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Thursday 15 April 2021
New Jersey Company Pleads Guilty to Committing an Osha Violation That Resulted in A Worker’s DeathRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dana Container, Inc., (“Dana”), headquartered in Avenel, New Jersey, pled guilty on April 14, 2021, before U.S. Magistrate Judge Joseph F. Saporito, Jr., to willfully committing an OSHA violation that resulted in an employee’s death, as charged in a criminal Information.
According to Acting United States Attorney Bruce D. Brandler, the criminal information to which Dana pleaded guilty alleges that Dana utilized the trade name “Dana Rail Care” for a portion of its business activity related to the maintenance and cleaning of the interior of rail cars, and that in or about March of 2019, Dana contracted with another firm to clean crude oil residue from approximately 100 rail cars that were located at a rail yard in Pittston, Pennsylvania.
Under regulations issued by the Occupational Safety and Health Administration (“OSHA”), an employee who is tasked by his or her employer to work in a confined space, like the interior of a rail car, must be protected in various ways. Employers are required to test and monitor atmospheric conditions within the space to ensure that the atmosphere is non-hazardous and to purge, flush or ventilate the space as necessary to eliminate or control any atmospheric hazards, including oxygen concentrations below 19.5 percent. Employers must also outfit any employee tasked with working in any atmosphere considered to be potentially hazardous with a particular type of OSHA-certified respirator.
On May 31, 2019, a Dana employee entered one of the rail cars at the Pittston site in order to scrape crude oil from the walls of the car. About 30 minutes later, the employee collapsed inside the car. He later died on scene, with the cause of death ruled asphyxiation. The atmosphere inside the car was determined to be oxygen-deficient and although Dana was aware of applicable OSHA regulations, the employee had not been outfitted with the proper OSHA-certified respirator.
“The death of the employee was a tragedy and could have been avoided if the company had followed the regulations for this type of dangerous activity,” stated Acting U.S. Attorney Bruce D. Brandler. “Our office and OSHA take these cases very seriously and willful violations of OSHA regulations will be aggressively prosecuted to deter this type of behavior and ensure that workers are protected.”
The charge stems from an investigation by the Occupational Safety and Health Administration (OSHA) and the Department of Labor, Criminal Investigation Division. Assistant U.S. Attorney Jeffery St John is prosecuting the case.
A sentence following a finding of guilt will be imposed by the Judge after consideration of the applicable federal sentencing statutes.
The maximum penalty under federal law for this offense is a $500,000 fine and a 5-year term of probation. Under federal law, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant and protect the public. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Music “tourist” sent to prison for cocaine traffickingRead the Press Release
CORPUS CHRISTI, Texas - A 40-year-old felon from Florida has been sentenced for conspiracy to distribute nearly 10 kilograms of cocaine in the Coastal Bend area, announced Acting U.S. Attorney Jennifer B. Lowery.
Terrance Collins, Tallahassee, Florida, pleaded guilty Nov. 10, 2020.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Collins to serve a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted his extensive criminal history including 27 prior convictions totaling nearly 100 months of confinement.
“This sentence sends a clear message that drug traffickers will be held accountable for their crimes,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA). “This investigation is another example of our collective efforts to attack drug trafficking organizations at every level.”
On or about July 4, 2020, Collins arrived from Florida to attend a purported music festival in the South Padre Island area. He left a few days later via bus.
However, during a routine inspection at a checkpoint along the way, a service K-9 alerted to luggage linked to Collins.
Law enforcement ultimately discovered 10 concealed bundles containing cocaine, weighing approximately 9.134 kilograms. The drugs had an approximate street value of $250,000.
He admitted he was to transport the narcotics back to Florida and was to be paid $1,000.
Previously released on bond, Collins was ordered into custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
DEA and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Monongalia County woman admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ashley Johnson, of Morgantown, West Virginia, has admitted to her role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Johnson, age 34, pled guilty to one count of “Unlawful Use of Communication Facility.” Johnson admitted to using ap hone to distribute methamphetamine, cocaine base, also known as “crack,” cocaine hydrochloride, also known as “coke,” fentanyl, and heroin in April 2020 in Monongalia County.
Johnson faces up to four years of incarceration and a fine of up to $250,000. 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. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
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.
Monongalia County man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel McClung, of Morgantown, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
McClung, 40, pled guilty to one count of “Maintaining Drug-Involved Premises.” McClung admitted to keeping an apartment in Morgantown for the purpose of distributing heroin and cocaine base, also known as “crack.” In March 2020 in Monongalia County.
McClung 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 case 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
Member of Violent Street Gang “11 Hunnit” Pleads Guilty to RICO ChargeRead the Press Release
PITTSBURGH - A former resident of the City of Pittsburgh pleaded guilty in federal court to a violation of the Racketeer Influenced Corrupt Organizations Act (commonly known as RICO), Acting United States Attorney Stephen R. Kaufman announced today.
Richard Kelly, 26, formerly of the Pittsburgh’s Hill District neighborhood, pleaded guilty to one count of RICO conspiracy before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Mr. Kelly acknowledged that he was a member of the violent street gang known as "11 Hunnit," which operated in the Hill District neighborhood of Pittsburgh. Mr. Kelly acknowledged that he, along with alleged codefendants Sydney Pack, Dionte Griffin, and others, conspired to conduct and participate in the conduct in the affairs of the 11 Hunnit gang through a pattern of racketeering activity consisting generically of acts involving murder, robbery, and the distribution of controlled substances. Mr. Kelly acknowledged his personal participation in certain overt acts that were done in furtherance of the RICO conspiracy, which included a June 2015 incident wherein Mr. Kelly was in a stolen vehicle with other gang members where police found numerous stamp bags of heroin and a stolen firearm previously used in a shooting; an incident in October 2016 wherein Mr. Kelly and another 11 Hunnit member conspired to rob an unknown person in the Hill District neighborhood; and two shootings on December 4, 2016.
Judge Bissoon scheduled sentencing for August 12, 2021, at 2:15 p.m. The law provides for a total sentence of not more than twenty years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Pending sentencing, the court remanded Mr. Kelly to the custody of the United States Marshals Service.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, together with the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Mr. Kelly. This prosecution is a result of an Organized Crime Drug Enforcement Task Force ("OCDETF") investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian K. Griffey, of Fairmont, West Virginia, was sentenced today to 180 months incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Griffey, age 51, pled guilty to one count of “Unlawful Possession of a Firearm and Ammunition” in March 2019. Griffey, having been previously convicted of multiple felonies, admitted to having a 12-gauge shotgun and shotgun shells in Harrison County in June 2018.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nutter Fort Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Manhattan Construction Business Operator Sentenced to 19 Months in Prison for Tax FraudRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced today that BILAL SALAJ was sentenced in Manhattan federal court to 19 months in prison for perpetrating tax fraud. SALAJ previously pled guilty before U.S. Magistrate Judge Ona T. Wang to conspiracy to defraud the Internal Revenue Service (“IRS”), tax evasion, and failure to pay over payroll taxes. U.S. District Judge P. Kevin Castel, who accepted SALAJ’s guilty plea, imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Bilal Salaj failed to pay his tax obligations to the IRS and maintained a cash payroll for his business while cheating the government out of almost $1 million. Our self-assessment system of tax reporting is not synonymous with ‘forthrightness optional.’ The government — and especially our law enforcement partners — won’t miss, overlook, or ignore those who misreport on their tax returns. In the competitive small business world, being dishonest and underreporting tax obligations might be tempting. But Salaj’s sentence is a reminder that tax fraud is a serious federal crime and not worth the risk.”
According to the allegations contained in the Information to which SALAJ pled guilty, court filings, and statements made in public court proceedings:
At all relevant times, BILAL SALAJ, a citizen and resident of the United States, operated a construction business in Manhattan. Initially, SALAJ was the record owner of the business, but in approximately July 2014, SALAJ began operating the business under a new entity that, on paper, was wholly owned by a third party (“Individual-1”), who worked for SALAJ in the construction business. Despite this purported change in ownership, SALAJ continued to exercise principal control and decision-making authority over the business and its financial affairs. In particular, SALAJ was a responsible person under federal law for collecting, truthfully accounting for, and paying over payroll taxes for the business to the IRS.
Between at least in or about 2014 and in or about June 2019, SALAJ devised and perpetrated a scheme to evade a substantial portion of both the payroll taxes for the construction business and SALAJ’s personal income taxes for the period 2014 through 2018. During this period, SALAJ cashed, and caused Individual-1 to cash, approximately $3.2 million in business checks payable to the construction company at check cashing facilities in Manhattan, instead of depositing them into the company’s operating bank account. SALAJ and Individual-1 used a portion of the proceeds from the cashed checks to pay cash wages to employees of the construction business, and spent most of the rest on personal expenses. SALAJ did not withhold or pay over to the IRS any payroll taxes on the cash wages paid to the employees, and did not report to the IRS or pay any personal income taxes on the cash income he realized through the cashed checks. As part of the tax evasion scheme, SALAJ fraudulently withheld from his accountant any records relating to the cashed business checks, and thereby caused false tax returns to be filed with the IRS. The tax evasion scheme, including relevant conduct, resulted in a tax loss to the IRS of approximately $952,778.
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In addition to the prison term, Judge Castel ordered SALAJ, 56, of Morganville, New Jersey, to pay restitution to the IRS in the amount of $952,778. SALAJ was also ordered to serve three years of supervised release.
Ms. Strauss praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Olga I. Zverovich is in charge of the prosecution.
Man Sentenced to 25 Years in Federal Prison for Attempted Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced James Lee Crooker, age 36, was sentenced today, after having pleaded guilty to three counts of attempted production of child pornography, each involving a different victim, on June 17, 2020. Chief United States District Judge Stanley A. Bastian sentenced Crooker to a 25-year term of imprisonment, to be followed by a lifetime term of court supervision after he is released from federal prison.
Crooker had previously entered a guilty plea to one count of production of child pornography pertaining to one minor aged victim, and he was sentenced to 15 years imprisonment. However, on his motion, his conviction and sentence were vacated. Today’s 25-year sentence follows a superseding indictment, wherein he was charged with additional acts of child exploitation, several of which committed against additional victims.
According to information disclosed during court proceedings, the investigation began after law enforcement received information about sexually-explicit communications on a cellular telephone between a 15-year-old developmentally delayed child and a then 32-year-old male, James Lee Crooker. Investigators quickly determined Crooker was a registered sex offender. As the investigation progressed, authorities learned that Crooker had asked the child to send him sexually explicit photographs of herself and she sent them through Facebook and Kik Messenger. She had told Crooker she was 15-years old, but he still requested the photos. She had met Crooker in person and they had discussed meeting to engage in sex. Investigators found the explicit photographs the minor victim sent on Crooker’s smartphone.
While Crooker was under investigation for the photographs produced of the 15-year old child, Facebook alerted law enforcement that Crooker was also communicating in a sexually-explicit manner with a 13-year old child in Ohio, who had also taken and sent sexually-explicit photographs to Crooker who was in Eastern Washington via Facebook, at his request.
In November, 2019, the FBI interviewed another child who resided locally and who investigators believed to be a witness to other aspects of the case. However, the child soon revealed to the FBI Agent that she too had been in a sexual relationship with Crooker, when she was 16 years old. Crooker communicated with her primarily via Facebook. Crooker asked her for sexually explicit photographs repeatedly.
At sentencing Chief Judge Bastian noted he felt compelled to protect the public and provide adequate deterrence from future misconduct. Judge Bastian told Crooker he gave him credit for pleading guilty but noted, “you have accepted responsibility reluctantly and late.” Crooker had commented he knew it was time for him to grow up, to which Judge Bastian responded, that was good, but he had victimized children who wanted to grow up too and wanted to grow up not being a victim.
Acting U.S. Attorney Joseph H. Harrington said, “The lengthy sentence imposed today demonstrates the severity of Crooker’s criminal conduct. The United States Attorney’s Office for the Eastern District of Washington is committed to protecting vulnerable victims and prosecuting individuals who engage in conduct in which they attempt to produce child pornography and sexually exploit children. I commend the outstanding work of our federal and state partners who worked collaboratively in the investigation of this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Federal Bureau of Investigation with assistance from the Yakima Police Department, Yakima County Sheriff’s Office, and the Southeast Regional Internet Crimes Against Children Task Force. This case was prosecuted by Alison L. Gregoire, Assistant United States Attorney for the Eastern District of Washington.
Maine Man Charged with Hate Crime Offenses for Arson of Predominantly Black ChurchRead the Press Release
A Maine man was charged today in federal court in Springfield, Massachusetts, in connection with setting the Dec. 28, 2020, fire that destroyed the Martin Luther King Jr. Community Presbyterian Church in Springfield.
Dushko Vulchev, 44, of Houlton, was charged by criminal complaint with four counts of damage to religious property involving fire and one count of use of fire to commit a federal felony. Vulchev is currently in state custody and will make an initial appearance in federal court in Springfield at a later date.
The Martin Luther King Jr. Community Presbyterian Church in Springfield has a primarily Black congregation, and the church is named in honor of civil rights leader Dr. Martin Luther King Jr. According to court documents, an intentionally set fire caused extensive damage to the church in the early morning hours of Dec. 28, 2020. In court documents, the government alleges that Vulchev set the Dec. 28 fire. The government also alleges that Vulchev is also responsible for several other fires set on church property and for a series of tire slashings on church property and in the surrounding area. The additional fires alleged include a fire at the backdoor of the church on Dec. 13, 2020, and two additional fires near the rear door of the church on Dec. 15, 2020. The investigation, including the review of security videos and location data from Vulchev’s mobile telephone, showed Vulchev at or near the scene of many of the alleged crimes, including the Dec. 28, 2020, fire that severely damaged the church.
In addition, according to charging documents, a subsequent search of Vulchev’s vehicle and electronic devices revealed messages from Vulchev demonstrating Vulchev’s hatred of Black people, including recent messages from Vulchev in December 2020 calling to “eliminate all N****s.” In addition, the devices contained images demonstrating Vulchev’s racial animus toward Black people.
The charge of damage to religious property involving fire provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of fire to commit a federal felony provides for a sentence of at least 10 years in prison, in addition to any sentence received for the other charged crimes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division; Acting U.S Attorney Nathaniel R. Mendell of the District of Massachusetts; Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Field Division; Special Agent in Charge Kelly Brady of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)'s Boston Field Division; and Massachusetts State Police Fire Marshal Peter Ostroskey made the announcement.
Assistance was provided by Hampden District Attorney’s Office; Berkshire District Attorney’s Office; Springfield Police Department; Springfield Fire Department; Pittsfield Police Department; American International College Police Department; Houlton (Maine) Police Department; and Newington (Conn.) Police Department.
The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla, Chief of Mendell’s Springfield Branch Office, and Trial Attorneys Timothy Visser and Kyle Boynton of the Justice Department’s Civil Rights Division.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Charged with Hate Crime Offenses for Arson of Martin Luther King, Jr. Community Presbyterian Church in SpringfieldRead the Press Release
BOSTON – A Maine man was charged today in federal court in Springfield in connection with setting the Dec. 28, 2020 fire that destroyed a predominately Black church in Springfield, Mass.
Dushko Vulchev, 44, of Houlton, Maine, was charged by criminal complaint with four counts of damage to religious property involving fire and one count of use of fire to commit a federal felony. Vulchev is currently in state custody and will make an initial appearance in federal court in Springfield at a later date.
The Martin Luther King, Jr. Community Presbyterian Church in Springfield, Mass. has a primarily Black congregation, and the church is named in honor of civil rights leader Dr. Martin Luther King, Jr. According to court documents, an intentionally set fire caused extensive damage to the church in the early morning hours of Dec. 28, 2020. In court documents, the government alleges that Vulchev set the Dec. 28 fire. The government also alleges that Vulchev is also responsible for several other fires set on church property and for a series of tires slashings on church property and in the surrounding area. The additional fires alleged include a fire at the backdoor of the church on Dec. 13, 2020 and two additional fires near the rear door of the church on Dec. 15, 2020. Investigation, including the review of security video and location data from Vulchev’s mobile telephone, showed Vulchev at or near the scene of many of the alleged crimes, including the Dec. 28, 2020 fire that severely damaged the church
In addition, according to charging documents, a subsequent search of Vulchev’s vehicle and electronic devices revealed messages from Vulchev demonstrating Vulchev’s hatred of Black people, including recent messages from Vulchev in December 2020 calling to “eliminate all N****s.” In addition, the devices contained images demonstrating Vulchev’s racial animus toward Black people.
The charge of damage to religious property involving fire provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of fire to commit a federal felony provides for a sentence of at least 10 years in prison, in addition to any sentence received for the other charged crimes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and State Fire Marshal Peter Ostroskey made the announcement today. Assistance was provided by Hampden District Attorney’s Office; Berkshire District Attorney’s Office; Massachusetts State Police; Springfield Police Department; Springfield Fire Department; Pittsfield Police Department; American International College Police Department; Houlton (Maine) Police Department; and Newington (Conn.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla, Chief of Mendell’s Springfield Branch Office, and Trial Attorneys Timothy Visser and Kyle Boynton of the Justice Department’s Civil Rights Division.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Doctor Sentenced to Prison for Conspiring to Receive Health Care KickbacksRead the Press Release
A Louisiana doctor was sentenced today to 18 months in prison for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.
Gray Wesley Barrow, M.D., 61, of Baton Rouge, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks on Nov. 20, 2018. According to court documents, Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for an unlawful kickback calculated as a percentage of the reimbursements paid to the laboratory by Medicare and other health care benefit programs.
From approximately January 2014 through July 2016, Barrow sent specimens collected from his patients to the laboratory and received approximately $1.58 million in disbursements from the laboratory. Of that $1.58 million, approximately $336,000 represented kickback payments associated with testing performed on specimens of Medicare beneficiaries, which the court ordered Barrow to forfeit as part of today’s sentence. Additionally, Barrow was ordered to pay $336,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Ellison C. Travis of the Middle District of Louisiana; Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office; and Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the U.S. Attorney’s Office for the Middle District of Louisiana prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Louisiana Doctor Sentenced to Prison for Conspiring to Receive Health Care KickbacksRead the Press Release
A Louisiana doctor was sentenced today to 18 months in prison for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.
Gray Wesley Barrow, M.D., 61, of Baton Rouge, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks on Nov. 20, 2018. According to court documents, Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for an unlawful kickback calculated as a percentage of the reimbursements paid to the laboratory by Medicare and other health care benefit programs.
From approximately January 2014 through July 2016, Barrow sent specimens collected from his patients to the laboratory and received approximately $1.58 million in disbursements from the laboratory. Of that $1.58 million, approximately $336,000 represented kickback payments associated with testing performed on specimens of Medicare beneficiaries, which the court ordered Barrow to forfeit as part of today’s sentence. Additionally, Barrow was ordered to pay $336,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Ellison C. Travis of the Middle District of Louisiana; Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office; and Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the U.S. Attorney’s Office for the Middle District of Louisiana prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Lebanon County Man Sentenced to Seventy Months’ Imprisonment for Trafficking Counterfeit DrugsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stefen Knoche, age 55, of Lebanon, Pennsylvania, was sentenced today to 70 months’ imprisonment by U.S. District Court Judge Sylvia H. Rambo for trafficking in counterfeit drugs. Knoche was also ordered to pay $3,648,911.18 in restitution.
According to Acting United States Attorney Bruce D. Brandler, Knoche previously admitted that he intentionally trafficked drugs knowing them to contain counterfeit marks of pharmaceutical manufacturers Pfizer Pharmaceuticals, Bayer AG, Eli Lilly and Company, and Roche Holding AG between May 2017 and April 2018. Knoche further acknowledged that he trafficked counterfeit Viagra, Aurogra, Xanax, Levitra, Cialis, and Valium, all using counterfeit trademarks of their respective pharmaceutical companies.
“The U.S. Postal Inspection Service continues to prioritize eliminating contraband to include illegal prescription drugs from the U.S. Mail,” said Inspector in Charge Damon Wood, U.S. Postal Inspection Service Philadelphia Division. “We are committed to bringing all members of illegal drug trafficking organizations who utilize the U.S. Mail to justice.”
“Selling illegal prescription drugs in the U.S. marketplace puts consumers’ health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA remains fully committed to disrupting and dismantling illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety.”
“Today’s sentence demonstrates what can be accomplished when the Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Food and Drug Administration Office of Criminal Investigations, combine resources to investigate and apprehend criminals whose illicit actions harm Americans,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Together we are committed to pursuing justice by investigating, dismantling, prosecuting criminals like the defendant to the fullest extent of the law.”
The case was investigated by the U.S. Postal Inspection Service; U.S. Food and Drug Administration, Office of Criminal Investigations; and Homeland Security Investigations. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Leader of Philadelphia Drug Trafficking Gang and Rap Artists “Original Block Hustlaz” Sentenced to 45 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Abdul West, 38, of Brookhaven, PA, was sentenced to 45 years in prison, ten years of supervised release, and ordered to pay a $5,000 fines by United States District Judge Michael M. Baylson for his role as the leader of the Original Block Hustlaz, or “OBH,” a violent drug trafficking organization that doubled as a group of aspiring rap artists in Philadelphia. Two of West’s co-defendants, Jamaal Blanding, 39, and Jameel Hickson, 43, both of Philadelphia, PA, were also recently sentenced and received 25 and 20 years in prison, respectively.
In November 2019, all three defendants, plus an additional defendant who is still awaiting sentencing, Hans Gadson, 36, also of Philadelphia, PA, were convicted, after a two-and-a-half-week trial on charges that included conspiracy to distribute controlled substances, and distribution of or possession with intent to distribute cocaine, crack, and methamphetamine. Several other co-defendants pled guilty prior to trial. In total, nine defendants connected to OBH were charged in a 16-count Second Superseding Indictment in August 2019. All nine were convicted or pled guilty.
Between at least March 2017 through June of 2018, OBH poisoned the Philadelphia community by importing dangerous narcotics, including large quantities of methamphetamine and cocaine, from California to Philadelphia and then selling those drugs in the Philadelphia area. To further their drug business, OBH employed fear, intimidation, and violence. West was the driving force behind the violent character of OBH and routinely posted rap videos and other messages on social media in which he communicated threats of violence, and which demonstrated his power and authority within the organization. According to court documents, West ordered a member of the organization to murder a former member of the group, identified as R.J., because West believed R.J. was involved with West’s “enemy” and “playing both sides of the fence.” R.J. was ultimately shot multiple times and died.
In September 2017, officers and detectives from the Philadelphia Police Department executed a search warrant at 3234 North Sydenham Street, which was a property used by members of OBH to store and sell drugs. During the execution of the search warrant, numerous drugs were seized, including approximately 62 grams of cocaine base (“crack”), 229 grams of heroin, and 48 grams of a methamphetamine mixture. The officers also seized $8,101 from the residence.
In May 2018, FBI agents executed a search warrant on an apartment on Columbus Boulevard, another property used by OBH to store drugs. During the execution of the search warrant, the FBI and seized 10 kilograms of cocaine, nearly 6 pounds of pure methamphetamine, and $20,000 in cash.
In a related case, defendant Charles Salley, 39, of Clayton, Delaware, pleaded guilty to witness tampering in connection with the above-referenced trial. During the trial, a cooperating witness received a threatening letter from Salley under the pen name “Ron Harvey,” threatening physical violence if the witness testified at trial against West and his OBH associates. Salley was present in the courtroom during the course of the trial, including on the day of the witness’ scheduled testimony. The threatening letter was investigated by the FBI and the witness ultimately testified during the trial. Salley is scheduled to be sentenced in August 2021.
“West and his OBH co-defendants pumped huge quantities of deadly drugs into our community,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant’s violent lyrics weren’t just creative expression, they were truthful depictions of the mayhem OBH created on the streets of Philadelphia. Our Office is determined to continue doing everything we can by being ‘All Hands On Deck’ to get violent criminals like OBH off the streets.”
This West/OBH case is part of the FBI’s Violent Gang Safe Streets Task Force, a program through which federal, state, and local law enforcement agencies collaboratively address the violent crime plaguing communities. It was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Timothy M. Stengel. The Salley case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Lawton Man Convicted of Bank Robbery Involving a Fake BombRead the Press Release
OKLAHOMA CITY – This afternoon, a federal jury in Oklahoma City found JOHN SCOTT BROOKS, 55, of Lawton, guilty of bank robbery involving a fake bomb, announced Acting U.S. Attorney Robert J. Troester.
According to evidence at trial, on March 23, 2020, Brooks pulled up to the drive-through teller lane at the Southwest Oklahoma Federal Credit Union located at 6714 West Gore Boulevard, Lawton, Oklahoma, and placed a fake bomb in the teller drawer. He immediately showed the teller a timer, which was counting down. Brooks then attempted to get away with the robbery by altering the appearance of his vehicle, creating a cover story, and erasing electronic information from his cell phone. Evidence at trial included bank surveillance footage of the robbery, a bank robbery list found at Brooks’ residence, and a vehicle image comparison analysis performed by an FBI forensic examiner. Multiple witnesses testified that they recognized Brooks in the still photo of the surveillance footage taken from the robbery.
The trial lasted two days and the jury deliberated approximately two hours before finding Brooks guilty of one count of bank robbery. He was acquitted on a count of making a bomb threat.
At sentencing, Brooks faces up to twenty-five years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution. Sentencing will take place in approximately 90 days. Mr. Brooks has been in custody since his arrest on April 2, 2020.
This case is the result of an investigation by the Federal Bureau Investigation’s Oklahoma City Field Office and the Lawton Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Stan West prosecuted the case.
Reference is made to public filings for more information.
Lauderdale Man Pleads Guilty under Project EJECT to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Levi Gibbs, Jr., 51, of Lauderdale, Mississippi pled guilty today before U.S. Chief District Court Judge Daniel P. Jordan III, to possession of a firearm by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Mississippi.
On March 27, 2020, Meridian police officers stopped a vehicle being driven by Gibbs after an officer observed Gibbs crossing over the center line of the road and speeding. When an officer approached the passenger side of Gibbs’ car, he saw a pistol in an ankle holster on Gibbs’ right leg. The officer checked Gibbs’ criminal record and discovered that Gibbs was a convicted felon. In fact, Gibbs had multiple felony convictions, several of which are for various drug crimes. Gibbs is currently under indictment from the Circuit Court of Lowndes County, Mississippi for Armed Robbery. As a convicted felon it is against federal law for Gibbs to possess any firearm.
Gibbs will be sentenced by Judge Jordan on July 23, 2021 and faces a maximum penalty of up to ten years in prison and a $250,000.00 fine.
The case was investigated by the Meridian Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Lafourche Parish Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – KENDALL MATHEWS, a/k/a “DOT,” age 37, a resident of Thibodaux, Louisiana, was sentenced to 120 months’ imprisonment, 5 years of supervised release, and was ordered to pay $1,300.00 in special assessment fees by U.S. District Judge Carl J. Barbier after pleading guilty to thirteen counts of a fourteen-count indictment charging him with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty kilograms or more of methamphetamine, five kilograms or more of cocaine hydrochloride, use of a communication facility to facilitate a drug trafficking crime, and distribution of methamphetamine, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in January 2018, Special Agents with the Drug Enforcement Administration made two controlled purchases of more than 50 grams of methamphetamine each from MATHEWS. After making the controlled purchases, agents obtained court ordered wiretaps of MATHEWS and co-conspirators’ telephones and intercepted numerous calls between MATHEWS, his co-conspirators, and customers in which they discussed the sales of methamphetamine, cocaine hydrochloride, and heroin. Through their continued monitoring of telephone calls, agents identified a pending narcotics transaction and seized two kilograms of cocaine hydrochloride. Also, agents and officers obtained search warrants for co-conspirators’ residences and seized approximately 148 grams of heroin and 1300 grams of a mixture or substance containing methamphetamine.
MATHEWS faced a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Justice Department and FTC Announce Action to Stop Deceptive Marketing of Purported COVID-19 TreatmentsRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced a civil complaint against defendants Eric Anthony Nepute and Quickwork LLC, doing business as Wellness Warrior, in the first enforcement action alleging violations of the COVID-19 Consumer Protection Act.
According to a complaint filed in the U.S. District Court for the Eastern District of Missouri, the defendants advertised that their vitamin D and zinc nutritional supplements could prevent or treat COVID-19 without competent or reliable scientific evidence to support their claims. Further, the defendants allegedly advertised without scientific support that their supplements were equally or more effective therapies for COVID-19 than the currently available vaccines. The complaint seeks civil penalties and injunctive relief to stop the defendants from continuing to make deceptive advertising claims.
The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation or diagnosis of COVID-19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief and other remedies available under the FTC Act. The complaint also alleges violations of the FTC Act, which prohibit unfair and deceptive conduct, and false advertising, respectively.
“The Justice Department is committed to preventing the unlawful marketing of unproven COVID-19 treatments,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “Deceptive marketing of unproven products discourages consumers from following health and safety guidelines provided by public health officials. The unlawful spreading of COVID-19 misinformation to sell a product will not be tolerated.”
“The defendants’ claims that their products can stand in for approved COVID-19 vaccines are particularly troubling: we need to be doing everything we can to stop bogus health claims that endanger consumers,” said Acting Chairwoman Rebecca Kelly Slaughter of the FTC. “With this case, the Commission has quickly put to use its new authority to stop false marketing claims related to the pandemic.”
This matter is being handled by Trial Attorneys Benjamin Cornfeld and Brandon Robers of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Suzanne Moore from the U.S. Attorney’s Office for the Eastern District of Missouri. Kristin M. Williams, Mary L. Johnson and Brady C. Williams represent the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Justice Department Reaches Agreement with the City of West Monroe, Louisiana Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the City of West Monroe, Louisiana.
The Justice Department’s lawsuit, brought under Section 2 of the Voting Rights Act, challenges the current at-large method of electing the West Monroe Board of Aldermen. Under this agreement, the City of West Monroe will change its method of electing its Board of Aldermen to ensure compliance with the protections of the Voting Rights Act.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the current method of electing the West Monroe Board of Aldermen results in Black citizens in West Monroe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice, in violation of Section 2 of the Voting Rights Act. Although Black residents comprise nearly 30% of the electorate, no Black candidate has ever been elected to the West Monroe Board of Aldermen. The complaint does not allege that the current method of election was adopted or maintained with discriminatory intent.
“The Voting Rights Act remains a vital tool to ensure that underrepresented citizens have a fair chance to choose their representatives,” said Principal Deputy Assistant Attorney General Pamela S, Karlan for the Justice Department’s Civil Rights Division. “We appreciate that the City of West Monroe has worked diligently and cooperatively with the department to adopt a solution that provides all the City’s citizens with an equal opportunity to participate in the political process and elect aldermen of their choice.”
“We join the Civil Rights Division in bringing this important lawsuit under the Voting Rights Act and appreciate that the City of West Monroe has worked with the Justice Department to adopt a solution that brings about fair representation,” said Acting U.S. Attorney Alexander C. Van Hook of the Western District of Louisiana.
The department gave notice to the City of West Monroe of its intent to bring suit under the Voting Rights Act on March 4, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree — and subject to approval by the federal district court in Louisiana — West Monroe will discontinue use of its current at-large method of electing the five members of its Board of Aldermen. Beginning with the next municipal election, currently scheduled for March 26, 2022, three members of the Board of Aldermen will be elected from single-member districts and two members will be elected at-large. The agreement also provides West Monroe will publicize the new method of election.
More information about the Voting Rights Act and other federal voting rights laws is available on the Justice Department website at https:www.justice.gov/crt/voting-section.
Justice Department Reaches Agreement with the City of West Monroe under the Voting Rights ActRead the Press Release
MONROE, La. - The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the City of West Monroe, Louisiana. The Justice Department’s lawsuit, brought under Section 2 of the Voting Rights Act, challenges the current at-large method of electing the West Monroe Board of Aldermen. Under this agreement, the City of West Monroe will change its method of electing its Board of Aldermen to ensure compliance with the protections of the Voting Rights Act.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the current method of electing the West Monroe Board of Aldermen results in black citizens in West Monroe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice, in violation of Section 2 of the Voting Rights Act. Although black residents comprise nearly 30% of the electorate, no black candidate has ever been elected to the West Monroe Board of Aldermen. The complaint does not allege that the current method of election was adopted or maintained with discriminatory intent.
The department gave notice to the City of West Monroe of its intent to bring suit under the Voting Rights Act on March 4, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree—and subject to approval by the federal district court in Louisiana—West Monroe will discontinue use of its current at-large method of electing the five members of its Board of Aldermen. Beginning with the next municipal election, currently scheduled for March 26, 2022, three members of the Board of Aldermen will be elected from single-member districts and two members will be elected at-large. The agreement also provides West Monroe will publicize the new method of election.
“The Voting Rights Act remains a vital tool to ensure that underrepresented citizens have a fair chance to choose their representatives,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “We appreciate that the City of West Monroe has worked diligently and cooperatively with the Department to adopt a solution that provides all the City’s citizens with an equal opportunity to participate in the political process and elect aldermen of their choice.”
“We join the Civil Rights Division in bringing this important lawsuit under the Voting Rights Act and appreciate that the City of West Monroe has worked with the Justice Department to adopt a solution that brings about fair representation,” said Acting U.S. Attorney Alexander C. Van Hook of the Western District of Louisiana.
More information about the Voting Rights Act and other federal voting rights laws is available on the Justice Department website at https:www.justice.gov/crt/voting-section.
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Inmate Sentenced for Leading Drug and Sex Trafficking Ring from California Prison CellRead the Press Release
NORFOLK, Va. – A California man was sentenced today to 24 years in prison for organizing and running a methamphetamine trafficking conspiracy and commercial sex trafficking ring from his state prison cell.
“While already imprisoned for a sexual exploitation offense, the defendant organized and led a drug and sex trafficking conspiracy that placed profits over the lives and well-being of vulnerable victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution serves as a reminder that those who exploit and inflict harm on our community members, from behind bars or elsewhere, will be brought to justice.”
According to court documents, Foster Shane Gaines, 44, was serving an eight-year sentence in the California Department of Corrections and Rehabilitation for engaging in the prostitution of an adult woman. Beginning in approximately 2016, Gaines launched a drug trafficking organization that distributed methamphetamine from a source of supply in California to co-conspirators in the Tidewater region of Virginia. Using cellphones smuggled into prison, Gaines directed co-conspirators in California, Nevada, and elsewhere to mail parcels of methamphetamine to co-conspirators in Chesapeake, Virginia Beach, Norfolk, Petersburg, and elsewhere. Once the methamphetamine was distributed to customers during transactions that Gaines, at times, personally arranged using his contraband cellphones, the co-conspirators returned the proceeds from the sales to Gaines and his confederates by way of prepaid stored value cards or bulk cash sent through the mail.
“Gaines’s actions exemplify someone with a complete disregard for our laws and for the welfare of American citizens and deserves to be prosecuted to the fullest extent,” said Raymond Villanueva, Special Agent in Charge for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Sex and drug trafficking are both transnational issues and occur within nearly every region of the United States. HSI is proudly charged with preventing these types of crimes from happening and thwarting criminal networks that capitalize on them.”
In addition to his methamphetamine trafficking, Gaines also organized and led a commercial sex trafficking ring that at times involved approximately ten adult females and two juvenile girls. Again, using his smuggled cellphones, Gaines recruited women and girls to work as prostitutes by contacting them over various social media platforms. In exchange for 40 to 50 percent of their commercial sex proceeds, Gaines created online advertisements for commercial sex, rented hotel and motel rooms, communicated with customers, organized transportation, and otherwise managed their commercial sex activities. Gaines also arranged for a professional photographer to take sexually suggestive photographs of some women for use in the commercial sex advertisements he created for them, and he frequently directed his co-conspirators to provide cocaine, methamphetamine, marijuana, and other drugs to the women and girls. As with the proceeds from the methamphetamine sales, Gaines directed that the women and girls transmit their commercial sex proceeds to him through bulk cash mailings or prepaid stored value cards.
On October 11, 2019, Gaines pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, commonly known as “ice,” and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and conspiracy to engage in sex trafficking of a child.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Paul Neudigate, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; Larry D. Boone, Chief of Norfolk Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Darryl J. Mitchell prosecuted 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. 2:18-cr-143.
Idaho Falls Man Sentenced to over 16 Years for Sexual Exploitation of ChildrenRead the Press Release
POCATELLO - Richard Neils Dutton, 52, of Idaho Falls, was sentenced in U.S. District Court to 200 months in federal prison for sexual exploitation of children, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered Dutton serve the remainder of his life on supervised release, following his prison sentence. Dutton pleaded guilty to the charge on November 4, 2020.
“Perpetrators who exploit our children prey upon the most vulnerable members in our society,” said Acting U.S. Attorney Gonzalez. “The collaboration between local, state, and federal partners in this case shows our joint commitment to protecting children and holding predators accountable to the full extent of the law.”
According to court records, in January 2020, staff at a local elementary school reported that Dutton was sexually abusing minor aged children. A subsequent investigation discovered that Dutton had produced child pornography using a minor child. Investigators obtained a search warrant for Dutton’s electronic devices and discovered images of the sexual abuse taken on his phone. In court, Dutton admitted that he took the images.
“Crimes of this nature are particularly disturbing, and dangerous sexual predators will continue to be brought to justice through our partnerships with all levels of law enforcement,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This sentencing shows our collective resolve in keeping our communities safe.”
As a result of his conviction, Dutton will be required to register as a sex offender.
This case was investigated by Homeland Security Investigations in Idaho Falls, Idaho Internet Crimes Against Children Task Force, and Idaho Falls Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Hattiesburg Woman Charged with Wire Fraud Related to Employee TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHRISTY BARTHOLOMEW, age 39, of Hattiesburg, Mississippi, was charged on April 14, 2021 in a two-count Bill of Information with wire fraud.
According to court records, BARTHOLOMEW was employed as a financial controller for a business located in Slidell, Louisiana, and later worked as an office manager for a company located in Kenner, Louisiana. From 2016 to October of 2019, she embezzled approximately $357,000 from her Slidell employer by several schemes, including unauthorized use of a company credit card. She later did the same thing with her Kenner employer, embezzling approximately $300,000 from November 2019 to February 2020.
BARTHOLOMEW faces a sentence of up to twenty years in prison, up to $250,000 in fines, and up to three years of supervised release. There is also a $100 mandatory special assessment due after conviction.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Homeland Security – Homeland Security Investigations, along with assistance from the St. Tammany Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Hartford Man Sentenced to 27 Months in Prison for Assaulting USPS EmployeeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DEMORSE KELLEY, 39, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three months in a halfway house and three years of supervised release, for assaulting a U.S. Postal Service letter carrier.
According to court documents and statements made in court, on June 7, 2019, a U.S. Postal Service letter carrier was sorting mail inside her postal delivery van that was parked on Sigourney Street in Hartford. Kelley approached the van from the sidewalk, slid the side door of the van so that it was fully open and then spoke to the letter carrier. Kelley commented the letter carrier on her appearance and asked her for a hug and for her phone number. Kelley then climbed into the postal van and allowed the door to close behind him. During the incident, Kelley touched the letter carrier’s leg below her shorts, made sexual advances and obstructed the letter carrier’s ability to exit. After a few minutes, the letter carrier was able to exit the van and called Hartford Police, who arrested Kelley later that day.
Kelley has been detained since his arrest. He pleaded guilty to the offense on January 21, 2021.
This matter was investigated by the U.S. Postal Inspection Service and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Gang member and convicted felon sentenced to over 11 years in prisonRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old local Corpus Christi resident and member of the Texas Syndicate gang has been ordered to federal prison for his role in a cocaine trafficking conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Adan Rivera pleaded guilty Jan. 7.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 135-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional statements that described Rivera's role during the cocaine trafficking conspiracy and membership in the dangerous Texas Syndicate gang. Before handing down the sentence, Judge Ramos considered Rivera's previous criminal conduct which included felony convictions for aggravated robbery, aggravated assault as well as possession of heroin and cocaine. His continued criminal conduct included an arrest in March for possession with intent to distribute heroin while on bond.
The investigation revealed that in in July 2020, Rivera was involved in a conspiracy with others to possess with intent to distribute nearly 20 kilograms of cocaine. He helped coordinate or protect cocaine or currency with other co-conspirators.
Law enforcement ultimately seized over $250,000 during the course of the investigation.
Previously released on bond, Rivera was taken into custody in March following the heroin trafficking arrest. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from Drug Enforcement Administration, U.S. Marshals Service, Nueces County District Attorney's Criminal Interdiction Unit, Texas Department of Public Safety and Corpus Christi Police Department. Assistant U.S. Attorney Reid Manning prosecuted the case.
Gaffney Man Who Attempted to Murder SC Highway Patrolman Sentenced to PrisonRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney M. Rhett Dehart announced today that William Bernard Wright, a/k/a “Willie” Wright, a/k/a “Quentin Mitchell,” 28, of Gaffney has been sentenced to more than eight years in federal prison, bringing resolution to federal and state criminal cases against Wright for the shooting of a South Carolina Highway Patrolman in 2019.
On Tuesday, April 13, 2021, United States District Judge Mary Geiger Lewis sentenced Wright to 98 months in federal prison, to be followed by the statutory maximum of 36 months of court-ordered supervision, following a conviction for felon in possession of a firearm and ammunition. Wright’s 98-month federal sentence represents the statutory maximum of 10 years with credit for 22 months’ time served on the state sentence for the same conduct, as provided for in the federal sentencing guidelines.
On December 9, 2020, Wright was sentenced to 35 years in state prison, following convictions in the state court system on four charges: attempted murder, possession of a weapon during a violent crime, possession of a weapon by a convicted violent felon, and failure to stop for blue lights.
Wright will serve the federal sentence concurrent to the state sentence.
“Law enforcement officers risk their lives daily to protect and serve our communities,” said Acting U.S. Attorney DeHart. “We will bring the full force of justice against anyone who attempts to take the life of a law enforcement officer in South Carolina. The resolution in these cases could not have been possible without the incredible partnership between the U.S. Attorney’s Office, the 16th Circuit Solicitor’s Office, ATF, SLED, and South Carolina Highway Patrol.”
“This case highlights the dangers our dedicated men and women in law enforcement face every day, and we are grateful for the collaborative process that helps bring to justice those responsible for such senseless crimes,” said ATF Special Agent in Charge Vince Pallozzi. “We applaud Trooper Wise’s bravery and recovery.”
”This officer-involved shooting underscores the sacrifice of serving and the dangers our law enforcement face on the job each day,” said Colonel Chris Williamson, Commander of the South Carolina Highway Patrol. “The South Carolina Highway Patrol commends the decisive and brave actions of Trooper Paul Wise when he was fired upon during this incident. The department is grateful to the U.S. Attorney’s Office and the 16th Circuit Solicitor’s Office for their commitment to seeing justice served in this case.”
Evidence presented to the U.S. District Court showed that on June 2, 2019, Wright was in possession of a FN Herstal, model Five-Seven, semi-automatic pistol and 5.7 x 28mm ammunition at a time he was prohibited under federal law from possessing a firearm or ammunition based on numerous prior felony convictions. At approximately 8:00 PM on that day, Trooper Paul Wise with the South Carolina Highway Patrol was on routine patrol in York County when he observed Wright operating a vehicle without a seatbelt. When Trooper Wise attempted to initiate a traffic stop, Wright fled and failed to stop for blue lights. Wright took the trooper on a car chase before bringing his car to a stop at the end a dead of a road. Wright then exited his vehicle, drew the firearm, pointed it at close range towards the patrolman’s front windshield. Wright then discharged at least 12 rounds at Trooper Wise. Trooper Wise was struck in his ballistic vest in the chest area and sustained other injuries to the right side of his neck. As Wright began to flee, Trooper Wise exited his vehicle, returned fire, striking Wright, ordered Wright to the ground, and then called for backup.
Evidence presented also indicated Wright had numerous convictions prior to the shooting of Trooper Wise, to include pointing and presenting a firearm (2007); assault and battery (2008); discharging a firearm within city limits and unlawful carry of a pistol (2008); resisting arrest (2011); attempted murder, attempted armed robbery, and criminal conspiracy (2013); and assault and battery – second degree (2017). Evidence presented in court indicated Wright had only been out of custody from a prior conviction for about 10 months, and that he had a history of criminal acts or misconduct while in custody and while on supervision.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the South Carolina State Law Enforcement Division (SLED) and the South Carolina Highway Patrol. Assistant United States Attorney Elliott B. Daniels prosecuted the federal case. Deputy Solicitor Willy Thompson prosecuted the state case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fremont Man Convicted of Aggravated Bank RobberyRead the Press Release
Acting United States Attorney Jan Sharp announced that Anthony Wayne Hall, 65, was found guilty today, following a three-day jury trial in federal court in Omaha, Nebraska, for Aggravated Bank Robbery. The Honorable Robert F. Rossiter, Jr., scheduled Hall’s sentencing for July 9, 2021, at 11:00 a.m. Hall faces the potential for life in prison under the federal “three strikes” law, with a mandatory minimum of ten years.
On November 21, 2019, Hall, armed with a realistic-looking replica revolver, robbed the First State Bank in Fremont, Nebraska. Hall left town with approximately $10,000 in cash after walking one bank employee to his vehicle under threat of being shot. A customer who attempted to enter the bank during the robbery was the first to call 911. On November 22, 2019, officers in Saint Joseph, Missouri attempted to stop Hall’s blue Chevrolet Camaro, but the vehicle fled and then crashed into a pole. Hall fled on foot and could not be located. Hall then purchased a white Chevrolet Impala. On November 30, 2019, officers with the Missouri State Highway Patrol attempted to stop the Impala after noticing that the license plates did not match the vehicle. A high-speed pursuit ensued before the Impala crashed into a tree. Hall again fled on foot. Law enforcement located replica firearms, knives, and other items near the crash scene. The next day, on December 1, 2019, a trooper encountered Hall at a nearby gas station and Hall indicated that he was the driver who had fled the night before. Among the cash found on Hall’s person were five bills known to have been taken in the First State Bank robbery.
Hall, who had relocated to Fremont from Indiana approximately two months prior to the First State Bank robbery, has previously been convicted of murder, rape, and at least seven prior robberies. Hall had been released from prison on his prior convictions in 2018.
This case was investigated by the FBI Great Plains Robbery Task Force, the Fremont Police Department, Saint Joseph Police Department, and the Missouri State Highway Patrol.
Four Members of East Texas Methamphetamine and Firearms Trafficking Ring SentencedRead the Press Release
TYLER, Texas – A husband and wife, along with two other co-conspirators in a methamphetamine and gun trafficking ring, were sentenced to federal prison today, announced Acting U.S. Attorney Nicholas J. Ganjei.
Amanda Rae Williams, 32, of Carthage, Texas, and Illona Annette Amburn, 41, of Longview, Texas pleaded guilty on August 4, 2020 to conspiracy to distribute methamphetamine. They were both sentenced to 120 months in federal prison today. Marvin Robert Williams, 38, also of Carthage, Texas, pleaded guilty on Sep. 22, 2020, to use, carrying, and possession of a firearm during and in furtherance of a drug trafficking crime. Today, he was sentenced to 84 months in federal prison. Larry Demontrie Mock, a/k/a “Boogati,” 39, of Houston, pleaded guilty on Dec. 7, 2020 to conspiracy to distribute methamphetamine and was sentenced to 151 months in federal prison today.
The sentencing hearings were conducted before U.S. District Judge J. Campbell Barker. Judge Barker also ordered each defendant to pay forfeiture in the amount of $5,000.00, which represents proceeds derived from their participation in the criminal conspiracy.
“The citizens of East Texas will not tolerate those who pump poison into our communities and traffic firearms in the process,” said Acting U.S. Attorney Nicholas J. Ganjei. “The sentences imposed on the Williams, Mock, and Amburn organization send a strong message to those who would try to profit from the misery of methamphetamine addiction or the violence that comes with underground firearm trafficking. We will continue to investigate and prosecute the most dangerous members of our community, such as these individuals.”
According to court documents and information provided in court, beginning in April 2018, Amburn and Mock began brokering sales of methamphetamine and firearms that were being supplied by Amanda and Marvin Williams and others. During the conspiracy, Amanda and Marvin Williams, Mock, and Amburn sold at least 150 grams of actual methamphetamine and at least 13 firearms during more than 10 separate transactions. Marvin Williams, Mock, and Amburn are previously convicted felons who could not lawfully possess firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; and the Panola County Sheriff's Office and prosecuted by Assistant U.S. Attorney Ryan Locker.
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Former police officer convicted of child pornography chargeRead the Press Release
BROWNSVILLE, Texas - A 32-year-old former officer with the Primera Police Department (PPD) has admitted to possessing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Joel Alex Sandate pleaded guilty today.
The investigation revealed that from September 2019 to March 2020, Sandate had installed hidden cameras to capture recordings of a minor female. He saved the recorded videos onto various computer media devices such as his cellphone, a sim card and a USB drive.
Another PPD officer had discovered the images and reported it to authorities.
U.S. District Judge Fernando Rodriguez Jr. accepted the plea today and set sentencing for July 20. At that time, Sandate faces up to 10 years in federal prison as well as a $250,000 fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation with the assistance of PPD, Texas Rangers and the Cameron County District Attorney’s Office.
Assistant U.S. Attorneys Ana C. Cano and Jose A. Esquivel, Jr. prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Owner of Orange County Wastewater Treatment Company Indicted on Federal Environmental Criminal ChargesRead the Press Release
SANTA ANA, California – The former owner of a wastewater treatment facility in Orange has been indicted by a grand jury that accused him and his company – Klean Waters, Inc. – in a scheme that discharged untreated industrial wastes into an Orange County sewer system, among other violations of federal environmental laws.
Tim Miller, 64, of Wexford, Pennsylvania, along with Klean Waters, were named in a two-count indictment filed late Wednesday that charges both defendants with participating in a conspiracy and discharging without a permit into a publicly owned treatment works operated by the Orange County Sanitation District (OCSD).
Miller and Klean Waters will be summonsed to appear for arraignments in United States District Court on May 3.
In the scheme dating back to the establishment of Klean Waters in 2012 and continuing for several years, Miller and his company allegedly discharged wastewater that was not pretreated according to federal standards, failed to perform self-monitoring and prepare accurate reports, made false statements about their discharges, tampered with monitoring devices put in place by the OCSD, discharged untreated wastewater without a permit, and prevented inspectors from reviewing company documents or collecting samples from the company’s facility, according to the conspiracy charge in the indictment.
Klean Waters allegedly discharged untreated wastewater that contained pollutants – including firefighting foam and various metals – or that simply never had been tested after being brought to the facility for treatment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the two charges in the indictment, Miller would face a statutory maximum penalty of eight years in federal prison. Klean Waters could be sentenced to pay fines of up to $300,000.
The FBI and the U.S. Environmental Protection Agency’s Criminal Investigation Division are investigating this matter.
Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office is prosecuting this case.
Former Federal Prison Escapee Sentenced to More Than 35 YearsRead the Press Release
A Lubbock man who twice escaped from law enforcement custody has been sentenced to more than 35 years in federal prison for gun and drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Mark Anthony Lucio, 40, pleaded guilty to escaping federal custody, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of a drug trafficking crime. He was sentenced Thursday morning by U.S. District Judge James Wesley Hendrix to 425 months in federal prison.
According to court documents, a Texas DPS trooper who was on patrol in Lubbock initiated a traffic stop of a vehicle on August 25, 2019. The driver, later identified as Lucio, attempted to evade troopers resulting in a high-speed pursuit throughout Lubbock. After traveling through an alley, Lucio and the passenger exited the vehicle and fled on foot.
Law enforcement continued pursuing the Lucio, who jumped a fence into a nearby backyard where he was arrested. Lucio and the passenger were detained in handcuffs and placed into separate vehicles.
Officers then began to search the backyard where Lucio was arrested and located three separate bags of methamphetamine totaling approximately 300 grams. Officers also recovered two loaded handguns from Lucio’s vehicle and on the ground next the vehicle.
When officers returned to their patrol cars, they realized that Lucio had managed to escape custody. Lucio remained a fugitive until November 22, 2019, when he was arrested on state warrants by the Lubbock Police Department.
On December 11, 2019, Lucio was charged by federal indictment for firearm and drug crimes which he later pleaded guilty to in June 2020. While awaiting sentencing, Mr. Lucio was remanded to federal custody at the Bailey County Jail in Muleshoe, Texas.
Juan Anthony Cordero, 25, visited Lucio at the Bailey County Jail on August 28, 2020. During a conversation between the two men, which was recorded by the jail, Lucio discussed the details of a prison escape that was to occur the next day, including the planned time and what vehicle Cordero would be driving.
The following day, Lucio called Cordero minutes before the planned escape and advised him to be on alert. Shortly after, Lucio crawled under a sally port door at the Bailey County Jail and ran into a waiting vehicle driven by Cordero.
Later that day, the Hale County Sheriff’s Office located Cordero’s vehicle in Plainview, Texas. Cordero informed members of the United States Marshals Service that he supplied Lucio with a firearm and dropped him off at an address in Abernathy, Texas.
That same day, law enforcement was able to successfully take Lucio into custody at the Abernathy, Texas residence. The firearm the Cordero provided to Lucio during the escape was also recovered from the scene.
In February 2021, Cordero was sentenced to 14 months in federal prison for assisting Lucio’s escape.
The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Former Chief Executive Officer of Publicly Traded Petrochemical Company Pleads Guilty to Foreign Bribery and Securities Law ViolationsRead the Press Release
A Brazilian national who previously served as a chief executive officer (CEO) of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, pleaded guilty today to conspiring to divert hundreds of millions of dollars from Braskem into a secret slush fund and to pay bribes to government officials, political parties, and others in Brazil to obtain and retain business.
According to court documents, between approximately 2002 and 2014, Jose Carlos Grubisich, 64, a citizen of Brazil — who served as the CEO and a member of the board of directors of Braskem as well as in various capacities for Braskem’s parent company, Odebrecht S.A. (Odebrecht) — engaged in a scheme to bribe Brazilian government officials in violation of the Foreign Corrupt Practices Act (FCPA). As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund, which Grubisich and others had generated through fraudulent contracts and offshore shell companies secretly controlled by Braskem.
Grubisich admitted that while CEO of Braskem, he agreed to pay bribes to Brazilian government officials to ensure Braskem’s retention of a contract for a significant petrochemical project from Petroleo Brasileiro S.A. (Petrobras), Brazil’s state-owned and state-controlled oil company. Grubisich also admitted that, as Braskem’s CEO, he falsified Braskem’s books and records by falsely recording the payments to Braskem’s offshore shell companies as payments for legitimate services. Grubisich also signed false Sarbanes-Oxley certifications submitted to the U.S. Securities and Exchange Commission (SEC) that, among other things, attested that Braskem’s annual reports fairly and accurately represented Braskem’s financial condition, and that Grubisich, as Braskem’s principal officer, had disclosed all fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting.
“As CEO of a publicly traded company, Grubisich and other senior executives at Braskem engaged in a large-scale, sophisticated international bribery and fraud scheme and then lied to U.S. shareholders and authorities to conceal their criminal conduct,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the Department’s commitment to holding individuals accountable for corrupt and fraudulent conduct, including those at the highest corporate echelons.”
“Grubisich abused his position of trust as CEO of Braskem to both facilitate and conceal the payment of millions of dollars in bribes so that Braskem could increase its profits and its senior executives — including Grubisich himself — could personally benefit,” said Acting U.S. Attorney Mark J. Lesko of the Eastern District of New York. “This office is committed to the prosecution of corrupt gatekeepers, including officers and directors of public companies, who, like Grubisich, use the United States’ financial system to commit crimes.”
Grubisich pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the books and records provision of the FCPA and to fail to accurately certify Braskem’s financial reports. Grubisich has also agreed to pay approximately $2.2 million in forfeiture. He is scheduled to be sentenced on Aug. 5, and faces a maximum penalty of 10 years in prison. Any sentence will be determined after considering the U.S. Sentencing Guidelines and other statutory factors.
In December 2016, Braskem and Odebrecht each pleaded guilty in the Eastern District of New York to separate one-count criminal informations charging them with conspiracy to violate the anti-bribery provisions of the FCPA. Braskem settled with the SEC in related proceedings on the same day.
The FBI’s International Corruption squad in New York is investigating the case. The Justice Department’s Office of International Affairs also provided substantial assistance. The department also expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement, Ministério Público Federal and the Departamento de Polícia Federal in Brazil, the Office of the Attorney General in Switzerland, the Swiss Federal Office of Justice, and the governments of Portugal, Andorra, United Kingdom, and Panama.
Assistant Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Julia Nestor and Alixandra Smith of the Eastern District of New York are prosecuting the case, with Assistant U.S. Attorney Laura Mantell of the Eastern District’s Civil Division handling forfeiture matters.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former CEO of Braskem Pleads Guilty to BriberyRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Jose Carlos Grubisich, the former chief executive officer of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, pleaded guilty before United States District Judge Raymond J. Dearie to (1) conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and (2) conspiring to violate the books and records provisions of the FCPA in failing to accurately certify Braskem’s financial reports. Grubisich and his co-conspirators engaged in a massive bribery scheme involving Braskem and its parent company Odebrecht S.A. (Odebrecht), in which hundreds of millions of dollars were diverted from Braskem to a secret slush fund that was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business for Braskem. Under the plea agreement, Grubisich has agreed to pay approximately $2.2 million in forfeiture.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Grubisich abused his position of trust as CEO of Braskem to both facilitate and conceal the payment of millions of dollars in bribes so that Braskem could increase its profits and its senior executives — including Grubisich himself — could personally benefit,” stated Acting United States Attorney Lesko. “This Office is committed to the prosecution of corrupt gatekeepers, including officers and directors of public companies, who, like Grubisich, use the United States’ financial system to commit crimes.”
“As CEO of a publicly traded company, Grubisich and other senior executives at Braskem engaged in a large-scale, sophisticated international bribery and fraud scheme and then lied to U.S. shareholders and authorities to conceal their criminal conduct,” stated Acting Assistant Attorney General McQuaid. “Today’s guilty plea demonstrates the Department’s commitment to holding individuals accountable for corrupt and fraudulent conduct, including those at the highest corporate echelons.”
As set forth in court filings and at today’s proceedings, between approximately 2002 and 2014, Grubisich, a citizen of Brazil, who served as the CEO and a member of the Board of Directors of Braskem as well as in various capacities for Odebrecht— engaged in a scheme to bribe Brazilian government officials in violation of the FCPA. As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund which Grubisich and others had set up through fraudulent contracts and offshore shell companies that were secretly controlled by Braskem. At the time of the conspiracy, Braskem’s American Depositary Receipts were publicly traded on the New York Stock Exchange.
Grubisich admitted that, while CEO of Braskem, he agreed to pay bribes to Brazilian government officials to ensure Braskem’s retention of a contract for a significant petrochemical project from Petroleo Brasileiro S.A.–Petrobras, Brazil’s state-owned and state-controlled oil company. Grubisich further admitted that while CEO of Braskem, he agreed to falsify Braskem’s books and records by causing Braskem to falsely record the payments to offshore shell companies controlled by Braskem as payments for legitimate services. Grubisich signed false Sarbanes-Oxley certifications submitted to the United States Securities and Exchange Commission (SEC) that, among other things, attested that Braskem’s annual reports fairly and accurately represented Braskem’s financial condition, and that Grubisich, as Braskem’s principal officer, had disclosed all fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting.
In December 2016, Braskem and Odebrecht pleaded guilty in the Eastern District of New York to one-count criminal informations charging each with conspiracy to violate the anti-bribery provisions of the FCPA. Braskem settled with the SEC in related proceedings on the same day.
The government’s case is being prosecuted by Assistant U.S. Attorneys Julia Nestor and Alixandra Smith of the Office’s Business and Securities Fraud Section, and Assistant Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters. The FBI’s International Corruption squad in New York is investigating the case.
The Criminal Division’s Office of International Affairs provided substantial assistance, as did the SEC’s Division of Enforcement, Ministério Público Federal and the Departamento de Polícia Federal in Brazil, the Office of the Attorney General in Switzerland, and the governments of Portugal, Andorra, United Kingdom, and Panama.
The Defendant
JOSE CARLOS GRUBISICH
Age: 64
Sao Paulo, BrazilE.D.N.Y. Docket No. 19-CR-102 (RJD)
Former Bureau of Prisons Correctional Officer Sentenced for Sex OffenseRead the Press Release
PHOENIX, Ariz. – Today, Irv Anglin, 29, of Tempe, Arizona, was sentenced by U.S. District Judge John J. Tuchi to 8 months in prison, followed by 10 years of supervised release. Anglin previously pleaded guilty to Abusive Sexual Contact of a Ward. Anglin will also be required to register as a sex offender.
Anglin worked as a Correctional Officer at the Federal Bureau of Prisons in Phoenix, Arizona. Between January 1, 2019, and November 30, 2019, Anglin engaged in sexual contact with an inmate he supervised at the facility.
“Sexual abuse of inmates is never tolerated. Today’s sentencing shows that those who abuse inmates will be held accountable,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice, Office of the Inspector General, Denver Field Office.
“This officer abused his position of authority by harming an inmate and betrayed the trust of the federal government. Instead of providing safe imprisonment, Anglin violated his oath and the rights of this individual,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “The FBI is committed to strengthening trust in law enforcement by holding those who abuse their privileges and abandon their responsibilities accountable.”
The U.S. Department of Justice, Office of the Inspector General (Denver office) and the Federal Bureau of Investigation conducted the investigation in this case. Gayle Helart, William G. Voit, and Christine D. Keller, Assistant U.S. Attorneys, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: 2020-CR-00625-JJT
RELEASE NUMBER: 2021- 027_Anglin# # #
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.For-Profit Trade School Owner Found Guilty of Defrauding VA, Student VeteransRead the Press Release
The owner of a for-profit trade school has been convicted of bilking the U.S. Department of Veterans Affairs of $72 million and of misleading student veterans, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After approximately seven hours of deliberation, a federal jury on Thursday found Jonathan Dean Davis, the 43 year-old owner of Retail Ready Career Center, guilty of seven counts of wire fraud and four counts of money laundering.
“Mr. Davis lied to multiple government agencies in order to swindle veterans out of their hard-won GI Bill benefits. While graduates of Retail Ready were just scraping by, Mr. Davis was living the high life,” said Acting U.S. Attorney Prerak Shah. “We are grateful to the jury for their time in helping us bring this defendant to justice. To undermine the VA is to insult the incredible sacrifices made by U.S. military veterans.”
“Owners of schools that are entrusted with the education of our nation’s veterans will be held accountable if they defraud the post-911 GI Bill program or veteran students,” stated VA OIG Special Agent in Charge Jeffrey Breen. “Today’s guilty verdict was reached under the leadership of the U.S. Attorney’s Office, and as a result of the extensive work of special agents of the VA Office of Inspector General, the FBI, and the United States Postal Inspection Service.”
According to evidence presented at trial, Mr. Davis marketed Retail Ready’s six-week HVAC training course to veterans whose tuition and fees would be covered by the Veteran’s Educational Assistance Act of 2008, also known as the post-9/11 GI Bill. The defendant, who was essentially broke at the time of the crime, realized that he could charge $18,000 to $21,000 per student for the six-week course, if only he could get approval from the VA to accept GI Bill payments for tuition – which required prior approvals from the Texas Workforce Commission (TWC) and the Texas Veterans Commission (TVC).
These agencies required applicants to certify that they were not personally facing any criminal or civil actions, and to prove that their schools were established educational institutions in stable financial condition. Knowing he could not meet these requirements, Mr. Davis repeatedly lied and concealed information from these agencies.
“Several decisions lie ahead that will ultimately make the difference if I succeed or if I fail. More gut-wrenching conversations, more humiliating experiences, more lying is in order,” Mr. Davis wrote in an electronic journal he kept on his computer, which was recovered by federal agents during a search of Retail Ready. The journal became a key piece of evidence at trial.
Mr. Davis assured the TWC that he was not subject to any civil actions, when, in fact, he was facing numerous civil judgments over unpaid debts. He also told the TWC that he was not facing any criminal charges, when, in fact, he had a pending felony charge for theft of services.
Chronicling his arrest in his journal, Mr. Davis wrote, “I was arrested on December 20th, last Friday night (a week ago) for a warrant that had been hanging around since April apparently. I didn’t know that I had one but it was for Theft of services for a bad check I had written in June or July of 2012 to the Doubletree for $25,000.00, which makes the charge a felony … The more complicated and damaging aspect is that having a felony arrest doesn’t do well with trying to apply for a school certificate.”
Mr. Davis told the TVC that Retail Ready had been operating as a school for two years, when, in fact, the company had only existed for a few months and had never trained any students. He claimed that Retail Ready was fully prepared to train veterans, when, in fact, the company lacked a building and basic supplies. He even lied to an independent accountant about the school’s financial condition, and then submitted false financial statements to both the TWC and the TVC.
“I lied to the accountant that I am using for my audit service, I told him that I don’t have anything in the company name other than a lease and I left out having Jay being an employee and that I’ve had a bank account with expenses out of it because it is a disaster and wouldn’t project a very good picture,” Mr. Davis wrote in his journal.
Eventually, based upon Mr. Davis’ lies to the TWC and TVC, the VA accepted Retail Ready’s application, allowing Mr. Davis to charge veterans’ tuition and fees to the VA under the GI Bill.
In 2014, he began recruiting student veterans, promising to prepare them for lucrative careers in the heating and air conditioning industry. Upon entering the workforce, however, many of these veterans discovered that Retail Ready had failed to teach them many of the basic skills necessary for entry-level technician jobs.
Several veterans testified at trial that they had relied on the Retail Ready’s fraudulently obtained VA endorsement and were sorely disappointed about their post- Retail Ready career prospects and pay. They were also shocked to learn of the rate at which Retail Ready’s six-week course had drained their GI Bill benefits, testifying that they felt “used,” “taken advantage of,” “deceived,” and “bamboozled.”
Even as his veteran graduates struggled to make ends meet, Retail Ready collected more than $72 million in GI Bill benefits from the VA. Using the proceeds of his fraud, Mr. Davis purchased a $2.2 million home in Dallas, a $428,000 Lamborghini, a $280,000 Ferrari, and a $260,000 Bentley, among other things.
He now faces up to 180 years in federal prison. His sentencing hearing has been set for Sept. 15.
The VA’s Office of Inspector General conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the United States Postal Inspection Service’s Fort Worth Field Office. Assistant U.S. Attorneys Douglas Brasher and Fabio Leonardi are prosecuting the case, and Assistant U.S. Attorney Dimitri Rocha is handling forfeiture. U.S. District Judge Brantley Starr presided over the trial.
Federal Jury Convicts Jacksonville Man of Possession of A Firearm by A Convicted FelonRead the Press Release
Jacksonville, Florida – A federal jury has found Ronnie Jerome Jones (39, Jacksonville) guilty of possessing a firearm as a convicted felon. Due to his multiple prior felony convictions, Jones qualifies for an increased penalty under the Armed Career Criminal Act. He faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 19, 2021.
Jones had been indicted on March 11, 2020.
According to evidence and testimony presented at trial, Jones, a previously convicted felon sold a .45 caliber handgun to a pawn shop in Jacksonville. Jones has been convicted of numerous violent narcotics felony offenses and is therefore prohibited from possessing firearms or ammunition under federal law. At the time of this offense, Jones had been out of prison for less than nine months.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian and Assistant United States Attorney Laura Cofer Taylor.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
El Paso Man Sentenced to Federal Prison for Assaulting a Child on the Ysleta Del Sur Pueblo ReservationRead the Press Release
A federal judge in El Paso sentenced 28-year-old Roberto Martinez today to 40 months imprisonment for assaulting a child on the Ysleta Del Sur Pueblo reservation, announced U.S. Attorney Ashley C. Hoff; Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division; and Ysleta Del Sur Pueblo Tribal Police Chief Robert Martinez.
In addition to the prison term, Senior U.S. District Judge David Briones ordered that Roberto Martinez be placed on supervised release for a period of three years after completing his prison term.
On January 7, 2021, Roberto Martinez pleaded guilty to one count of assault with a dangerous weapon with intent to do bodily harm in Indian Country. According to court records, on November 1, 2019, Roberto Martinez threatened the victim with a knife while inside the victim’s home.
HSI and the Ysleta Del Sur Pueblo Tribal Police Department investigated this case. Assistant U.S. Attorney Christopher Kirk Mangels prosecuted this case.
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Dunmore Man Sentenced to 16 Months’ Imprisonment for Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric R. Colborn, age 46, of Dunmore, Pennsylvania, was sentenced on April 14, 2021, to 16 months’ imprisonment to be followed by a three-year term of supervised release by U.S. District Court Judge Robert D. Mariani for bank fraud. Judge Mariani also ordered Colborn to pay restitution in the amount of $22,470.40.
According to Acting United States Attorney Bruce D. Brandler, Colborn previously entered guilty pleas on January 15, 2020 to bank fraud and conspiracy to commit bank fraud.
Colborn created a counterfeit Wells Fargo brokerage statement in his name showing that he had in excess of $14,000,000 in a brokerage account, and then fraudulently induced reliance on the counterfeit brokerage statement to secure property and other things of value. One such example occurred when Colborn admittedly issued a bad check to a local realtor in the amount of $2,000 for a down payment toward the purchase of a residence in Dunmore, Pennsylvania with a promise of paying $190,000 in cash at closing. The realtor subsequently contacted Wells Fargo and learned that the brokerage account did not exist.
Beginning in November 2017 through March 2019, Colborn admitted to unlawfully issuing a series of bad checks totaling more than $400,000 in order to obtain property. For example, in November 2017, Colborn issued a bad check in the amount of $58,786.54 to Motor World in order to take possession of a Range Rover. In that same month, Colborn issued a bad check in the amount of $68,416.70 to Gibbon’s Ford in order take possession of a 2018 Ford F-150 pick-up truck. In January 2019, Colborn issued a bad check in the amount of $95,682.48 to Ken Pollock Alfa Romero in order take possession of an Alfa Romero vehicle. The vehicles were subsequently repossessed. Colborn’s fraud scheme also included a series of bad checks issued to local retailers for thousands of dollars, including Home Depot, RJ Walker, Dick’s Sporting Goods and Auto Zone.
The case was investigated by the Internal Revenue Service – Scranton Office, the Dunmore Police Department, and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
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Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mario Rayshawn White, of Detroit, Michigan, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
White, also known as “MT,” 30, pleaded guilty today to one count of “Conspiracy to Distribute Oxycodone.” White admitted to selling Oxycodone in April 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Davenport Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Thursday, April 15, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jaterius Deshawn Davis, age 22, of Davenport, to 140 months in prison for Possession with Intent to Distribute Cocaine Base, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Davis was ordered to serve three years of supervised release to follow his prison term and pay $300 to the Crime Victims’ Fund.
On July 17, 2019, Davis punched an officer in the face after the officer attempted to lawfully arrest him. Davis ran from officers but was quickly apprehended. In Davis’ pockets a loaded .380 caliber Ruger handgun with a defaced serial number, 15 grams of marijuana, and a digital scale with cocaine and marijuana residue were found. Officers also located five grams of crack cocaine concealed in his underwear. Immediately prior to his arrest, Davis was seen riding in a vehicle where officers had located a handgun and ammunition linked to a shooting six days earlier. Through his plea of guilty, Davis admitted knowingly possessing the handguns, ammunition, and narcotics.
Davis was previously convicted of Dominion/Control of a Firearm by a Felon. As a convicted felon, Davis knew he was prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Citizen of Guatemala Pleads Guilty to Illegally Reentering U.S.Read the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JUAN LUIS MONZON MONTEROSO, also known as Edwin Galvez Lemus, 36, a citizen of Guatemala last residing in Bridgeport, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to illegal reentry of a removed alien.
According to court documents and statements made in court, in November 2010, approximately two weeks after Monzon Monteroso was encountered by U.S. Border Patrol (USBP) in Jacksonville, Florida, he voluntarily departed the U.S. In January 2011 and again in April 2011, Monzon Monteroso was encountered by the USBP in Texas and was subsequently removed to Guatemala. He illegally reentered the U.S. and, in May 2017, was encountered by ICE in Hartford. He was removed to Guatemala a third time in July 2017.
On December 19, 2019, Monzon Monteroso, using the alias Edwin Galvez Lemus, was arrested by Monroe Police and charged with assault on personnel, breach of peace, reckless endangerment, criminal trespass and running from police. He has been detained since his arrest.
At sentencing, which is not yet scheduled, Monzon Monteroso faces a maximum term of imprisonment of two years.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chicago Man Sentenced to Three and a Half Years in Prison for Illegally Possessing Loaded Gun on City’s West SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to three and a half years in federal prison for illegally possessing a loaded handgun in the city’s Austin neighborhood.
ALVIN WASHINGTON, 39, illegally possessed the firearm inside a restaurant in the 5100 block of West Chicago Avenue on May 12, 2020. A Chicago Police Department Police Observation Device (“POD camera”) captured Washington holding the gun between his legs while sitting near a window in the restaurant. CPD officers were dispatched to the restaurant, where they conducted a protective pat-down search of Washington and discovered the loaded gun in his waistband.
Washington had previously been convicted of multiple felonies, including a firearm-related offense, and was not legally allowed to possess the gun.
Washington pleaded guilty earlier this year to one count of illegal possession of a firearm. U.S. District Judge Gary S. Feinerman imposed the 42-month prison sentence Wednesday 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, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance.
The government was represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee of the U.S. Attorney’s Office’s Gun Crimes Prosecution Team. The team works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts 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.
Charleston Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CHARLESTON, W.Va. – Adam Matthew Denson, 33, of Charleston, pleaded guilty to conspiracy to distribute 5 grams or more of methamphetamine. Denson was charged in a single-count Information in March 2021.
According to the plea agreement and statements made in court, Denson conspired with other persons to distribute methamphetamine on three separate occasions in Charleston in August 2019.
Denson faces up to 40 years in prison when sentenced on July 14, 2021.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. 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. 2:21-cr-00040.
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Car Thief and Two-time Felon Sentenced to over Four Years in Prison for Illegally Possessing a FirearmRead the Press Release
FAIRBANKS – A Kalskag, Alaska, man was sentenced to four years and three months in prison followed by three years of supervised release and $1,900 in restitution to the victim of the stolen vehicle.
According to court records, on July 9, 2020, Ethan Kerr, 29, stole a 2004 Scion from a Fairbanks home and drove it south on the Parks Highway. Near Cantwell, an Alaska State Trooper attempted to stop Kerr for speeding. Refusing to stop, Kerr fled the Troopers at speeds exceeding 105 mph. Leaving the highway to elude law enforcement, the car became stuck in a mud bog near the railroad. He abandoned the vehicle after removing a .44-caliber Smith & Wesson revolver that belonged to the car owner. Kerr was picked up by a nearby individual in a truck who flagged down the Troopers to help with the stuck car. They quickly identified Kerr and attempted to arrest him. Kerr broke free and ran into the woods where he was later found with a K-9 search by Alaska State Troopers.
Kerr has two prior felony convictions with the State of Alaska including burglary for which he was currently on parole and assault. As someone previously convicted of a felony offense, Kerr is prohibited from possessing firearms or ammunition. In December 2020, Kerr pleaded guilty to illegally possessing a firearm as a convicted felon.
Acting U.S. Attorney Bryan Wilson for the District of Alaska; Colonel Bryan Barlow, Director of the Alaska State Troopers and Special Agent-in-Charge Jonathan T. McPherson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the sentencing announcement.
Assistant U.S. Attorney Daniel Doty prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
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Bloomsburg Couple Charged with Covid-Relief FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darryl Corradini, age 63, and Vicki Hackenberg, age 57, both of Bloomsburg, Pennsylvania, were charged on April 13, 2021, by a federal grand jury with perpetrating a bank fraud and money laundering scheme that included nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to Acting United States Bruce D. Brandler, the indictment alleges that Corradini, Hackenberg, and other coconspirators created a shell corporation, CGM Realty LLC, and opened bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. The conspirators allegedly used the accounts to receive over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations. Forged IRS documentation also was included with the PPP application, containing false information about CGM Realty LLC’s nonexistent payroll obligations. Over $350,000 was then used to purchase Bitcoins, a type of cryptocurrency.
Corradini and Hackenberg are charged with conspiring to commit bank fraud and with two counts of committing bank fraud for submitting false and fraudulent documentation to obtain the PPP loan. They also are charged with two counts of making false statements on loan applications, with conspiring to commit money laundering, and with three counts of engaging in unlawful monetary transactions by purchasing Bitcoins with the fraudulently obtained PPP loan. Corradini is charged with one count of making false statements to IRS agents that he did not have access to CGM Realty LLC’s bank account. Hackenberg is charged with two counts of making false statements to IRS agents that she had no knowledge of CGM Realty LLC, and that she had not communicated with other coconspirators in over a year.
The case was investigated by the IRS, Criminal Investigations. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Criminal indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bassfield Felon Convicted for Possessing Multiple Firearms under Project EJECTRead the Press Release
Hattiesburg, Miss. – Enoch Ben Buckley III, 37, of Bassfield, was convicted today by Senior U.S. District Judge Keith Starrett for being a felon in possession of multiple firearms, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On September 23, 2020, Buckley was found in possession of multiple firearms during the execution of an arrest warrant in Lamar County. Buckley is a multiple-time convicted felon, with his most recent felony conviction being for felonious possession of a weapon by a convicted felon in Jefferson Davis County Circuit Court in 2018. For this offense, Buckley was sentenced to serve ten years in the custody of the Mississippi Department of Corrections.
Williams was originally indicted for this offense on October 20, 2020. He will be sentenced before Judge Starrett on July 27, 2021 at 10:15 a.m.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service Fugitive Task Force investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Arizona Man Sentenced for Possession of Multiple Fraudulently-Obtained Unemployment Benefits CardsRead the Press Release
LAS VEGAS, Nev. – An Arizona man has been sentenced today to 30 months in federal prison for possessing multiple unemployment benefits debit cards — all in different names — and intending to fraudulently obtain nearly $239,000 in benefits, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region.
Delashaun Dean, 32, of Tolleson, Arizona, pleaded guilty in February 2021 to one count of possession of counterfeit and unauthorized access devices. In addition to the term of imprisonment, U.S. District Judge Andrew Gordon sentenced Dean to three years of supervised release.
According to court documents, between October 3 and October 5, 2020, the Las Vegas Metropolitan Police Department found 15 unemployment insurance benefits debit cards issued by the California Employment Development Department (EDD) in Dean’s hotel room and on his person. The debit cards were all in different names; none were in Dean’s name. In addition, law enforcement found a fake driver’s license and a notebook containing personal identifying information of multiple individuals, which was used to apply for unemployment insurance benefits. At least $238,914 in unemployment benefits were approved for claims associated with the recovered EDD debit cards.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus.
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Ansonia Man Sentenced to Prison for Serving as "Money Mule" in Online Lottery and Romance ScamsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MONTRELL DOBBS, JR., 28, of Ansonia, was sentenced today by U.S. District Judge Stefan R. Underhill to 18 months of imprisonment, followed by three years of supervised release, for serving as a “money mule” in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery. The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing. Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings. The victims never receive winnings. In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions. Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them. Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.
Dobbs was recruited to be a “money mule” for individuals who were operating lottery and romance scams between approximately August 2015 and March 2020. Dobbs retrieved fraudulently obtained cash, checks and money orders that were sent through the mail to various addresses in New Haven, Hamden and Ansonia, and he retrieved funds that were wired through electronic money transfers. Also, using the alias “Derek Williams,” Dobbs retrieved from the Ansonia Post Office packages containing fraudulently obtained cash and checks. Dobbs deposited checks and money orders into his own bank account, kept a portion of the funds, and passed along the remaining money to other co-conspirators, either by mailing cash or depositing money into other bank accounts.
The investigation revealed that these scams defrauded more than 200 victims across the U.S. of more than $5 million. Many of the victims were elderly and vulnerable, and some victims lost their life savings. One Connecticut victim lost more than $1 million.
Dobbs’ involvement in the scheme involved at least 25 victims who lost more a total of more than $85,000. Judge Underhill ordered Dobbs to pay full restitution.
Dobbs was arrested on March 12, 2020. On December 21, 2020, he pleaded guilty to one count of money laundering.
Dobbs, who is released on a $100,000 bond, is required to report to prison on June 2.
Four of Dobbs’ alleged co-conspirators are awaiting trial.
This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Anchorage Man Convicted on All Counts of Sex Trafficking Minors, Child Pornography and Illegal Possession of a FirearmRead the Press Release
ANCHORAGE – An Anchorage man was convicted on five counts of sex trafficking of minors, three counts of production of child pornography and two counts of being a felon in possession of a firearm. The verdict came after a three-day federal bench trial with Senior U.S. District Judge Ralph R. Beistline.
According to court documents and evidence presented at trial, between mid-October 2018 and December 1, 2018, Tristan Jamal Grant, aka “Goo,” 35, conspired with another person to traffic two minors, a 15-year-old female and a 17-year-old female. Both minors were runaways who stayed with Grant at his co-conspirator’s apartment. While at the apartment, they created an online advertisement that was used to market the minors. Grant then assisted his co-conspirator in trafficking the victims; encouraging them to perform sex acts for money; serving as protection for the minors and driving one of the minors to a date to perform sex acts. Additionally, Grant produced child pornography with one of the minors on two separate occasions.
Grant was arrested by Anchorage Police Department following a shooting on December 12, 2018. When arrested Grant was in possession of two weapons. Because Grant had previously been convicted of a felony, possession of those guns was illegal.
Grant remained in custody and was indicted by a federal grand jury on January 15, 2019. Grant escaped from custody during a court ordered release to meet with his attorney at his attorney’s office to prepare for trial. Grant was captured and later indicted on February 23, 2021, for escape by prisoner in custody and failure to appear.
“This conviction should be a strong reminder that sex trafficking and exploitation of children will not be tolerated,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “The successful conviction of this case was due to the courage of the victims and the collaborative efforts of federal, state and local law enforcement and prosecutors. Our office will remain steadfast in our pursuit of all those who perpetuate sex trafficking of children.”
“Tristan Grant terrorized our neighborhoods and recruited minors for commercial sex acts, profiting from their exploitation. This guilty verdict is a win for our entire community,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “The FBI is grateful for our collaborative partnerships across the state, and in this case the Anchorage Police Department, as we continue to combat crimes against Alaska’s youth.”
Sentencing is scheduled for July 14 at 9:00 a.m. in Anchorage. As a result of his convictions, Grant faces a sentencing range of not less than 15 years in prison and up to life. Grant also faces a term of supervised release following prison of not less than five years and up to life. Each conviction carries a maximum 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 case was the product of an investigation by the Federal Bureau of Investigation, Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, working together through the FBI’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Wednesday 14 April 2021
Wood County Woman Guilty of Stealing Stimulus PaymentRead the Press Release
MARSHALL, Texas – A Hawkins, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Brianna Clarisse Banks, 24, pleaded guilty to theft of government money today before U.S. Magistrate Judge Roy Payne.
“COVID has been financially devastating for many East Texans, especially for those who were already struggling,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thieves who take the federal funds intended for the financially vulnerable will be aggressively investigated and prosecuted in the Eastern District of Texas.”
According to information presented in court, in April of 2020, the U.S. Treasury issued an Economic Impact Payment (EIP) check in the amount of $1,200.00, made payable to an individual and mailed it to that individual’s post office box in Avinger, Texas. Banks stole the EIP check from the individual’s post office box and then used the victim’s name, social security number, and date of birth to open a checking account, but used Banks’ mailing address for the address on the account. Banks deposited the stolen EIP check into the fraudulently opened bank account and then withdrew the funds and spent them for her own personal benefit.
A federal grand jury returned an indictment against Banks on Jan. 20, 2021. Under federal statutes, Banks faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
This case is being investigated by the U.S. Secret Service and the Cass County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
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