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Wednesday 14 April 2021
Wolf Point man charged with first degree murderRead the Press Release
GREAT FALLS – A Wolf Point man accused of murdering another man in Wolf Point, on the Fort Peck Indian Reservation last year, appeared on murder and firearms crimes on April 13, Acting U.S. Attorney Leif Johnson said today.
Doratello “DJ” Juan Fischer, 35, pleaded not guilty to an indictment charging him with first degree murder and to use of a firearm during a crime of violence. If convicted of the murder charge, Fischer faces a mandatory life in prison, a $250,000 fine and five years of supervised release. If convicted of the firearms crime, Fischer faces a mandatory minimum 10 years to life in prison, consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Fischer was detained pending further proceedings.
The indictment alleges that on Nov. 27, 2020 in Wolf Point, Fischer unlawfully killed the victim, identified as John Doe, with malice aforethought and premeditation, and that Fischer knowingly used a firearm in relation to the murder count.
Assistant U.S. Attorneys Lori Suek and Jared Cobell are prosecuting the case, which was investigated by the FBI.
PACER case reference. 21-23.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Winnebago Man Indicted for ArsonRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 13, 2021, a federal grand jury returned an indictment against Christian B.M. Crawford (age: 28) of Winnebago County, Wisconsin, charging him with arson of a building in violation of Title 18, United States Code, Section 844(i).
The indictment alleges that on January 22, 2021. Crawford maliciously damaged the Ridgeway VP gas station in Neenah, Wisconsin, by fire. If convicted of the charge, Crawford faces a mandatory minimum five-year prison term and a maximum of 20 years of imprisonment. He also faces a fine of up to $250,000.
This case was investigated by the Winnebago County Sheriff’s Office, the City of Neenah Police Department, the Town of Menasha Police Department, the Town of Fox Crossing Police Department, and the Town of Clayton Fire Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
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Winnebago Man Indicted for ArsonRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 13, 2021, a federal grand jury returned an indictment against Christian B.M. Crawford (age: 28) of Winnebago County, Wisconsin, charging him with arson of a building in violation of Title 18, United States Code, Section 844(i).
The indictment alleges that on January 22, 2021. Crawford maliciously damaged the Ridgeway VP gas station in Neenah, Wisconsin, by fire. If convicted of the charge, Crawford faces a mandatory minimum five-year prison term and a maximum of 20 years of imprisonment. He also faces a fine of up to $250,000.
This case was investigated by the Winnebago County Sheriff’s Office, the City of Neenah Police Department, the Town of Menasha Police Department, the Town of Fox Crossing Police Department, and the Town of Clayton Fire Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer
(414) 297-1700
Follow us on Twitter
Wheeling man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason Timothy Henry, of Wheeling, West Virginia, was sentenced today to 60 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Henry, age 45, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2020. Henry admitted to having more than 50 grams of methamphetamine in November 2019 in Ohio County.
The judge also ordered the forfeiture of the following:
• Taurus, .357 magnum revolver;
• Six rounds of .357 ammunition;
• One box of .357 ammunition;
• One box of 9mm ammunition;
• Three rounds of 7.62 x 39 caliber ammunition;
• One cylinder for revolver; and
• Mossberg, 12-gauge shotgun.Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Wheeling Police Department and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Wesley Chapel Man Sentenced to 25 Years in Prison for Armed Robbery SpreeRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Robert Dayon Dumas (26, Wesley Chapel) to 25 years in federal prison for robbery and discharging a firearm in furtherance of a violent crime. The Court also ordered Dumas to forfeit the firearm and ammunition used in the robberies, and to make restitution to the victims.
Dumas had been found guilty on January 25, 2021, following a bench trial.
According to court documents and evidence presented at trial, during a one-week span in February 2018, Dumas used a gun to rob five Wesley Chapel businesses, including a gas station, a hotel, and a cell phone store. During the robberies, Dumas held victims at gunpoint, including a woman and her two-year-old granddaughter. He also threatened to shoot victims if they did not do what he said, at one point firing his gun above a victim’s head and stating, “the next one goes in your head!” In total, the robbery spree netted just over $2,000.
This case was jointly investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Welch Cattleman Admits to a $1.2 Million Check Kiting SchemeRead the Press Release
A Welch cattleman who defrauded First State Bank of Commerce pleaded guilty Friday in federal court, announced Acting U.S. Attorney Clint Johnson.
John Theodore Linthicum, 52, also known as Teddy Linthicum, pleaded guilty to conspiracy to commit bank fraud before U.S. District Judge Gregory K. Frizzell.
“Teddy Linthicum perpetrated a check kiting scheme for his own gain and swindled First State Bank of Commerce out of $1.2 million,” said Acting U.S. Attorney Clint Johnson. “Bank fraud, and other white-collar schemes, will not be tolerated. The U.S. Attorney’s Office will hold fraudsters, like Linthicum, accountable for their crimes.”
The check kiting scheme was carried out by Linthicum and another cattle dealer, Douglas Mayfield, from October 2016 to January 2017.
In the fall of 2016, Linthicum experienced dwindling cash flow in his cattle business. He proposed that Mayfield write NSF checks to Linthicum that he could deposit into his bank account, thereby enabling Linthicum to avoid overdraft limitations and continue his cattle operation. Linthicum knew that Mayfield did not have sufficient funds to cover the checks he was writing to Linthicum.
Mayfield provided approximately 30 insufficiently funded checks from his accounts at Grand Savings Bank, in Grove, to Linthicum for deposit into Linthicum’s account at First State Bank. Most often, Mayfield would simply sign the checks and Linthicum would fill in the amounts payable to himself. Linthicum frequently wrote in the memo notation that the checks were for the purchase of cattle, which was not true. The checks generally ranged between $100,000 and $375,000. The bank lost approximately $1.2 million as a result of the scheme.
Linthicum’s sentencing is set for Aug. 3, 2021. Mayfield previously pleaded guilty to the same charge in federal court, and his sentencing is pending.
The Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General and Federal Housing Finance Agency-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kevin Leitch and Vani Singhal are prosecuting the case.
Upshur County Man Guilty of Sexual Exploitation of a ChildRead the Press Release
MARSHALL, Texas – A Gilmer, Texas man has pleaded guilty to federal child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Michael Parker, 41, pleaded guilty to sexual exploitation of a child today before U.S. Magistrate Judge Roy Payne.
“The U.S. Attorney’s Office for the Eastern District of Texas places the highest priority on protecting our children from sexual predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those that seek to victimize minors should know that the EDTX will do whatever it takes to find them and bring them to justice for their heinous crimes.”
According to information presented in court, Parker hid a cellular phone in a bathroom for the purpose of capturing video recordings of a minor under the age of twelve. Parker positioned the phone to intentionally capture images and videos of the child. Parker then distributed the images and videos of the child to other individuals utilizing multiple online communications platforms, including e-mail, a cloud storage account, and a photo-sharing social media application.
A federal grand jury returned an indictment charging Parker with federal violations on Sep. 17, 2020. Under federal statutes, Parker faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by the Department of Homeland Security, the Texas Department of Public Safety, the Gilmer Police Department and the Longview Police Department and prosecuted by Assistant U.S. Attorney Jim Noble.
Uncle of Drug Trafficking Ring Leader Pleads Guilty for His Role in Narcotics Conspiracy Operating in the Jamestown, NY AreaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Garland Beardsley a/k/a Charlie Beardsley, 53, of Jamestown NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to conspiring to possess with intent to distribute, and distributing, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that between December 2018 and October 27, 2020, the defendant was an associate in a drug trafficking ring led by his nephew, co-defendant Rocco Beardsley, which sold methamphetamine, heroin, fentanyl, crack cocaine, cocaine, and hydrocodone in the Jamestown area. Garland Beardsley distributed methamphetamine to Rocco Beardsley’s customers. Rocco Beardsley stored, distributed, and manufactured methamphetamine, heroin/fentanyl, and other controlled substances at the defendant’s residence on Newland Avenue in Jamestown. On January 21 and February 11, 2020, an individual working with investigators purchased crystal methamphetamine from Rocco Beardsley at the defendant’s residence.
Charges remain pending against Rocco Beardsley. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing will be scheduled at a later date.
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USP Lee Inmate Sentenced for Weapon PossessionRead the Press Release
ABINGDON, VIRGINIA – Juan Fernando Sanchez, an inmate at the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 48 months in prison for unlawfully possessing a weapon inside the prison, Acting United States Attorney Daniel P. Bubar announced today.
Sanchez, 26, possessed a 6.5-inch-long prison-made sharpened metal weapon. The weapon was discovered in his front pocket during a random search.
Sanchez pleaded guilty on January 12, 2021.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
U.S. Attorney’s Office Honors Service and Career of Thomas E. Delahanty IIRead the Press Release
PORTLAND, Maine: Acting U.S. Attorney Donald E. Clark and the employees of the U.S. Attorney’s Office honored the public service career of Thomas E. Delahanty II, who served as U.S. Attorney in both the Carter and Obama administrations. Delahanty died earlier this week at the age of 75.
Delahanty had a lengthy and distinguished career in both the state and federal courts of Maine. After starting his legal career in private practice in Lewiston, he was elected District Attorney in 1974 for the newly created Prosecutorial District Three, covering the counties of Androscoggin, Oxford and Franklin. He held that position until President Carter appointed him U.S. Attorney for Maine. He was sworn into office on May 22, 1980, and served until August 1981, when he resigned following a change in the presidential administration.
Delahanty was in private practice in Lewiston until November 1983, when Governor Joseph Brennan appointed him to the Maine Superior Court. He served as a Superior Court Justice until 2010, when he again became U.S. Attorney on appointment of President Obama. He was sworn into office on July 1, 2010, and served until his resignation in March 2017, following the change in administration. He then returned to the Maine Superior Court as an active retired justice.
“Tom Delahanty was a giant in the Maine legal community,” said U.S. Attorney Clark. “His service to the people of Maine, including two appointments as U.S. Attorney, spanned over 40 years. In addition to his professional accomplishments, he was also an honorable, just man and a devoted husband, father and grandfather. We at the U.S. Attorney’s Office mourn his passing and send our condolences to his family.”
Two Pittsburgh Men Indicted on Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - Two residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The six-count Indictment named Brandon Washington, 34, and Damone Porter, 33, as defendants.
According to the Indictment, on or about March 4, 15 and 18, 2021, Washington possessed with the intent to distribute cocaine and/or cocaine base. The Indictment further alleges that Washington possessed a firearm in furtherance of this drug trafficking crime and that Washington was prohibited from possessing the firearm and ammunition because he is a convicted felon. Additionally, the Indictment charges Porter, a convicted felon, with illegally possessing a firearm on or about March 18, 2021.
With respect to Washington, the law provides for a maximum total sentence of not more than life in prison, a fine of $1,500,000 or both. With respect to Porter, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Individuals Charged with Bank Secrecy Act Offenses and Operating an Unlicensed Money Transmitting BusinessRead the Press Release
BROOKLYN, NY - An indictment was unsealed today in federal court in Brooklyn charging Gyanendra Asre and Hanan Ofer with Bank Secrecy Act (BSA) offenses and operating an unlicensed money transmitting business. Asre is charged with two counts of failure to maintain an anti-money laundering program, five counts of failure to file Suspicious Activity Reports and one count of operation of an unlicensed money transmitting business. Ofer is charged with one count of operation of an unlicensed money transmitting business. The defendants were arrested today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
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 Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the arrests and charges.
“The defendants allegedly operated an illegal money transmitting business and took advantage of smaller financial institutions to engage in risky financial transactions, without the oversight and compliance with anti-money laundering controls they had promised,” stated Acting United States Attorney Lesko. “This Office will vigorously prosecute those who deliberately avoid reporting requirements and put the integrity of U.S. financial institutions at risk.”
“As alleged, Asre and Ofer used a small, unsophisticated financial institution to process high-risk, high-dollar international transactions without the anti-money laundering procedures required by law,” stated Acting Assistant Attorney General McQuaid. “Today's announcement demonstrates the Department's commitment to hold accountable individuals who knowingly expose the U.S. financial system and U.S. financial institutions to the risk of laundering criminal proceeds.”
"The Bank Secrecy Act was established to protect our financial system and maintain the integrity of our banking system. As alleged, Ofer and Asre blatantly disregarded our laws and placed their own enrichment above all else,” stated HSI Special Agent-in-Charge Fitzhugh. “The defendants took advantage of a small, unsophisticated financial institution and pumped billions of dollars of high-risk transactions through it, any one of which could have left the bank in ruin. HSI New York’s El Dorado Task Force continues to protect the nation’s financial systems and working with its partners, will see to it that those seeking to exploit our laws for their own financial gain are brought to justice.”
As alleged in the indictment, from 2014 to 2016, Asre and Ofer devised a scheme to bring lucrative and high-risk international financial business lines such as international currency trading to small, unsophisticated financial institutions. Asre and Ofer were trained in anti-money laundering compliance and procedures, and represented to the financial institutions that, because of their experience and training, they understood the risks associated with the high-risk business lines and would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.
Based on Asre and Ofer’s representations, the New York State Employees Federal Credit Union (“NYSEFCU”), a small financial institution with a volunteer board that primarily served New York state public employees, allowed Asre and Ofer to conduct high-risk transactions through the NYSEFCU. Asre and Ofer then caused the transfer of more than $1 billion in high-risk transactions, including hundreds of millions of dollars originating from high-risk foreign jurisdictions, through the NYSEFCU and other entities. Contrary to their representations, Asre willfully failed to implement and maintain the requisite anti-money laundering programs or conduct oversight required to detect, identify and report suspicious transactions. This caused, among other things, the NYSEFCU to process more than $1 billion in high-risk transactions during Asre’s tenure, without ever filing a single Suspicious Activity Report as required by law.
Asre and Ofer also owned and operated DDH Group, LLC, a money transmitting business and money services business that conducted some of these high-risk transactions without licensing or registering that entity as required by law.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation is being conducted by HSI’s El Dorado Task Force in New York.
The Defendants:
GYANDERA ASRE
Age: 53
Greenwich, ConnecticutHANAN OFER
Age: 67
New York, New YorkE.D.N.Y. Docket No. 21-CR-174 (DG)
Two Charged in High-Risk International Financial SchemeRead the Press Release
An indictment was unsealed today in the Eastern District of New York charging two defendants with failing to maintain anti-money laundering controls, failing to file suspicious activity reports, and operating an unlicensed money transmitting business.
As alleged in the indictment, from 2014 to 2016, Gyanendra Asre, 53, of Greenwich, Connecticut, and Hanan Ofer, 67, of New York, New York, devised and executed a scheme to bring lucrative and high-risk international financial business to small, unsophisticated financial institutions. Asre and Ofer were trained in anti-money laundering compliance and procedures, and represented to the financial institutions that, because of their experience and training, they understood the risks associated with the high-risk business and would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.
Based on Asre and Ofer’s representations, the New York State Employees Federal Credit Union (NYSEFCU), a small financial institution with a volunteer board that primarily served New York state public employees, allowed Asre and Ofer to conduct high-risk transactions through the NYSEFCU. Asre and Ofer then caused the transfer of more than $1 billion in high-risk transactions, including hundreds of millions of dollars originating from foreign jurisdictions, through the NYSEFCU and other entities. Contrary to their representations, Asre willfully failed to implement and maintain the requisite anti-money laundering programs or conduct oversight required to detect, identify, and report suspicious transactions. This caused, among other things, the NYSEFCU to process more than a billion dollars in high-risk transactions during Asre’s tenure, without ever filing a single Suspicious Activity Report, as required by law.
Asre and Ofer owned and operated DDH Group LLC, a money transmitting business and money services business that conducted some of these high-risk transactions, without it being licensed or registered as required by law.
“As alleged, Asre and Ofer used a small, unsophisticated financial institution to process high-risk, high-dollar international transactions without the anti-money laundering procedures required by law,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today's announcement demonstrates the department's commitment to hold accountable individuals who knowingly expose the U.S. financial system and U.S. financial institutions to the risk of laundering criminal proceeds.”
“The defendants allegedly operated an illegal money transmitting business and took advantage of smaller financial institutions to engage in risky financial transactions, without the oversight and compliance with anti-money laundering controls they had promised,” said Acting U.S. Attorney Mark J. Lesko for the Eastern District of New York. “This office will vigorously prosecute those who deliberately avoid reporting requirements and put the integrity of U.S. financial institutions at risk.”
“The Bank Secrecy Act was established to protect our financial system and maintain the integrity of our banking system,” said Special Agent in Charge Peter C. Fitzhugh of Homeland Security Investigations (HSI) New York. “As alleged, Ofer and Asre blatantly disregarded our laws and placed their own enrichment above all else. The defendants took advantage of a small, unsophisticated financial institution and pumped billions of dollars of high-risk transactions through it, any one of which could have left the bank in ruin. HSI New York’s El Dorado Task Force continues to protect the nation’s financial systems and working with its partners, will see to it that those seeking to exploit our laws for their own financial gain are brought to justice.”
Asre is charged with two counts of failure to maintain an anti-money laundering program, five counts of failure to file Suspicious Activity Reports, and one count of operation of an unlicensed money transmitting business. Ofer is charged with one count of operation of an unlicensed money transmitting business. The defendants are scheduled to be arraigned on the indictment this afternoon.
HSI is investigating the case.
Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Ryan C. Harris and Francisco J. Navarro of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Members of Transnational Money Laundering Network Pleaded Guilty to Aiding Foreign Drug Trafficking OrganizationsRead the Press Release
ALEXANDRIA, Va. – Within the last week, three individuals pleaded guilty to their involvement in a conspiracy to launder at least $30 million of drug proceeds combined throughout the United States on behalf of foreign drug trafficking organizations (DTOs). These guilty pleas are the result of a nearly four-year investigation into the relationship between foreign drug trafficking organizations and Asian money laundering networks in the United States, China, Mexico, and elsewhere.
“These defendants were involved in a wide-ranging conspiracy to launder millions of dollars of drug proceeds throughout the United States to aid foreign drug trafficking organizations,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through their tenacity and indefatigable investigative efforts, our law enforcement partners unraveled the complex money laundering scheme, which involved the use of casinos, front companies, foreign and domestic bank accounts, and bulk cash smuggling. This prosecution demonstrates our continued commitment to dismantle and bring to justice transnational criminal organizations that threaten the safety of our communities.”
“For years, these defendants participated in a sophisticated money laundering system to help drug cartels line their pockets with the ill-gotten gains of drug trafficking, while profiting considerably, themselves,” said Wendy Woolcock, Special Agent in Charge for the DEA Special Operations Division. “Money laundering is not a victimless crime – the actions of these individuals routed millions of dollars in drug proceeds back to the cartels, allowing these criminal organizations to further their activities, flooding our communities with dangerous drugs, causing devastating addictions and death. The apprehension and prosecution of these individuals is a significant success for the DEA, and we thank our countless partners for their work in this transnational effort to battle money laundering and other related crimes at the highest levels.”
“The dedicated men and women of the Drug Enforcement Administration will go to great lengths to ensure those who profit off of the poisoning of our communities are ultimately brought to justice,” said Special Agent in Charge Todd Scott, head of DEA’s Louisville Division. “I’m very proud of the work done by our folks, along with our law enforcement counterparts in this complex investigation.”
According to court records, the defendants participated in a years’ long conspiracy to use casinos, front companies, foreign and domestic bank accounts, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main trafficking activities involved cocaine. The DTOs issued “contracts” to the defendants to collect money generated by drug trafficking activities in the United States, and members of the conspiracy engaged in financial transactions that were designed to conceal the illicit source of the original proceeds, in return for the payment of commissions.
To facilitate the scheme, the defendants used several methodologies, including transporting, or causing others to transport, drug proceeds across the United States and in the Eastern District of Virginia. The defendants also converted drug proceeds into Chinese and Mexican currency through a variety of methods, including “mirror transfers” in which financial transactions in the United States are used to trigger the release of equivalent funds into bank accounts in China, with those funds then being used to purchase Chinese goods that are subsequently sold by merchants in Latin American countries, including Mexico.
As part of a guilty plea entered on April 9, Jiayu Chen, 46, of Brooklyn, New York, admitted to his participation in the drug trafficking and money laundering network. Chen received drug proceeds from couriers in New York City and then delivered this cash to other individuals who conducted additional financial transactions with the money to hide its source. Chen kept detailed ledgers of the money he received totaling approximately $2.8 million. During this period, Chen was a mail carrier for the U.S. Postal Service (USPS), and he received drug proceeds from, and paid commissions to, couriers as compensation for their role in transporting drug proceeds. On at least one occasion, Chen accepted bulk drug proceeds while wearing his USPS uniform.
As part of a guilty plea entered today, Tao Liu, 46, of Hong Kong, admitted that he worked with his co-defendants to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of co-defendant Xizhi Li, which he later deposited into bank accounts that Xizhi Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Tao himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
As part of a guilty plea entered today, Jingyuan Li, 49, of San Gabriel, California, admitted that he used a California-based seafood import/export business, known as “Shuoyu USA Inc.” (Shuoyu), in connection with the above-described money laundering scheme. Specifically, Li used the proceeds of drug trafficking to purchase goods through Shuoyu, which he later had shipped to China and Hong Kong for sale. This enabled the conspiracy to pay back the DTOs who gave the conspiracy the contracts to launder their money. Additionally, Li organized and participated in the delivery of drug cash within the United States. In all, Li’s activities resulted in the laundering of at least $3.8 million of drug proceeds.
Jiayu Chen pleaded guilty to conspiracy to commit money laundering, and he faces a maximum penalty of 20 years in prison when he is sentenced on July 20, 2021. Tao Liu pleaded guilty to conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison, and bribery of a public official, which carries a maximum penalty of 15 years in prison, when he is sentenced on July 13, 2021. Jingyuan Li pleaded guilty to conspiracy to commit money laundering, and he faces a maximum penalty of 20 years in prison when he is sentenced on July 13, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
In addition to the three defendants referenced above, two other defendants, Xizhi Li, 45, and Eric Yong Woo, 43, previously were charged in the superseding indictment for their alleged involvement in the scheme. Li and Woo have pleaded not guilty and are presumed innocent unless and until they are proven guilty at trial, which currently is scheduled for August 23, 2021. In addition, Jianxing Chen, 40, was charged in the superseding indictment for his alleged involvement, and he remains a fugitive.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation Dark Castle and Taishan Triangle. 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Wendy C. Woolcock, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Special Operations Division; J. Todd Scott, Special Agent in Charge for the DEA-Louisville; Raymond P. Donovan, Special Agent in Charge for the DEA-New York; Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service (DSS); and Angie M. Salazar, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Chicago, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the pleas.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
Significant assistance was provided by the Australian Criminal Intelligence Commission and the Australian Federal Police, the Mexican Federal Police, Australia Department of Home Affairs, the Guatemalan National Civil Police (PNC), and the New Zealand Police.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-334.
Third Former Maryland Tax Preparer Pleads Guilty to a Federal Tax Fraud ConspiracyRead the Press Release
Greenbelt, Maryland – Veronica Hope Fortune, age 54, of Upper Marlboro, Maryland, pleaded guilty today to conspiracy to defraud the United States and to assisting in the preparation and filing of false tax returns.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Fortune’s plea agreement, in August 2015 Fortune was a tax preparer in Maryland with electronic tax return filing privileges from the Internal Revenue System (IRS). Fortune agreed to allow Co-Conspirator 1 and Co-Conspirator 2, both of whom had been suspended from the IRS’s e-filing program, to use Fortune’s unique electronic filing identifiers, in exchange for the use of Co-Conspirator 1 and Co-Conspirator 2’s shared office space in Temple Hills, Maryland.
Co-Conspirator 1 and Co-Conspirator 2 misrepresented their identities on their clients’ tax returns by using Fortune’s identifiers to prepare and electronically file the tax returns with the IRS. Fortune also joined in her co-conspirators’ practice of falsifying tax returns and fraudulently claiming refunds. Specifically, Fortune and her co-conspirators falsified tax returns by: fabricating, inflating, and improperly claiming items on the Schedules A that were attached to clients’ federal individual income tax returns; and engineering business losses on Schedules C by fabricating, inflating, and improperly claiming purported business expenses. As a result, Fortune, Co-Conspirator 1, and Co-Conspirator 2 artificially lowered their clients’ taxable income, thereby lowering the taxes that the clients owed to the IRS and inflating their refunds.
On December 15, 2017, the IRS also expelled Fortune from the electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed using her unique identifiers. Fortune then made misrepresentations about the criminal nature of her issues with the IRS to a third-party electronic return originator (“ERO”) in order to obtain their assistance. The ERO allowed Fortune to file tax returns using its unique electronic filing identifiers, and Fortune shared those identifiers with Co-Conspirator 1 and Co-Conspirator 2. Using the new identifiers, the co-conspirators, including Fortune, continued to prepare and file false and fraudulent returns through at least the 2019 tax filing season, which ended on or about April 2019.
In total, the tax loss caused to the IRS as a direct result of Fortune and her co-conspirators’ conspiracy for the tax years 2012 through 2018 was $189,748. As part of her plea agreement, Fortune will be required to pay restitution in the full amount of the loss, which the parties stipulate is at least $189,748.
Fortune faces a maximum sentence of five years in federal prison for the conspiracy and a maximum of three years in federal prison for aiding and assisting in the preparation and filing of false tax returns. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 20, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Trial Attorney Kathryn Sparks of the Tax Division, who are prosecuting the case.
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Texas man headed to prison for trying to sexually entice minorRead the Press Release
BROWNSVILLE, Texas - A 49-year-old Austin man has been ordered to federal prison following his conviction of coercion and enticement of a minor to engage in sexual activity, announced Acting U.S. Attorney Jennifer B. Lowery.
Jeffrey Charles Hyde Jr. pleaded guilty Nov. 1, 2018.
Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve 121 months in federal prison. Hyde was further ordered to pay restitution to the victim and will serve 25 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
“Child exploitation investigations continue to be one of our highest priorities,” said Deputy Special Agent in Charge Timothy Tubbs of Homeland Security Investigations (HSI). “No crime affects us more deeply than the exploitation of innocent children. HSI will continue to identity, arrest and prosecute those who traumatize and victimize children.”
On or about Sept. 9 to Nov. 28, 2017, Hyde utilized a cell phone to attempt to persuade and entice a minor to engage in unlawful sexual activity. During this time, Hyde was residing in Austin and communicating with a minor female n the Rio Grande Valley area.
During these texts, Hyde actively attempted to persuade the minor to engage in unlawful sexual activity. He also sent sexually-explicit videos to the minor.
HSI - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano 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.
Texas Woman Sentenced to One Year and A Day in Prison for Using Fraudulently Obtained PassportRead the Press Release
SAN FRANCISCO – Shakisha Haskins was sentenced today to a year and a day in prison for using a passport secured by a false statement and making false statements to a government agency after using a fraudulently obtained passport and other false information to gain access to a repatriation flight from India, announced Acting United States Attorney Stephanie M. Hinds and U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
“The Diplomatic Security Service (DSS) is firmly committed to working with the U.S. Department of Justice and our local law enforcement partners to investigate and prosecute all criminal activity related to passport fraud, identity theft, and theft of public money,” said Special Agent in Charge Perlman. “The strong relationship we enjoy with our partners, including U.S. Customs and Border protection, is vital towards preventing fugitives from concealing their attempts to enter the U.S., ensuring the integrity of U.S. travel documents, and protecting greater U.S. interests.”
Haskins pleaded guilty to the charges on September 23, 2020. According to her plea agreement, Haskins admitted that in 2017 she obtained a passport by submitting fraudulent documents or information, including the victim’s social security number, birth certificate, and driver’s license. Haskins used her own photograph substituted in place of the photograph of the victim on the passport application. Once in possession of the fraudulently obtained passport, Haskins began to use it—according to the date stamps in the passport, Haskins used the fraudulently obtained passport to travel 37 times between March 2017 and April 2020. Haskins used the passport while living abroad for three years.
Haskins’s use of the passport came to an end in the spring of 2020. In March of 2020, as a means of managing travel during the Covid pandemic, the government of India announced that it would end commercial flights from India to the United States. The end of commercial flights prompted American citizens to seek assistance from the United States Embassy when making plans to return to the United States. On March 28, 2020, Haskins requested a repatriation flight for her and her son, and on April 4, 2020, she provided information to the United States Consular Officers in New Delhi as part of her effort to be added to the manifest for a flight back to the United States. Haskins provided to the United States government the victim’s social security number, date of birth, and passport number so she could be added to the repatriation flight. Haskins also used the fraudulently obtained passport to enter the United States on April 5, 2020.
On April 6, 2020, Haskins was charged by Complaint with one count of use of a passport secured by a false statement, in violation of 18 U.S.C. § 1542. On July 8, 2020, Haskins was charged by information with one count of use of a passport secured by a false statement, in violation of 18 U.S.C. § 1542, and one count of making a false statement to a government agency, in violation of Title 18 U.S.C. § 1001(a)(2). Haskins pleaded guilty to both counts.
In addition to the prison term, Judge Donato ordered Haskins to serve thirty-six months of supervised release and to pay restitution in the amount of $7,932.89.
Special Assistant United States Attorney Denise M. Oki is prosecuting the case with assistance from Soana Katoa and Daniel Fuentes. The prosecution is the result of an investigation by the DSS.
Tax Preparer Charged with Filing False ReturnsRead the Press Release
A federal grand jury in Philadelphia returned a superseding indictment charging a Pennsylvania man with sixteen counts of assisting in the preparation of federal tax returns.
According to the superseding indictment, Jean Coq of Philadelphia prepared tax returns for clients for tax years 2013 and 2014 that claimed inflated itemized deductions, including unreimbursed employee expenses and gifts to charity. As a result of these false items, Coq’s clients sought tax refunds to which they were not entitled.
If convicted, Coq faces a maximum penalty of three years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.
The IRS-Criminal Investigations is investigating the case.
Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division and Assistant U.S. Attorney David Ignall of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Statement by the Principal Deputy Assistant Attorney General for Civil Rights Leading A Coordinated Civil Rights Response to Coronavirus (Covid-19)Read the Press Release
Principal Deputy Assistant Attorney General for Civil Rights Pamela S. Karlan issued the following statement and attached resource guide to assist Federal agencies, state and local governments, and recipients of Federal financial assistance in addressing ongoing civil rights challenges related to the COVID-19 pandemic:
The COVID-19 pandemic has stressed our Nation’s commitment to an open, equal, and inclusive society. We have seen hateful and xenophobic rhetoric and violence aimed at Asian American and Pacific Islander (AAPI) communities and businesses. We have also seen Black, Indigenous, Latino, and Pacific Islander communities, as well as people with disabilities, suffer disproportionately high rates of death and greater risk of infection and hospitalization. COVID-19 has magnified social, economic, and environmental inequalities that we cannot ignore.
As a Nation, we cannot adequately respond to, and recover from, COVID-19 if we do not protect all of our neighbors. That requires us to pursue justice on behalf of those targeted because of their race, color, religion, national origin, sex (including sexual orientation and gender identity), disability, or citizenship.
The Department of Justice will vigorously enforce Federal civil rights as we continue the process of national reckoning, recovery, and healing. Civil rights protections and responsibilities still apply, even during emergencies. They cannot be waived. Federal agencies, state and local governments, and recipients of Federal financial assistance are an integral part of our shared effort to uphold civil rights.
The following principles should assist in meeting these nondiscrimination obligations:
1. Combat hate crimes, harassment, and other discrimination against the AAPI community. There has been a disturbing rise in violence, harassment, and discrimination directed at the AAPI community. Laws prohibiting such conduct must be vigorously enforced by the Federal government, acting with its state and local partners. We must support and provide services to victims of hate crimes, harassment, or unlawful discrimination and ensure the safety of schools, workplaces, and communities through prompt and thorough investigation of complaints. The attached guide includes resources to support prevention and reporting of hate crimes in communities. It also explains how to report discrimination, harassment, or hate incidents in housing, education, employment or other civil rights violations. The Civil Rights Division is prepared to work with sister Federal agencies to support state and local efforts aimed at preventing pandemic-related harassment and discrimination targeting AAPI communities. For more information on preventing hate crimes in your community, visit the Department of Justice’s hate crimes resource page: https://www.justice.gov/hatecrimes.
2. Ensure equal access for people with disabilities and avoid disability discrimination. COVID-19 has had a devastating and disproportionate impact on people with disabilities. Governments, health care providers, and long-term care facilities must comply with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). This includes when making decisions about who will receive medical care, including vaccines and hospital beds. It also includes crafting and implementing policies such as crisis standards of care, visitation rules, and vaccine distribution plans. People living in nursing homes and other long-term care facilities have been placed at particular risk of COVID-19 infection and death. Some reports show that more than one-third of all deaths from COVID-19 in the U.S.—over 172,000 people—are linked to nursing homes and other long-term care facilities. Providing services in home- and community- based settings instead of in long-term care facilities can satisfy the ADA integration mandate by preventing unnecessary institutionalization. It can also reduce COVID-19 risk. As governments, employers, and businesses lift pandemic-related restrictions and reopen, they must comply with the ADA and Section 504. This includes providing reasonable accommodations and modifications, physical access, and effective communication. For information about rights and responsibilities under these statutes, please contact the ADA Information Line at 800-514-0301 (voice) or 800- 514-0383 (TTY) or visit https://www.ada.gov/. Additional relevant information can be found on the U.S. Department of Health and Human Services’ Office for Civil Rights’ website at https://www.hhs.gov/civil-rights/for-providers/civil-rights-covid19/index.html.
3. Reduce further learning loss for vulnerable students. Education inequalities have worsened as COVID-19 continues to disrupt learning for millions of students. Students of color are experiencing disproportionate failure rates, a growing digital divide disadvantages students who cannot access the internet and miss school as a result, and students with limited English proficiency and/or a disability are suffering serious educational consequences. Students who are homeless or in juvenile justice facilities are particularly at risk of learning disruptions. Schools contribute to these challenges when they fail to communicate with limited English proficient families in a language they understand about how to access online learning and other important information about school activities. Whether schools begin to reopen or continue to teach virtually, they must do so in compliance with Titles IV and VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, the Equal Educational Opportunities Act of 1974, the ADA, and Section 504. COVID-19 resources for schools, students, and families can be found at https://www.ed.gov/coronavirus?src=feature&utm_medium=email&utm_source=govdelivery.
4. Protect correctional staff, incarcerated and detained people, and their families. Studies have shown that compared to the general population, a disproportionate number of COVID-19 outbreaks and deaths occur in jails, prisons, and detention facilities across the country. Certain communities of color, including Black, Indigenous, and Latino people, as well as people with disabilities, are more likely to have comorbidities, and suffer serious and even fatal COVID-19 infections, both in the general population and in jails, prisons, and detention centers. Individuals with limited English proficiency and those with disabilities can face increased isolation and lack meaningful access to essential information during COVID-19. This can limit their ability to obtain treatment and timely escalation of care when needed. State and local jails, prisons, and detention centers that receive Federal financial assistance must not discriminate on the basis of race, color, and national origin under Title VI of the Civil Rights Act of 1964 and other statutes. They must also comply with the ADA’s and Section 504’s disability nondiscrimination mandate. In addition to the statutory prohibitions on discrimination, these facilities may not deprive prisoners of their rights guaranteed by the Eighth and Fourteenth Amendments. Federal prisons and detention facilities are subject to Executive Order 13166 and other authorities that protect the civil rights of Federal detainees and inmates. For further guidance on managing pandemic response and recovery in correction and detention facilities, see https://nicic.gov/coronavirus and https://www.cdc.gov/coronavirus/2019-ncov/hcp/broad-based-testing.html.
5. Protect vulnerable populations facing housing instability. COVID-19 has exacerbated existing racial and economic disparities in access to safe and affordable housing. Despite these challenges, individuals retain their fundamental right to obtain housing free from discrimination. Direct providers of housing must still comply with the Fair Housing Act. Our country already faced a severe shortage in affordable housing before the economic impacts of COVID-19 caused significant increases in housing instability. With studies showing that certain communities of color are more likely to be at risk of eviction, we must ensure that discrimination is not an additional barrier. Information on where to find housing assistance during the pandemic can be found here: https://www.benefits.gov/news/article/402. The Department of Housing and Urban Development also maintains a list of resources, found at https://www.hud.gov/coronavirus.
6. Provide information in languages other than English. Large numbers of people in the United States do not read or understand English well. Yet all people need to understand the symptoms, when to stay home, and how to protect themselves and their families to prevent the spread of the virus. Federal, state, and local public messaging on pandemic safety measures and recovery efforts should be provided in the wide array of languages spoken by people with limited English proficiency. Likewise, it is important that we ensure language accessibility in law enforcement, courts, and victim services so that victims of hate crimes and discrimination can vindicate their rights. Title VI requires recipients of Federal financial assistance to provide meaningful access to Federally-funded programs and activities to people with limited English proficiency. More information about ensuring language access and the concentration of, and languages spoken by, persons with limited English proficiency in a particular community can be found at https://www.lep.gov/ and https://www.lep.gov/maps.
7. Collect data to monitor, track, and ensure equitable outcomes. COVID-19 requires accountability and action to address longstanding disparities for Black, Indigenous, Latino, AAPI, and other people of color, as well as people with disabilities. Complete, consistent, and accurate data collection and reporting on race, ethnicity, disability, and limited English proficient status are essential to our ability to recognize and address disparities and inequality. Federal civil rights offices are authorized to use qualitative (studies, news reports, and other sources of information) and quantitative data to conduct outreach, technical assistance, and enforcement to ensure compliance with Title VI of the Civil Rights Act of 1964. The Civil Rights Division is available to consult with Federal agencies on approaches to data collection and assessments to determine whether policies or practices may have a discriminatory impact. For more information on identifying discrimination under Title VI and on data collection, see https://www.justice.gov/crt/fcs/T6Manual7#Z; see also Executive Order 13985 (addressing the need for race, ethnicity, and disability data collection).
The Civil Rights Division will do its part to facilitate a coordinated federal response to these issues. Under Executive Order 12250, the Department of Justice is responsible for ensuring the consistent and effective implementation of Federal civil rights laws “prohibiting discriminatory practices in Federal programs and programs receiving federal financial assistance.” Accordingly, I have directed the Civil Rights Division’s Federal Coordination and Compliance Section and the Disability Rights Section to ensure that Federal agencies use their authority to pursue a comprehensive approach to advance equity and redress inequities in pandemic response and recovery. Finally, the Civil Rights Division will continue to convene meetings of Federal civil rights offices to:
1) exchange information and resources for agencies to take action on COVID-19-related harassment and discrimination;
2) monitor and address civil rights issues related to COVID-19 and recipients of Federal financial assistance;
3) identify strategies to ensure Federal, state and local efforts achieve equitable outcomes in current and future emergency planning and response;
4) work with the Federal agencies to develop and identify data sources or indices that will assist recipients of Federal financial assistance to collect data from communities of color and other underserved populations. The Civil Rights Division, together with other agencies throughout the Federal government, will continue to monitor civil rights issues related to COVID-19 and vigorously enforce civil rights laws. To file a complaint with the Civil Rights Division, please fill out our online form at https://civilrights.justice.gov/.
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South Carolina man sentenced to 10 years for “crystal” meth and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Todd Michael Hensley, of Anderson, South Carolina, was sentenced today to 120 months of incarceration for drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Hensley, age 48, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.”
On January 23, 2020, officers conducted a traffic stop of Hensley’s vehicle in Marshall County and found him to be in possession of approximately 2.73 pounds of “crystal” methamphetamine, also known as “ice,” a loaded 9mm Glock pistol, four loaded 10-round Glock firearm magazines, a loaded 15-round Glock firearm magazine, and three loaded 31-round Glock firearm magazines. Following the traffic stop, a search warrant was executed at Hensley’s home in Anderson, South Carolina, where officers seized an additional 14 firearms, including three AK47s, approximately 300 rounds of ammunition, 50 grams of “ice,” and $9,000 in cash.
The judge also ordered the forfeiture of the firearms, ammunition, and cash.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The Anderson County, South Carolina Sheriff’s Department assisted.
U.S. District Judge John Preston Bailey presided.
Software developer charged with damaging the computer system of a Cleveland companyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury sitting in Cleveland has returned an indictment charging Davis Lu, 51, of Houston, Texas, with one count of damaging protected computers. The Defendant is accused of using his position as a software developer to execute malicious code on his employer's computer servers. The Defendant was arrested this morning without incident.
According to the indictment, the Defendant was employed as a Software 1 Senior Developer working with emerging technology for Company 1, a corporation that held its principal place of business in Cleveland, Ohio. On or about August 4, 2019, Company 1’s servers experienced a disruption that crashed production servers and prevented employees from accessing those servers.
The indictment states that Company 1 investigated the source of the disruption and discovered unauthorized code installed on a server, causing that server to create an infinite loop and crash. Furthermore, it is alleged that the company found additional code that deleted files associated with user profiles, thereby denying users access to Software 1.
The indictment states that Company 1 requested that the Defendant return his company-issued computer. It is alleged that shortly before returning the computer, the Defendant deleted encrypted volumes, attempted to delete Linux directories and attempted to delete two additional projects. Additionally, the company discovered that the Defendant had allegedly conducted internet searches on how to escalate privileges, hide processes and delete large folders and/or files.
According to the indictment, as a result of these alleged actions, Company 1 suffered a loss of at least $5,000 and damage affecting ten or more protected computers.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Division of the FBI and is being prosecuted by Assistant United States Attorneys Brian S. Deckert and Daniel J. Riedl and Senior Counsel Adrienne Rose of the Justice Department’s Computer Crime and Intellectual Property Section.
Six Defendants Convicted and Sentenced to over 75 Years Combined in Federal Prison for Trafficking MethamphetamineRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas,announced that on April 14, 2021, the final of six (6) individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring which operated in Benton County, Arkansas and other jurisdictions such as California and Missouri. This investigation and prosecution, named “Operation Inner Circle,” lasted from approximately January of 2019 through today’s final sentencing hearing. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, in early 2019, Homeland Security Investigations Fayetteville initiated an investigation which revealed that a methamphetamine distributor in Los Angeles, Zeache Dupree Rose, would supply methamphetamine to local sellers of methamphetamine Michael James Smith, Craig Ryan Kelley and Joseph A. James, who would sell it in smaller amounts locally in Northwest Arkansas and Southwest Missouri. In order to facilitate the transportation of the methamphetamine from California to Arkansas, Rose would utilize couriers DaJohn Alexander and Marcus A. Jones, who would transport the methamphetamine in luggage smuggled on to commercial aircraft or buses traveling from California to Arkansas. In total, more than 13 kilograms of pure methamphetamine was seized as part of this operation.
Defendants in this conspiracy received the following sentences:
Zeache Dupree Rose, age 25, the leader of the organization from Los Angeles, California was sentenced December 18, 2020 to 180 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine and one count of money laundering. Rose was indicted in the Western District of Arkansas on March 4, 2020 and plead guilty on July 1, 2020.
Michael James Smith, age 43, a distributor of methamphetamine from Anderson, Missouri was sentenced October 7, 2020 to 151 months in federal prison followed by five years of supervised release on one count of Possession With Intent to Distribute More Than Fifty (50) Grams of Methamphetamine. Smith was indicted in the Western District of Arkansas on November 20, 2019 and plead guilty on December 9, 2019.
Joseph A. James, age 39, a distributor of methamphetamine from Siloam Springs, Arkansas was sentenced December 8, 2020 to 121 months in federal prison followed by four years of supervised release on one count of Conspiracy to Distribute More Than Five-Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine. James was indicted in the Western District of Arkansas on August 16, 2019 and plead guilty on October 3, 2019.
Craig Ryan Kelley, age 45, a distributor of methamphetamine from Eureka Springs, Arkansas was sentenced August 12, 2020 to 240 months in federal prison followed by five years of supervised release on one count of Distribution of More Than Five (5) Grams of Methamphetamine. Kelley was indicted in the Western District of Arkansas on March 4, 2020 and plead guilty on May 1, 2020.
DaJohn Lequor Alexander, age 21, a transporter of methamphetamine from Los Angeles, California, was sentenced November 4, 2020 to 97 months in federal prison followed by three years of supervised release on possession of methamphetamine with intent to distribute. Alexander was charged by Information and entered a plea of guilty on July 2, 2020.
Marcus Alan Jones, age 27, a transporter of methamphetamine from Los Angeles, California, was sentenced April 14, 2021 to 120 months in federal prison followed by three years of supervised release for conspiracy to distribute methamphetamine. Jones was charged by Information and entered a plea of guilty on December 2, 2020.
This prosecution was part of the Western District of Arkansas’ Operation Inner Circle, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF case was investigated by Homeland Security Investigations in Fayetteville, Arkansas and Los Angeles, California, The Internal Revenue Service in Fayetteville, Arkansas, the Benton County, Arkansas Sheriff’s Office, the Rogers, Arkansas Police Department, the Bentonville, Arkansas Police Department and the Northwest Arkansas National Airport (XNA) Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the Western District of Arkansas.
San Francisco Daycare Center Employee Charged with Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Jace Wong was charged today in a federal complaint with possession of child pornography, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the federal complaint filed today, Wong, 26, of San Francisco, used the social media application Kik to join an online chat group that shared child sexual abuse material. The complaint alleges that Wong posted child sexual abuse videos to the chat group and communicated directly with an undercover officer in the group. During their chat yesterday, April 13, 2021, Wong sent the undercover officer a 36 second video in which a prepubescent female, estimated to be 4 to 6 years old, is seen standing on a black and white tiled bathroom floor with her pants down to her ankles and her vagina exposed. Law enforcement was able to identify Wong and his current location, which was a San Francisco daycare center where he was employed. Wong was arrested as he left the daycare center yesterday afternoon. After the arrest, agents observed a black and white tiled bathroom in the facility believed to be where the video was produced.
Wong is scheduled to make his initial appearance on the complaint on Thursday, April 15, 2021, at 10:30 a.m. in San Francisco before the Honorable Jacqueline Scott Corley, United States Magistrate Judge. He currently remains in custody.
Investigators are asking anyone who has further information about Jace Wong or his activities that are relevant to this case to email the FBI tip line at tips.fbi.gov or call (415) 553-7400.
Wong is charged with possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). If convicted, he faces a maximum sentence of 20 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant United States Attorney Joseph Tartakovsky is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Rochester Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gary Stopani, 28, of Rochester NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possessing and accessing with intent to view child pornography involving prepubescent minors. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that on October 8, 2020, investigators seized a laptop, two hard drives, and two cellular telephones from the defendant, which contained images and videos of child pornography. In total, Stopani’s electronic devices contained more than 600 images and/or videos of child pornography. Some of the images included involved prepubescent minors engaged in sexually explicit conduct and images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Greece Police Department, under the direction of Andrew P. Forsythe.
Sentencing is scheduled for July 15, 2021, at 9:15 a.m. before Judge Siragusa.
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Repeat Sex Offender Sentenced to 20 Years in Federal PrisonRead the Press Release
BOWLING GREEN, KY. – Chief U.S. District Judge Greg Stivers yesterday sentenced repeat sex offender Mark Allen Johnson, 31, of Bowling Green, to 20 years’ imprisonment, followed by lifetime supervised release, for distribution of child pornography, attempted enticement, and attempted transfer of obscene material to a minor, announced Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
“The fine work of Branch Chief Madison Sewell, the FBI, and the Roswell Georgia Police Department ensured the successful prosecution of Johnson,” said Acting U.S. Attorney Bennett. “The prosecution team’s effort resulted in a lengthy 20-year period of incarceration followed by federal supervision for life. The community is safer now for all citizens - especially our children.”
“Due to the lengthy sentence handed down yesterday, the FBI along with our valued partners, have effectively removed a dangerous child predator from our community,” said FBI Louisville Special Agent in Charge Robert Brown. “Know that those found exploiting the innocence of children online will be met with rigorous investigators working to hand down the harshest of punishments. The FBI will stop at nothing to provide justice to victims of sexual exploitation.”
In January 2020, Johnson pled guilty in state court to Prohibited Use of an Electronic Communication System to Procure a Minor. According to a sentencing memorandum filed by the United States, Johnson had created a profile and went online to communicate with minors. In one such communication, Johnson engaged with an individual he believed to be a thirteen-year-old girl, but who was actually an undercover Georgia law enforcement officer. Johnson engaged the officer in overtly sexual conversations, and in February 2020 (only a few weeks after his state court plea), he sent the Georgia undercover officer a video of child pornography.
Independently of his Georgia chats, Johnson was also chatting online with another person who he believed to be a minor, and who was an undercover FBI agent. The conversations with the undercover FBI agent date back to December 2019, were overtly sexual, and included an offer to meet the individual he believed to be a minor in order to engage in sex acts.
The investigations combined when, after the FBI conducted a federal search warrant at Johnson’s Bowling Green residence, Johnson provided the Georgia undercover with a copy of the federal search warrant. Johnson explained that he had a new number because the FBI had taken his phone in the search. Johnson was arrested shortly thereafter and has been in federal custody ever since.
After being sentenced by the United States District Court, Johnson is also due to return to state court for sentencing on the state charge to which he pled in January 2020, where the recommended sentence is five years “to run consecutively to any other sentence in any other indictment.”
Branch Chief Madison Sewell of the Bowling Green United States Attorney’s Office prosecuted the case. The investigations were conducted by the Federal Bureau of Investigation and the Roswell (GA) Police Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Readout of Attorney General Merrick B. Garland’s Call with the Minister of Justice and Attorney General of CanadaRead the Press Release
Attorney General Merrick B. Garland spoke yesterday with David Lametti, the Minister of Justice and Attorney General of Canada. In their inaugural conversation, the Attorneys General discussed a number of transborder law enforcement issues, including cybercrime, as well as violence against women, minorities, Indigenous peoples and other historically disadvantaged persons. The Attorneys General discussed their shared commitment to combatting systemic racism and discrimination and to further enhancing bilateral cooperation on law enforcement matters, including through the reinstitution of the U.S./Canada Cross-Border Crime Forum.
Portland Area Mail Thief Pleads Guilty to Bank Fraud, Identity Theft, and Possession of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Washington County, Oregon man pleaded guilty today for using stolen bank checks and debit cards to defraud local residents and illegally possessing distribution quantities of methamphetamine, announced Acting U.S. Attorney Scott Erik Asphaug.
William Anthony McCormack, Jr., 39, pleaded guilty to a superseding criminal information charging him with one count each of bank fraud, aggravated identity theft, and possession with intent to distribute methamphetamine.
According to court documents, between June and September 2020, McCormack devised a scheme whereby he would steal bank checks and debit cards from community mailboxes, primarily in Washington County, and use them to make unauthorized withdrawals from victims’ bank accounts. On at least five separate occasions, McCormack deposited stolen checks into victims’ Rivermark Community Credit Union accounts and immediately made unauthorized withdrawals from the same accounts.
On September 29, 2020, during a traffic stop for speeding and driving with a suspended license, a Tualatin Police officer arrested McCormack pursuant to a federal arrest warrant. At the time of his arrest, McCormack possessed 30 small plastic baggies containing at least 5 grams of methamphetamine and two 9mm handguns in the glove compartment of his vehicle. Officers also found several driver’s licenses, U.S. passports, and pieces of mail that did not belong to him in McCormack’s trunk and hotel room.
McCormack faces a maximum sentence of 72 years in prison, a $6.25 million fine, and five years’ supervised release. He is subject to a mandatory minimum prison sentence of seven years. McCormack will be sentenced on July 27, 2021 before U.S. District Court Judge Anna J. Brown.
As part of his plea agreement, McCormack has agreed to pay restitution in full to his victims as ordered to the court.
This case was investigated by the U.S. Postal Inspection Service. It is being prosecuted by Meredith Bateman and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
If you or someone you know are the victim of or witness a mail-related crime, please contact the U.S. Postal Inspection Service by visiting www.uspis.gov/report.
Philadelphia Police Officer Indicted on False Statement and Obstruction ChargesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Kennedy, 49, of Philadelphia, PA, was charged by Indictment with six counts of making materially false statements to the FBI, one count of obstruction of justice, and one count of conspiracy to make a false statement.
According to the Indictment, the defendant participated in the execution of a Philadelphia Police Department search warrant while on duty as a police officer. During the execution of that warrant, Kennedy is alleged to have pocketed evidence, that is, cash proceeds of drug trafficking that was on a nightstand. Subsequently, the Federal Bureau of Investigation (FBI) investigated reports that Kennedy stole this cash. The Indictment alleges that the defendant, when interviewed by FBI agents and Philadelphia Police Department Task Force Officers, made a number of false statements about the incident. The Indictment further alleges that the defendant obstructed justice by corruptly persuading another Philadelphia Police Department officer, and conspiring with that officer, to lie to the FBI about the incident in order to create an alibi and corroborate Kennedy’s false statements.
“The charges against Officer Kennedy allege behavior that is in stark contrast to values police officers are supposed to embody,” said Acting U.S. Attorney Williams. “Our community expects everyone in law enforcement to follow the law, and justice demands it. Thank you to the FBI and the Philadelphia Police Department for their dedicated work on this investigation.”
“As law enforcement officers, we must be held to the highest of ethical standards,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The public’s trust is critical for our justice system to function properly. That's why the FBI will do everything in its power to hold accountable an officer whose criminal actions undermine that trust.”
If convicted, the defendant faces a maximum possible sentence of 55 years’ imprisonment, including a federal Guidelines Range of a period of incarceration.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department Task Force Officers, and is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Joseph LaBar.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Fraud and Identity Theft Charges for his Role in Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Marlon Palacios, age 33, of Pittsburgh, Pennsylvania, pled guilty today to participating in a conspiracy to commit access device fraud, as well as for committing aggravated identity theft, for taking part in a nationwide gas station skimming scheme that involved stealing the banking and personal information of residents of Upstate and Central New York who used the “pay at the pump” feature to make gasoline purchases.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Acting Inspector in Charge Joshua McCallister, Boston Division, United States Postal Inspection Service (USPIS).
As part of his guilty plea, Palacios admitted to being a part of a conspiracy that, between December 2015 and July 2019, obtained the credit and debit card information of gas station customers using skimming devices surreptitiously installed inside gas pumps. Using the stolen information, members of the conspiracy created fake debit and credit cards, and then used those fake cards to obtain money orders and gift cards, and to withdraw cash from ATMs. Members of the conspiracy enriched themselves with some of the money orders, gift cards, and cash, and also provided money orders and gift cards to members of a money laundering conspiracy who used various bank and gift card exchange website transactions to obscure the nature and source of the funds.
Senior District Judge Gary L. Sharpe is scheduled to sentence Palacios on August 12, 2021. For the access device fraud conspiracy charge, Palacios faces up to 5 years in prison; a fine of up to $250,000; and up to 3 years of supervised release. For the aggravated identity theft charge, Palacios faces a term of imprisonment of 2 years, to be served consecutive to any other term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in San Juan, Miami, and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Patient Recruiter Sentenced to Prison for $3.3 Million Cancer Genetic Testing Fraud SchemeRead the Press Release
A Florida man was sentenced today to 10 years in prison for conspiracy to commit health care fraud in connection with a scheme that resulted in the submission of approximately $3.3 million in fraudulent claims to Medicare for genetic testing.
Ivan Andre Scott, 36, of Kissimmee, was convicted by a federal jury on Jan. 8, 2021, of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive unlawful health care kickbacks, and three counts of receiving unlawful kickbacks. According to court documents, Scott was the owner of Scott Global, a telemarketing call center located in Orlando. The evidence showed that Scott targeted Medicare beneficiaries with telemarketing phone calls falsely stating that Medicare covered expensive cancer screening genetic testing, or “CGx” tests. Each test cost as much as $6,000. After beneficiaries agreed to take the test, the evidence showed Scott paid unlawful bribes and kickbacks to telemedicine companies to obtain doctor’s orders authorizing the tests.
The evidence at trial showed that the telemedicine doctors approved the expensive testing even though they were not treating the beneficiary for cancer or symptoms of cancer, and often without even speaking with the beneficiary. According to the evidence presented at trial, Scott then sold the genetic tests and doctor’s orders to laboratories in exchange for illegal kickbacks. To conceal the illegal kickbacks, Scott submitted invoices to the laboratories and other marketers making it appear as though he were being paid for hourly marketing services, rather than per referral.
Between November 2018 and May 2019, labs submitted more than $3.3 million in claims to Medicare for genetic tests that Scott had referred to them, of which Medicare paid over $1.3 million. In that timeframe, Scott personally received approximately $194,000 for his role in the scheme.
“The defendant used telemarketing and telemedicine to defraud Medicare of more than a million dollars for unnecessary genetic screening tests,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department will continue working with our law enforcement partners to bring to justice those who seek to use new technologies to plunder our government health care programs.”
“Fraudsters who steal from taxpayer-funded federal health care programs and engage in predatory telemarketing calls are a threat to our country’s health care system and its most vulnerable beneficiaries,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Health and Human Services, Office of Inspector General (HHS-OIG). “Our agents will continue to aggressively investigate health care fraud and hold criminals responsible for their actions.”
“The unscrupulous tactics used in this scheme to steal from taxpayers is what drives our investigators to combat healthcare fraud,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office. “The FBI’s mission to protect the American people includes protecting them from fraudsters who cheat our nation’s federally funded healthcare systems.”
The case was investigated by HHS-OIG and the FBI and was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing and the use of telemedicine that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged.
Trial Attorneys Alejandro Salicrup and Jamie de Boer of the Fraud Section prosecuted the case.
Ooltewah Woman Sentenced to 20 Years Imprisonment for Creation of A Crush Video and Transportation of Child PornographyRead the Press Release
CHATTANOOGA, Tenn.– On April 14, 2021, Teela Moore Hendrix, 35, of Ooltewah, Tennessee, was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Hendrix agreed to plead guilty to a superseding indictment charging her with one count of transportation of child pornography, in violation of 18 U.S.C. §§ 2252A(a)(1) and (b)(l); and one count of creation of a crush video, which includes depictions of the sexual assault of an animal, in violation of 18 U.S.C. § 48.
Hendrix was sentenced to 235 months in prison, followed by 10 years of supervised release. Hendrix will be required to register with state sex offender registries and comply with special sex offender conditions during her supervised release.
The defendant sexually abused her 4-year-old son and the family dog and created digital videos of the abuse, which she traded with someone she met in an online room dedicated to sexually abusing animals.
“Mrs. Hendricks’ sentence reflects the seriousness of her crimes and the enduring harm caused when offenders record and preserve their abhorrent exploitation of minors in visual media. Thanks to a partnership between the Hamilton County Sheriff’s Office, Homeland Security Investigations, and the North Carolina State Bureau of Investigation, Mrs. Hendricks is now in prison, and her son is now safe,” said Acting United States Attorney Francis M. Hamilton III.
“The results of this investigation highlight the Hamilton County Sheriff’s Office commitment to protecting our children and the collaborative partnerships we share with our law enforcement partners specifically the United States Attorney’s Office, the Department of Homeland Security Investigations, and the North Carolina State Bureau of Investigation. Together, we will continue to aggressively pursue and prosecute those who prey upon our community’s most vulnerable, our children,” stated Chief Deputy Austin Garrett of the Hamilton County Sheriff’s Office (“HCSO”).
“HSI agents make it a top priority to work with all of our law enforcement partners to investigate predators involved with the production, distribution and possession of child sexual abuse material,” said Special Agent in Charge Jerry C. Templet, Jr, HSI Nashville. “Each year, millions of children fall prey to sexual predators, and it is imperative that we do our part to protect vulnerable children from victimization and ensure the perpetrators are punished for their heinous crimes.”
The criminal indictment was the result of an investigation by the Hamilton County Sheriff’s Office, Homeland Security Investigation, and the North Carolina State Bureau of Investigation (“NC SBI”). This investigation was led by Task Force Officer Ed Merritt and Special Agent Dave Nalley of HSI and Special Agent Chris Munden of the NC SBI.
Assistant United States Attorney James T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Ontario Company Sentenced for Dumping Waste Water into Lake Ontario Violating the Clean Water ActRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - The Algoma Central Corporation (Algoma) was fined $500,000 by U.S. Magistrate Judge H. Kenneth Schroeder, Jr. after pleading guilty to a negligent violation of the Clean Water Act. The company, which is headquartered in St. Catharines, Ontario, was also put on probation for a period of three years during which it must implement an environmental compliance plan.
Algoma operated a fleet of dry and liquid bulk carriers on the Great Lakes. One of the vessels in the defendant’s fleet was the M/V Algoma Strongfield (Strongfield). Built in China, the Strongfield was delivered to Canada on May 30, 2017, by a crew from Redwise Maritime Services, B.V. (Redwise), a vessel transport company based in the Netherlands.
“The Great Lakes are our nation’s largest source of fresh water, and this prosecution shows the Administration’s commitment to preserving a natural resource that will be crucial for generations to come,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD).
“The very purpose of the Clean Water Act is to protect our natural resources, including one of our nation’s greatest natural treasures, the Great Lakes, from harm,” stated U.S. Attorney James P. Kennedy, Jr. “This conviction and the fine imposed sends a strong message that those who violate the Clean Water Act will be held accountable for their actions. This penalty also ensures that this defendant will be monitored in the future and will be strictly obligated to comply with those environmental laws and regulations that protect our waters, our fisheries, our wildlife, and each of us.”
During the Strongfield’s delivery voyage, while manned by a Redwise crew, the oily water separator and oil content monitor malfunctioned or failed on multiple occasions, which resulted in an accumulation of unprocessed oily bilge water. On May 5, 2017, an Algoma employee directed Redwise to transfer and store the unprocessed oily bilge water in the Strongfield’s used wash water tank to avoid an overboard discharge of unprocessed bilge water into the Pacific Ocean. The wash water tank was intended to store deck and cargo hold wash water and is not listed on the Strongfield’s International Oil Pollution Prevention certificate. Between May 5, 2017, and the Strongfield’s arrival in Canada, the Redwise crew made several additional transfers of unprocessed oily bilge waste into the wash water tank to avoid overboard discharges of untreated bilge water.
On May 19, 2017, as the Strongfield was transiting the Panama Canal, an Algoma employee boarded the vessel and remained onboard until the vessel’s arrival in Canada, where he assumed the duties of Chief Engineer. On May 30, 2017, the Strongfield arrived in Sept-Iles, Quebec, Canada, where the Redwise crew handed over operation of the vessel to an Algoma crew. Although some of the Algoma crew were advised that the wash water tank contained unprocessed oily bilge water, Algoma acted negligently in failing to inform all onboarding Algoma crewmembers and the inspectors of the contents of the wash water tank.
On June 6, 2017, the Stongfield was transiting Lake Ontario. While in the waters of the United States within the Western District of New York, the 3rd officer on board the Strongfield requested permission to empty the contents of the wash water tank into Lake Ontario, and the captain approved the discharge. Because Algoma had negligently failed to inform the 3rd officer and the captain what the wash water tank contained, approximately 11,887 gallons of unprocessed oily bilge water were released into Lake Ontario. The discharge was stopped when another Algoma employee learned of the discharge and informed the 3rd officer and captain that the wash water tank contained unprocessed oily bilge water and instructed them to stop the discharge immediately. After the incident, Algoma contacted Canadian and U.S. authorities to report the discharge.
The sentencing is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Cindy C. Buckley, Buffalo, New York, and Resident Agent in Charge Edward L. Songer, Detroit, Michigan.
Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango of the Western District of New York are prosecuting the case.
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Odessa Area Methamphetamine Ring Members Sentenced to Federal PrisonRead the Press Release
In Midland, a federal judge sentenced the last of six defendants who were operating a methamphetamine distribution ring throughout the Odessa area. The judge sentenced 42-year-old Jeremy David Farley, aka “Biker,” to 30 years in federal prison for conspiring to distribute approximately 27 kilograms of methamphetamine throughout the Odessa area, announced U.S. Attorney Ashley C. Hoff, Odessa Police Chief Mike Gerke and DEA Special Agent in Charge Kyle Williamson, El Paso Division.
During yesterday’s sentencing hearing, U.S. District Judge David Counts also ordered that Farley be placed on supervised release for a period of 10 years after completing his prison term.
On September 15, 2020, jurors convicted Farley of one count of conspiracy to possess with intent to distribute methamphetamine. According to evidence presented during trial, Farley and others conspired between October 2019 and December 2019 to distribute approximately 27 kilograms of methamphetamine in the Permian Basin. Evidence also revealed that this was Farley’s second federal drug conviction after being sentenced in 2009 to 87 months in federal prison for possession of methamphetamine with intent to distribute in the Odessa area.
This case resulted in six convictions and federal prison sentences, including Farley. The other defendants who pleaded guilty to one count of conspiracy to distribute methamphetamine are:
- Alan Oszuel Gonzalez, age 35 of Midland, was sentenced on October 2, 2020 to 235 months in federal prison followed by five years of supervised release;
- Bryan Edward Madsen, age 49 of Odessa, was sentenced on October 9, 2020 to 312 months in federal prison followed by five years of supervised release;
- Timothy Granado Marquez, age 36 of Odessa, was sentenced on October 14, 2020 to 188 months in federal prison followed by five years of supervised release;
- Amber Rene Velarde, age 32 of Midland, was sentenced on October 14, 2020 to 135 months in federal prison followed by five years of supervised release; and,
- Michael Robert Spaulding, age 46 of Wink, was sentenced on October 2, 2020 to 235 months in federal prison followed by five years of supervised release.
The Odessa Police Department, with assistance from the DEA, investigated this case. Assistant U.S. Attorney Shane A. Chriesman prosecuted this case.
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North Carolina Man Who Used Snapchat to Solicit Minors in Galax Pleads Guilty in Federal CourtRead the Press Release
ABINGDON, Va. – A North Carolina man, who used the popular social media messaging app Snapchat to solicit minors to send him sexually explicit photographs and videos in exchange for expensive gifts, pleaded guilty today in U.S. District Court in Abingdon, Acting United States Attorney Daniel P. Bubar, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Grayson County Sheriff Richard Vaughan announced today.
Jason Kelly Inman, 40, of Mount Airy, N.C., waived his right to be indicted and pleaded guilty today to a one-count Information charging him with persuading, enticing, and coercing and attempting to persuade, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. At sentencing, Inman faces a term of imprisonment of 15 to 17-and-one-half years, and a mandatory minimum term of supervised release of five years. A sentencing hearing has been scheduled for July 21, 2021 at 2:30 p.m.
“This defendant used the internet to prey on vulnerable victims, promising them expensive gifts and cash in order to facilitate this egregious behavior,” United States Attorney Bubar said today. “An unfortunate side effect of living our lives increasingly online is the increased ability of bad actors to reach across the internet into the bedrooms of our children through messaging apps, social media, and other platforms. I am thankful for the work of the FBI and the Grayson County Sheriff’s Office in bringing this case to justice.”
“Sending just one sexually explicit image could be the catalyst for possible child sexual exploitation. That's why it's imperative that we educate our communities about these threats to our youth, investigate and prosecute those that prey on our children, and mitigate the effects of these crimes. Reporting these crimes in a timely manner enables trained law enforcement personnel to initiate investigations and arrange for appropriate victim services,” Special Agent in Charge Meador said today. “FBI Richmond is grateful for the partnership of the Grayson County Sheriff's Office, the Virginia State Police and the United States Attorney's Office during this investigation.”
“I commend everyone involved with the investigation, arrest, and successful prosecution of this child predator,” Grayson County Sheriff Richard Vaughan said today. “The school administration, resource officers, investigators, and prosecutors did an outstanding job! We are thankful for the great working relationship we have with our law enforcement partners.”
Today Inman admitted that between June 2020 and December 2020, he used Snapchat to solicit minor victims living in Grayson County, Virginia, to send him sexually explicit photographs and videos of themselves. Inman targeted at least four minor, male victims, all who resided in Galax, Virginia, and ranged in age from 14 to 16 years old.
Inman’s general pattern of behavior was to exchange messages with his victims using Snapchat and provide the victims with gifts, including marijuana, vape cartridges, money, and cell phones. Inman would then turn the conversation toward sexual issues, eventually requesting and receiving sexually explicit photographs and videos from his victims via Snapchat, in exchange for the victims continuing to receive gifts. Inman also traveled to Grayson County, Virginia, to deliver gifts to his victims and meet with them in-person, including meeting at least one victim at a Grayson County school bus stop. There is no evidence of actual physical contact between Inman and the victims.
The investigation of the case was conducted by the Grayson County Sheriff’s Office, the Federal Bureau of Investigation, and the Virginia State Police. Assistant United States Attorneys Lena L. Busscher and Whit D. Pierce are prosecuting the case for the United States.
New York Man Sentenced on Federal Drug ChargeRead the Press Release
BANGOR, Maine: A New York man was sentenced today in federal court for possessing cocaine base and fentanyl with intent to distribute, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Terrence Robinson, aka “Trevor Scott,” 28, to five years in prison and four years of supervised release. Robinson pleaded guilty on December 11, 2020.
According to court records, on November 15, 2019, law enforcement officers encountered Robinson in Bangor. Robinson had active warrants for his arrest. Officers searched Robinson and located packages of drugs concealed in his pants. Officers seized a package containing 61.7 grams of a mixture containing cocaine base and a package containing 68.9 grams of a mixture containing fentanyl, heroin and methamphetamine.
The U.S. Drug Enforcement Administration, the Maine State Police and the Bangor Police Department investigated the case.
New York City Man Arrested for Carrying Out Hoax Bomb Threat at Manhattan RestaurantRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a criminal Complaint charging MALIK SANCHEZ, a/k/a “Smooth Sanchez,” with making a hoax threat to detonate a bomb at a restaurant in the Flatiron neighborhood in New York, New York, on or about February 13, 2021. SANCHEZ was arrested today in Manhattan, and he will be presented this afternoon before United States Magistrate Judge Ona T. Wang.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Malik Sanchez perpetrated a hoax bomb threat at a Manhattan restaurant that frightened innocent victims, sowed chaos, and diverted precious law enforcement resources. Today’s arrest makes clear that such conduct will not be tolerated.”
FBI Assistant Director William F. Sweeney Jr. said: “Whether real or perceived, a threat of violence is a serious action with real-life consequences. In this case, Sanchez’s alleged behavior carries the potential for a federal prison sentence. Anyone who intends to carry out a similar hoax should know that the FBI’s JTTF is ready and willing to respond.”
NYPD Commissioner Dermot Shea said: “Malik Sanchez’s alleged hoax bomb threat, as detailed in today’s federal complaint, disrupted not only the safety and well-being of several innocent restaurant patrons but the fabric of society. Our NYPD detectives, with our partners in the FBI’s Joint Terrorism Task Force and the United States Attorney’s Office in the Southern District of New York, have zero tolerance for actions like these.”
As alleged in the Complaint unsealed in Manhattan federal court[1]:
SANCHEZ self-identifies as an “Involuntary Celibate” or “Incel,” which refers to a primarily online group of individuals, mostly men, who believe that society unjustly denies them sexual or romantic attention to which they are entitled. SANCHEZ has posted multiple videos to social media accounts depicting SANCHEZ harassing, threatening, and in one instance harming individuals whom SANCHEZ encounters in Manhattan, while expressing support for Incel ideology, including for carrying out violence against women in the name of the group.
For example, on or about February 7, 2021, SANCHEZ posted online a video with a caption including “INCEL ARMY RISE UP.” The video depicts SANCHEZ yelling at two women walking on a street in Manhattan that SANCHEZ has “Incel rage”; that he supports Incel’s unofficial founder, Elliot Rodger, who attacked a sorority house and pedestrians in California in 2014, killing six victims and injuring 14 others; and that Rodger’s victims “deserved to be run over and hit by a truck. They deserved to be slaughtered.”[2] On or about March 20, 2021, SANCHEZ posted another video filmed in Manhattan, which depicts SANCHEZ approaching multiple women at an outdoor seating area. In the video, SANCHEZ again proclaimed his support for Incels and Elliot Rodger, while making hand gestures mimicking pointing a gun. After multiple individuals attempted to get SANCHEZ to stop, SANCHEZ sprayed pepper spray in the face of one of those individuals. SANCHEZ was arrested by responding NYPD officers and charged with state offenses, and was thereafter released on bail.
On or about February 13, 2021, SANCHEZ posted a video that depicts him perpetrating a hoax bomb threat at a restaurant in Manhattan’s Flatiron neighborhood. The video shows SANCHEZ approaching an outdoor seating area in front of the restaurant and stating: “Let’s enhance their meal.” SANCHEZ then positioned himself close to two women seated at one of the tables, and conveyed that he was about to detonate a bomb. SANCHEZ loudly stated: “Allahu Akbar. Allahu Akbar. Bomb detonation in two, in two minutes. I take you with me and I kill all you. I kill all you right now. And I kill all you for Allah. . . . I’m gonna do it. I’m gonna fucking do it for Allah. I’m gonna do it, for, Allah, Allah, Allahu Akbar, Come on. I do it, bomb now, bomb now.” The two women appeared startled, gathered their belongings, and went into the restaurant; approximately four other individuals in the seating area grabbed their belongings and ran away. SANCHEZ then stated: “Yo, all of them scattered” and “Holy shit boys. That was fucking five stars. That was five stars.” At least one individual called 911 in connection with the bomb threat, and law enforcement responded to the scene. By that point, SANCHEZ had left the area.
* * *
SANCHEZ, 19, of New York, New York, is charged with one count of conveying false and misleading information and hoaxes, in violation of Title 18, United States Code, Section 1038, which carries a maximum sentence of five years in prison. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Kaylan E. Lasky is in charge of the prosecution, with assistance from Trial Attorney Elisabeth Poteat of the Counterterrorism Section of the Department of Justice’s National Security Division.
The charge contained in the Complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
[2] Statements discussed and quoted herein are described in substance and in part.
New Jersey Man Indicted for Attempting to Hire A Hitman on Dark Net to Murder A 14-Year Old ChildRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man under investigation by the Atlantic County Prosecutor’s Office for child pornography-related offenses was indicted today for allegedly paying $20,000 in bitcoin to have the 14-year old child victim murdered, Acting U.S. Attorney Rachael A. Honig announced.
John Michael Musbach, 31, of Haddonfield, was charged by indictment with one count of murder-for-hire and will be scheduled for an arraignment at a later date.
According to documents filed in this case, and statements made in court:
In the summer of 2015, Musbach began communicating via an Internet Relay Chat (IRC) website with his victim, who was 13 years old at the time. Musbach began using those IRC conversations to request and receive sexually explicit videos and photographs of the minor victim and to send to the victim sexually explicit videos and photographs of himself.
In September 2015, the victim’s parents discovered the nature of Musbach’s communications with the victim and notified local law enforcement officers in the State of New York, where the victim resided. Officers began investigating Musbach’s conduct and called Musbach to notify him that he was under investigation for his online sexual contact with the victim and that he was to stay away from the victim. Upon identifying Musbach as a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO), which continued the investigation.
On March 31, 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey. Law enforcement officers seized Musbach’s cellular telephone and his business. Musbach admitted to having sent sexually explicit images and videos of himself to the victim and having requested and received sexually explicit images and videos from the victim, all while knowing that the victim was 13-years old.
On Oct. 11, 2017, Musbach pleaded guilty to endangering the welfare of a child (the victim) by sexual contact and was sentenced on Feb. 9, 2018, by a New Jersey Superior Court Judge, to a two-year suspended sentence with parole supervision for life.
In 2019, a cooperating informant began providing law enforcement with messages between Musbach and a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency.
Those messages revealed that in May 2016, Musbach attempted to arrange a murder-for-hire through the website. He asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
Agents were able to confirm Musbach’s identity through several means, including linking him to the same screen name he used to communicate with the murder-for-hire website and also by tracing the flow of monies from Musbach’s bank account to the purchase of bitcoin used to pay for the hit.
The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense.
Acting U.S. Attorney Honig credited special agents of Homeland Security Investigations, in Newark, under the direction of Special Agent in Charge Jason Molina, and in St. Paul, Minnesota, under the direction of Special Agent in Charge Tracy Cormier, with the investigation. She also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Rocco C. Cipparone, Jr., Esquire, of Haddon Heights, NJ.
New Ipswich Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONCORD - Christopher Hodgeman, 29, of New Ipswich, pleaded guilty in federal court on Tuesday to possession of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on or about November 28, 2018, Hodgeman began communicating with an undercover officer on a social media platform used to exchange child pornography. The officer pretended to be an uncle with a nine-year-old niece. Hodgeman repeatedly asked the officer to send him pictures of his niece and allow him to talk to her. Hodgeman sent images of child pornography to the officer. Investigators traced the social media account to Hodgeman’s residence and executed a search warrant on April 15, 2019, where they seized various devices including a cellular phone. A forensic examination of the phone revealed images of child pornography. Hodgeman admitted to using the account, communicating with minor females online, and possessing and distributing child pornography.
Hodgeman is scheduled to be sentenced on August 10, 2021.
“Child pornography contains horrific images of children being exploited,” said Acting U.S. Attorney Farley. “In order to protect children from exploitation and harm, we work closely with our law enforcement partners to identify and prosecute those who manufacture, distribute or possess child pornography.”
“The individual in this case not only traded in child exploitation material, but also sought to make direct contact with children online. Homeland Security Investigations is committed to investigating crimes against children online to prevent their exploitation and stop predators from making contact with potential victims,” said Acting Special Agent in Charge for the Homeland Security Investigations Boston Field Office, William S. Walker.
This matter was investigated by Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Georgiana MacDonald.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Hampshire Man Sentenced to Prison for Facilitating Employment Tax FraudRead the Press Release
A New Hampshire man was sentenced today to 18 months in prison for employment tax fraud.
According to court documents, Walter Rodriguez, of Manchester, aided and abetted several drywall companies that were evading the payment of employment taxes from 2011 to 2013. Rodriguez found workers for the companies for construction jobs. The companies then issued checks in the names of fictitious or fraudulent identities and provided those checks to Rodriguez, who converted the checks to cash at local check-cashing businesses and paid the workers off-the-books. In total, Rodriguez enabled the payment of $1.7 million in unreported wages, causing a tax loss of $416,000.
In addition to the term of imprisonment, U.S. District Judge Steven J. McAuliffe ordered Rodriguez to serve one year of supervised release and to pay approximately $416,163 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney John J. Farley for the District of New Hampshire made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Brittney Campbell of the Justice Department’s Tax Division and Assistant U.S. Attorney Seth Aframe of the District of New Hampshire prosecuted the case.
New Hampshire Man Sentenced to 18 Months in Prison for Facilitating Employment Tax FraudRead the Press Release
CONCORD – Walter Rodriguez, of Manchester, was sentenced today to 18 months in prison for employment tax fraud.
According to court documents, from 2011 to 2013, Rodriguez aided and abetted several drywall companies that were evading the payment of employment taxes. Rodriguez found workers for the companies for construction jobs. The companies then issued checks in the names of fictitious or fraudulent identities and provided those checks to Rodriguez. He then converted the checks to cash at local check-cashing businesses and paid the workers off-the-books. In total, Rodriguez enabled the payment of $1.7 million in unreported wages, causing a tax loss of $416,000.
In addition to the term of imprisonment, U.S. District Judge Steven J. McAuliffe ordered Rodriguez to serve 1 year of supervised release and to pay approximately $416,163 in restitution to the United States.
Rodriguez previously pleaded guilty on January 12, 2021.
Acting United States Attorney John J. Farley and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
“The defendant committed a serious violation of federal law,” said Acting U.S. Attorney Farley. “The defendant’s elaborate scheme generated a significant number of false documents, allowed individuals to work off-the-books, and resulted in over $400,000 in unpaid taxes. As this case shows, tax cheaters in New Hampshire will face significant consequences for their unlawful conduct.”
“Under-the-table schemes like those perpetrated by the defendant are an affront to the hardworking businesses who play by the rules,” stated Ramsey E. Covington, Acting Special Agent in Charge of Internal Revenue Service-Criminal Investigation, Boston Field Office. “The terms handed down in today’s sentencing will hopefully serve as a clear warning about the penalties that await those involved in this type of criminal activity.”
IRS-Criminal Investigation investigated the case. Assistant U.S. Attorney Seth Aframe of the District of New Hampshire and Trial Attorney Brittney Campbell of the Justice Department’s Tax Division prosecuted the case.
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Muncie Police Officers Indicted on Additional Charges of Excessive Force and ObstructionRead the Press Release
A federal grand jury in Indianapolis, Indiana, returned a 17-count superseding indictment charging three officers and one sergeant of the Muncie Police Department with excessive force and obstruction.
According to court documents, Officers Joseph Chase Winkle, 34, Jeremy Gibson, 30, Corey Posey, 28, and Sergeant Joseph Krejsa, 50, were indicted for their roles in using excessive force against arrestees and attempting to cover up the misconduct.
The superseding indictment charges Winkle with 11 felony offenses, Gibson with three felony offenses, Krejsa with two felony offenses, and Posey with one felony offense.
Winkle is charged with five counts of depriving five different arrestees of their rights to be free from excessive force, and six counts writing false reports about his uses of force against those arrestees, as well as two other arrestees. According to the superseding indictment, Winkle’s actions included kicking, punching, knee-striking, and using a taser on arrestees without justification, and resulted in bodily injury to the arrestees.
Gibson is charged with two counts of depriving two arrestees of their rights to be free from excessive force, and one count of writing a false report about his use of force against one of those arrestees. According to the superseding indictment, Gibson’s actions included punching, stomping on, and knee-striking arrestees without justification, and resulted in bodily injury to both arrestees.
Krejsa is charged with two counts of writing false reports related to two of Winkle’s excessive force incidents. According to the superseding indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.
Posey is charged with one count of writing a false report related to one of Winkle’s excessive force incidents. According to the superseding indictment, Posey’s use of force report misrepresented the arrestee’s behavior, and mischaracterized and omitted Winkle’s unlawful use of force during the incident.
Winkle, Gibson, and Krejsa were previously charged in a 12-count indictment with civil rights and obstruction offenses arising from five of the six incidents charged in the superseding indictment. The superseding indictment adds additional excessive force and false report charges against Winkle and Gibson related to a sixth incident, and charges Posey (who was not included in the previous indictment) with obstruction.
The maximum penalty for the deprivation-of-rights offenses is 10 years of imprisonment and the maximum penalty for false report offenses is 20 years of imprisonment.
The FBI conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana are prosecuting the case.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Muncie Police Officers Indicted on Additional Charges of Excessive Force and ObstructionRead the Press Release
Indianapolis – Acting U.S. Attorney John Childress announced today that a federal grand jury in Indianapolis, returned a 17-count superseding indictment charging three officers and one sergeant of the Muncie Police Department with excessive force and obstruction.
According to court documents, Officers Joseph Chase Winkle, 34, Jeremy Gibson, 30, and Corey Posey 28 – and Sergeant Joseph Krejsa, 50, were indicted for their roles in using excessive force against arrestees and attempting to cover up the misconduct.
The superseding indictment charges Winkle with 11 felony offenses, Gibson with three felony offenses, Krejsa with two felony offenses, and Posey with one felony offense.
Winkle is charged with five counts of violating 18 U.S.C. § 242 for depriving five different arrestees of their rights to be free from excessive force, and six counts of violating 18 U.S.C. § 1519 for writing false reports about his uses of force against those arrestees, as well as two other arrestees. According to the superseding indictment, Winkle’s actions included kicking, punching, knee-striking, and using a taser on arrestees without justification, and resulted in bodily injury to the arrestees.
Gibson is charged with two counts of violating 18 U.S.C. § 242 for depriving two arrestees of their rights to be free from excessive force, and one count of violating 18 U.S.C. § 1519 for writing a false report about his use of force against one of those arrestees. According to the superseding indictment, Gibson’s actions included punching, stomping on, and knee-striking arrestees without justification, and resulted in bodily injury to both arrestees.
Krejsa is charged with two counts of violating 18 U.S.C. § 1519 for writing false reports related to two of Winkle’s excessive force incidents. According to the superseding indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.
Posey is charged with one count of violating 18 U.S.C. § 1519 for writing a false report related to one of Winkle’s excessive force incidents. According to the superseding indictment, Posey’s use of force report misrepresented the arrestee’s behavior, and mischaracterized and omitted Winkle’s unlawful use of force during the incident.
Winkle, Gibson, and Krejsa were previously charged in a 12-count indictment with civil rights and obstruction offenses arising from five of the six incidents charged in the superseding indictment. The superseding indictment adds additional excessive force and false report charges against Winkle and Gibson related to a sixth incident, and charges Posey (who was not included in the previous indictment) with obstruction.
The maximum penalty for the deprivation-of-rights offenses is 10 years of imprisonment and the maximum penalty for false report offenses is 20 years of imprisonment.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The FBI conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana are prosecuting the case.
Montville Man Admits Robbing Norwich Bank While on Supervised Release for Prior Bank Robbery ConvictionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ANTHONY HALL, 60, of Montville, pleaded guilty yesterday before U.S. District Judge Janet C. Hall in New Haven to one count of bank robbery.
According to court documents and statements made in court, in April 2011, Anthony Hall was sentenced in Hartford federal court to 87 months of imprisonment, followed by five years of supervised release, for robbing four Connecticut banks in 2008 and 2009. He was released from federal custody in January 2016.
On September 13, 2019, while on federal supervised release, Hall robbed the Eastern Savings Bank, located at 666 West Main Street in Norwich, of approximately $2,400.
Hall has been detained since his arrest on related state charges in October 2019.
Judge Hall scheduled sentencing for July 6, 2021, at which time Anthony Hall faces a maximum term of imprisonment of 20 years for the bank robbery offense, and additional penalties for violating the conditions of his supervised release.
This matter has been investigated by the Federal Bureau of Investigation and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Monroe County Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Sparano, age 30, of Stroudsburg, Pennsylvania, was indicted on April 13, 2021, by a federal grand jury for drug trafficking and firearm offenses.
According to Acting United States Attorney Bruce D. Brandler, the indictment charges Sparano with conspiracy to distribute over one kilogram of heroin (which is the equivalent of approximately 40,000 individual doses of heroin). The indictment further charges Sparano with possessing two firearms while knowing that he had previously been convicted of a felony.
The matter was investigated by the Federal Bureau of Investigation (FBI) the Monroe County District Attorney’s Office, the Monroe County Drug Task Force, and the Stroud Area Regional Police Department. Assistant United States Attorney James Buchanan is prosecuting 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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 these offenses is life years 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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Monmouth County Man Admits Posing as Teenager on Facebook to Induce Minor to Send Sexually Explicit Pictures and VideosRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted to knowingly receiving child pornography, Acting U.S. Attorney Rachael A. Honig announced today.
Herman Christopher Jensen, 68, of Union Beach, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of knowingly receiving child pornography.
According to the documents filed in this case and statements made in court:
Special agents of the FBI began investigating Jensen for assuming the identity of a 17-year-old boy to entice and solicit an underage girl to send nude and sexually explicit images over the internet. Jensen did this by creating a fake Facebook account, purporting to be a teenaged boy named “Kevin Bennett.” From January 2018 through August 2018, Jensen used the “Kevin Bennett” Facebook account to communicate with the victim frequently, causing her to believe that she was involved in a romantic relationship with “Kevin Bennett.”
Jensen requested nude and semi-nude photographs from the victim through Facebook’s messenger service and the victim sent him images. Jensen received increasingly explicit videos depicting the victim engaging in sexually explicit activity.
In August of 2018, Jensen revealed to the victim that he was not the 17-year-old boy he purported to be, but instead an adult named Chris Jensen. The victim continued to communicate with Jensen via the “Chris Jensen” Facebook account. In December 2018, the victim traveled to New Jersey to live with Jensen. On Dec.19, 2018, local authorities removed the victim from Jensen’s residence.
The charge of knowingly receiving child pornography carries a minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to the greatest of $250,000, or twice the gross amount of any pecuniary gain or loss, whichever is greater. Sentencing is scheduled for September 14, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the FBI and the Red Bank Resident Agencies Jersey Shore Gang and Criminal Organization Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the Union Beach, New Jersey, Police Department, under the direction of Chief of Police Michael J. Woodrow, for assistance in the investigation.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John C. Feggeler Esq., Matawan, New Jersey
Mid-Level Participant in South Pittsburgh Drug Gang Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to five years’ (60 months’) imprisonment and four years’ supervised release on his conviction for conspiracy to distribute heroin and fentanyl. Williams was charged in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Ronald Williams, age 28. Mr. Williams is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
According to information presented to the court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wiretap investigation, which continued through June of 2019. Communications about drug trafficking between Williams and his codefendant, Christopher Highsmith, the leader of the organization, were intercepted. Additionally, agents made two controlled purchases of quantities of a fentanyl and heroin mixture from Mr. Williams and seized approximately there grams of a fentanyl and heroin mixture following a traffic stop of Mr. Williams’ vehicle.
Prior to imposing sentence, Judge Stickman advised Williams that his sentence was in keeping with other defendants sentences in the case that had a mid-level role within the drug-trafficking organization. Judge Stickman further ordered that $1,540 dollars in U.S. currency seized from Williams be forfeited to the United States.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
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.
Mebane Man Convicted of Possession of a Firearm by a Convicted Felon for a Second TimeRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Mebane man yesterday on charges of Possession of a Firearm by a Convicted Felon.
According to court records and evidence presented at trial, Antonio Kortez Turner, 32, was indicted on November 20, 2019. On March 27, 2019, at approximately 1:45pm, Raleigh Police Department (RPD) Officers were conducting a security check of the parking lot at 500 W. Morgan Street, one block from the Ugly Monkey Bar. Officers located a black Honda Accord underneath a parking lot light and saw a firearm tucked between the passenger seat and the passenger door. After searching the vehicle registration, it was determined that the registered owner had the same address as Antonio Turner, a federally convicted felon who had previously been convicted in federal court for possession of a firearm by a convicted felon and distribution of cocaine base (crack). Officers also learned that Turner was on federal supervised release out of the Middle District of North Carolina for possession of a firearm by a convicted felon and distribution of cocaine.
Officers began surveillance on the parking lot and observed Turner enter the driver's seat and another man enter the passenger seat of the Honda Accord. RPD Officers approached the vehicle and observed Turner waving a firearm with an extended magazine outside the driver's side window. Officers gave verbal commands for Turner to drop the firearm and put his hands in the air. Turner instead attempted to conceal the firearm beneath the passenger's leg inside the Honda Accord. The passenger attempted to conceal the firearm under the passenger seat.
Turner faces up to 120 months imprisonment and 3 years of supervised release when he is sentenced at a later date.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) and the Raleigh Police Department investigated the case and Assistant U.S. Attorneys Daniel Smith and David Fitzgerald prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:19-cr-00464-BO-1.
Maryland Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Maryland tax preparer pleaded guilty today to conspiring to defraud the United States and to assisting in the preparation of a false tax return.
According to court documents and statements made in court, Veronica Fortune and two co-conspirators provided return preparation services from an office in Temple Hills. Fortune operated under several business names, including Fortune’s Professional Services LLC. Beginning in 2015, Fortune began preparing false returns for clients and permitted her co-conspirators to file false returns using Fortune’s IRS e-filing credentials. The IRS later expelled Fortune from its e-filing program, but she continued to prepare fraudulent returns through the 2018 tax year. In total, Fortune and her co-conspirators caused a tax loss to the IRS of $189,748.
Fortune is scheduled to be sentenced on Aug. 20, 2021. She faces a maximum penalty of five years on the conspiracy charge, and three years on the preparing a false tax return offense. A period of supervised release, restitution and monetary penalties also may be imposed. A federal district court judge will determine Fortune’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jonathan Lenzner for the District of Maryland made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Kathryn Sparks of the Justice Department’s Tax Division and Assistant U.S. Attorney Leah Grossi of the U.S. Attorney’s Office for the District of Maryland are prosecuting the case.
Manchester Man Sentenced to 144 Months for Drug Trafficking and Firearms CrimesRead the Press Release
CONCORD - Justin McInnes, 32, of Manchester, was sentenced to 144 months in federal prison on Tuesday for unlawful possession of a firearm, possessing a firearm in furtherance of a drug trafficking offense and possession of cocaine with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on September 6, 2018, Manchester police officers approached McInnes as he was in the driver’s seat of a vehicle that had just backed out of a parking spot. As officers approached, McInnes accelerated toward the officers causing at least one to jump out of the way. Officers fired at the vehicle and, once the vehicle came to a stop, officers arrested McInnes. During a search incident to his arrest, officers found suspected cocaine and crack cocaine on McInnes’ person.
Officers obtained a search warrant for the vehicle and found three firearms, counterfeit money, and materials for manufacturing counterfeit money. Multiple cellular telephones were also seized that contained text messages related to drug distribution.
McInnes is legally prohibited from possessing firearms by virtue of prior felony convictions in 2008, 2013, 2014 and 2018.
“Armed criminals present a serious threat to the community,” said Acting U.S. Attorney Farley. “Thanks to the work of the Manchester Police Department and ATF, this dangerous armed drug trafficker will be in federal prison where he can no longer endanger the citizens of Manchester. We will continue to work closely with our law enforcement partners to identify and prosecute the violent criminals who threaten public safety in the Granite State.”
“I am very pleased with the sentence that the defendant received in this matter. His actions directly put the lives of Manchester Police officers and the community as a whole in grave danger and for that he is being held accountable. I am grateful to the officers, detectives and prosecutors who dedicated a great amount of effort and time to this case which directly impacted the defendant receiving the sentence that he did,” says Manchester Police Chief Allen Aldenberg.
This matter was investigated by the Manchester Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man from Albuquerque pleads guilty to federal bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Dagoberto Ruiz, 25, of Albuquerque, pleaded guilty in federal court on April 7 to bank robbery.
A grand jury indicted Ruiz on June 11, 2019. In the plea agreement and other court documents, Ruiz admitted to entering a bank in Albuquerque on May 20, 2019, and robbing it using a demand note. After the teller handed Ruiz a bag of money, Ruiz left the bank, but was later located and arrested by law enforcement.
Ruiz will remain in custody pending sentencing. Ruiz faces 20 years in prison for this offense.
The FBI investigated this case. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.