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Tuesday 20 April 2021
Arizona Rancher Sentenced to 41 Months for Role in Embezzlement and Wire Fraud SchemesRead the Press Release
TUCSON, Ariz. – Donald Hugh Nichols, 62, of Coolidge, Arizona, was sentenced today by U.S. District Judge Cindy K. Jorgenson to 41 months in prison. Nichols previously pleaded guilty to wire fraud.
Between 2013 and August 2017, Nichols, with the help of his son, engaged in a scheme to steal cattle from the Marana Stockyards and Livestock Market, an entity which hosts weekly livestock auctions for Arizona ranchers. As a cattle broker for third-party buyers, Nichols also illegally bid on his own cattle without the buyers’ knowledge or consent. Some of the cattle that Nichols purchased on behalf of third-party buyers were stolen from Marana Stockyards. As a result of these fraud schemes, Marana Stockyards suffered over $1 million in losses.
Nichols’ son, Seth Nichols, previously pleaded guilty for his role, and was sentenced in December 2018 to 60 months in prison.
The Federal Bureau of Investigation conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR18-01684-CKJ-BGM
RELEASE NUMBER: 2021-028_Nichols# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Monday 19 April 2021
Warren County Man Sentenced to Federal Prison on Gun and Drug ChargesRead the Press Release
WILMINGTON, N.C. – A Norlina man was sentenced today to 108 months in prison for possession with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of cocaine and marijuana, maintaining a dwelling for the purpose of manufacturing, distributing, and using any controlled substance, and felon in possession of a firearm.
According to court documents, William Leon Mayfield, 60, also known as “Moon,” sold crack cocaine to a confidential information out of a residence in Norlina on multiple occasions. Following those controlled purchases, the Warren County Sheriff’s Office obtained a search warrant for the residence and executed it on June 13, 2019. During that search, deputies found a loaded firearm, quantities of cocaine, crack cocaine, marijuana, and U.S. currency. Mayfield is a convicted felon, having been convicted of numerous drug and gun charges in and around Warren and Vance Counties.
Mayfield pled guilty to the charges on November 5, 2020.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by Chief U.S. District Judge Richard E. Myers, II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Warren County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-230-M.
Virginia Truck Driver Detained in Rhode Island for Allegedly Transporting a Minor with Intent to Engage in Sexual ActivityRead the Press Release
PROVIDENCE – A Virginia truck driver detained by Naval Station Newport Police on April 2, 2021, when a routine background check conducted prior to his being allowed to enter the Navy base determined that he was wanted in Texas for felony assault of a child, appeared today in federal court in Providence on a charge of transportation of a minor with intent to engage in sexual activity.
David Romero Reyes, 50, of Stafford, Virginia, was charged in U.S. District Court in Providence after an FBI and Rhode Island State Police investigation determined that Reyes allegedly had sexual contact in several states with a 15-year-old girl who was discovered in the sleeping compartment of his tractor-trailer by Naval Station Newport Police. The girl was reported missing from her Virginia home in July 2020, when she was 14 years old.
The girl entered the United States as an unaccompanied minor in February 2020. She was detained by U.S. Customs and Border Protection and placed in a U.S. Department of Health and Human Services (HHS) facility. HHS documents found in the truck indicate that in May 2020 she was removed from a Houston, Texas, HHS-funded facility by Reyes, who, according to HHS documents, identified himself as the girl’s distant relative. An FBI and Rhode Island State Police investigation determined that Reyes is a long-time friend of the girl’s father who lives in El Salvador and a distant cousin of the girl.
According to court documents, the girl resided in the Houston, TX, area with her mother and other relatives for several weeks after leaving the immigration detention center. The young teenager eventually left Texas with Reyes and began living in Virginia with a relative of Reyes. Shortly after moving to Virginia, when it became known by a family member that Reyes and the girl allegedly had a sexual relationship, the family member reported Reyes to law enforcement. Shortly thereafter, in July 2020, the girl left the home on a bicycle and was picked up nearby by Reyes. She was reported missing and had not been seen since. According to court documents, during the week the two travelled together in trucks driven by Reyes. On weekends they stayed at hotels or at an apartment rented by Reyes.
According to court documents, during interviews with law enforcement, Reyes and the now 15-year-old admitted to traveling together and engaging in sexual contact in multiple states. Investigators determined that Reyes, using the name David Romero, traveled in or through Rhode Island on at least six dates between February 1, 2021, and April 2,2021, the date of his arrest.
Reyes, detained in state custody since his arrest, appeared today in federal court in Providence on a criminal complaint charging him with transportation of a minor with intent to engage in sexual activity and was ordered detained, announced Acting United States Attorney Richard B. Myrus, Newport Naval Station Police Chief Lieutenant Ruben Gutierrez, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Transportation of a minor with intent to engage in sexual activity is punishable by statutory penalties of 10 years to life imprisonment and lifetime federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Virginia Return Preparer Pleads Guilty to Evading Her Own TaxesRead the Press Release
A Richmond, Virginia, tax return preparer pleaded guilty today to tax evasion.
According to court documents and statements made in court, Willette J. Holland owned Tax Professionals, a return preparation firm located in Richmond, Virginia. In August 2014, the IRS contacted Holland because she did not file personal tax returns for the years 2010 through 2013. Holland then presented false returns to an IRS Revenue Agent for those years, which substantially underreported her gross receipts and taxes due. Holland additionally attempted to evade taxes for 2014 by depositing income into a bank account held in the name of a nominee, thereby concealing her earnings from the IRS. In 2015 and 2016, Holland again did not file tax returns despite being required to do so by law.
Holland is scheduled to be sentenced on July 15 and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Francine Davis and Assistant Chief Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia are prosecuting the case.
Urbandale Man Sentenced to Twelve Years in Prison for Receipt of Child PornographyRead the Press Release
DES MOINES, IA – On April 16, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced Joseph Mikel Cerwick, age 33, of Urbandale, to 144 months in prison for Receipt of Child Pornography announced Acting United States Attorney Richard D. Westphal. Cerwick was ordered to serve eight years of supervised release to follow his prison term, pay $9,000 in restitution, and comply with sex offender registry requirements upon his release from prison.
This investigation began in December of 2017 when the Federal Bureau of Investigation’s Child Exploitation Task Force received a tip that a video of child pornography had been sent to an individual through the Kik internet application. Following further investigation, the FBI executed a search warrant at Cerwick’s Urbandale apartment in September 2018. Police seized Cerwick’s cellular telephone which was found to contain hundreds of images of child pornography. Cerwick also received and sent a video of child pornography to other persons via the Kik app in November 2017.
This matter was investigated by the Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force and the FBI’s Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
U.S. Attorney’s Office Files Fair Housing Lawsuit Against Chicopee Housing Authority and Its Executive DirectorRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts filed a lawsuit today alleging that the Chicopee Housing Authority and its Executive Director, Monica Blazic, violated the Fair Housing Act based on disability.
According to the complaint, the defendants violated the Fair Housing Act by failing to allow a tenant to transfer to a first floor or elevator accessible unit to accommodate her disability. The tenant has end stage renal disease and without the transfer to another unit, has been unable to receive daily in-home dialysis. The complaint alleges that the tenant applied for a transfer based on her disability in 2017, and since that time the Chicopee Housing Authority offered 10 vacant apartments – any one of which could have accommodated the tenant – to other individuals.
The matter was originally investigated by the U.S. Department of Housing and Urban Development, which, in March 2021, issued a charge against the Chicopee Housing Authority and Blazic after finding that there was probable cause of discrimination. The tenant elected to have the charge decided in federal court, authorizing the U.S. Attorney’s Office to file suit.
“Common decency and — thankfully — the Fair Housing Act both require reasonable accommodations for people with disabilities. The allegations here deserve attention, and we are happy to provide it,” said Acting U.S. Attorney Nathaniel R. Mendell.
“I deeply appreciate our partnership with the Department of Justice to fully enforce the Fair Housing Act and address the longstanding inequities that have denied persons with disabilities the dignity of accessible housing,” said Jeanine Worden, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity.
The lawsuit seeks entry of an order requiring the defendants to accommodate the tenant’s disability, pay the defendant monetary damages, and cease discrimination against any tenant based upon disability.
Individuals who have information about discrimination and the Chicopee Housing Authority can contact the U.S. Attorney’s Office Civil Rights Unit by calling 617-748-3100 and asking for the Civil Rights Intake Specialist, or emailing [email protected].
Acting U.S. Attorney Mendell and HUD Acting Assistant Secretary Worden made the announcement today. Assistant U.S. Attorneys Gregory Dorchak and Michelle Leung of Mendell’s Civil Rights Unit are handling the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney's Office Commemorates National Crime Victims' Rights WeekRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week and
celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 18-24 and features the theme, “Support Victims. Build Trust. Engage Communities.”
The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, leads communities throughout the country in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
“National Crime Victims’ Rights Week is a time to honor and remember the millions of Americans who have suffered the shock and trauma of criminal victimization. We stand by these brave survivors and their families,” said Acting U.S. Attorney Stetzer. “This week, we also recognize and commend the thousands of victim advocates who serve crime victims with dedication and work tirelessly to advance victims’ rights, and support survivors with skill and compassion.”
The United States Attorney’s Office will commemorate the advancement of victims’ rights and highlight issues surrounding victimization by holding a Virtual Ceremony on Tuesday, April 20, 2021 at 11:00 am. This program is co-hosted by the U.S. Attorney’s Offices for the Eastern and Middle Districts of North Carolina, the Victim Services Interagency Council of North Carolina, the North Carolina Department of Justice, and the Durham and Raleigh Police Departments. The keynote speaker is Ms. Deanna Walters, a survivor of intimate partner violence whose abuser was prosecuted by this office. Ms. Walters’ story was also featured on the 2014 award winning documentary titled “Private Violence.” Those interested in joining the event can register using this link: https://usao.webex.com/usao/onstage/g.php?MTID=e0bb75a52a534a276abd6c3647b5a5d67.
For additional information about this year’s NCVRW and additional ideas on how to support victims of crime, visit OVC’s website at https://www.ovc.ojp.gov/.
U.S. Attorney's Office Commemorates National Crime Victims' Rights WeekRead the Press Release
LAS VEGAS, Nev. – The U.S. Attorney’s Office for the District of Nevada joins the Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, and communities nationwide in observing National Crime Victims’ Rights Week. This year’s observance takes place from April 18 to April 24, and features the theme: “Support Victims. Build Trust. Engage Communities.”
“During National Crime Victims’ Rights Week, our office would like to help raise awareness about crime victims’ issues and rights, and introduce our communities to the important resources and services available,” said Acting U.S. Attorney Christopher Chiou. “We stand with victims and survivors of crime — and we’re very grateful for the hard work of dedicated advocates across Nevada, for advancing the cause of victims’ rights and services.”
In 2019, 1.2 million people were victims of violent crime, according to the latest National Crime Victimization Survey from the Bureau of Justice Statistics. The Office for Victims of Crime supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties, and bond forfeitures.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
For more information about this year’s National Crime Victims’ Rights Week and how to support victims of crime, please visit OVC’s website at www.ovc.ojp.gov.
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Two Former Mariners Admit to Facilitating the Bribery of a Coast Guard Employee, Three Others Sentenced for Unlawfully Receiving Mariner LicensesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced the guilty pleas of two middlemen in a test score-fixing scheme at a United States Coast Guard exam center, bringing the total number of defendants convicted in this case to 21.
Former mariners ALEXIS BELL and MICHEAL WOOTEN pleaded guilty to conspiracy to defraud the United States. BELL and WOOTEN each admitted to acting as an intermediary between co-defendant Beverly McCrary and merchant mariners who were willing to pay for false passing exams scores. McCrary is accused of participating in the scheme while she was employed by the Coast Guard exam center and continuing after her retirement.
BELL and WOOTEN acknowledged that they would take money from mariners and then pay McCrary for the false scores. BELL and WOOTEN understood that McCrary would keep a portion of that money and use the rest to bribe another exam center employee to enter the scores. BELL admitted that, in addition to assisting eleven other mariners in obtaining false scores, he also had his own scores fixed on three occasions. WOOTEN admitted that, in addition to assisting nine other mariners in obtaining false scores, he also had his own scores fixed.
All of these false scores resulted in the Coast Guard issuing unearned licenses without the required exams being passed. The exams tested mariners' knowledge and training to safely operate under the authority of licenses, which were legally required to work various positions on vessels.
As alleged in the indictment, which was filed on November 20, 2020, Coast Guard credentialing specialist Dorothy Smith entered the false scores in this scheme. The indictment alleges that Smith accepted bribes and used a network of intermediaries, which included McCrary, BELL, and WOOTEN. Smith and McCrary are scheduled to stand trial on June 28, 2021.
U.S. Attorney Evans reiterated that the indictment's allegations against Smith and McCrary are merely charges and their guilt must be proven beyond a reasonable doubt.
The Honorable Barry W. Ashe presided over BELL’s guilty plea on April 1, 2021 and set a sentencing date of July 8, 2021. Judge Ashe took WOOTEN’s guilty plea on April 15 and set sentencing for July 22, 2021. The maximum penalty for each defendant is five years' imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
On April 15, Judge Ashe also sentenced the first three defendants to plead guilty in this case, ANTHONY BROWN, DAVID GALVAN, and CARDELL HUGHES. Each of the three had pleaded guilty to illegally obtaining a mariner license and received a sentence of one year of probation, along with 100 hours of community service.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Turner Falls Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Turners Falls man was indicted last week by a federal grand jury in Springfield on child pornography charges.
Brian Cooper, 63, was charged on April 15, 2021 with four counts of distribution of child pornography, six counts of receipt of child pornography and one count of possession of child pornography. Cooper will be arraigned in federal court at a later date.
According to the indictment, between April 2018 and October 2019, Cooper distributed, received and possessed child pornography files depicting children engaged in sexually explicit conduct. In October 2019, Cooper was arrested on state court charges and has been detained since that time.
For defendants with certain qualifying prior convictions, the charges of distribution and receipt of child pornography provide for a mandatory minimum sentence of 15 years and up to 40 years in prison. The charge of possession of child pornography provides for a mandatory minimum sentence of 10 years and up to 20 years in prison. Each charge also provides for a mandatory minimum of five years and up to life of supervised release and a fine of up to $250,000. 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; David E. Sullivan, Northwestern District Attorney; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Troutville Man Sentenced to Prison for Selling Stolen Night Vision Goggle ComponentsRead the Press Release
ROANOKE, Va. – Steven Rosine, a former employee at a production facility here that manufactures night vision goggles used by the U.S. military, was sentenced today in U.S. District Court in Roanoke to 18 months in federal prison for stealing night vision devices and other components and selling them over the Internet. Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for the Homeland Security Investigations (HSI) Washington, D.C. field office, made the announcement today.
Rosine, 48, pleaded guilty in September 2020 to one count of interstate transportation of stolen property.
“When Rosine stole critical defense products to sell for his own greed, he committed a serious crime,” Acting United States Attorney Bubar said today. “Today’s sentence ought to send a strong message to those who are trusted with protecting our national security infrastructure that such conduct will not be tolerated. We appreciate the hard work that went into this case by the dedicated team, including Homeland Security Investigations and the Roanoke County Police.”
“HSI has the authority and the duty to investigate crimes involving the online sale and distribution of stolen or looted property,” said Raymond Villanueva, Special Agent in Charge of the HSI Washington D.C. field office. “Working closely with the Department of Justice on these cases is vital to ensure the individuals and organizations responsible for these crimes are prosecuted.”
According to court documents, from 1996 to 2019, Rosine was employed as a production engineer at Harris Corporation’s night vision manufacturing facility in Roanoke, Va. During his employment Rosine had access to night vision devices and various components used in device manufacturing.
Between approximately 2010 and 2014, Rosine stole approximately 66 pounds of a soft metal called Indium, a crucial element used in the night vision manufacturing process. He sold the stolen Indium on the Internet to a company in California for his own personal financial gain, yielding a profit of $51,622.
Beginning in 2012 and continuing through 2018, Rosine stole various image intensifier tubes, night vision systems, and component parts from Harris Corporation. Rosine listed these items for sale on an Internet website. Rosine maintained a dedicated PayPal account, into which he deposited more than $119,000 in proceeds from his illicit sale of night vision devices.
A majority of the night vision devices sold by Rosine are classified as third generation image intensifier tubes and were manufactured using classified production data. They are categorized by the Department of State, Directorate of Defense Trade Controls (DDTC) as “Defense Articles,” which are subject to control under the International Trafficking in Arms Regulations (ITAR) and the jurisdiction of the Department of State.
The investigation of the case was conducted by Homeland Security Investigation and the Roanoke County Police Department. Assistant United States Attorney Kristin B. Johnson prosecuted the case for the United States, in coordination with William Mackie, Counterintelligence & Export Control Section, National Security Division, U.S. Department of Justice.
Three charged with aiding and assisting in the preparation of a false tax returnRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury has returned charges against three individuals in the Northern District of Ohio with aiding and assisting in the preparation of a false tax return. These are separate cases and are not related.
“Particularly during this time of year, we want the public to know that violations of our nation’s tax laws will be investigated and, when appropriate, prosecuted,” said Acting U.S. Attorney Bridget M. Brennan.
“Whether it’s return preparers filing false tax returns for their clients or an individual intentionally underreporting his income, IRS CI remains committed to using our financial expertise to vigorously investigate criminal tax allegations,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Santon BARNES, 49, of Euclid, Ohio, is charged with 23 counts of aiding and assisting in the preparation and presentation of a false and fraudulent tax return. For the tax years 2014 through 2016, BARNES is accused of preparing and submitting tax returns to the Internal Revenue Service that were false and fraudulent. BARNES is accused of deliberately reporting fictitious or inflated income, withholdings, dependents and misrepresenting Scheduled C income.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michael L. Collyer.
Harry GANT, 70, of Mentor, Ohio, is charged with four counts of aiding and assisting in the preparation and presentation of a false and fraudulent tax return. According to the indictment, GANT is accused of intentionally underreporting the total income earned from the operation of his business for the tax years of 2014 through 2017 on his Individual Income Tax Return, Form 1040 for himself and his spouse.
This investigation was conducted by the Cleveland Division of the FBI and the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant U.S. Attorney Megan R. Miller.
Michael HAYWOOD, age 29, of Garfield Heights, Ohio, is charged with 36 counts of aiding and assisting in the preparation and presentation of a false and fraudulent tax return. The indictment states that HAYWOOD operated a tax preparation business out of his residence and prepared tax returns for individuals. It is alleged that for the tax years of 2014 through 2017, HAYWOOD prepared and submitted tax returns for clients to the Internal Revenue Service that reported inflated deductions, fictitious credits, losses, schedules, incorrect filing statuses and claimed a tax refund that was entirely fraudulent and inaccurate.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Brian McDonough.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
Three Indicted in ID Theft, Fraudulent Credit Card SchemeRead the Press Release
PROVIDENCE – A federal indictment returned by a grand jury on April 2, 2021, and unsealed on April 16, 2021, charges three individuals with having been in possession of dozens of fraudulent drivers’ licenses, fraudulent credit cards, equipment to produce credit cards, and lists of individuals stolen personal identifying information.
It is alleged in the indictment that Courtney Hilaire, 28, of Providence, Hugh A. Martin, 32, of Pawtucket, and Shawn K. Hilaire, 30, of Avon, MA, possessed devices and equipment used to create fraudulent credit cards with the use of stolen credit card numbers and personal identifying information, such as names, dates of birth and Social Security numbers.
According to information presented to the court following the arrest of Courtney Hilaire on April 5, 2021, a Warwick Police Department Captain discovered the three men reclined in a vehicle parked in a hotel parking lot in the early morning hours of July 3, 2020. It was determined that the license plate on the vehicle was allegedly stolen from Norwood, MA.
After removing the individuals from the vehicle, Warwick Police allegedly discovered 33 counterfeit credit cards, numerous fraudulent drivers’ licenses from multiple states, equipment used to read and transfer information onto credit card magnetic strips, listings of individuals identities and personal identifying information, and approximately $13,000 in crisp, clean $100 and $50 dollar bills.
The indictment charges the three men with conspiracy to possess fifteen or more counterfeit or unauthorized access devices, possession of fifteen or more counterfeit or unauthorized access devices, possession of device-making equipment, and aggravated identity theft.
Since the issuance of the indictment, further investigation into Courtney Hilaire’s alleged criminal activity has resulted in the return of 17-count indictment charging Courtney Hilaire with using stolen Social Security numbers and personal identifying information of numerous individuals to apply for Coronavirus Aid, Relief, and Economic Security (CARES) Act funded unemployment insurance compensation from the Pennsylvania Department of Labor and for Economic Injury Disaster Loans from the Small Business Administration.
Courtney Hilaire is currently detained in both state and federal custody at the ACI. Arrest warrants have been issued for Hugh A. Martin and Shawn K. Hilaire.
The indictment of Hugh A. Martin, Courtney Hilaire, and Shawn K. Hilaire is announced by Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Warwick Police Chief Colonel Bradford Connor, and Pawtucket Police Chief Tina Goncalves.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by Homeland Security Investigations and the Warwick and Pawtucket Police Departments.
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Texas Woman Arrested for Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Texas woman was arrested last week and charged in federal court in Boston in connection with her alleged involvement in a scheme to fraudulently claim COVID-19-related unemployment assistance.
Donna Wasson, 36, of San Antonio, Texas, was charged in a criminal complaint with one count of wire fraud. Wasson will make an initial appearance in federal court in the Southern District of Texas today.
According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers).
According to the charging documents, Wasson applied for Massachusetts unemployment benefits despite residing in Texas and receiving unemployment benefits via the Texas Workplace Commission.
In addition, the complaint alleges that Wasson carried out instructions concerning other fraudulent unemployment claims from a former Massachusetts Department of Unemployment Assistance (DUA) employee, who allegedly submitted unemployment claims under multiple stolen identities and conspired with her husband to fraudulently obtain unemployment benefits to which they were not entitled.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation is being conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. Special assistance was provided by the Massachusetts Department of Unemployment Assistance, Program Integrity Unit. Assistant U.S. Attorneys Bill Abely and Dustin Chao of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Suburban Chicago Woman Sentenced to Six and a Half Years in Prison on Federal Labor Trafficking ChargeRead the Press Release
CHICAGO — A suburban Chicago woman who trafficked numerous undocumented immigrants from Guatemala was sentenced today to six and a half years in federal prison.
CONCEPCION MALINEK, 50, of Cicero, Ill., pleaded guilty last year to one count of labor trafficking. From 2009 to 2019, Malinek assisted at least ten undocumented Guatemalan immigrants with illegally entering the U.S. and forced them to work to pay off their debt to her. Malinek threatened the victims with deportation and separation from their children to force the victims to continue to work and pay Malinek the debt she demanded from them.
In addition to the 78-month prison sentence, U.S. District Judge Edmond E. Chang ordered Malinek to pay $112,545 in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Department of Homeland Security, U.S. Department of Labor, Cook County Sheriff’s Office, and Chicago Police Department.
“Malinek controlled her victims’ every move, knowing their whereabouts at all times, the exact amount of each paycheck she stole from them, and what levers to push and pull to keep them all in line,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “Malinek knew her victims were scared of deportation and separation from their loved ones far more than they dreaded the abuse and exploitive actions she imposed on them.”
If you believe you are a victim of labor trafficking, you are encouraged to contact the National Human Trafficking Hotline by calling 1-888-373-7888, or logging on to https://humantraffickinghotline.org/.
Stone Canyon Required to Divest US Salt to Acquire Morton SaltRead the Press Release
The Department of Justice announced today that Stone Canyon Industry Holdings LLC (Stone Canyon) and its portfolio company SCIH Salt Holdings Inc. (SCIH), which was previously named Kissner Group Holdings LP, will divest their entire evaporated salt business in order to proceed with their proposed acquisition of Morton Salt Inc. (Morton), among other assets. The department said that without the divestiture, the proposed acquisition would substantially lessen competition in the sale of several types of evaporated salt, including round-can table salt, pharmaceutical-grade salt, and bulk evaporated salt.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the complaint.
“Americans use and depend on evaporated salt products every day for nutritional, medical and cleaning purposes,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Without the divestiture, this merger likely would have led to higher prices and lower quality for consumers throughout the United States. Today’s settlement will ensure that consumers, patients, and businesses continue to benefit from competition for these critical products.”
According to the complaint, Morton and SCIH’s wholly-owned subsidiary, US Salt LLC (US Salt), are two of only three producers that manufacture and distribute round-can table salt in the United States. Morton is the largest branded supplier of this pantry staple in the United States, and US Salt is the largest supplier of private-label round-can table salt in the United States. The complaint also alleges that Morton and US Salt are the only firms producing pharmaceutical-grade salt in the United States and Canada. Pharmaceutical-grade salt is a critical ingredient for dialysis treatment, intravenous saline solution, and other medical products that must meet stringent purity standards.
The complaint further alleges that Morton and US Salt are two of only three major suppliers that manufacture and distribute bulk evaporated salt in the northeastern United States. Bulk evaporated salt is used in various industries including food processing and chemical manufacturing to produce essential everyday items such as processed foods, disinfectants, soap, and bleach. The complaint alleges that the merger would eliminate competition between Morton and US Salt for all of these evaporated salt products, likely leading to higher prices, reduced supply availability, lower quality products, and longer delivery times.
To eliminate the potential for competitive harm threatened by this acquisition, Stone Canyon and SCIH have agreed to divest their US Salt subsidiary, including their refinery in Watkins Glen, New York, as well as other all other assets used in the production of its evaporated salt products. US Salt has been in operation for over 100 years and is operated as a largely independent entity within Stone Canyon and SCIH. The proposed settlement will fully preserve the competitive landscape that exists in these evaporated salt markets today, as US Salt constitutes Stone Canyon’s and SCIH’s entire business that competes in the sale of evaporated salt products, including round-can table salt, pharmaceutical-grade salt, and bulk evaporated salt.
Stone Canyon is an industrial holding company incorporated in Delaware and headquartered in Los Angeles, California. Stone Canyon acquired Kissner Group Holdings LP, which it later renamed SCIH, in April 2020.
SCIH is a Delaware corporation headquartered in Overland Park, Kansas, and had 2020 revenues of approximately $1 billion. US Salt is a subsidiary of SCIH with approximately $95 million in revenues in 2020.
K+S Aktiengesellschaft (K+S AG) is a chemical company headquartered in Kassel, Germany. In 2020, K+S AG reported revenues of approximately €3.7 billion. K+S AG’s Operating Unit Salt Americas, is a bundle of several subsidiaries that includes Morton, K+S Windsor Salt, and Sociedad Punta de Lobos.
Morton is a K+S AG subsidiary and a Delaware corporation headquartered in Chicago, Illinois. Morton generated approximately $1 billion in revenue in 2020.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Katrina Rouse, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon a finding that it serves the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Stand-up Comedian who Defrauded the Social Security Administration Receives Prison SentenceRead the Press Release
A man who defrauded the Social Security Administration out of more than $105,000 over a five-year period was sentenced on April 16, 2021, to one year and one day in federal prison.
Dustin Francis Ruzicka, age 50, from Cedar Rapids, Iowa, received the prison term after a November 10, 2020 guilty plea to Social Security disability insurance benefits fraud.
In a plea agreement, Ruzicka admitted that he knowingly failed to report his employment, his income, and improvement in function to the Social Security Administration between January 2011 and October 2016. Information from sentencing and a plea agreement showed that Ruzicka began receiving Social Security disability benefits in 1992 for plantar fasciitis and adjustment disorder. In 2004, Ruzicka started a stand-up comedy act, “Bustin Dustin,” and, in 2010, Ruzicka began working for Visalus, a dietary supplements company. Agents with the Social Security Office of Inspector General investigated Ruzicka, including by observing one of his stand-up comedy shows. During the performance, agents saw that Ruzicka was continuously on his feet and did not appear to be in any pain. When the agents identified themselves and interviewed Ruzicka at his residence several months later, he walked with a noticeable limp. On social media, Ruzicka posted about his earnings, his “entrepreneurship,” his “retirement,” and posed with his BMW.
Ruzicka was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ruzicka was sentenced to twelve months and one day’s imprisonment. He was ordered to make $105,676 in restitution to the Social Security Administration. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Ruzicka was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by Social Security Administration Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-94.
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Source of Firearms for Chicago Gang Members Sentenced to 12 Years in PrisonRead the Press Release
CHICAGO — A man who trafficked firearms and re-sold them to Chicago gang members has been sentenced to 12 years in federal prison.
DAVID SANTIAGO, 39, sold firearms and narcotics out of his residence in the Chicago Lawn neighborhood on Chicago’s Southwest Side. Many of the guns were sold to individuals whom Santiago knew were members of Chicago street gangs. During one sale that was surreptitiously recorded by an individual cooperating with law enforcement, the individual discussed how he intended to give a firearm to younger members of a gang, to which Santiago responded that he was going to provide one to the “guys” as well.
During the investigation law enforcement seized 16 firearms, including rifles and semi-automatic handguns, as well as more than 100 grams of heroin. Santiago purportedly obtained many of the firearms in Kansas and boasted to the Chicago buyers that the guns were “clean” and “brand new.”
Santiago pleaded guilty last year to two counts of illegal possession of firearms. Santiago had previously been convicted of multiple felonies, including four cases involving domestic violence, and was not lawfully allowed to possess a firearm.
U.S. District Judge Robert M. Dow, Jr., imposed the 12-year sentence Thursday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Santiago was running an illegal gun store from his bedroom,” Assistant U.S. Attorney Timothy J. Storino argued in the government’s sentencing memorandum. “The over-proliferation of firearms in this city and the easy access of firearms in the hands of persons who should not have them has a direct correlation to the cyclical gun violence epidemic in Chicago.”
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty April 15, 2021, in federal court in Sioux City.
Brett Michael Walking Eagle, 41, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine within 1000 feet of a protected location.
At the plea hearing, Walking Eagle admitted that on or about December 2, 2019, he and an individual cooperating with law enforcement agreed that Walking Eagle would either sell or coordinate the sale of approximately 6 ounces of methamphetamine to the cooperating individual. In return, Walking Eagle requested roughly a half ounce of the 6 ounces for himself. Walking Eagle instructed the individual cooperating with law enforcement to travel to the Boys and Girls Home parking lot, in Sioux City, Iowa to meet with another person who would provide the methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Walking Eagle remains in custody of the United States Marshal pending sentencing. Walking Eagle faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,000 fine, and at least 8 years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4086.
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Senior NASA Employee Pleads Guilty to COVID-19 Related Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) pleaded guilty today to submitting fraudulent applications for over $350,000 in COVID-19 economic relief loans and benefits.
“Despite holding a senior executive position at NASA, the defendant applied for over $350,000 in fraudulent loans and benefits,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In doing so, he essentially treated COVID-19 relief programs as a personal piggy bank, using funds intended to provide pandemic relief for small businesses and the unemployed to pay down his credit card debt, pay off loans for a residential pool and minivan, and pay a dog-breeder, among other personal expenses. EDVA will continue to hold accountable individuals who exploit a national economic crisis in order to unlawfully enrich themselves at the expense of those in genuine need due to the pandemic.”
According to court documents, Andrew Tezna, 36, of Leesburg, fraudulently submitted three loan applications to two financial institutions (totaling $272,284) under the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic. Tezna also submitted two Economic Injury Disaster Loan Program applications to the Small Business Administration (totaling $69,500), and he applied for COVID-related unemployment benefits from Virginia, ostensibly for his mother-in-law, who was retired and did not qualify for the benefits (totaling $15,950). In support of the fraudulent PPP loan applications, Tezna submitted fabricated IRS tax returns and fraudulently claimed payroll expenses that did not exist.
“People’s greed, especially when it involves fraudulently obtaining funds meant to help those in need, is truly disappointing,” said Darrell J. Waldon, IRS-CI Acting Special Agent in Charge of the Washington D.C. Field Office. “We will continue to work with our agency counterparts to ensure all are held accountable.”
Tezna successfully obtained over $285,000 from the PPP loans and unemployment benefits. The bulk of the money came from PPP loans applied for in his and his mother-in-law’s names for businesses that did not exist. He then spent the funds, among other things, to pay off a personal loan for a residential pool, to pay off a personal loan for a minivan, to pay off personally incurred credit card debt, for a down payment on a new car, and to pay a dog-breeder. In addition, Tezna also admitted to filing a false Financial Disclosure Report with NASA.
“As a NASA senior executive, the Agency placed a great deal of trust in Tezna. Taking advantage of the CARES Act to fraudulently obtain PPP loans not only violated the Agency’s trust, but the trust of American people that sought assistance for the legitimate needs of their struggling businesses,” said Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office.
Tezna pleaded guilty to bank fraud and is scheduled to be sentenced on July 16. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, IRS-CI Acting Special Agent in Charge of the Washington D.C. Field Office, and Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:27-cr-77.
Second Individual Charged with Fixing Wages for Health Care Workers and Obstructing FTC InvestigationRead the Press Release
A federal grand jury in the Eastern District of Texas returned a superseding indictment charging two Texas men with conspiring to fix prices by lowering rates paid to certain health care workers and then conspiring and endeavoring to obstruct a Federal Trade Commission (FTC) investigation of their conduct.
According to court documents, Neeraj Jindal and John Rodgers violated the Sherman Act by agreeing with co-conspirators in 2017 to pay lower rates to certain physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area. At the time, Jindal was the owner and Rodgers was a clinical director of a Texas-based therapist staffing company providing in-home physical therapy services. The superseding indictment alleges their company paid lower rates for several months after entering into the agreement.
Additionally, Jindal and Rodgers are charged with conspiring to obstruct and make false statements in proceedings before the FTC and endeavoring to obstruct those proceedings. According to the superseding indictment, Jindal and Rodgers conspired and then made false and misleading statements and withheld and concealed information during the FTC’s investigation to determine whether their company or other therapist staffing companies violated the Federal Trade Commission Act. The superseding indictment follows an indictment against Jindal returned in December 2020.
“The charges announced today underscore the Antitrust Division’s ongoing commitment to enforcing antitrust laws, particularly when the victims are American workers who deserve the benefits of competitive wages, mobility, and competition among employers for their services,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department's Antitrust Division. “This prosecution also demonstrates how seriously we take our obligation to protect the integrity of investigations into anticompetitive conduct, whether those investigations are conducted by the Department of Justice or another agency.”
“Wage-fixing agreements are, at their core, an attempt to artificially rig the labor market to depress wages and deprive workers of competitive salaries and benefits,” said Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas. “The present charges demonstrate that the Department of Justice and its partner agencies will not stand by and allow the exploitation of American workers and the manipulation of the market.”
“Today’s charges should serve as a warning to those who choose to engage in corrupt practices at the expense of hard-working Americans,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. “The FBI is committed to working closely with our law enforcement partners to uncover corruption and bring the individuals responsible to justice.”
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offenses carry a statutory maximum penalty of five years imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal I Section is prosecuting the case, which was investigated with the assistance of the Antitrust Division’s Washington Criminal II Section and the FBI’s International Corruption Unit.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Roseville Woman Pleads Guilty to Stealing Unemployment BenefitsRead the Press Release
SACRAMENTO, Calif. — Andrea M. Gervais, 44, of Roseville, pleaded guilty today to theft of government money in a scheme involving 97 fraudulent Pandemic Unemployment Assistance (PUA) claims in the names of persons other than her own, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, at least 10 of 97 fraudulent PUA claims were processed for payment, and nearly $200,000 in unemployment insurance and PUA benefits were paid out to Gervais’s Roseville address in the form of Bank of America debit cards. The potential value of all fraudulent 97 claims associated with the scheme exceeded $2 million.
The investigation began when federal agents discovered that someone had filed a PUA claim using the identity of a sitting U.S. senator for approximately $21,000. This fraudulent claim was processed for payment, and Gervais received an EDD debit card in the senator’s name. Agents further discovered that Bank of America ATM cameras captured Gervais on multiple occasions withdrawing cash from at least seven of the EDD debit cards, and at least one captured transaction showed Gervais using the debit card issued to the senator.
“Gervais defrauded California’s unemployment system by fraudulently collecting nearly $200,000 in Pandemic Unemployment Assistance. Her conduct further exacerbated the distribution of unemployment benefits at a time when so many Americans are in desperate need of this assistance. We will continue to work with our law enforcement partners to protect the integrity of DOL programs,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
This case is the product of an investigation by the U.S. Department of Labor – Office of the Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department – Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Gervais remains on pretrial release as she awaits sentencing. She is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Aug. 9. Gervais faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. 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.
Providence Man Indicted for CARES Act FraudRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Friday returned a 17-count indictment charging a local man, who used the moniker “Mr. Vacation,” with using stolen Social Security numbers and personal identifying information of numerous individuals to apply for Coronavirus Aid, Relief, and Economic Security (CARES) Act funded unemployment insurance compensation from the Pennsylvania Department of Labor and for Economic Injury Disaster Loans from the Small Business Administration.
It is alleged in the indictment that beginning in March 2020, Courtney Hilaire, 28, obtained from the Internet personal identifying information, Social Security numbers, and dates of birth of numerous individuals, then accessed commercial public records data bases to obtain additional information about the identity of his victims. In July 2020, using the stolen identities, Hilaire filed a least six applications for unemployment insurance payments from the State of Pennsylvania. On at least seven occasions beginning in August 2020, Hilaire withdrew fraudulently obtained CARES Act unemployment funds from bank accounts he accessed through ATMs in Rhode Island.
It is also alleged in the indictment that Hilaire, using the moniker “Mr. Vacation,” solicited the assistance of another individual to defraud the Small Business Administration by fraudulently seeking CARES Act Economic Injury Disaster Loans, a program which provides economic relief to small businesses that have experienced a temporary loss of revenue during the pandemic. It is alleged that Hilaire filed at least twenty-eight fraudulent applications with the Small Business Administration for Economic Injury Disaster Loans if he was not entitled to receive.
Hilaire, charged with conspiracy to commit wire fraud, 14 counts of wire fraud, and two counts of aggravated identity theft, is the latest individual charged in federal court in Providence with allegedly running schemes to defraud CARES Act programs. Earlier this month, the United States Attorney’s Office publicly detailed investigations and charges brought against fraudsters who collectively have targeted more than $31 million in CARES Act funding.
To date, the United States Attorney’s Office in Rhode Island has charged 24 individuals with allegedly defrauding state unemployment agencies in Rhode Island and elsewhere and the Small Business Administration, of CARES Act relief funds made available to assist American families and business in need due to the pandemic. Several investigations are ongoing.
The indictment of Courtney Hilaire is announced by Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Warwick Police Chief Colonel Bradford Connor, and Pawtucket Police Chief Tina Goncalves.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The investigation that resulted in an indictment being brought against Hilaire for CAREs Act fraud was conducted by the Warwick Police Department, Pawtucket Police Department Special Squad, and Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney William F. Ferland.
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Portsmouth Woman Pleads Guilty to Fraud Schemes Targeting VeteransRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman pleaded guilty today to wire fraud and aggravated identity theft in connection with a scheme to defraud veterans.
“This defendant has been brought to justice for orchestrating numerous fraudulent schemes against veterans who honorably served their country,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who steal, misappropriate, and divert funds that belong to our country’s veterans, this case sends a strong message that you will be prosecuted and held accountable for your inexcusable conduct.”
According to court documents, Rita Copeland, 59, operated an entity known as “Veteran Services of the Commonwealth.” Copeland purported to provide caregiving, contracting, and rental assistance services to various veterans from 2016 through 2020. Copeland caused a number of victims to apply for Home Improvements and Structural Alterations (HISA) grants through the U.S. Department of Veterans Affairs. Such grant payments are to be used for certain designated improvements to the residences of veterans. Copeland failed to perform all of the promised work and used a portion of these payments to her own benefit, contrary to the designated purposes of the funds.
Copeland also diverted the income and retirement fund payments of another veteran to a bank account that she had opened. In addition, Copeland fraudulently obtained and diverted loan funds and used the credit and debit cards of this elderly victim. Finally, Copeland engaged in a rental fraud scheme, purporting to link veterans and others with landlords, but then diverting rental and security deposit payments to her own benefit.
Copeland pleaded guilty to one count of wire fraud and one count of aggravated identity theft, and she is scheduled to be sentenced on August 27. She faces a maximum penalty of 20 years for wire fraud and a mandatory consecutive term of two years for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorney Brian Samuels is prosecuting the case.
This case is being investigated by the FBI’s Norfolk Division’s Peninsula Resident Agency.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-63.
Pocahontas County man admits to firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Julian N. Waddell, of Durbin, West Virginia, has admitted to firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Waddell, 37, pleaded guilty today to two counts of “Unlawful Possession of a Firearm.” Waddell, a person who isn’t permitted to have a firearm because of a prior conviction, admitted to having three revolvers, a shotgun, and a semi-automatic rifle in April and July 2019 in Pocahontas County.
Waddell is facing up to 10 years of incarceration and a fine of up to $250,000 for each of the charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Mountain Region Drug Task Force investigated.
U.S. Magistrate Michael John Aloi presided.
Pittsfield Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A federal grand jury in Springfield last week indicted a Pittsfield man on child pornography charges.
Benjamin Shacar, 34, was indicted on April 15, 2021 on 10 counts of receipt of child pornography and one count possession of child pornography. Shacar was charged by criminal complaint in March 2021.
According to charging documents, between August 2020 and March 2021, Shacar allegedly received and possessed child pornography. Law enforcement agents executed a search warrant at Shacar’s residence and uncovered a thumb drive containing multiple files depicting children engaged in sexually explicit conduct. During an on-scene interview, Shacar allegedly admitted that he viewed and downloaded child pornography from the internet.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Each charge also provides for a mandatory minimum of five years and up to life of supervised release and a fine of up to $250,000. 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; Hampden County Sheriff Nicholas Cocchi; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Pittsfield Police Chief Michael J. Wynn made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ohio man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony A. Shuster, Jr., of Caldwell, Ohio, was sentenced today to 70 months of incarceration for drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Anthony Shuster, also known as “Tiny,” 35, pled guilty to one count of “Distribution of More than 50 Grams of Methamphetamine” in September 2020. Shuster admitted to selling more than 50 grams of methamphetamine, also known as “crystal meth” and “ice,” in January 2019 in Ritchie County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Ohio Man Admits Posing as Teen, Receiving Explicit Videos from Minor and Posting Them on TikTokRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRIAN GRINNELL, 36, of Lakewood, Ohio, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to distribution of child pornography.
According to court documents and statements made in court, in March 2020, Grinnell posed as a 15-year-old girl and met a female, who at the time was under the age of 12, on Omegle, an online chat website and mobile application that allows users to interact with strangers. Shortly thereafter, he began communicating with the minor victim on Snapchat. Grinnell told the minor victim to take sexually explicit photos and videos of herself and send them to Grinnell over Snapchat. After the minor victim began to feel threatened by Grinnell, she unfriended and blocked Grinnell’s account.
Grinnell subsequently contacted a friend of the minor victim on TikTok and stated that unless the minor victim got in touch with him, he would post a video of the minor victim naked on TikTok. Grinnell then posted sexually explicit videos of the minor victim on TikTok. When a friend of the minor victim, who is also a minor, begged Grinnell not to post additional videos of the minor victim, Grinnell stated “I want a video of you begging me to not put them up. And you have to be topless in the video. If you don’t want any more of your friend stuff going out.” After the friend told Grinnell that they would call the police, Grinnell responded “How are they gonna find me?” Grinnell then proceeded to post another video of the minor victim on TikTok.
Grinnell has been detained since his arrest on September 23, 2020.
Judge Shea scheduled sentencing for July 19 at which time Grinnell faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
This investigation has been conducted by the Federal Bureau of Investigation and the New Canaan Police Department, with assistance from the Cuyahoga County (Ohio) Prosecutor’s Office and Cuyahoga County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Sarala V. Nagala through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ocean County Insurance Producer Admits $1.5 Million Health Care Fraud Against Blue Cross Blue ShieldRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, insurance producer today admitted filing false statements in connection with the delivery of $1.5 million in fraudulent claims by Blue Cross Blue Shield health care affiliates, Acting U.S. Attorney Rachael A. Honig announced today.
Jonas Knopf, 65, of Lakewood, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements related to a health care benefits program.
According to documents filed in this case and statements made in court:
Starting in 2009, Knopf was chief executive officer of Madison Financial Services (MFS) in Lakewood and a licensed insurance producer – a person who is licensed to sell insurance products. MFS was the parent company of two sham companies created by Knopf and others solely for the purpose of marketing health insurance coverage to people who were not, in fact, his employees. These companies purported to be located and doing business in Pennsylvania and created the appearance of employment status for hundreds of individuals, largely Lakewood residents, who were seeking health care coverage through BCBS benefit plans. The fraud lasted until March 2013, when the Pennsylvania Department of Insurance caused Knopf to surrender his Pennsylvania insurance producer’s license and cease operation in the state.
Knopf used false personal information, including false addresses, dates of birth, marital status and employment functions, to give BCBS the impression that his clients were actually employees being paid for services rendered. In total, the scheme caused the health care insurers to pay out $1.5 million in fraudulent claims.
The count of making false statements relating to a health care benefit program carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross gain or twice the gross loss from the offense, whichever is greater. Sentencing is scheduled for Aug. 19, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent In Charge George M. Crouch Jr. in Newark; special agents of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region, under the direction of Special Agent in Charge Michael Mikulka; and Investigators of the U.S. Department of Labor, Employee Benefit Security Administration, under the direction of Regional Director Thomas Licetti, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit in Newark.
Norwalk Man Pleads Guilty to Federal Tax ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that ROBERT T. COLGAN, 60, of Norwalk, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden to a federal tax offense.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, Colgan controlled a business known as Colgan Financial Group, Inc. (“CFG”), and he employed a bookkeeper to maintain CFG’s books and a return preparer to assist him in the preparation of both CFG’s corporate tax returns and his personal income tax returns. Colgan used CFG funds to pay for personal expenditures, but directed his bookkeeper to record the payments as a loan in CFG’s books. As a result, Colgan’s personal income tax returns for the 2013 through 2017 tax years underreported his income and resulted in a tax loss of more than $250,000.
Colgan pleaded guilty to one count of filing of a false tax return, an offense that carries a maximum term of imprisonment of three years. He is released pending sentencing, which is not scheduled.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Norfolk Man Convicted of Visa Fraud, Other Immigration Crimes, and Tampering with a WitnessRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Norfolk, Virginia man Friday on charges of visa fraud related to a sham marriage and other immigration crimes along with trying to obstruct the testimony of a witness in an official proceeding.
According to court records and evidence presented at trial, Joshua Kwame Asane, 46, a citizen of Ghana, was indicted on July 22, 2020, for conspiracy to commit marriage fraud, marriage fraud, visa fraud, false statements in immigration proceedings, and tampering with a witness.
Evidence presented at the trial revealed that the marriage between Asane and a U.S. soldier stationed at Fort Bragg, North Carolina, was arranged by Asane’s brother (Ebenezer Asane, who was previously indicted for conspiracy to commit marriage fraud, has plead guilty and is awaiting sentencing). Asane and the soldier were married in Cumberland County, North Carolina.
Thereafter, Asane and the soldier submitted fraudulent applications to United States Citizenship and Immigration Services (USCIS) requesting Asane’s adjustment of status as a lawful permanent resident in the United States. Asane and the soldier were interviewed at the USCIS office in Norfolk, Virginia. Both attested under oath they were married in good faith. As a result of the interview, USCIS found indicators of fraud, and referred the case to USCIS, Fraud Detection and National Security, and Homeland Security Investigations (HSI) for investigation.
In a split decision the jury found Asane guilty of visa fraud, false statements in immigration proceedings, and tampering with a witness, and not guilty of conspiracy and marriage fraud.
Asane faces maximum penalties of twenty-five years of imprisonment and a fine of $250,000 for his convictions of visa fraud, false statements in immigration proceedings, and witness tampering when scheduled for sentencing for the term of court commencing on September 7, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina led by Homeland Security Investigations and assisted by US Army Criminal Investigation Division, and USCIS’s Fraud Detection and National Security, Assistant U.S. Attorney Gabriel J. Diaz is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-CR-00349-FL-1 & 5:19-CR-423-1FL.
New York Man Charged with Abusive Sexual Contact on AirplaneRead the Press Release
NEWARK, N.J. – A New York man made his initial appearance today for alleged abusive sexual contact with a female passenger on a flight to Newark Liberty International Airport, Acting U.S. Attorney Rachael A. Honig announced.
Ryan Manuella, 28, of Cheektowaga, New York, is charged by criminal complaint with one count of abusive sexual contact on an airplane. He had his initial appearance by videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.
According to the complaint:
While on an April 16, 2021, flight from Denver, Colorado, to Newark, Manuella moved to a vacant center seat next to a female passenger, who was sitting in a window seat. Manuella was unknown to the victim. While seated next to the victim, Manuela touched her on the groin and inner thigh without her permission.
The abusive sexual contact charge carries a maximum term of two years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent of Police Edward Cetnar, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Navajo man pleads guilty to involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE – Lowell Begay, 38, of Fruitland, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court on April 16 to involuntary manslaughter in Indian Country.
A grand jury indicted Begay and co-defendant Jerry Armenta on July 25, 2019. According to the plea agreement and other court records, Begay committed the offense on Sept. 11, 2018, in San Juan County, New Mexico, on the Navajo Nation. Begay was intoxicated and recklessly handling a loaded firearm when he accidently fired it and killed a woman. In the plea agreement, Begay admitted his unlawful actions were without due caution and circumspection and with a wanton and reckless disregard for human life, and that he knew and should have known that his conduct imperiled the lives of others.
Armenta pleaded guilty on Sept. 19, 2019, to being a felon in possession of a firearm and ammunition. On March 23, 2020, Armenta was sentenced to 18 months in prison and three years of supervised release.
Begay will remain in custody pending sentencing. He faces up to 8 years in prison.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Shiprock office of the Navajo Nation Division of Public Safety and the Navajo Nation Police Department. Assistant U.S. Attorneys David Cowen and Allison Jaros are prosecuting the case.
Monongalia County man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy Hamlin, of Morgantown, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Hamlin, 41, pled guilty to one count of “Maintaining Drug-Involved Premises.” Hamlin admitted to using a place on Bradley Street in Morgantown for the purpose of distributing heroin and cocaine base, also known as “crack,” in March 2020 in Monongalia County.
Hamlin faces up to 20 years of incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Minneapolis Felon Charged with Illegal Possession of A FirearmRead the Press Release
Acting United States Attorney W. Anders Folk today announced a federal criminal complaint charging ANDREW THOMAS, 28, with being a felon in possession of a firearm. THOMAS will make his initial appearance tomorrow before Magistrate Judge Katherine M. Menendez in U.S. District Court.
According to the allegations in the criminal complaint, during the early morning hours of April 18, 2021, a team of Minnesota National Guard soldiers, along with an officer of the Minneapolis Police Department, was stationed at the corner of Penn Avenue North and West Broadway Avenue in Minneapolis. At approximately 4:20 a.m., a light-colored SUV driving on West Broadway Avenue fired multiple shots at the team. One bullet went through the windshield of the team’s military vehicle, which held four soldiers. Two soldiers of the Minnesota National Guard sustained minor injuries: one was transported to a nearby hospital for treatment of injuries from shattered glass; the other was treated at the scene for superficial wounds.
The criminal complaint also alleges that during the late evening hours of April 18, 2021, Minneapolis Police officers patrolling the area of 6th Street South and Cedar Avenue South encountered a 2002 Ford Explorer that matched the description of the SUV involved in the shooting. After conducting a felony stop of the vehicle, the driver, later identified as THOMAS, and a juvenile passenger, were placed in separate police cars. After obtaining a search warrant for the vehicle, officers recovered from the vehicle a Springfield Armory XD-9 9mm semi-automatic pistol, a .22 caliber revolver with an obliterated serial number, ammunition, and two discharged cartridge casings. Because THOMAS has a prior felony conviction in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
ANDREW THOMAS, 28
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Man Pleads Guilty to Federal Gun and Drug CrimesRead the Press Release
CHARLESTON, W.Va. – Keith Morris, 33, of Charleston, pleaded guilty today to being a felon in possession of firearms and possession with intent to distribute 40 grams of fentanyl. Morris was charged in a Superseding Indictment returned by a federal grand jury in November 2020.
According to the plea agreement and statements made in court, on or about January 23, 2020, after responding to a two-vehicle crash in Charleston, officers with the Charleston Police Department (CPD) located 50 grams or more of methamphetamine and a loaded Glock, model 26, 9mm semi-automatic pistol in Morris’s car. In addition, on or about August 7, 2020, officers with the Metropolitan Drug Enforcement Network Team (MDENT) seized 40 grams or more of fentanyl and a loaded SCCY CPX-1 9mm caliber from Morris’s car after conducting a traffic stop in Charleston. Morris admitted he intended to distribute the controlled substances that had been seized from him. Morris further admitted that he knew he was prohibited from possessing firearms because he previously had been convicted of the felony offenses of attempted murder and wanton endangerment with a firearm in Kanawha County Circuit Court.
Morris faces up to 40 years in prison when sentenced on July 19, 2021.
The Metropolitan Drug Enforcement Network Team, the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00167.
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Madera County Woman Sentenced to 12 Years in Prison for Distribution of Heroin that Resulted in an Overdose DeathRead the Press Release
FRESNO, Calif. — Georgia Nicole Dean, 37, of Coarsegold, was sentenced today by U.S. District Judge Dale A. Drozd to 12 years in prison for distributing heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 22, 2019, Dean drove to the victim’s residence and sold heroin to him for a small amount of cash. The victim used the heroin that night, overdosed, and died. Dean pleaded guilty to distribution of heroin on Jan. 26, 2021.
This case was the product of an investigation by the Drug Enforcement Administration, the Madera County Sheriff’s Office, and the Fresno Police Department. Assistant U.S. Attorneys Justin J. Gilio and Kathleen A. Servatius prosecuted the case.
Lisbon, ND, Man Pleads Guilty to the Violent Ax Attack on U.S. Senator John Hoeven’s Office in December 2020Read the Press Release
FARGO – Acting United States Attorney Nick Chase announced Thomas Alexander Starks, age 30 of Lisbon, ND, pleaded guilty before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, for the charge of Destruction of Government Property, 18 USC 1361.
On December 21, 2020, Starks went to the downtown Fargo office of United States Senator John Hoeven and, using an ax, smashed the window and caused substantial damage to the intercom system and doorframe. The monetary damages caused by Starks’ exceeded $1,000.
This case was investigated by the Federal Bureau of Investigations, United States Capital Police, Fargo Police Department and Cass County Sheriff’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
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Lev Tahor Leaders Charged with Child Exploitation OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced new charges against NACHMAN HELBRANS, MAYER ROSNER, YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN for conspiring to (1) transport a minor with intent to engage in criminal sexual activity, and (2) travel with intent to engage in illicit sexual conduct, in connection with the kidnapping of a 14-year-old girl (“Minor-1”) from New York to reunite her with her adult “husband” outside the United States for purposes of continuing their sexual relationship. The defendants, among other members of Lev Tahor, were previously charged with several other crimes related to the kidnapping of Minor-1 and her younger brother.
U.S. Attorney Audrey Strauss stated: “As alleged, the defendants engaged in a brazen kidnapping of a minor girl in the middle of the night, taking her across the border to Mexico in order to reunite her with her adult ‘husband’ to continue their sexual relationship. These charges send a clear message that the sexual exploitation of children will not be tolerated.”
FBI Assistant Director William F. Sweeney Jr. stated: “International borders will not stop the FBI from pursuing justice and enforcing violations of our laws, especially when you target children. The behavior alleged today is outrageous, and there is no justification for it whatsoever. We are grateful for the excellent cooperation from our partners in Mexico and Guatemala who helped us hold these leaders of Lev Tahor accountable for their behavior. Protecting innocent children should be a priority for all of society – it’s certainly one of ours. If you know of children who are being trafficked, please contact the FBI at 1-800-CALL-FBI or fbi.tips.gov.”
According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]
NACHMAN HELBRANS, MAYER ROSNER, YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN are U.S. citizens and senior leaders of Lev Tahor, an extremist Jewish sect previously based in New York and Canada, and currently based in Guatemala. HELBRANS became the leader of Lev Tahor in or about 2017. After HELBRANS and his leadership team took over, they seized tight control over the group and embraced several extreme practices, including strict, invasive monitoring of members, frequent beatings, and forced marriages of minors to adult members. Children in Lev Tahor are often subject to physical, sexual, and emotional abuse.
In or about 2017, HELBRANS arranged for his then-12-year-old niece, Minor-1, to be “married” to a then-18-year-old man, defendant JACOB ROSNER. They were religiously “married” the following year, when Minor-1 was 13 and JACOB ROSNER was 19, and immediately began a sexual relationship with the goal of procreation. They were never legally married. Lev Tahor leadership, including the defendants, required young brides to have sex with their husbands, to tell people outside Lev Tahor that they were not married, to pretend to be older, and to deliver babies inside their homes instead of at a hospital, partially to conceal from the public the mothers’ young ages.
In or about October 2018, the mother of Minor-1 (who is also HELBRANS’s sister) determined that it was no longer safe for her children to remain in the Lev Tahor community in Guatemala. The mother escaped from the group’s compound and arrived in the United States in early November 2018. Also in November 2018, a Brooklyn family court granted her temporary custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.
After the mother fled and settled in New York with her children, the defendants devised a plan to return Minor-1, then 14 years old, to Guatemala and to her then-20-year-old “husband” so that they could resume their sexual relationship and procreate. In December 2018, they executed their plan, kidnapping Minor-1 and her brother in the middle of the night from a home in New York and transporting them through various states and, eventually, to Mexico. During this time, Lev Tahor leadership was seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran.
Following a three-week search involving scores of local, federal, and international law enforcement entities, Minor-1 and her brother were recovered in Mexico and returned to New York. On two additional occasions, in or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap Minor-1 and her brother.
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NACHMAN HELBRANS, 39, of Guatemala, MAYER ROSNER, 44, of Guatemala, YAKOV WEINGARTEN, 30, of Guatemala, SHMIEL WEINGARTEN, 25, of Guatemala, and YOIL WEINGARTEN, 32, of Guatemala, are charged with (1) conspiring to transport a minor with intent to engage in criminal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and (2) conspiring to travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The Superseding Indictment also includes charges that were previously brought against the defendants and other members of Lev Tahor. Specifically, it charges NACHMAN HELBRANS, MAYER ROSNER, YAKOV WEINGARTEN, SHMIEL WEINGARTEN, YOIL WEINGARTEN, MORDECHAY MALKA, 26, of Guatemala, ARON ROSNER, 47, of Brooklyn, New York, JACOB ROSNER, 21, of Guatemala, and MATITYAU MOSHE MALKA, 29, of Guatemala, with conspiring to kidnap, unlawfully use a means of identification, and enter by false pretenses the secure area of an airport, and charges three additional counts of international parental kidnapping.
Ms. Strauss praised the outstanding work of the FBI, the New York State Police, the Sullivan County District Attorney’s Office, United States Customs and Border Protection, the Village of Spring Valley Police Department, and our law enforcement partners in Mexico and Guatemala.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Jamie Bagliebter, and Jim Ligtenberg are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Justice Department Reaches Settlement with Arizona School District to Protect English Learner StudentsRead the Press Release
Today the Justice Department announced a settlement agreement with the Coolidge Unified School District to resolve the department’s investigation into the school district’s programs for its English learner students. The department’s investigation of the district found system-wide failures to provide the instruction, resources and teacher training that students need to master English, leaving them to struggle academically year after year. The department conducted its investigation under the Equal Educational Opportunities Act of 1974.
“Every child deserves an equal opportunity to excel in school. Where there are language barriers, schools have an obligation to do more to put students on an equal footing,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce the law to make sure students who are learning English get the help they need to truly thrive in the classroom. We commend the district for entering into this agreement and look forward to working together so that the district’s English learner students can realize their full potential.”
Under the settlement agreement, the district will increase language instruction for English learner students so they can become fluent in English and understand the coursework in all of their academic subjects. The agreement also requires the district to provide robust teacher training, obtain the special materials and curricula that English learner students need to succeed academically, and actively evaluate students’ progress. The Justice Department will monitor the district’s implementation of the settlement for three full school years.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Judges sentences St. Louis County man for possession of a firearm in furtherance of a drug trafficking crimeRead the Press Release
ST. LOUIS – United States District Judge Catherine D. Perry sentenced Bernard Toler to 72 months in prison today. The 33-year-old St. Louis County, Missouri resident pleaded guilty, in January, to one count of possession of a firearm in furtherance of a drug trafficking crime.
On or about February 20, 2019, officers from the St. Louis County Police Department saw a vehicle with no visible license plates make a turn without signaling. Officers turned on the emergency lights to make a traffic stop, but Toler evaded police at a high rate of speed. Toler continued to flee police through a residential area while refusing to stop at multiple stop signs.
Officers eventually turned off their lights and sirens but maintained visual observation of Toler’s vehicle. Officers saw Toler park the vehicle in the parking lot of a business, at which time officers turned on their lights again and positioned their vehicles to prevent Toler from fleeing.
Officers approached Toler’s vehicle and noticed a revolver-style firearm in the middle compartment of the vehicle. Officers removed Toler from the vehicle and took him into custody. Officers seized the firearm, which was loaded with six live rounds, along with two digital scales, a marijuana grinder, a plastic bag containing 24 grams of marijuana and three cellular phones. The seized paraphernalia, drugs and phones are indicative of drug trafficking.
Toler admitted he intended to distribute some or all of the marijuana in his possession to one or more persons and he possessed the seized firearm in furtherance of his drug trafficking activity.
The St. Louis County Police Department investigated this case. Assistant United States Attorney Geoff Ogden is handling the case.
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Johnson County Woman Sentenced to Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, Iowa — On Thursday, April 15, 2021, United States District Court Chief Judge John A. Jarvey sentenced Geneva Kristine Hudson, age 28, of Iowa City, to 270 months in prison for conspiracy to distribute methamphetamine and heroin, distribution of five grams and more of methamphetamine, and distribution of 50 grams and more of methamphetamine announced Acting United States Attorney Richard D. Westphal. Hudson was ordered to serve five years of supervised release to follow her prison term as well as pay $300 to the Crime Victims’ Fund.
The investigation of Hudson began in 2019 when she was identified as having supplied heroin to individuals in Coralville. Hudson conspired with Bryant Smith, Jeffrey Goins, and Heather Simmons in the Iowa City and Coralville areas to distribute heroin, methamphetamine, and other drugs. Hudson was arrested in Coralville in February of 2020 and was convicted after a jury trial held in Davenport in October of 2020.
This matter was investigated by the Johnson County Drug Task Force and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Iowa City Woman Sentenced to Prison for Fraud ChargesRead the Press Release
DAVENPORT, Iowa — On Thursday, April 15, 2021, United States District Court Chief Judge John A. Jarvey sentenced Tykeese McCray, age 44, of Iowa City, to three months in prison for Health Care Fraud and False Statements announced Acting United States Attorney Richard D. Westphal. McCray was ordered to serve three years of supervised release to follow her prison term and pay restitution in the amount of $118,943.19 and $100 to the Crime Victims’ Fund.
The investigation revealed as early as 2011, McCray fraudulently completed application paperwork for the Section 8 housing assistance program administered by the Department of Housing and Urban Development (HUD). On the initial application, as well as the annual recertification forms filed every year, McCray purposefully did not list her husband as a household member, nor did she include his income for purposes of determining her eligibility. McCray also falsified benefit forms by indicating she was single when, in fact, she was married. In addition to defrauding HUD, McCray also falsified forms for food assistance benefits (aka SNAP), childcare assistance, and medical insurance through Medicaid. As a result of falsifying records, McCray agreed she received $54,032 in entitled housing assistance, $31,385 in unentitled food assistance, $31,835.73 in unentitled medical assistance, and $1,690.46 in unentitled medical assistance for a total loss amount of $118,943.19.
This matter was investigated by the Office of the Inspector General and the Iowa Department of Inspections and Appeals. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Hurricane Man Pleads Guilty to Child Pornography OffenseRead the Press Release
HURRICANE, W.Va. – Shea Owen Marsh, 32, of Hurricane, pleaded guilty today to possessing child pornography. Marsh was charged in a single-count Information in April 2021. Marsh was previously indicted last August for possessing child pornography.
According to the plea agreement and statements made in court, Marsh downloaded videos and images of child pornography onto his cell phone several times while at his residence in Hurricane.
Marsh faces up to 20 years in prison when sentenced on July 19, 2021.
The Putnam County Sheriff’s Department and the U.S. Department of Homeland Security - Homeland Security Investigations (HSI) conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00126 and 3:21-cr-00043.
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Howard County Physician Pays More Than $660,000 to Resolve False Claims Act Allegations of Fraudulent BillingRead the Press Release
Baltimore, Maryland – Njideka Udochi, M.D., a family practice physician who owns Millennium Family Practice in Howard County, has agreed to pay the United States $663,094.76 to resolve allegations that she submitted false claims to the Medicare program for fraudulent neurostimulator billings, arising from the use of an auricular stimulation (“P-Stim”) device.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
“Taping a device with adhesive is clearly not the same as surgical implantation,” said Acting United States Attorney Jonathan Lenzner. “Falsely billing the government for a procedure that reimburses at a high rate for such a simple procedure that is not reimbursed at all diverts valuable government resources and undermines confidence in our healthcare system. This settlement will restore funds that should not have been reimbursed and should serve as a bold reminder that improper billing will not be tolerated. I commend our partners at CMS’s Center for Program Integrity and HHS-OIG for identifying and eliminating this kind of waste and abuse in our federal healthcare programs.”
In her practice, Dr. Udochi used a P-Stim device to treat her pain patients. A P-Stim device provides electrical acupuncture to treat pain symptoms and is applied externally to the patient, generally behind the patient’s ear. Acupuncture, electrical or otherwise, is not reimbursable by Medicare.
According to the settlement agreement, from January 2019 to May 2019, Dr. Udochi falsely billed Medicare for the use of the P-Stim device by using the Healthcare Common Procedure Coding System (HCPCS) code for a neurosurgical procedure of an invasive and extensive nature where the device is implanted into the patient. HCPCS codes are used by Medicare to determine the level of reimbursement to providers. Medicare reimburses providers approximately $6,255.61 for an implantable neurostimulator procedure, reflecting the complexity and in-depth nature of surgical implantation of a neurostimulator. Despite the fact that Medicare does not provide any reimbursement for the use of acupuncture devices, Dr. Udochi’s false billing for P -Stim devices, that were taped behind the ears of her patients and were often removed by her patients at home without assistance from a medical professional, caused Medicare to pay her hundreds of thousands of dollars.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Udochi, nor a concession by the United States that its claims are not well founded.
Acting United States Attorney Jonathan Lenzner commended the Office of Inspector General for the Department of Health and Human Services for its work in the investigation. Mr. Lenzner also thanked Assistant United States Attorneys Matt Haven and Allen Loucks, along with Investigators Steve Capobianco and Ann Thiel, who handled and investigated the case.
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Hoover Criminal Gang Members Indicted for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—Two known Hoover Criminal Gang members have been arrested in Portland after being charged with illegal firearm possession, announced Acting U.S. Attorney Scott Erik Asphaug.
On April 6, 2021, a federal grand jury in Portland returned a two-count indictment charging Samuel Deoshay Marquise Mason, Jr., 24, and Cocoa Dalonta Taplin, 26, both residents of Portland, with illegally possessing firearms after previous criminal convictions.
According to court documents and testimony, law enforcement obtained several images of Mason posing with numerous firearms, leading investigators to obtain and execute a search warrant on his residence. Investigators located an assault rifle and 9mm pistol with an obliterated serial number. Both firearms were fully loaded with rounds in the chamber. A subsequent search of Mason’s mobile phone revealed photos of Taplin holding and posing with two firearms three days prior to the search. Mason confessed to possessing the seized firearms. He also admitted to being shot at the week prior and firing one round in return from a third unknown gun.
Mason and Taplin made their initial appearances in federal court today before a U.S. Magistrate Judge. They were arraigned and pleaded not guilty.
This case was investigated by the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
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.
Grand Junction Man Convicted of Conspiring to Distribute Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Bruce Holder, age 55, of Grand Junction, was convicted of Conspiracy to Distribute Fentanyl and Counterfeit Substances, Distribution of Fentanyl Resulting in Death, Distribution of Fentanyl, and Distribution of a Counterfeit Substance after a 11-day jury trial in Denver, Colorado.
Facts presented at trial established that Holder worked in conjunction with multiple co-conspirators, including his wife, children, and other members of his family, to distribute pills which appeared to be 30mg Oxycodone pills but in fact were counterfeit and spiked with fentanyl. Between 2017 and 2018, Holder imported tens of thousands of these pills from Mexico into Western Colorado where he and his co-conspirators distributed them for substantial profit.
In December 2017, a young man in Carbondale died after using one of the pills. Evidence presented at trial established that this man would not have died but for the fentanyl present in the counterfeit pills distributed by Holder. Despite knowing of this death, and hearing of other concerns, Holder and his co-conspirators continued to import and distribute these counterfeit pills. This continued even after Holder’s arrest in August 2018. Evidence at trial also showed that, following his arrest, Holder discussed with co-conspirators plans to destroy evidence and the possible murder of a cooperating witness.
“Most people know that fentanyl is incredibly dangerous. Many people don’t know that it can be disguised to look like other, much less powerful opioids,” said Acting U.S. Attorney Matt Kirsch. “Bruce Holder profited from that ignorance, while one of his customers paid for it with his life. Holder now faces an appropriately long prison sentence for his callous drug distribution.”
“DEA is very happy with this verdict, Holder is someone who has shown a disregard for human life that you don’t often come across,” said Deanne Reuter Special Agent in Charge of DEA Denver Field Division. “Getting to a guilty verdict is something that could only be done with the hard work of our agents and task force officers who investigated this case and the prosecutors who presented it.”
United States District Court Judge Christine M. Arguello presided over the trial and will impose sentence at a later date.
The Drug Enforcement Administration conducted the investigation, with the assistance of the FBI, ATF, HSI, USMS, Western Colorado Drug Task Force, Two Rivers Drug Enforcement Team (“TRIDENT”), Carbondale PD, Fruita PD, Grand Junction PD, and Mesa County SO. Assistant United States Attorney Jeremy Chaffin and Special Assistant United States Attorney Jaime Pena handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Case number: 1:18-cr-00381-CMA-GPG
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Fort Hall Man Sentenced to 40 Months in Prison for StabbingRead the Press Release
POCATELLO – Lance Jonathon Broncho, 19, of Fort Hall, Idaho, was sentenced in U.S. District Court to 40 months in federal prison for assault resulting in serious bodily injury, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Senior U.S. District Judge B. Lynn Winmill also ordered that Broncho serve three years of supervised release following his prison sentence. Broncho pleaded guilty to the charge on December 16, 2020.
According to court records, on April 6, 2020, Broncho and the victim, a Twin Falls man, traveled together from Twin Falls to the Fort Hall Indian reservation in the victim's van. When they arrived at Fort Hall, after midnight, on April 7, Broncho stabbed the victim multiple times in the abdomen and then took the victim's van, leaving the victim on the side of the road. A person driving by saw the victim and called the police, who found him injured on the side of the road. The victim was transported to the hospital where he was treated and had surgery for his stabbing injuries. Broncho was later interviewed and admitted stabbing the victim and taking his van.
This case was investigated by the Federal Bureau of Investigation and Fort Hall Police Department.
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Former Social Security Employee Sentenced to Three Years in Federal Prison for a Scheme to Obtain over $236,000 in Social Security Benefits by Submitting Fictitious ClaimsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Cheikh Ahmet Tidiane Cisse, age 45, of Baltimore, Maryland, today to three years and a day in federal prison, followed by three years of supervised release for theft of government property and aggravated identity theft, in connection with a scheme in which Cisse filed fraudulent claims for Social Security benefits using fictitious identities and the identities of actual individuals, and attempted to collected over $236,000. Judge Russell also ordered Cisse to pay restitution of $83,247 and forfeit $30,000 seized from Cisse’s home and pay a money judgment in the amount of $51,107.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Gail S. Ennis, Inspector General for the Social Security Administration.
Cisse was employed by the Social Security Administration (SSA) as a Claims Specialist in SSA’s Office of International Operations. Cisse admitted that between July 2018 and March 2019, he filed fictitious claims for benefits using stolen identities and identity documents he obtained through the course of his employment with SSA in order to steal or attempt to steal over $236,000 from SSA.
According to his plea agreement, as part of his job, Cisse was responsible for reviewing the identity documents of social security claimants living abroad, such as passports, marriage certificates, and identity cards. Cisse then created new, fictitious identities in SSA's database, often using information from the foreign identity documents he reviewed, which were issued social security numbers (SSNs). Cisse used the fictitious identities to file fraudulent claims for social security divorced spouse survivor's benefits against actual deceased individuals, directing the benefits payments to debit cards or bank accounts he opened in the names of the fictitious identities using the identity documents he obtained through his employment. Cisse sometimes provided his home address for that of the fictitious claimants, but also provided an address in Quebec, Canada, that corresponded to a mail forwarding service to which he subscribed, making it appear as if the fictitious claimants lived abroad. Through this mail forwarding service, Cisse received mail associated with the scheme, including genuine social security cards in the names of the fictitious identities and benefits payments.
As detailed in the plea agreement, in one instance, when SSA stopped payment on the $10,734 back payment for one of the fraudulent claims due to suspected fraud, Cisse contacted SSA’s payment center and falsely relayed that the purported beneficiary had called inquiring about the whereabouts of the payment, causing the SSA payment center to issue the back payment by direct deposit. Cisse received a total of approximately $25,916 as a result of this fraudulent claim, which he spent through cash withdrawals and retail purchases.
In total, Cisse submitted at least nine fraudulent claims in stolen and fictitious identities, causing SSA to pay approximately $87,000 in fraudulent claims through direct deposit, issue approximately $46,000 in checks that were never negotiated, and authorize approximately $103,000 in claims that SSA halted before payments were issued. Cisse personally received and spent $82,047 as a result of the scheme.
Acting United States Attorney Jonathan F. Lenzner commended the SSA Office of Inspector General for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Former San Francisco Resident Charged with Multi-Year Campaign of Cyberstalking Against Three MinorsRead the Press Release
SAN FRANCISCO – A federal grand jury has charged Ramajana Hidic Demirovic with cyberstalking and conspiracy to commit cyberstalking in connection with a scheme to harass and intimidate victims, including teenagers who had romantic relationships with the defendant’s co-conspirator, announced Acting United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Craig D. Fair.
According to the indictment, Demirovic, 46, of San Francisco at the time of the alleged offense and currently of Brentwood, and her co-conspirator, sent hundreds of malicious, deceptive, and abusive communications intended to sabotage the personal relationships, social reputation, academic life, and work prospects of her intended victims. The indictment describes how Demirovic’s co-conspirator dated three male teenagers between February 2016 and March 2018. In each case, after the relationship ended, Demirovic engaged in a campaign to punish the victims.
Demirovic’s first victim, identified in the indictment as 14-year-old Victim A, allegedly dated Demirovic’s co-conspirator for a few days in February 2016. Demirovic contacted the victim’s mother with intimidating messages and allegedly appeared at the victim’s school and asked students where she could find the victim. Demirovic found Victim A, accosted him, and threatened to “rip [his] f*cking heart out.”
Demirovic’s abuse escalated later in 2016. Victim B, a 15-year-old, dated Demirovic’s co-conspirator in spring 2016. In July and August 2016, Demirovic sent Victim B multiple series of text messages. Among other things, she allegedly said that Victim B should be “condemned” and that he was “awful human being.” Demirovic also threatened that her husband would find Victim B and that “it’s not going to look pretty.” The abuse continued in fall 2016 when Demirovic called Victim B’s employer and school to report, falsely, that Victim B was physically abusive, used drugs, and had alcohol problems. Administrators at Victim B’s high school barred Demirovic from campus. By October, Demirovic and her co-conspirator were using Instagram to mock the minor.
Demirovic’s abuse escalated yet again beginning in 2018. Demirovic’s co-conspirator dated Victim C for about ten months from May 2017 until March 2018. What followed allegedly was a 17-month campaign of cyberstalking by Demirovic and her co-conspirator in an effort to humiliate Victim C and destroy his social relationships. Among other acts, in May 2018, the co-conspirators began using social media accounts systematically to impersonate Victim C and others. By June 2018, dozens of friends had reached out to Victim C in confusion and concern.
Later messages from Demirovic included a complaint to Title IX officers at Victim C’s university alleging that he “harassed and stalked” girls. Demirovic also sent vulgar text messages to Victim C’s prom dates, promoted falsities about Victim C’s supposed drug use, and visited Victim C’s home.
The indictment describes the toll that Demirovic’s alleged conduct took on her victims.
• Victim A began skipping field trips and singing classes when he knew Demirovic might be present. He grew anxious, depressed, and fearful. He sought therapeutic help. His grades slipped so far that his parents considered withdrawing him from school.
• Victim B deleted his social-media accounts, curtailed his friendships, and changed his phone number. He could not sleep, saw his grades decline, and began seeing a therapist after experiencing feelings of helpless, fearfulness, and distress. His mother disallowed him from taking the bus and hired a private driver to transport him to school and soccer practice.
• Victim C suffered panic attacks, sought therapeutic help, abandoned social media, and changed his phone number. He suffered social ostracism and permanent damage to his personal relationships. The indictment describes Victim C as “traumatized” and “a changed person.”
Demirovic is charged with one count of cyberstalking, in violation of 18 U.S.C. § 2261A(2), and one count of conspiracy to commit cyberstalking, in violation of 18 U.S.C. § 371.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the cyberstalking count, the defendant faces a maximum sentence of five years in prison, and a fine of $250,000. If convicted of the conspiracy count, the defendant faces a maximum sentence of five years in prison, and a fine of $250,000. The court may also order an additional term of supervised release, restitution, and fines, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Demirovic was arrested at her home on April 16, 2021. She made her initial court appearance this morning before United States Magistrate Judge Jacqueline Scott Corley. She was released on April 19, 2021 on a bond. Her next court appearance is scheduled for April 27, 2021, at 3 p.m., before Judge Vince Chhabria, for purposes of arraignment or status conference.
Assistant U.S. Attorney Joseph Tartakovsky is prosecuting the case with assistance from Lance Libatique. The prosecution is the result of an investigation by the FBI.