutions in the United States, United Kingdom, Australia, Belgium, Canada, Germany, India, Italy, Mexico, Spain, and Russia through the use of the Trickbot malware.
Witte and her co-conspirators allegedly worked together to infect victim computers with the Trickbot malware designed to capture online banking login credentials and harvest other personal information, including credit card numbers, emails, passwords, dates of birth, social security numbers and addresses. Witte and others also allegedly captured login credentials and other stolen personal information to gain access to online bank accounts, execute unauthorized electronic funds transfers and launder the money through U.S. and foreign beneficiary accounts.
According to the indictment, Witte worked as a malware developer for the Trickbot Group and wrote code related to the control, deployment, and payments of ransomware. The ransomware informed victims that their computer was encrypted and that they would need to purchase special software through a Bitcoin address controlled by the Trickbot Group to decrypt their files. In addition, Witte allegedly provided code to the Trickbot Group that monitored and tracked authorized users of the malware and developed tools and protocols to store stolen login credentials.
Witte is charged with one count of conspiracy to commit computer fraud and aggravated identity theft; one count of conspiracy to commit wire and bank fraud affecting a financial institution; eight counts of bank fraud affecting a financial institution; eight counts of aggravated identity theft and one count of conspiracy to commit money laundering. The defendant was arraigned before U.S. Magistrate Judge William H. Baughman, Jr. of the U.S. District Court for the Northern District of Ohio. If convicted, she faces a maximum penalty of five years in prison for conspiracy to commit computer fraud and aggravated identity theft; 30 years in prison for conspiracy to commit wire and bank fraud; 30 years in prison for each substantive bank fraud count; a two-year mandatory sentence for each aggravated identity theft count, which must be served consecutively to any other sentence; and 20 years in prison for conspiracy to commit money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Cleveland Office investigated the case.
Senior Counsel C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Daniel J. Riedl and Duncan T. Brown of the Northern District of Ohio are prosecuting the case.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Latvian National Charged for Alleged Role in Transnational Cybercrime OrganizationRead the Press Release
A Latvian national was arraigned in federal court in Cleveland, Ohio, today on multiple charges stemming from her alleged role in a transnational cybercrime organization responsible for creating and deploying a computer banking trojan and ransomware suite of malware known as “Trickbot.”
Alla Witte, aka Max, 55, is charged in 19 counts of a 47-count indictment, which accuses her of participating in a criminal organization referred to as the “Trickbot Group,” which deployed the Trickbot malware. The Trickbot Group operated in Russia, Belarus, Ukraine, and Suriname, and primarily targeted victim computers belonging to businesses, entities, and individuals, including those in the Northern District of Ohio and elsewhere in the United States. Targets included hospitals, schools, public utilities, and governments. Witte, who previously resided in Paramaribo, Suriname, was arrested on Feb. 6, in Miami, Florida.
“This indictment demonstrates the broad reach of the Department of Justice’s Ransomware and Digital Extortion Task Force,” said Deputy Attorney General Lisa O. Monaco. “Trickbot infected millions of victim computers worldwide and was used to harvest banking credentials and deliver ransomware. The defendant is accused of working with others in the transnational criminal organization to develop and deploy a digital suite of malware tools used to target businesses and individuals all over the world for theft and ransom. These charges serve as a warning to would-be cybercriminals that the Department of Justice, through the Ransomware and Digital Extortion Task Force and alongside our partners, will use all the tools at our disposal to disrupt the cybercriminal ecosystem.”
“The Trickbot malware was designed to steal the personal and financial information of millions of people around the world, thereby causing extensive financial harm and inflicting significant damage to critical infrastructure within the United States and abroad,” said Acting U.S. Attorney Bridget M. Brennan of the Northern District of Ohio. “Federal law enforcement, along with assistance provided by international partners, continue to fight and disrupt ransomware and malware where feasible. We are united in our efforts to hold transnational hackers accountable for their actions.”
“Witte and her associates are accused of infecting tens of millions of computers worldwide, in an effort to steal financial information to ultimately siphon off millions of dollars through compromised computer systems,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Cyber intrusions and malware infections take significant time, expertise, and investigative effort, but the FBI will ensure these hackers are held accountable, no matter where they reside or how anonymous they think they are.”
The indictment alleges that beginning in November 2015, Witte and others stole money and confidential information from unsuspecting victims, including businesses and their financial institutions in the United States, United Kingdom, Australia, Belgium, Canada, Germany, India, Italy, Mexico, Spain, and Russia through the use of the Trickbot malware.
Witte and her co-conspirators allegedly worked together to infect victim computers with the Trickbot malware designed to capture online banking login credentials and harvest other personal information, including credit card numbers, emails, passwords, dates of birth, social security numbers and addresses. Witte and others also allegedly captured login credentials and other stolen personal information to gain access to online bank accounts, execute unauthorized electronic funds transfers and launder the money through U.S. and foreign beneficiary accounts.
According to the indictment, Witte worked as a malware developer for the Trickbot Group and wrote code related to the control, deployment, and payments of ransomware. The ransomware informed victims that their computer was encrypted, and that they would need to purchase special software through a Bitcoin address controlled by the Trickbot Group to decrypt their files. In addition, Witte allegedly provided code to the Trickbot Group that monitored and tracked authorized users of the malware and developed tools and protocols to store stolen login credentials.
Witte is charged with one count of conspiracy to commit computer fraud and aggravated identity theft; one count of conspiracy to commit wire and bank fraud affecting a financial institution; eight counts of bank fraud affecting a financial institution; eight counts of aggravated identity theft and one count of conspiracy to commit money laundering. The defendant was arraigned before U.S. Magistrate Judge William H. Baughman Jr. of the U.S. District Court for the Northern District of Ohio. If convicted, she faces a maximum penalty of five years in prison for conspiracy to commit computer fraud and aggravated identity theft; 30 years in prison for conspiracy to commit wire and bank fraud; 30 years in prison for each substantive bank fraud count; a two-year mandatory sentence for each aggravated identity theft count, which must be served consecutively to any other sentence; and 20 years in prison for conspiracy to commit money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Cleveland Office investigated the case.
Senior Counsel C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Daniel J. Riedl and Duncan T. Brown of the Northern District of Ohio are prosecuting the case.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Woman Sentenced on Bank Fraud, Aggravated Identify Theft ChargesRead the Press Release
ABINGDON, Va. – A Clay City, Kentucky woman, who along with two other individuals stole checks and identification documents and committed bank fraud and aggravated identify theft, was sentenced on Thursday to 39 months in federal prison.
Anica Maire Santiago, 34, pleaded guilty in May 2021 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Co-defendants Cregg Mitchell-Feazell and Patricia Butcher have both pleaded guilty and will be sentenced next month.
According to court documents, on May 24, 2020, at the Iron Furnace Trailhead in Lee County, members of the conspiracy broke into several vehicles and stole personal items, including identification documents, Social Security cards, and personal checks. Four days later, the defendants took one of the stolen checks to a drive-through lane at a Commercial Bank in Newport, Tennessee. The check was fraudulently made out to one of the victims of the previously thefts. Butcher produced the fraudulent check and a stolen state-issued photo ID to the bank teller, who cashed the check for $935.
The group used the stolen checks and IDs several other times to cash fraudulent checks. These events were also part of a larger organized scheme involving other break-ins at other locations, other thefts of checkbooks and identification documents, and the cashing of other fraudulent checks.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The National Park Service, with assistance from the Jacksboro, Tennessee Police Department; the Campbell County, Tennessee Sheriff’s Office; the Fentress County, Tennessee Sheriff’s Office; and the Cookeville, Tennessee Police Department investigated the case.
Assistant U.S. Attorneys Whit D. Pierce and Randy Ramseyer prosecuted the case.
Justice Department Resolves ADA Complaint with Maine Department of Health and Human ServicesRead the Press Release
The Justice Department today reached an agreement with the Maine Department of Health and Human Services (DHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
A young man with intellectual disabilities (ID) filed a complaint with the Justice Department alleging that Maine imposed restrictions that placed him at serious risk of having to move from his own home into a congregate setting in order to receive the services he needs. Congregate settings are multi-person homes or facilities where residents receive needed services. This agreement will help ensure that Mainers with ID and autism can receive the personal assistance they need in their own homes.
While Maine’s Medicaid program allows unlimited personal assistance services for people living in congregate settings, the state’s community service program for people with ID and autism limits those same services when they are provided in a person’s own home. As a result, people with disabilities who need more personal assistance, like the young man who filed the complaint, may be forced to leave their homes and move to a segregated setting.
“The ADA requires states to provide disability services in the most integrated setting appropriate,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This often means ensuring that people with disabilities can receive services in their own homes rather than in congregate settings. The Civil Rights Division will vigorously enforce the ADA to avoid unnecessary segregation of people with disabilities and ensure their full integration into the community.”
“We appreciate Maine DHHS’s cooperation with the department’s investigation,” said Acting U.S. Attorney Donald E. Clark for the District of Maine. “The settlement agreement ensures that this young man, and other Mainers with disabilities, will be able to obtain needed services in their own homes.”
After receiving the complaint, the department opened an investigation under the ADA. Maine fully cooperated with the Justice Department’s investigation. In February 2020, the department issued a letter of findings concluding that Maine was failing to provide the complainant with necessary services in the most integrated setting appropriate to his needs, which is his own home, thus placing him at serious risk of having to enter a congregate setting. The department also found that Maine had failed to modify its service program for people with ID and autism to avoid discrimination.
Under the agreement reached today, Maine will modify its policies so that people with ID or autism can receive services in the most integrated setting appropriate to their needs. For example, DHHS will implement a process for granting exceptions to its cap on services provided in one’s own home. DHHS will also establish an individualized process for people to assess their options of where they want to live and receive services. For the complainant, DHHS will provide access to all needed in-home services and pay $100,000 in damages.
Judges sentences Cape Girardeau man for possessing firearmRead the Press Release
CAPE GIRARDEAU – United States District Judge Matthew T. Schelp sentenced Garrick B. Madison to 57 months in prison today. The 25-year-old Cape Girardeau, Missouri resident pleaded guilty, in February, to one count of being a felon in possession of a firearm.
On June 7, 2020, an officer with the Sikeston Department of Public Safety made a traffic stop on a vehicle for having a defective license plate lamp. Madison was a passenger in the vehicle. During a consent search of the vehicle, the officer located a black Remington pistol concealed underneath the passenger seat where Madison was sitting. The officer asked the occupants who the gun belonged to. At this point, Madison turned around and placed his hands behind his back and began walking toward the officer. The officer took this as a non-verbal admission that the gun belonged to Madison.
Madison’s criminal history includes felony convictions for Unlawful Use of a Weapon and Resisting Arrest by Fleeing in Scott County, Missouri, and he is therefore prohibited from possessing firearms.
This case was investigated by the Sikeston Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Julie Hunter handled the prosecution.
#####
Jacksonville Woman Pleads Guilty to Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – Zipporan Carmel Peters (32, Jacksonville) has pleaded guilty to aggravated identity theft and conspiracy to commit bank fraud. Peters faces up to 30 years in federal prison on the conspiracy to commit bank fraud charge, a 2-year mandatory minimum term of imprisonment on the aggravated identity theft charge, and payment of restitution to the victims she and her co-defendant, Charles Cornelius Smith, defrauded. A sentencing date has not yet been set.
According to court documents, Smith obtained the personal identification information, including the name, date of birth, and Social Security number of a victim. Using this information, Smith provided Peters with a counterfeit South Carolina driver license using the name and identity of the victim, but with Peters’ photo on it. Smith then drove Peters to different branches of the Navy Federal Credit Union in Clay and Duval Counties. Using the victim’s identity, Peters made various fraudulent transactions involving the withdrawal of large amounts of cash and the purchase of multiple $500 gift cards, utilizing the victim’s account. Smith and Peters also visited multiple cellphone stores in Clay and Duval Counties and used the victim’s identity to obtain several thousand dollars’ worth of cellphones and accompanying merchandise.
On May 27, 2021, U.S. District Judge Brian J. Davis sentenced Charles Cornelius Smith (35, Jacksonville) to five years in federal prison for aggravated identity theft and conspiracy to commit bank fraud. The court also ordered Smith to pay restitution to the victims he and Peters defrauded.
This case was investigated by United States Secret Service (Jacksonville Field Office), the Clay County Sheriff’s Office, and the Orange Park Police Department. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Jackson Man Pleads Guilty to Telemarketing FraudRead the Press Release
Jackson, Miss. – Jarvis Kendal Haynes, 30, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to conspiracy to commit wire fraud, mail fraud and bank fraud as part of a tech support telemarketing scheme, announced Acting United States Attorney Darren J. LaMarca and Jack P. Staton, Acting Special Agent in Charge of Homeland Security Investigations, New Orleans Field Office.
An original indictment naming ten defendants in the United States and abroad, returned by a federal grand jury on March 19, 2019, charged Haynes with acts supporting a conspiracy defrauding multiple victims, as part of an international tech support and telemarketing fraud scheme.
According to the indictment and testimony in court, beginning no later than on or about January 10, 2015, and continuing through on or about December 20, 2018, Haynes conspired with nine other defendants, located both across the United States and in India, to commit the federal offenses of wire fraud, mail fraud, and bank fraud, in addition to offenses of money laundering, aggravated identity theft, and passing fictitious obligations.
As stated in court documents and testimony in open court, Haynes assisted leaders of a fraud ring which sent tech support emails or telephone messages wrongly advising consumers that their computers were infected with malware or otherwise compromised, offering for a price to help free their computers. Once given permission to access victims’ computers, conspirators either in the United States or abroad would help themselves to personal identification information and bank account passwords from their victims’ computers.
Haynes specifically aided the conspirators by incorporating a company called Rapid Race Experts LLC, and opening bank accounts for the business. Conspirators would then use the business name and the bank accounts to transfer and remove money obtained from victims during the scam.
“Fraud schemes, like the ones perpetrated and executed by these defendants, inflict considerable loss on citizens, companies, and the financial system,” said Acting U.S. Attorney Darren LaMarca. “Many of these schemes target the elderly and often steal the victims’ entire life savings. These arrests affirm the Department of Justice’s commitment to prosecuting those who prey on our most vulnerable citizens.”
Haynes pled guilty to conspiracy to commit wire fraud, mail fraud, and bank fraud, admitting to his role in the fraud scheme financial operations. He will be sentenced by Judge Jordan on September 21, 2021.
Haynes faces maximum penalties for the wire fraud conspiracy of 20 years in prison and a fine of up to $250,000. If the Court finds applicable the Senior Citizens Against Marketing Scams Act (“SCAM Act”), then Haynes’s maximum penalty could extend up to thirty (30) years.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with HSI’s Jackson Division who investigated the case, and United States Marshals Service who assisted with the arrest of the defendant. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Jackson Man Pleads Guilty to Bank RobberyRead the Press Release
Jackson, Miss. – A Jackson man pled guilty in U.S. District Court yesterday to robbing a local bank, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Richard Dewayne Jiles, 42, robbed the Trustmark Bank on Medgar Evers Boulevard in Jackson on December 3, 2020. Jiles entered the Trustmark Bank and handed the teller a note stating that she would die if she did not give him $5,000. Law enforcement officers learned from Crimestoppers tips and witness statements that Jiles was the person who robbed the bank. Jiles was arrested in Rankin County after crashing into another vehicle. He was indicted by a federal grand jury on February 9, 2021.
Jiles pled guilty and is scheduled to be sentenced on September 17, 2021. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case.
Assistant U.S. Attorney Chris Wansley is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Internal Revenue Service Agent Pleads Guilty to Identity Theft and Wire FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Bryan Cho, also known as “Yong Hee Cho,” a Special Agent with Internal Revenue Service Criminal Investigation, pleaded guilty to wire fraud and aggravated identity theft in connection with a scheme to create false identification documents and passports using the stolen identity of the former subject of an IRS investigation. The proceeding took place before United States District Judge Ann M. Donnelly. When sentenced, Cho faces up to 22 years in prison and has agreed to forfeit $394,374.63.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), announced the guilty plea.
According to court filings and facts presented during the plea proceeding, Cho stole the identity of a former subject in one of his investigations and used it to create fake identification documents in the person’s name. The false documents included purported identification cards and passports from the Republic of Marshall Island, Philippines and the Republic of Guinea Bissau. Some of the documents, including identification cards from the Philippines and the Republic of Guinea Bissau, featured Cho’s picture. One false identification document was used by Cho to register a corporation overseas in the name of the suspect. Cho then lied during an official background investigation when he failed to disclose this conduct and denied having any aliases or foreign interests.
“The defendant shamelessly violated his oath of office, and now he will pay the price for his criminal conduct,” stated Acting United States Attorney Lesko. “While the vast majority of federal law enforcement agents honor the trust placed in them by the public, today’s plea serves as a reminder that this Office will prosecute corrupt agents who abuse their positions for their personal benefit.”
“TIGTA aggressively investigates Internal Revenue Service employees who violate the public’s trust,” stated Treasury Inspector General for Tax Administration George. “Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration, and we are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law.”
Cho faces up to 20 years’ imprisonment on the wire fraud count and a mandatory consecutive sentence of two years’ imprisonment on the aggravated identity theft count.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Elizabeth Geddes and Turner Buford are in charge of the prosecution.
The Defendant:
BRYAN CHO (also known as “Yong Hee Cho”)
Age: 49
New York, New YorkE.D.N.Y. Docket No. 21-CR-40 (AMD)
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 4 was:
Jared Robert Williams, 41, of Bozeman, and Marty Eugene McDonald, 62, of Amsterdam, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Williams and McDonald were detained pending further proceedings. The Missouri River Drug Task Force, FBI, Bozeman Police Department, Montana Probation and Parole and Montana Highway Patrol investigated the case. PACER case reference. 21-20.
Appearing on June 2 was:
Max Dudley Stilson, 57, of Belgrade, and Arthur Ronald Kane, 51, of Belgrade, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Stilson and Kane were detained pending further proceedings. The Missouri River Drug Task Force, FBI, Bozeman Police Department, Montana Probation and Parole and Montana Highway Patrol investigated the case. PACER case reference. 21-20.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 1 was:
Charles Dean Fourbear II, 28, of Poplar, on charges of stalking. If convicted of the most serious crime, Fourbear faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Fourbear was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-32.
Joseph Young Lodgepole, 41, of Box Elder, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Lodgepole faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Lodgepole was released pending further proceedings. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 21-34.
Brandon Wayne Glover, 38, of Havre, on charges of possession with intent to distribute controlled substances, distribution of meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Glover faces a mandatory minimum 10 years to life in prison a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory consecutive five years in prison, a $250,000 fine and three years of supervised release on the charge of possession of a firearm in furtherance of a drug trafficking crime. Glover was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Havre Police Department and Tri-Agency Task Force investigated the case. PACER case reference. 21-33.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Indiana Woman Convicted of Conspiracy to Commit Mail Fraud, Wire Fraud, and Money Laundering in Advance-Fee Fraud Scheme Targeting Deaf and ElderlyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 2, 2021, Donna L. Summerlin, age 62, of Fortville, Indiana, was convicted following a seven-day jury trial held before United States District Court Judge Jennifer P. Wilson of conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering.
According to Acting United States Attorney Bruce D. Brandler, Summerlin was charged with accepting over $1.2 million from victims of cross-border advance-fee schemes. Many of the identified victims were either elderly, deaf, or both. In these schemes, victims were contacted through Facebook and told that they were winners of a “deaf lottery” or that they had been selected for special and exclusive government grants or other programs. Summerlin herself is deaf and the trial used multiple sign language interpreters to interpret the witness testimony and court proceedings.
In order to claim their supposed prize, grant, or other financial reward, victims were directed to prepay expenses such as taxes and customs fees. Victims were persuaded to do so with the false promise of a much larger payoff. After making an initial payment, victims were directed to make additional larger payments. In some cases, fraudsters were successful at getting multiple payments from victims, who never received any financial reward.
Fraudsters contacting potential victims through Facebook, email, and text messages used fake names and photographs to disguise themselves. These fraudsters also took over the accounts of victims so that they could lure their friends into sending money and to reassure them of the scheme’s legitimacy when victims had doubts about participating. Victims were instructed to send these payments to Summerlin, who worked as a “money mule” or intermediary for these fraudsters for approximately four years, from 2012 to 2016.
At trial, the Government showed that Summerlin received over $1.2 million from over 100 people across the country and, in some cases, other countries such as Canada and Australia. Victims mailed Summerlin checks, cash, and money orders. They also wired her funds through bank-to-bank electronic wire transfers and sent her money through Western Union and MoneyGram money transfers. The victims included a deaf elderly couple that resided in this District during the time period of the conspiracy. The Government showed that this couple sent Summerlin around $500,000, depleting their life savings.
After receiving these funds, Summerlin rapidly withdrew them from the more than 40 bank accounts she used for these activities. Typically, she wired a portion of the funds to coconspirators in Nigeria and Great Britain. She also made large cash withdrawals, which were used to send funds to coconspirators and for personal use. Finally, she sent a large number of Western Union and MoneyGram money transfers to many of the same recipients in Nigeria and Great Britain. Evidence at trial showed that Summerlin benefited financially from this scheme.
The jury returned a guilty verdict after approximately an hour of deliberation. Summerlin was convicted of both counts in her indictment: one count of conspiring to commit mail fraud and wire fraud and one count of conspiracy to commit money laundering.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorneys Ravi Romel Sharma and Carlo D. Marchioli represented the United States at trial. The case was previously handled by Assistant U.S. Attorneys Chelsea Schinnour and Kim Douglas Daniel.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Independence Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri man who fled from law enforcement officers several times on a four-wheeler was sentenced in federal court today for illegally possessing a firearm.
Cody R. Wilkins, 29, was sentenced by U.S. District Judge Brian C. Wimes to eight years in federal prison without parole.
On Oct. 22, 2020, Wilkins pleaded guilty to being a felon in possession of a firearm. According to court documents, Wilkins was identified as a drug dealer in February 2019 and law enforcement officers executed a search warrant at his residence. Officers found a stolen, loaded Springfield Armory handgun, marijuana, pills, pipes, and methamphetamine in his bedroom.
After he was indicted by the federal grand jury in this case, law enforcement officers made several attempts to arrest Wilkins on the existing warrant. In each attempt, according to court documents, Wilkins fled in a dangerous manner.
On Sept. 19, 2019, after officers attempted to arrest him, he failed to stop the four-wheeler he was driving and fled at a high rate of speed off a roadway and down a walking path. Officers used a drone to follow him, but even the drone could not keep up with Wilkins given the speed he was traveling. On Sept. 23, 2019, officers again attempted to arrest Wilkins while he was a passenger in a truck. Instead of stopping, the vehicle fled the scene and the pursuit was terminated due to safety concerns. Later that day, Wilkins was spotted driving the four-wheeler and officers again attempted to stop him, but he fled. Wilkins eluded capture by traveling at a high rate of speed on public streets and through a city park.
On Sept. 27, 2019, officers again attempted to stop Wilkins while he was on the four-wheeler. A law enforcement helicopter assisted the officers on the ground as they attempted to locate him. During the pursuit, Wilkins refused to stop and continued fleeing, driving at a high rate of speed into opposing lanes of traffic. He entered a cemetery, where he lost control of the four-wheeler and was thrown from it. Wilkins then fled on foot and entered a nearby apartment building, where he broke into an occupied unit. The residents notified law enforcement that Wilkins had broken into their apartment. Officers responded to the unit and Wilkins attempted to close the door to prevent officers from arresting him, however, officers were able to enter the apartment and arrest Wilkins. During the pursuit, a local high school in the area had to be placed on lockdown for safety concerns.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wilkins has a significant criminal history. Wilkins was arrested 32 different times between 2011 and 2019, which resulted in five felony convictions and 14 misdemeanor convictions. Wilkins’s felony convictions include tampering with a motor vehicle, two convictions for possession of a controlled substance, and two convictions for aggravated stalking. In the aggravating stalking cases, he threatened law enforcement officers’ lives on multiple occasions. Wilkins’s misdemeanor convictions include domestic assault, resisting arrest, traffic violations, possession of a controlled substance, careless driving, and leaving the scene of an accident. The misdemeanor domestic assault conviction resulted from a violent attack on his girlfriend where he grabbed, struck, and threw her down multiple times.
This case was prosecuted by Assistant U.S. Attorney Matt Moeder. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Illegal Alien Sentenced for Unlawful Reentry into the United States and for Being a Convicted Alien Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Cecilio Gonzalez-Espino, 31, has been sentenced to 30 months in federal prison for unlawful reentry into the United States and for illegally possessing a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on August 11, 2020, in Memphis, agents with the U.S. Immigration and Customs Enforcement located the defendant with a loaded firearm in his vehicle. On August 20, 2020 Gonzalez-Espino was indicted for being an alien in possession of a firearm and illegally reentering the United States after removal.
Gonzalez-Espino is a convicted felon, having previously been convicted of multiple felony methamphetamine charges in 2011 in California. As a result of his prior conviction and alien status, he is prohibited by federal law from possessing firearms or ammunition.
"HSI works to keep our communities safe by removing violent criminals and deadly weapons from our streets," said Jerry C. Templet, Jr, special agent in charge, HSI Nashville.
On June 2, 2021, U.S. District Judge Mark Norris sentenced Gonzalez-Espino to 30 months imprisonment to be followed by three years’ supervised release. There is no parole in the federal system. He also faces deportation after completion of his sentence of confinement.
This case was investigated by Homeland Security Investigations (HSI).
Assistant U.S. Attorney Scott Smith prosecuted this case on behalf of the government.
###
Harrison County woman sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nikoma L. Knight, of Clarksburg, West Virginia, was sentenced today to 132 months of incarceration for her involvement in distributing drugs, Acting U.S. Attorney Randolph J. Bernard announced.
Knight, age 25, pleaded guilty in January 2019 to one count of “Conspiracy with Intent to Distribute Greater than 500 grams of Methamphetamine” and one count of “Unlawful Use of Communication Facility.” She admitted to working with another to distribute more than 500 grams of methamphetamine and using a phone to distribute methamphetamine in June 2018 in Monongalia County. During a search at her residence, officers found approximately 10 pounds of methamphetamine, a half pound of heroin, $57,442 in cash, and twelve firearms.
Assistant U.S. Attorney Brandon S. Flower prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Former University of Louisville Coach Pleads Guilty to ExtortionRead the Press Release
LOUISVILLE, KY – A North Carolina man pleaded guilty today to making an interstate communication with intent to extort.
According to court documents, Dino J. Gaudio, 64, of Mooresville, North Carolina, was arraigned and pleaded guilty to sending a text message through interstate commerce as part of an attempt to extort the University of Louisville men’s basketball program.
During the plea hearing in federal court, Gaudio admitted that on March 17, 2021, after he was informed that his employment contract with the University of Louisville would not be renewed, he threatened to report to the media that the University of Louisville men’s basketball program had allegedly violated National College Athletic Association rules in its production of recruiting videos for prospective student-athletes and in its use of graduate assistants in practices, unless he was paid his salary of $25,000 a month for an additional 17 months, or received a lump sum payment of $425,000. Later the same day, as a continuation of this threat, Gaudio sent a text message to University of Louisville personnel containing one of the recruiting videos he was threatening to send to the media.
The crime Gaudio pleaded guilty to carries a maximum sentence of two years imprisonment and a $250,000 fine. Gaudio is scheduled to be sentenced on August 27th at 1:30 p.m.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge of the Federal Bureau of Investigation (FBI) Louisville Field Office James Robert Brown, Jr. made the announcement.
The FBI and the University of Louisville Police Department are investigating the case.
Assistant U.S. Attorney Amanda E. Gregory is prosecuting the case.
###
Former Resident of Newfields Pleads Guilty to Destruction of Government PropertyRead the Press Release
CONCORD - Dwayne Grim, 52, formerly of Newfields, pleaded guilty in federal court on Thursday to destruction of government property, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the fall of 2016, U.S. Department of Agriculture Forest Service Law Enforcement Officers working in the Pemigewasset Ranger district of the White Mountain National Forest began noticing that USDA Forest Service signs, property, and interpretive materials on kiosks were being stolen and/or vandalized. The incidents occurred primarily in the towns of Woodstock, Benton, Easton, Landaff, Bath, and Warren, New Hampshire.
On January 14, 2018, a law enforcement officer notified the Forest Service that he had recovered signs that appeared to belong to the Forest Service at Grim’s home in Newfields. Grim later admitted to cutting down and/or removing signs belonging to the Forest Service in the area of the White Mountain National Forest. Many of the stolen signs were later recovered, some with Grim’s assistance.
In total, Grim damaged at least 26 signs and caused approximately $3,868 in damages to Forest Service property. As part of his plea, Grim agreed to make full restitution to the Forest Service.
Grim, who now resides in Oregon, is scheduled to be sentenced on September 9, 2021.
“The White Mountain National Forest attracts visitors from all over the world,” said Acting U.S. Attorney Farley. “By destroying Forest Service signs and property, Grim not only committed a federal crime, but also inconvenienced many people seeking to enjoy the National Forest. To protect the White Mountain National Forest, we will not hesitate to bring federal charges against those who commit crimes there.”
This matter was investigated by the USDA Forest Service and the Newfields Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
###
Former Office Manager for San Antonio Dermatology Practice Indicted on Federal Fraud and Identity Theft ChargesRead the Press Release
SAN ANTONIO – A former office manager of a prominent local dermatology practice waived pre-trial detention today and agreed to remain in federal custody pending trial. She is charged with defrauding the medical practice of nearly $350,000 from patient billings and employee profit sharing accounts.
A federal grand jury indictment charges 74-year-old Patricia Ann Doucet with 10 counts of wire fraud, one count of bank fraud, one count of access device fraud and two counts of aggravated identity theft.
The indictment alleges that from July 2012 to February 2020, Doucet defrauded her former employer, the Dermatology & Laser Center of San Antonio. According to the indictment, the medical practice’s owner and operator organized and conducted a non-profit educational symposium on regenerative medicine in San Antonio in 2012. A bank account was established to collect contributions for the symposium event. That account was to be closed at the conclusion of the symposium. But Doucet, in her capacity as office manager, kept the account open without permission.
The indictment alleges that in July 2012, Doucet began to embezzle checks and cash paid to the dermatology practice by depositing them into the symposium account. She altered a signature stamp utilized by the practice for its business account or fraudulently endorsed checks by forging the owner’s signature. Doucet also stole money from the practice’s profit-sharing account that was designed to automatically issue checks to cover taxes for the employee’s profit share. Rather than directing those checks to the IRS, Doucet instead deposited those checks into the symposium account. Doucet then used the symposium account as her slush fund for international and domestic travel, property payments, meal purchases and other personal expenses on credit cards she fraudulently opened in the owner’s name.
The bank fraud charge upon conviction calls for up to 30 years in federal prison. The wire fraud charges upon conviction call for up to 20 years in federal prison per count. The aggravated identity theft charges upon conviction call for a mandatory two years in federal prison, consecutive to any other sentence imposed.
U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office, made today’s announcement.
FBI agents arrested Doucet in Shreveport, Louisiana on April 23, 2021. Doucet remains in federal custody. No trial date has been scheduled.
The FBI conducted this investigation. Assistant U.S. Attorneys Matthew W. Kinskey, Joseph E. Blackwell and Tony Franco are prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
###
Former Northeast Missouri City Clerk pleads guilty to stealing city moneyRead the Press Release
ST. LOUIS – Tracey Ray, 48, of New London, Missouri, pleaded guilty to one count of wire fraud and one count of federal program theft. Ray appeared, today, before United States District Court Judge Rodney W. Sippel.
Ray was the City Clerk of Center, Missouri for many years. Beginning in January 2015 and continuing through July 2019, Ray engaged in a scheme to defraud and obtain money from Center, Missouri in an approximate amount of $317,325.59, by means of materially false and fraudulent pretenses, representations and promises.
As part of her fraudulent scheme, on approximately 30 occasions, Ray used Center bank funds to pay for charges on her personal credit card. Center funds used to pay for personal charges on Ray’s GM credit card totaled approximately $206,342.53 and were for such personal expenses as retail vendor charges, entertainment, lodging and travel, hair salons, restaurants and grocery store charges. These personal credit card payments were made either by Ray’s issuance of Center bank checks, or by Ray’s wire transfer of Center bank funds. Further, through these unauthorized credit card charges and payments, Ray earned and spent an additional approximately $1,911.00 in reward funds. Further, on approximately 39 occasions, Ray issued Center bank account checks in the approximate total amount of $62,537.76 to Anthem Blue Cross and Blue Shield to pay for the premiums on a family health insurance policy, as well as on life and disability policies for her and her family members.
As a further part of her scheme, Ray issued five additional Center payroll checks to herself in the total amount of approximately $3,580.00, depositing each of those unauthorized checks into her own personal bank account. On 49 occasions, Ray issued checks on City bank accounts, in the total approximate amount of $35,546.85 to directly pay for the purchases of personal items and services. Ray issued these Center checks to make personal purchases at a number of retailers, such as Kohl’s, Lowe’s, Walmart, and Hobby Lobby, as well as to pay for her personal residential mortgage and personal insurance policies. She also issued one or more of these Center checks to her family members, unrelated to the legitimate business and operations of Center. Further, Ray, as Center’s City Clerk, received cash payments from Center residents for various city charges, but Ray failed to deposit those cash receipts into the appropriate Center bank account. Instead, Ray used those cash proceeds, in the total amount of approximately $7,407.45 for her own personal use, without the knowledge and authority of Center and its Board of Aldermen.
In order to conceal her scheme from Center and its Board of Aldermen, Ray falsified the cash balances of one or more Center bank accounts on financial reports she prepared for monthly Board of Aldermen meetings. Ray also prepared false and incomplete lists of bills to be paid which she submitted for monthly Board of Aldermen meetings. Further, Ray falsified internal Center financial accounting records to make it appear that the unauthorized checks and wires she issued from Center bank accounts were made to legitimate third party vendors who had purportedly provided actual services or materials to Center.
During the period of her scheme, the City of Center received federal grant funds in excess of $10,000 into its bank accounts.
Judge Sippel has set sentencing for August 17, 2021.
The Federal Bureau of Investigation, Missouri State Auditor’s Office and Ralls County Sheriff’s Office investigated the case. Assistant United States Attorney Hal Goldsmith is handling the case.
#####
Former Maryland Tax Preparer Sentenced to More Than Two Years in Federal Prison for a Tax Fraud ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Anita Fortune, age 56, of Alexandria, Virginia, to 30 months in federal prison, followed by three years of supervised release, for a conspiracy to defraud the United States and for assisting in the preparation and filing of false tax returns. Judge Grimm also ordered Fortune to pay restitution in the full amount of the loss, $189,748.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Fortune’s continued actions to file fraudulent returns with the IRS warrant repercussions. Clients relied on the expertise of their return preparer to aid them in filing an accurate tax return. Fortune abandoned her responsibility to ensure her clients submitted accurate tax return to the IRS.” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office.
According to her guilty plea, Fortune was convicted of wire fraud in 2007 resulting in her Internal Revenue System (IRS) e-filing privileges being revoked. Following her release from prison, co-conspirator 2 agreed to allow Fortune to use co-conspirator 2’s unique electronic filing identifiers, in exchange for a fee of $29 per tax return. Beginning in 2012, Fortune and co-conspirator 2 agreed to operate a business that would allow Fortune to misrepresent her identity on the clients’ tax returns by using co-conspirator 2’s identifiers to prepare and electronically file client tax returns with the IRS. In August 2015, the IRS expelled co-conspirator 2 from its electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed with co-conspirator 2’s unique identifiers. At that time co-conspirator 3, who was also participating in the IRS’s electronic tax return filing program agreed to allow Fortune and co-conspirator 2 to use co-conspirator 3’s unique identifiers in exchange for the use of Fortune and co-conspirator 2’s shared office space in Temple Hills, Maryland.
Fortune and co-conspirator 2 misrepresented their identities on their clients’ tax returns by using co-conspirator 3’s identifiers to prepare and electronically file the tax returns with the IRS. Co-conspirator 3 also joined in Fortune and co-conspirator 2’s practice of falsifying tax returns and fraudulently claiming refunds. Specifically, Fortune, co-conspirator 2, and co-conspirator 3 falsified tax returns by: fabricating, inflating, and improperly claiming deductions on the Schedules A that were attached to clients’ federal individual income tax returns; and engineering business losses by fabricating, inflating, and improperly claiming purported business expenses. As a result, Fortune, co-conspirator 2, and co-conspirator 3 artificially lowered their clients’ taxable income, thereby lowering the taxes that the clients owed to the IRS and inflating their refunds.
On December 15, 2017, co-conspirator 3 was also expelled from the IRS’s electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed using co-co-conspirator 3’s unique identifiers. Co-conspirator 3 then misled a third-party electronic return originator (“ERO”) about the criminal nature of her issues with the IRS in order to obtain their assistance. The ERO allowed co-conspirator 3 to file tax returns using its unique identifiers, which co-conspirator 3 shared with Fortune and co-conspirator 2. Using the ERO’s identifiers, Fortune and her co-conspirators continued to prepare and file fraudulent federal tax returns through at least April 2019.
In total, the tax loss caused to the IRS as a direct result of Fortune and her co-conspirators’ conspiracy for the tax years 2012 through 2018 was $189,748.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Trial Attorney Kathryn Sparks of the Tax Division, who prosecuted the case.
# # #
Former Madison County Resident Sentenced to 17 Years for Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – John T. Flinn, age 27, of Canastota, New York was sentenced yesterday to serve 17 years imprisonment to be followed by 10 years of supervised release for his conviction for sexual exploitation of a child. Flinn also will be required to register as a sex offender upon his release from incarceration.
The announcement was made by Acting United States Attorney Antoinette T. Bacon, Special Agent in Charge Kevin M. Kelly, Homeland Security Investigations (HSI), Buffalo, New York, and Special Agent in Charge Kevin D. Sibley, Homeland Security Investigations (HSI) Tampa, Florida.
As part of his previously entered guilty plea, Flinn admitted that he took sexually explicit images of an approximately six-year-old victim on three different occasions. Flinn also admitted that he possessed other images of child pornography, including images of toddlers and images depicting sadistic and masochistic sexual abuse of children.
This case was investigated by the New York State Police and the Department of Homeland Security, Homeland Security Investigations (Syracuse, New York and Tampa, Florida) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former IRS Employee in Fresno Pleads Guilty to Aiding and Assisting in the Preparation of False and Fraudulent Tax ReturnsRead the Press Release
FRESNO, Calif. — Angela Milton, 38, of Sacramento, pleaded guilty today to aiding and assisting in the preparation and presentation of false and fraudulent tax returns, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Milton was an IRS tax examining technician in Fresno between 2010 and 2013. During that time, she helped prepare and file numerous fraudulent tax returns in other peoples’ names to increase the refund that the IRS disbursed. In some cases, Milton received a fee while in others she took a portion of the refund without the knowledge of the taxpayer. As a result of her conduct, Milton attempted to defraud the IRS of over $170,000, and the actual loss was approximately $101,475.
This case is the product of an investigation by the U.S. Department of the Treasury, Office of Inspector General and IRS Criminal Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Milton is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 3. Milton faces a maximum statutory penalty of three years in prison and a $250,000 fine as well as restitution owed to the IRS. 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.
Former Dolgeville Man Sentenced to 24 Months for Passport Fraud, Misuse of a Social Security Number, and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Timothy John Walsh, age 63, formerly of Dolgeville, New York (currently residing in California), was sentenced today to serve 24 months and four days imprisonment, to be followed by three years of supervised release, for making a false statement on a U.S. passport application, misuse of a social security number, and aggravated identity theft, announced Acting United States Attorney Antoinette T. Bacon and Keith Byrne, Special Agent in Charge, Diplomatic Security Service’s New York Field Office.
As part of his guilty plea, Walsh admitted that he mailed a fake passport application to the United States Department of State using his own picture but using his deceased brother’s name and other personal identifying information, including his brother’s social security number.
This case was investigated by the Diplomatic Security Service of the U.S. Department of State, and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Former Boston Police Sergeant and Officer to Plead Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Sergeant and a former officer have agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Gerard O’Brien, 62, of Braintree, and Diana Lopez, 56, of Milton, have agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. O’Brien is scheduled to plead guilty on June 17, 2021. A plea hearing for Lopez has not yet been scheduled.
In September 2020, O’Brien, Lopez and seven other Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, four additional officers have been charged: former officer Joseph Nee, former Captain Richard Evans and former Sergeants George Finch and William Baxter. Nee has agreed to plead guilty but a date has not yet been set. Finch pleaded guilty on June 1, 2021 and Baxter is scheduled to plead guilty on June 25, 2021.
It is alleged that, O’Brien and Lopez submitted false and fraudulent overtime slips for overtime hours that they did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, O’Brien and Lopez claimed to have worked from 4 – 8 p.m., but they routinely left at 6 p.m., and sometimes earlier. Additionally, O’Brien knowingly endorsed the fraudulent overtime slips of his subordinates who, allegedly, also left early from this shift. For the “kiosk” shift, O’Brien, Lopez and, allegedly, others submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact they and, allegedly, other members of the unit, only worked three-to-four hours of those shifts.
From December 2016 through February 2019, O’Brien personally collected approximately $25,930 for overtime hours he did not work. From January 2016 to February 2019, Lopez personally collected approximately $36,018 for overtime hours she did not work.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Boston Police Officer Charged in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Joseph Nee, 48, of Randolph, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.
Nee admitted that from at least January 2015 through August 2017, he submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts. As a result, between January 2015 and August 2017, Nee personally collected approximately $12,636 for overtime hours he did not work.
In September 2020, nine Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, three other officers were charged: former Captain Richard Evans and former Sergeants George Finch and William Baxter. Baxter is scheduled to plead guilty on June 25, 2021 and Finch pleaded guilty on June 1, 2021.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Returns Charges against Two Individuals for Covid-19 FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Russell Foreman and Chandler Simbeck were indicted by a Federal Grand Jury on May 18, 2021, on charges of wire fraud, money laundering and conspiracy to defraud the United States.
According to allegations in the indictment, between March 2020 and October 2020, Foreman electronically submitted loan applications to the Small Business Administration for various businesses knowing that the applications contained materially false and fraudulent information, including the establishment date of the businesses, gross revenues and costs of goods sold, and the applicant’s lack of felony criminal record. Upon approval, the SBA conducted electronic transfer of funds to bank accounts controlled by Foreman. Foreman then moved the money into different bank accounts he controlled. The indictment also alleges that Foreman and Simbeck created an entity, Fusion Group LLC, listing Simbeck as the owner. Together they applied for an Economic Injury Disaster Loan knowing the application contained false information. Upon receipt of the funds into the Fusion Group bank account, Foreman and Simbeck caused the loan proceeds to be moved into the bank accounts of Vegisir Consults LLC and Vegvisir Consults LLC, which they controlled. They then issued a check to Simbeck’s relative for $50,000.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to issue loans to small businesses and non-profit entities experiencing revenue loss due to the pandemic. The Economic Injury Disaster Loan (“EIDL”) program provides loan assistance up to $150,000 to pay permissible expenses such as fixed debts, payroll, and accounts payable for certain COVID-19 impacted businesses in operation prior to February 1, 2020. Additionally, the CARES Act created the Paycheck Protection Program (“PPP”) which authorizes forgivable loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
Foreman faces eight counts of wire fraud, one count of conspiracy, and four counts of money laundering. Simbeck faces one count of wire fraud and one count of conspiracy. Each wire fraud count carries a penalty of up to 20 years in prison. Conspiracy carries a penalty of up to five years in prison. Money laundering carries a penalty of up to 10 years in prison.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Robert Brown.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
CASE NUMBER: 21-cr-00165-RM
####
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Sign up for new releases [email protected]
Federal Court Finds Florida Tax Preparers in Contempt for Violating Court’s Preliminary InjunctionRead the Press Release
On Thursday, a federal court in the Southern District of Florida held two individuals, as well as the company they allegedly co-own, in contempt for violating a preliminary injunction that restricted their tax preparation activities. The court’s order notes defendants “admit that sufficient evidence exists to hold them in contempt of court for violating the preliminary injunction.”
The United States filed a complaint against Wendell Devallon, Berald Dominique, and Tax Time Group Inc. on Dec. 4, 2020, seeking to enjoin them from preparing returns for others. The complaint alleges that Devallon and Dominique co-own Tax Time Group Inc., which has its principal place of business in North Lauderdale, Florida, and additional offices in Charlotte, North Carolina; Niagara Falls, New York; Buffalo, New York; and Evansville, Indiana. According to the complaint, defendants prepared tax returns for customers that claimed fraudulent self-employment expenses, fictitious education credits, and fake charitable contributions, among other schemes. The complaint also alleged that Devallon and Dominique acted as “ghost” preparers, meaning that they acted as paid tax return preparers but did not sign the returns they prepared, as required by law.
On Jan. 13, 2021, the court entered a stipulated preliminary injunction against all three defendants, requiring them to “cease all tax preparation and filing services” at certain offices, including a location at 995 SW 71st Avenue, North Lauderdale, FL 33068.
On May 3, 2021, the United States sought an order to show cause and a temporary restraining order, alleging that Devallon, Dominique, and Tax Time Group Inc. were violating that preliminary injunction. According to the show cause motion, defendants continued to prepare returns out of the 995 SW 71st Avenue location but masked their involvement in the prohibited activities by submitting those returns through entities purportedly based in Indiana and Pennsylvania. The motion for a temporary restraining order alleged that proceeds from the prohibited return preparation were being deposited into five bank accounts, three of which were held in the name of nominee entities. On May 12, 2021, the court entered a temporary restraining order prohibiting Devallon, Dominique, and Tax Time Group Inc. from accessing the funds in those five bank accounts.
On Thursday, the United States and defendants jointly moved for an order holding defendants in contempt, which motion was granted the same day. The court will determine appropriate sanctions at a later date.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Elkhart, Indiana Man Convicted After Four-Day Jury TrialRead the Press Release
SOUTH BEND – Khalil Jackson, age 25, of Elkhart, Indiana, was convicted following a jury trial in the South Bend District Court announced Acting United States Attorney Bell.
U.S. District Court Judge Damon Leichty presided over this four-day jury trial. The jury found Jackson guilty of various federal charges arising out of conduct involving human trafficking of a minor victim: specifically, Count 1, sex trafficking of a minor, Count 2, production of child pornography, Count 3, transportation of child pornography, Count 4, possession of child pornography, and Count 5, cyberstalking.
Jackson’s sentencing is set for September 20, 2021.
This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Police Department and Elkhart Police Department. This case was prosecuted by Assistant United States Attorneys John Maciejczyk, Kim Schultz and Joel Gabrielse.
###
Edgerton Man Sentenced to 5 Years for Illegal Gun Possession During Civil UnrestRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Kyle Olson, 29, Edgerton, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 27 months in prison for being a felon in possession of a firearm. Olson pleaded guilty to this charge on December 1, 2020.
On May 31, 2020, downtown Madison was experiencing civil unrest following peaceful protests. Olson saw a live video feed of these events and drove to Madison to see it for himself. Olson said that he brought a loaded .45 caliber handgun with him for protection because of what was going on in the area. At the time, Olson had four felony car theft convictions from 2015 and was on supervision after being released from state prison.
When Olson arrived downtown, several Madison Police Department officers observed him take a gun out of his trunk, tuck it into his waistband, and conceal it with his shirt. Because of the escalating violence in the area, the officers detained Olson to determine if he had a valid concealed carry permit. As the officers recovered the gun, Olson told them that he was a felon and knew he should not have the gun.
At sentencing, Judge Conley said that he was very thankful that the officers intervened, considering the violent civil unrest in the area. Judge Conley also said that it was deeply concerning that Olson said he drove to Madison because he was “tired of watching people burn down buildings.” Judge Conley noted that this was the latest in a long string of self-destructive behaviors by Olson that endangered others and, in this case, the police.
The charge against Olson was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
East Stroudsburg Man Sentenced to 18 Months’ Imprisonment for Numerous Acts of Passing Counterfeit CurrencyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 3, 2021, William Daquan Battle, age 28, of East Stroudsburg, Pennsylvania, was sentenced by United States District Court Judge Robert D. Mariani to 18 months’ imprisonment followed by a 2-year term of supervised release, for passing counterfeit United States currency on numerous occasions.
According to Acting United States Attorney Bruce D. Brandler, on diverse dates in November and December of 2018, Battle passed or attempted to pass over $2,000 in counterfeit currency at Walmart Supercenters located in East Stroudsburg and Mount Pocono, PA. Battle engaged in this conduct at a time when he was still serving a prior federal sentence for a handgun offense and was required to reside in a halfway house in Brooklyn, New York.
The matter was investigated by the United States Secret Service (U.S.S.S.). Assistant United States Attorney Jeffery St John prosecuted the case.
# # #
Dubuque New Year’s Day Shooter Sentenced to Federal PrisonRead the Press Release
A felon who, after an argument, shot wildly on a populated street, was sentenced today to over eight years in federal prison.
Derrick Damon Timmons, age 30, from Dubuque, Iowa, received the prison term after a December 17, 2020 guilty plea to being a felon in possession of a firearm. Evidence at sentencing showed that, during the early morning hours of New Year’s Day 2020, Timmons had a discussion with another person in Dubuque. Video evidence showed that Timmons left and then returned to the area, where another felon, Katwan Brown, handed Timmons a pistol. Brown and Timmons then went inside a residence for a brief time. When Brown and Timmons returned to the street, Timmons engaged in an animated argument with the other individual. Someone fired a round and people in the area scattered, with Timmons running back into the residence. After a few moments Timmons leaned back out of the doorway and shot wildly up the street multiple times, striking one individual. Another of the rounds Timmons fired struck an occupied apartment nearby, and yet another round struck an unoccupied vehicle. Timmons fled the area after the shooting.
At sentencing, the judge found that Timmons’s conduct was “reprehensible and incredibly dangerous.” Timmons had previously been convicted of felony obstruction of justice and a prior misdemeanor crime of domestic violence, domestic abuse assault with strangulation.
Timmons was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Timmons was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Brown was previously sentenced to 96 months’ imprisonment and three years’ supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was made possible in part by evidence from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Timmons is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01013-1-CJW-MAR.
Follow us on Twitter @USAO_NDIA.