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25 May 2021
Two Individuals Indicted for Money Laundering Related to Odebrecht Bribery and Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Peter Weinzierl and Alexander Waldstein, both citizens of Austria, for their roles in a scheme to launder hundreds of millions of dollars through the U.S. financial system on behalf of Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate, in order to pay bribes around the world and defraud the Brazilian government. Weinzierl was arrested earlier today in the United Kingdom pursuant to a provisional arrest request from the United States. Waldstein remains at large.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General, U.S. Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment and arrest.
“As alleged, the defendants, high-ranking officials at an Austrian bank, brazenly assisted a large corporation in laundering millions of dollars through the United States financial system as part of a scheme to commit tax fraud on the Brazilian government,” stated Acting U.S. Attorney Lesko. “This Office is committed to protecting the integrity of the U.S. financial system and will hold accountable those who seek to misuse it to defraud a foreign government.” Mr. Lesko thanked the Department of Justice’s Criminal Division and the FBI for their work on the investigation.
As alleged in the indictment, Weinzierl served as chief executive officer and Waldstein served as an officer of an Austrian bank (the “Austrian Bank”), and both served as board members of an Antiguan bank (the “Antiguan Bank”). In and about and between 2006 and 2016, Weinzierl and Waldstein conspired with Odebrecht and others to launder money in a scheme to defraud Brazil’s tax authority of more than $100 million in taxes and to create off-books slush funds used by Odebrecht to pay hundreds of millions of dollars in bribes for the benefit of public officials around the world.
Specifically, Weinzierl, Waldstein, and their co-conspirators allegedly used fraudulent transactions and sham agreements to move more than $170 million from bank accounts in New York held in the name of Odebrecht, through the Austrian Bank, to offshore shell company bank accounts secretly owned and controlled by Odebrecht. As part of the scheme, Odebrecht used the slush funds funneled to the offshore shell company bank accounts to pay bribes. Odebrecht falsely recorded the hundreds of millions of dollars in international wire transfers sent to the Austrian Bank as legitimate business expenses and deducted the fraudulent payments from the overall profits that it reported in Brazil, thus reducing its tax liability and evading more than $100 million in taxes. Shell company bank accounts that were involved in the scheme, and used to pay bribes to foreign officials, were held at the Antiguan Bank, which was controlled by Weinzierl, Waldstein, and their co-conspirators and used to promote the scheme. Weinzierl and Waldstein also caused millions of dollars in criminal proceeds to be transferred from the Antiguan Bank to a brokerage account located in the United States to purchase U.S. Treasury securities and corporate stocks and bonds on U.S. exchanges. In exchange for their roles in the scheme, Weinzierl and Waldstein demanded and collected substantial fees for the benefit of the Austrian Bank and the Antiguan Bank.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The FBI’s International Corruption squad in New York is investigating this case. Assistant U.S. Attorney Julia Nestor of the U.S. Attorney’s Office for the Eastern District of New York, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Trial Attorney Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. The Justice Department’s Criminal Division and United Kingdom authorities provided significant assistance.
The Defendants:
PETER WEINZIERL
Age: 55
AustriaALEXANDER WALDSTEIN
Age: 73
AustriaE.D.N.Y. Docket No. 20-CR-383 (RJD)
Two Cargo Handlers at LAX Arrested in Alleged Theft of Gold BarsRead the Press Release
LOS ANGELES – Two employees of a cargo handling company who worked at Los Angeles International Airport were arrested this morning pursuant to a federal grand jury indictment that charges them will stealing four gold bars that were part of a larger shipment going from Australia to New York.
Marlon Moody, 38, and Brian Benson, 35, both of South Los Angeles, were arrested without incident by special agents with the FBI. The two defendants are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
A two-count indictment filed Tuesday charges Moody and Benson with conspiracy and theft of interstate and foreign shipment.
The indictment alleges that both men worked for Alliance Ground International, a company that provided ground handling services at LAX. On the evening of April 22, 2020, a shipment of gold bars arrived at LAX on Singapore Airlines. A total of 2,000 gold bars, each weighing one kilogram and valued at approximately $56,000, were being shipped at the direction of a Canadian bank. During a stopover at LAX, the gold was offloaded and secured, but an inventory that evening showed one box containing 25 gold bars was missing.
Moody allegedly found the missing box of gold bars near the Singapore Airlines cargo warehouse on the morning of April 23, placed the box on a belt loader and drove that vehicle to a nearby location, where he removed four of the bars. Soon after, Benson arrived to pick up Moody in a company van, where they exchanged text messages about the gold bars because other employees were in the van. The two defendants later left the airport and went to a nearby parking lot, where Moody gave Benson one of the four gold bars, the indictment states.
The lost box with the 21 remaining gold bars was discovered by other cargo handlers later on April 23, and authorities began an investigation that ultimately led to Moody and Benson.
Moody gave one gold bar to a relative on May 4 “and directed the family member to exchange the gold bar for a vehicle and/or money,” according to the indictment. Around this time, Moody buried the remaining two gold bars in the backyard of his residence.
The FBI recovered all four gold bars about two weeks after they went missing from LAX.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If they were to be convicted of the two charges, Moody and Benson each would face a statutory maximum sentence of 15 years in federal prison.
The FBI, the Federal Air Marshal Service, the Los Angeles Police Department, and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys J. Jamari Buxton of the Public Corruption and Civil Rights Section and Lyndsi C. Allsop of the General Crimes Section are prosecuting the case.
Two Bank Executives Charged for Conspiring to Launder Hundreds of Millions of Dollars Through U.S. Financial System in Connection with Odebrecht Bribery and Fraud SchemeRead the Press Release
An Austrian man was arrested today in the United Kingdom on criminal charges related to his alleged participation in a conspiracy to launder hundreds of millions of dollars through the U.S. financial system as part of a scheme to pay bribes around the world and defraud the Brazilian government.
The indictment unsealed today was previously returned by a federal grand jury in Brooklyn, New York, and charges Peter Weinzierl, 55, and Alexander Waldstein, 73, both of Austria, for their role in a massive money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. Weinzierl was arrested today in the United Kingdom pursuant to a provisional arrest request from the United States. Waldstein remains at large.
Weinzierl served as chief executive officer and Waldstein as officer of an Austrian bank, and both served as board members of an Antiguan bank. According to the indictment, between approximately 2006 and 2016, Weinzierl and Waldstein conspired with Odebrecht and others to launder money in a scheme to defraud Brazil’s tax authority of more than $100 million in taxes and to create off-books slush funds used by Odebrecht to pay hundreds of millions of dollars in bribes for the benefit of public officials around the world.
According to the indictment, Weinzierl, Waldstein, and their co-conspirators used fraudulent transactions and sham agreements to move more than $170 million from bank accounts in New York held in the name of Odebrecht, through the Austrian bank, to offshore shell company bank accounts secretly controlled by Odebrecht. As part of the scheme, Odebrecht used the slush funds funneled to the offshore shell company bank accounts to pay bribes. Odebrecht falsely recorded the hundreds of millions of dollars in international wire transfers sent to the Austrian bank as legitimate business expenses and deducted the fraudulent payments from the overall profits that it reported in Brazil, thus reducing its tax liability and evading more than $100 million in taxes. Shell company bank accounts involved in the scheme and used to pay bribes to foreign officials were held at the Antiguan bank that Weinzierl, Waldstein, and their co-conspirators controlled and used to promote the scheme. Weinzierl and Waldstein also caused millions of dollars in criminal proceeds to be transferred from the Antiguan bank to a brokerage account located in the United States to purchase U.S. Treasury securities and corporate stocks and bonds on U.S. exchanges. In exchange for their role in the scheme, Weinzierl and Waldstein collected substantial fees for the benefit of the Austrian and Antiguan banks.
On Dec. 21, 2016, Odebrecht pleaded guilty in federal court in Brooklyn to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
Weinzierl and Waldstein are charged with one count of conspiracy to commit money laundering and two counts of international promotional money laundering. Weinzierl is also charged with one count of engaging in a transaction in criminally derived property. If convicted of all counts, Weinzierl and Waldstein would face a maximum penalty of 70 and 60 years in prison, respectively. A federal district court judge in Brooklyn will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Mark J. Lesko for the Eastern District of New York; and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
The FBI’s International Corruption squad in New York is investigating this case.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorney Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Julia Nestor of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs and UK authorities provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in the Criminal Division’s Money Laundering and Asset Recovery Section was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Sentenced to Prison for Manufacturing Counterfeit Federal Reserve Notes While on Federal Supervised ReleaseRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Darius Jondi Edwards (42, Tampa) to four years and three months in federal prison for manufacturing counterfeit Federal Reserve notes and for violating his federal supervised release.
Edwards had pleaded guilty on January 25, 2021, and admitted that he had violated his federal supervision by again manufacturing counterfeit Federal Reserve notes.
According to court documents, in 2015 Edwards pleaded guilty in federal court in Jacksonville to charges he manufactured counterfeit Federal Reserve notes (i.e., counterfeit currency), that he and others passed throughout the Jacksonville area. Edwards was sentenced to 33 months in federal prison, followed by 3 years of supervised release.
After his release from prison in October 2019, and while still on federal supervised release for those prior counterfeiting charges, the Pinellas Park Police Department arrested Edwards for possession of counterfeit currency and forging/making counterfeit bank bills. During the course of arresting Edwards at a hotel, law enforcement found him to be in possession of counterfeit currency, partially completed counterfeit currency, and computer media used to manufacture counterfeit Federal Reserve notes. Follow up investigation by the United States Secret Service determined that Edwards had purchased the computer media used to manufacture the counterfeit notes in Duval County and then transported the computer media to Pinellas County, where he manufactured the counterfeit Federal Reserve notes.
This case was investigated by the Pinellas Park Police Department and the United States Secret Service Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
State Senator and His Campaign Treasurer Charged in Scheme to Obtain Public Election FundsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging Connecticut State Senator DENNIS A. BRADLEY, JR., and his former campaign Treasurer, JESSICA MARTINEZ, with multiple offenses related to defrauding Connecticut’s program for publicly funding political campaigns during Bradley’s 2018 run for State Senate.
Bradley and Martinez appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered pleas of not guilty to the charges, and were released on bonds in the amount of $300,000 and $250,000, respectively.
As alleged in the indictment, Bradley, 38, of Bridgeport, has been a member of the Connecticut State Senate since 2018, representing the 23rd State Senate District. Martinez, 39, of Bridgeport, was the Treasurer for Bradley’s 2018 State Senate campaign. In Bradley’s 2018 campaign for State Senate, Bradley, Martinez, and others conspired to defraud the Connecticut State Election Enforcement Commission (“SEEC”), the Citizens’ Election Fund, and the State of Connecticut by making misrepresentations concerning Bradley’s compliance with state election law and the requirements and restrictions of the Citizens’ Election Program (“CEP”), a voluntary public election-financing program under which candidates can apply to SEEC for grants to fund their primary and general election campaigns.
“Candidates for public office must be held to a high standard of conduct, especially when they apply for public funds for their campaigns,” said Acting U.S. Attorney Boyle. “It is alleged that these defendants not only broke the rules at the outset of Mr. Bradley’s first campaign for the State Senate, but then engaged in an extensive cover up to conceal their illegal behavior and to receive additional public funds. The U.S. Attorney’s Office and our FBI partners are committed to holding public officials to account.”
“The Federal Bureau of Investigation is committed to protecting the citizens of Connecticut against all forms of illegal fraud and deception,” said FBI Special Agent in Charge Sundberg. “Maintaining the integrity of our state and federal election processes is crucial to ensuring the will of the voting public is carried out based on truth and fairness.”
The indictment alleges that Bradley, Martinez, and their co-conspirators violated CEP rules by holding a March 15, 2018, campaign event at Dolphin’s Cove restaurant in Bridgeport, then engaged in a scheme to trick SEEC into awarding his campaign undeserved CEP grants by making misrepresentations and omissions to disguise the nature of that event.
It is alleged that, although CEP rules imposed a $2,000 limit on Bradley’s expenditure of personal funds, Bradley used personal funds to pay Dolphin’s Cove $5,597.31 for the campaign event, and used personal funds for other campaign expenditures related to the event, including printed invitations and a band.
It is further alleged that, in an attempt to hide the March 15 campaign event from SEEC, Bradley, Martinez and their co-conspirators claimed it was a “Thank You Party” for friends and clients of Bradley’s law firm, Bradley, Denkovich & Karayiannis, P.C., also known as BDK Law Group.
It is alleged that, although at least eight donors gave to Bradley’s campaign at the Dolphin’s Cove event, Bradley’s and Martinez’s co-conspirators altered and falsified the contribution cards so that none were dated March 15, 2018.
It is further alleged that, although CEP rules required complete and truthful disclosures of Bradley’s campaign contributions and expenditures, in April, May and June 2018, Bradley’s campaign filed Itemized Campaign Finance Disclosure Statements with SEEC that omitted that Bradley had held a campaign event on March 15, 2018 at Dolphin’s Cove restaurant, omitted that Bradley had incurred approximately $6,307 in expenses for the event, omitted that Bradley had accepted multiple campaign contributions at the event, and misrepresented the dates of those March 15, 2018 contributions.
It is further alleged that on May 24, 2018, Bradley and Martinez applied for a CEP grant to fund Bradley’s Democratic primary campaign. On July 10, 2018, relying on the false and misleading information contained in Bradley’s filings, SEEC issued the campaign $84,140 in public funds. On August 14, 2018, Bradley won the Democratic primary with approximately 55 percent of the vote.
It is further alleged that, after issuing a CEP primary grant to Bradley, SEEC began investigating a citizen complaint regarding Bradley’s campaign, including the campaign event at Dolphin’s Cove. On August 21, 2018, Bradley emailed a letter to SEEC in which he denied all the allegations in the citizen complaint as “frivolous and manipulative.” In that letter, Bradley falsely stated, “On March 15, 2018, BDK hosted a Client Appreciation event at Dolphin’s Cove restaurant[.] … This was in no shape or form a political event. … In fact, we did not collect any donations at this event and have no donations dated 03/15/2018.”
It is further alleged that on October 12, 2018, after Bradley and Martinez attempted to obtain an additional $95,710 CEP grant to fund Bradley’s general election campaign, Martinez made similar false statements under oath to SEEC. SEEC eventually denied Bradley a general election grant. On November 6, 2018, Bradley won the general election with approximately 87 percent of the vote.
It is further alleged that Martinez made similar false statements to investigating FBI special agents in March 2020, and under oath before the grand jury in September 2020.
Bradley is charged with one count of conspiracy to commit wire fraud and five counts of wire fraud, and Martinez is charged with one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of making a false statement to the FBI, and one count of making a false declaration before the grand jury. The conspiracy and fraud offenses carry a maximum term of imprisonment of 20 years on each count, and the false statement and declaration offenses carry a maximum term of imprisonment of five years on each count.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and David E. Novick.
South Korean Owner of Physical Therapy Clinic Indicted on Health Care Fraud ChargesRead the Press Release
BOSTON – The former owner of several physical therapy clinics in Greater Boston has been indicted by a federal grand jury on health care fraud charges.
Chang Goo Yoon, 59, a South Korean national residing in Queens, N.Y., was indicted on two counts of health care fraud and one count of aggravated identity theft. Yoon was arrested and charged by criminal complaint in February 2021.
According to charging documents, Yoon was the owner and operator of several physical therapy clinics in Allston, Waltham and Brookline between 2014 and 2018. It is alleged that Yoon billed patients for non-existent physical therapy appointments, including approximately $200,000 in claims billed on dates when Yoon was traveling in South Korea, Los Angeles and Toronto. Yoon also billed $60,000 in claims on dates when he was gambling at casinos including the Golden Nugget in Atlantic City, N.J., MGM Springfield in Massachusetts and Twin River Casino in Lincoln, R.I. Additionally, Yoon submitted approximately $30,000 in physical therapy claims for himself after three automobile accidents. According to the indictment, most of those claims falsely listed one of Yoon’s employees as the servicing physical therapist. The remaining claims allegedly listed Yoon as both the patient and the servicing physical therapist.
The charge of health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two-year sentence to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Mendell’s Health Care Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Shrewsbury Woman Sentenced for Perjury in Connection with Insurance and Tax FraudRead the Press Release
BOSTON – A Shrewsbury woman was sentenced today in federal court in Worcester for lying about her role with a Worcester-based employment agency while testifying before a federal grand jury.
Linda Le, 42, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation, with five months to be served in home confinement and a $10,000 fine. On Feb. 5, 2021, Le pleaded guilty to one count of falsely testifying before a grand jury.
In late 2017 and early 2018, Le assisted with the transition of several client companies from one employment agency to UT Services, a Worcester-based employment agency. Thereafter, Le performed various tasks on behalf of UT Services, including reviewing and analyzing client invoices and maintaining a spreadsheet that tracked invoice amounts and profit. Le received cash payments in exchange for her work for UT Services.
In May 2018, Le testified before a federal grand jury and falsely stated under oath that she did not know anyone who was involved with UT Services and did not know anything about a specific client company using temporary workers from UT Services. In March 2019, Le testified again before a federal grand jury and falsely stated under oath that she did not know anything about UT Services and that she did not have any role with UT Services. At the time, investigators were conducting an investigation into fraudulent UT Services tax filings and insurance audits.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Mendell’s Major Crimes Unit, and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Sandy Springs Heroin Supplier Pleads Guilty in Middle Georgia Drug Trafficking CaseRead the Press Release
MACON, Ga. – The primary supplier of a heroin distribution ring operating between Atlanta and Macon, which funneled up to 30,000 doses of heroin into the region over a three month span, pleaded guilty to his crime in federal court.
Michael Duffy, 43, of Sandy Springs, Georgia, pleaded guilty to one count conspiracy to possess with intent to distribute heroin on Thursday, May 20. Duffy faces a maximum 20 years in prison to be followed by at least three years of supervised release and a $1,000,000 fine.
The following co-defendants have previously pleaded guilty for their crimes in federal court and have been sentenced for their crimes:
Chad Bresach, 38, of Eatonton, Georgia, pleaded guilty to one count distribution of heroin. Bresach was sentenced to serve 84 months in prison to run consecutively to any term of imprisonment imposed in Peach County, Jones County, Putnam County and Houston County Superior Courts to be followed by three years of supervised release on March 3, 2021;
Reginald Summerford, 49, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute heroin. Summerford was sentenced to serve 80 months in prison to be followed by three years of supervised release on March 3, 2021;
Courtney Dews, 36, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 48 months in prison to be followed by one year of supervised release on March 3, 2021;
Patrick Dews, 34, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 20 months in prison to be followed by one year of supervised release on March 3, 2021; and
Kathy Black, 40, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Black was sentenced to serve 18 months in prison to be followed by one year of supervised release on March 3, 2021.
The following co-defendants have previously pleaded guilty for their crimes in federal court and are awaiting sentencing:
Terrance Jackson, 43, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute heroin. Jackson faces a maximum 20 years in prison to be followed by at least three years of supervised release and a $1,000,000 fine; and
Arthur Anderson, 57, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Anderson faces a maximum sentence of four years in prison to be followed by three years of supervised release and a $250,000 fine.
U.S. District Judge Marc Treadwell is presiding over the hearings. There is no parole in the federal system.
“Law enforcement successfully stopped what was a steady flow of heroin from an Atlanta-based supplier into the Macon community, undoubtedly saving lives,” said Acting U.S. Attorney Peter D. Leary. “Individuals will face the possibility of federal prosecution when found trafficking large quantities of illegal drugs into the Middle District of Georgia.”
“With the arrest of Duffy, the head of the snake was cut off of this major heroin pipeline that ran from Atlanta to Middle Georgia,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As the source of the operation, Duffy fueled an epidemic and wreaked havoc in many communities. Now he faces many years in prison for the damage he has caused.”
In December 2017, following the arrest of a heroin dealer in Macon, federal and local law enforcement began investigating heroin distribution by co-defendant Summerford. The wiretap investigation ultimately led to the discovery of Duffy being the source of heroin supply. On a number of occasions, co-defendants Summerford, Black and Patrick Dews would travel to metro-Atlanta to purchase heroin from Duffy, generally 142 grams on each trip – enough heroin to provide more than 1,000 doses. During December 2018 and January 2019, Duffy sold heroin from a “trap house” located in an Atlanta apartment. In early February 2019, Duffy moved into a house in Sandy Springs, Georgia, and used that residence to sell heroin.
From December 2018 to February 2019, Summerford generally went to Duffy to resupply heroin approximately every four to five days and usually purchased approximately 142 grams on each trip. Those trips that were confirmed using interceptions and/or surveillance. On the way back from purchasing heroin from Duffy on February 20, 2019, Summerford’s van was stopped and the heroin was seized. The heroin that was seized at that time was tested at the Drug Enforcement Agency (DEA) Mid-Atlantic Laboratory and was positively identified as heroin weighing 98.47 grams. On February 22, 2019, pursuant to a valid federal search warrant, law enforcement searched Duffy’s narcotics sales location at his Sandy Springs home. During the search, a Kel-Tec 9mm pistol, 9mm and .40 caliber ammunition, a bag containing small drug baggies and a quantity of suspected narcotics were seized. Duffy admitted that he conspired with others to possess with intent to distribute between one and three kilograms of heroin, or enough heroin to provide more than 10,000-30,000 doses, from December 2018 to February 2019.
The case was investigated by the FBI.
Assistant U.S. Attorney Robert McCullers is prosecuting the case.
SKS, Inc. Doctor Sentenced for Unlawfully Dispensing Controlled Substances, Health Care FraudRead the Press Release
PITTSBURGH - A prescribing physician with SKS, Inc. has been sentenced in federal court to two years’ probation and fined $5,500 on her conviction of unlawfully prescribing buprenorphine and health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ruth Jones, 58, of Bedford, Pennsylvania.
According to information presented to the court, Jones was employed at SKS, Inc., a buprenorphine clinic located in Johnstown, Pa. During the course her employment, Jones prescribed buprenorphine outside the course of accepted medical practice and not for a legitimate medical reason. The healthcare fraud occurred when a patient’s insurance provided paid for the prescription. Under federal law, medical insurance cannot be used to pay for an unlawfully issued prescription.
Under the terms of her plea agreement, Jones agreed to forfeit $10,000.
Assistant United States Attorneys Robert Cessar and Michael Ivory prosecuted this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Roseville Man Charged with Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal indictment was unsealed today charging Randy Edward Martin, 38, of Roseville, with distribution and possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Martin distributed child pornography between July 6, 2020, and Sept. 14, 2020, using the Kik Messenger app. Martin used a smartphone, the internet, and Kik Messenger to distribute videos depicting minors engaging in sexually explicit conduct to a person in Oregon. Further, between July 6, 2020 and April 6, 2021, Martin knowingly possessed visual depictions of children engaging in sexually explicit conduct on his smartphone.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath and Denise N. Yasinow are prosecuting the case.
If convicted, Martin faces a maximum statutory penalty of 20 years in prison, a $250,000 fine, and potentially a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Richmond Man Sentenced for Fentanyl TraffickingRead the Press Release
RICHMOND, Va. – A Richmond man who was convicted by a federal jury in March was sentenced yesterday to 12 years in prison for distributing fentanyl in the Mosby Court neighborhood.
According to court records and evidence presented at trial and sentencing, Quotez Tyveck Pair, 33, was a drug trafficker with a reputation for violence in and around Mosby Court. Pair formerly associated with the “II Bloods” gang.
In October and November 2019, Drug Enforcement Administration (DEA) agents, with the aid of an inside cooperator, completed two controlled drug purchases from Pair. The cooperator, at the direction and under the supervision of law enforcement, purchased from Pair one ounce of heroin on October 30, 2019 and two ounces of heroin on November 12, 2019. Upon analysis, both substances purchased from Pair were found to be fentanyl.
Pair was subsequently arrested on January 21, 2020 in Henrico County and convicted on March 10, 2021 following a jury trial. At sentencing, the Court found that in addition to fentanyl, Pair also distributed over a half-kilogram of cocaine.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the DEA’s Washington Division, made the announcement after sentencing by Senior U.S. District Robert E. Payne.
Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-3.
Rhinelander Man Indicted for Child Related Sex CrimesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 25, 2021, a federal grand jury returned a three-count indictment against Paul S. Osterman (age 35) of Rhinelander, Wisconsin, charging him with crimes related to soliciting a 13-year-old Illinois girl on the MeetMe social media electronic application for commercial sex.
Count One alleges that from July 3 through July 5, 2019, Osterman solicited the child for sex in exchange for money, in violation of Title 18, United States Code, Sections 1591(a)(1), (b)(1), and (c). Count Two alleges that during these same dates, Osterman used a facility and means of interstate commerce (MeetMe) to persuade, induce, and entice the child to engage in illegal sexual activity, in violation of Title 18, United States Code, Section 2422(b). Count Three alleges that during these same dates, Osterman traveled in interstate commerce (from Wisconsin to Illinois) for the purpose of engaging in commercial sex with the child, in violation of Title 18, United States Code, Section 2423(b).
Counts One and Two each carry a maximum penalty of life in prison, while Count Three carries a maximum penalty of 30 years in prison. If convicted of Counts One and Two, Osterman would face a mandatory minimum sentence of 15 and 10 years respectively. All of the charges in the indictment carry additional possible penalties of up to a life term of supervised release following any term of imprisonment, and up to a $250,000 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. 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.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Wisconsin Department of Justice’s Division of Criminal Investigation, and the Oneida County Sherriff’s Office. The case is being prosecuted by Assistant United States Attorney Abbey M. Marzick.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
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Purlear, N.C. Man Is Sentenced to 25 Years for Production and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – William Jon Patric Ebert, 60, of Purlear, N.C. was sentenced today to 25 years prison for production and possession of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over today’s sentencing hearing and ordered Ebert to serve a lifetime of supervised release and to register as a sex offender after he is released from prison. A federal jury convicted Ebert on July 17, 2020, following a two-day trial.
Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI) joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, Ebert sexually abused a minor for more than six years. The sexual abuse took place in Ohio and in North Carolina. Evidence presented at trial established that Ebert also used the minor to produce child pornography photographs of the minor, and that he stored those photographs on his computer and other devices he owned. On September 22, 2016, law enforcement officials executed a search warrant at Ebert’s residence in Boone, N.C. and seized several devices and computers. A forensic analysis of Ebert’s hard drive revealed that it contained sexually explicit images of the minor victim.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the North Carolina State Bureau of Investigation and the Avon Police Department in Ohio for their investigation of this case.
Assistant United States Attorneys Kimlani Ford and Erik Lindahl prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Previously Convicted Felon who Shot Another Individual Admits Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in Jersey City, Acting U.S. Attorney Rachael A. Honig announced.
Hassan Mosby, 40, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On Oct. 12, 2019, members of the Jersey City Police Department were dispatched to the area of Martin Luther King Drive between Woodlawn Avenue and Armstrong Avenue in Jersey City on a report of shots fired in the area.
Officers located a crime scene which included six 9-millimeter shell casings. While the officers were canvassing the area and processing the crime scene, they reviewed video footage from city cameras located near the shooting. The video showed a brief altercation within a group of males on the sidewalk on Martin Luther King Drive. At the end of the altercation, Mosby pointed and fired a handgun several times at a victim, striking the victim.
By viewing additional video footage from other city cameras, officers were able to determine that Mosby walked directly to a nearby residence immediately after the shooting. Officers went to the residence and were let inside by a resident, where they observed Mosby sitting in a chair. Mosby stated, “You got me, I’m who you are looking for. They had nothing to do with it.” Mosby was arrested and a search warrant was obtained for the residence. Officers then found a 9-millimeter semiautomatic handgun, which was loaded with seven rounds of ammunition.
Subsequent ballistics testing determined that five shell casings found at the crime scene were discharged from the firearm found in the residence.
The charge to which Mosby pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 30, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Pittsburgh Man Pleads Guilty to Possessing Multiple DrugsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh pleaded guilty in federal court to violating the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Nathaniel Thomas, 40, formerly of Pittsburgh, PA pleaded guilty to a two-count Indictment charging him with possessing over 100 grams of fentanyl, acetyl fentanyl (an analogue of fentanyl), and heroin, along with a quantity of cocaine, before United States District Judge Marilyn Horan.
In connection with the guilty plea, the Court was advised that in April 2019, the Pennsylvania State Police Drug Law Enforcement Division began an investigation into heroin, fentanyl, and cocaine distribution by Thomas. As part of that investigation, agents obtained a federal search warrant for Thomas’s residence on Coleridge Street in Pittsburgh, which was executed on May 29, 2019. Inside of Thomas’s bedroom, agents seized approximately 158 "bricks" – the equivalent of roughly 7,900 individual dosage units – containing mixtures of fentanyl, acetyl fentanyl (an analogue of fentanyl) and heroin. Agents also found roughly 40 grams of cocaine and a digital scale containing a white powder residue in the same area. By pleading guilty, Thomas admitted that he possessed those scheduled narcotics intending to distribute them. In a related filing, the government advised the Court that Thomas has a prior conviction for a serious drug felony offense arising out of the Court of Common Pleas of Allegheny County (PA), and that the enhanced penalties set forth in the federal narcotics laws would, therefore, apply to Thomas.
Judge Horan scheduled sentencing for Sept. 14, 2021, at 10:00 a.m. The law provides for a total sentence of incarceration of not less than fifteen years and up to life, a fine of not more than $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the Court remanded Thomas to the custody of the United States Marshals Service.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Thomas.
Pittsburgh Felon Charged with Possessing a Gun and AmmunitionRead the Press Release
PITTSBURGH - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dane Brooks, 52, formerly of Pittsburgh, PA 15208, as the sole defendant.
According to the Indictment, on or about April 28, 2021, Brooks was found in possession of a firearm and ammunition. His prior felony convictions make it unlawful for him to possess a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant. The defendant is currently being detained at Allegheny County Jail
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration 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.
Pittsburgh Business Owner Indicted on Tax ChargesRead the Press Release
PITTSBURGH, PA- One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on tax charges, Acting United States Attorney Stephen R. Kaufman announced today.
The 16-count Indictment named Shelley L. Fant, 52, of Pittsburgh, PA 15238, as the sole defendant.
According to Indictment, from in and around 2016 through in and around 2018, Fant, president and owner of FCG Solutions, Inc., both failed to collect and to pay over FICA taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202, and also failed to file personal income tax returns, in violation of Title 26, United States Code, Section 7203.
The law provides for a total sentence, for each count, of not more than 64 years imprisonment, a fine of not more than $3,050,000, and a special assessment of $100.00 for the 7202 counts and $25.00 for each count of 7203. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation 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.
Philadelphia Man Sentenced to 15 Years for Drug Trafficking and Firearms OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Omar Acosta, 43, of Philadelphia, PA, was sentenced to 15 years in prison, and five years of supervised release by United States District Judge Wendy Beetlestone for narcotics and firearms offenses stemming from an undercover operation.
In February 2020, the defendant pleaded guilty to possession with intent to distribute 5+ kilograms of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Less than a year earlier, in May 2019, Drug Enforcement Administration agents learned that Acosta was in possession of multiple kilogram quantities of cocaine that he was seeking to sell. Through a confidential source, agents arranged a controlled purchase for four kilograms of cocaine from the defendant for $32,000 per kilogram. As the defendant drove to meet the confidential source to execute the purported transaction, he was stopped by law enforcement. With his consent, law enforcement officers searched Acosta’s car and found 21.5 kilograms of cocaine inside of a suitcase. A subsequent search of his residence in the Mayfair section of Northeast Philadelphia led to the discovery of multiple firearms, narcotics and cash including: a loaded Ruger .22 caliber rifle; a loaded Glock 22 semiautomatic pistol; a .40 caliber magazine and extra rounds; an extended Glock magazine; almost 2,000 grams of cocaine; 214 grams of heroin, and more than $57,000 in U.S. currency.
“Drug distribution and gun violence are an epidemic in Philadelphia and the federal government is aggressively prosecuting both in order to be ‘All Hands On Deck’ to get dangerous criminals like this defendant off the streets,” said Acting U.S. Attorney Williams. “Omar Acosta was a large-scale drug trafficker with a weapons cache to support it, both of which put our community in grave danger. We want to thank our law enforcement partners in this case, the DEA, for their hard work and dedication.”
The case was investigated by the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorney Erica Kivitz.
Passaic County Man Admits Distributing FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Tisdale, 28, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with knowingly and intentionally distributing fentanyl.
According to documents filed in this case and statements made in court:
Tisdale is a member and associate of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, Tisdale and other members and associates of the 230 Boys distributed narcotics, including heroin, fentanyl, and cocaine base, in and around Paterson. On June 25, 2019, Tisdale worked with other members and associates to distribute fentanyl to another individual.
The offense charged in the information carries a maximum penalty of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Oct. 6, 2021.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s guilty plea. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Organizer and Getaway Driver in Violent Armed Robberies Sentenced to More Than 21 Years in PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ERIC CHAMBERS, 37, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 260 months of imprisonment, followed by three years of supervised release, for his role in several violent armed robberies in 2017 during which two individuals were shot and wounded.
According to court documents and statements made in court:
On September 27, 2017, Chambers’ half-brother, Jachim Brown, wearing a mask and pointing a gun, entered Nikita’s Bar, located on Iranistan Avenue in Bridgeport, and pointed a gun at the only employee who was working at the time. Brown directed the employee to a location behind the bar to retrieve a key to a safe. After the employee complied, Brown opened the safe and stole approximately $2,450. During this robbery, Chambers’ car can be seen on surveillance video driving past the entrance to the bar. Chambers had previously worked security at the bar.
In the early morning hours of November 9, 2017, Brown, again brandishing a gun, robbed an employee of Avenue Café who was couriering approximately $2,000 in cash to Bishop’s Corner Café on Boston Avenue in Bridgeport. Surveillance video outside Bishop’s Corner again revealed Chambers’ car in close vicinity to the robbery. On November 13, 2017, the same employee, who had delegated his money courier responsibilities to another security guard after the November 9 robbery, was again confronted by Brown. When Brown realized that the employee did not have the cash, he shot the employee in the thigh.
On November 14, 2017, Brown, wearing a mask and brandishing a gun, entered the Bar Restaurant, located on Main Street in Stratford, and walked directly to a bin near the cash register that typically contained approximately 80 envelopes with cash payments for employees of the Bar Restaurant and other establishments. Brown grabbed the bin, pointed his gun at one employee’s head, and turned and fired at a second employee who had his hands raised, hitting the second employee in his stomach. Surveillance video revealed that Brown had been dropped off behind the restaurant by Chambers.
On November 16, 2017, at about 9:35 a.m., Bridgeport Police responded to a call of an armed robbery in progress at EbLens, located on Pequonnock Street in Bridgeport. After Brown exited the store, a Bridgeport Police officer chased him on foot. As Brown attempted to get into Chambers’ car, he turned and fired at the police officer. The officer returned fire, tackled Brown and placed him under arrest.
At the time of his arrest, Brown possessed a Raven P25 .25 ACP caliber handgun. Forensic analysis of the firearm revealed that it had also been used in the shootings of the two individuals on November 13 and 14.
Chambers has been detained since his arrest on April 30, 2018. On March 19, 2019, a jury found him guilty of four counts of aiding and abetting Hobbs Act robbery.
On May 29, 2019, Brown, also known as “Ameer Edwards,” pleaded guilty to four counts of Hobbs Act robbery and one count of discharging a firearm during and in relation to a crime of violence. On February 24, 2020, Judge Dooley sentenced him to 260 months of imprisonment and five years of supervised release.
This matter was investigated by the Federal Bureau of Investigation, Bridgeport Police Department and Stratford Police Department. The case was prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn Kaoutzanis and Peter Markle.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Operation Second Wave Update: Final Two Defendants Plead Guilty in Federal CourtRead the Press Release
CHARLESTON, W.Va. – The final two defendants charged as a result of a long-term investigation known as “Second Wave” pleaded guilty this week and admitted their roles in a drug trafficking enterprise operating in and around Charleston and the Upper Kanawha Valley between 2018 and August 2020. Tonya Simerly, 36, of Montgomery pleaded guilty to traveling in furtherance of a racketeering enterprise. Steven Matthew Bumpus, 31, of Charleston pleaded guilty to theft of mail matter by a United States Postal employee.
According to court records and statements made at plea and sentencing hearings in the case, Simerly traveled with Jason Michael Terrell and Roger Drake from Charleston to Columbus, Ohio in March 2020 where they picked up approximately two pounds of methamphetamine that was later sold in Kanawha County. Simerly drove during portions of the trip.
Bumpus, a United States Postal Service mail carrier, admitted that he hand delivered packages to Larry Martin that were addressed to residences along Bumpus’ route in Rand. During Martin’s plea hearing, he admitted receiving methamphetamine and marijuana through the U.S. Mail and to recruiting Bumpus to make sure the packages were delivered to him instead of the addressees. In June 2020, police intercepted a package containing approximately 13 pounds of marijuana addressed to Elaine Drive in Rand. Law enforcement officers surveilled the two men and observed Bumpus deliver the package to Martin instead of the address on the package.
When they are sentenced on September 8, 2021, both Simerly and Bumpus face up to five years in federal prison.
Of the other defendants charged as a result of the Second Wave investigation, Jason Michael Terrell was sentenced last week to 14 years in prison, Larry Martin, Roger Jarea Drake, Carol Belton, Craig Redman, and Rashawn Miller have entered guilty pleas to conspiracy to distribute methamphetamine and are scheduled to be sentenced later this year. Sammy Joe Fragale, Sr. pled guilty in December 2019 to distribution of methamphetamine and is scheduled for sentencing in June 2021. Jimmy Coleman was sentenced last month to three years in federal prison for conspiracy to distribute methamphetamine. Ronald Lee Thomas, III pleaded guilty last week to conspiracy to distribute marijuana. Gregory Woods was sentenced in February to 184 months after pleading guilty to possession with intent to distribute cocaine and violating the terms of his federal supervised release.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the excellent investigative work of all the law enforcement agencies involved in the case. The long-term investigation was conducted by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the United States Postal Inspection Service (USPIS), the Central West Virginia Drug Task Force (CWVDTF), the Kanawha County Sheriff’s Department, the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT) and the United States Postal Service-Office of Inspector General.
Senior United States District Judge David A. Faber presided over the hearings. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00064 (Bumpus) and 2:20-cr-00154 (Terrell et al).
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Oklahoma City Man Sentenced to Serve More Than 27 Years in Federal Prison for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Today, RODERICK GLENN HOUSTON, JR., 37, of Oklahoma City, was sentenced to more than 27 years in federal prison for child sex trafficking, announced Acting U.S. Attorney Robert J. Troester.
On September 1, 2020, a federal grand jury returned a Superseding Indictment against Houston that charged him with child sex trafficking, production of child pornography, and transportation of child pornography.
On October 8, 2020, Houston pleaded guilty to child sex trafficking. According to public records and admissions made as part of his guilty plea, between April 2015 and March 9, 2016, Houston served as the pimp of a minor girl. Houston advertised her as an escort on the internet, provided her to men for commercial sex, and kept the cash proceeds. Despite knowing that she was a child, he sold her to men for sex in Oklahoma, Florida, Louisiana, and Texas.
Today, Senior U.S. District Judge Stephen P. Friot sentenced Houston to serve 335 months in federal prison, followed by 20 years of supervised release. Judge Friot also ordered Houston to pay $25,100 in restitution and assessments. In arriving at his sentence, Judge Friot took into consideration the facts that Houston gave his victim drugs, gave her false identification documents, physically assaulted her, produced child pornography depicting her, and engaged in prohibited sexual conduct with her.
Upon his release from prison, Houston will be required to register as a sex offender.
This case is the result of an investigation by the Federal Bureau of Investigation – Oklahoma City Field Office, the Oklahoma City Police Department, and the Los Angeles (California) Police Department. Assistant U.S. Attorneys Brandon Hale and McKenzie Anderson prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
Newton County Man Sentenced to 21 Years for Leading Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Stella, Missouri, man was sentenced in federal court today for his role in leading a conspiracy to distribute methamphetamine in southwestern Missouri.
Nathen D. Libertus, 31, was sentenced by U.S. District Judge M. Douglas Harpool to 21 years in federal prison without parole.
On May 20, 2020, Libertus pleaded guilty to participating in a conspiracy to distribute methamphetamine in Newton County and Barry County, Mo., from April 30, 2017, to Jan. 20, 2019. According to court documents, Libertus is an affiliate of the Southwest Honkys, a violent prison gang, who has fled from law enforcement officers on several occasions.
A McDonald County, Mo., sheriff’s deputy was passed by a vehicle on West 76 Highway on Nov 10, 2017. The black Cadillac CTS appeared to have something dragging off the back of the vehicle, causing sparks on the roadway. As the deputy attempted to get behind the vehicle, it sped off and nearly spun out. The deputy initiated his emergency lights and the vehicle, which was being driven by a woman (not identified in court documents) with arrest warrants, was stopped. The deputy searched the vehicle and found a plastic bag that contained approximately 332.74 grams of methamphetamine and a total of $6,952 in cash. Inside the bag with the methamphetamine and cash was a wallet with Libertus’s driver’s license.
On March 29, 2018, a sergeant with the Newton County Sheriff’s Department responded to an address in reference to a suspicious vehicle. Once he got there, he saw a grey/silver colored Chevrolet Camaro with Oklahoma plates in the driveway. He pulled in behind the vehicle and approached, knocking on the window and the roof to get Libertus, the driver, to exit. Libertus refused to do so and instead started the vehicle and attempted to flee by driving through the yard. The vehicle got stuck on some shrubbery, a fence, and a cinderblock, and Libertus was unable to go any farther. Libertus bailed out of the vehicle and ran west through the woods with officers in pursuit. After a quarter-mile foot chase, Libertus came to a stop but had to be tased before he could be taken into custody. Officers searched Libertus and found approximately $4,430 in his pants pockets. Officers found another $1,591 in the vehicle, along with a scale that tested positive for methamphetamine, a glass bong, two cell phones, and other drug paraphernalia.
On April 9, 2018, investigators saw Libertus and the woman from the Nov. 10, 2017, arrest arrive together in a Chrysler 300 at a Newton County residence where they were about to execute a search warrant. The Chrysler pulled into the driveway, maneuvered around several parked vehicles, and continued about 100 yards into a wooded area immediately south of the residence. Libertus and two others attempted to conceal the Chrysler 300, which has been reported stolen, with tarps. When officers arrived, Libertus ran into the wooded area. As a Newton County detective arrived, he saw Libertus spring from the east side of the street and start running down the street. The detective drove toward him. Libertus then tried to cut back onto the property, however, there was a steep hillside and he was unable to make it up the hill. He turned around and ran across the street and into the driveway. He tried to shut the cattle gate so the detective couldn’t follow him in his vehicle, but was unable to, then attempted to run again. He tripped on some shrubbery, got up, tried to run, and then tripped on some more shrubbery and fell down again. The detective was then able to take him into custody. Libertus had $1,240 in his wallet and a key to the Chrysler 300 in his pocket.
The detective found a hollowed out railroad tie near the vehicle. Inside was a camouflage box that contained a Ziploc bag of approximately 396 grams of methamphetamine, a used methamphetamine pipe, several distribution bags with methamphetamine residue in them, a bag of suspected marijuana, several bags of suspected synthetic marijuana, and a digital scale with suspected methamphetamine residue. Another detective found a hollowed-out log nearby that contained a black box with approximately two grams of methamphetamine.
On Sept. 4, 2018, a man in Newton County called emergency services after finding Libertus passed out behind the wheel in the middle of the roadway. A Newton County deputy attempted to wake Libertus several times; he finally started awake and said “I don’t have any money.” Libertus denied consent to search the vehicle, but one of the deputies saw a green and yellow bong between the driver’s seat and the passenger’s front seat. A detective went to seize the bong and noticed a black metal combination safe. The detective picked up the safe and it fell open, revealing numerous jewelry bags commonly used to package drugs as well as bags containing methamphetamine residue, gel caps, a set of digital scales with methamphetamine residue on them, and a bag containing more than 30 grams of methamphetamine. Libertus had approximately $1,245 in his pocket.
On Jan. 20, 2019, Libertus was again passed out in his vehicle. He fled from police after being asked to step out of the vehicle. The pursuit lasted an hour and ended only after the Missouri State Highway Patrol threw down a spike strip. When the vehicle finally stopped, officers found nearly three pounds of methamphetamine strewn about the vehicle other drugs, and cash. In phone calls made after his arrest, Libertus tried to persuade his friends to burn up his truck.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the FBI, the Ozarks Drug Enforcement Team, and the Newton County, Mo., Sheriff’s Department.
New Orleans Man Sentenced for Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today, that THOMAS LANDRY (“LANDRY”), age 46, a resident of New Orleans, Louisiana was sentenced by United States District Court Judge Susan Morgan to concurrent sentences of 151 months (Count 1) and 48 months (Count 2), respectively.
On February 11, 2021, LANDRY pleaded guilty to a two-count Bill of Information. In Count 1, LANDRY pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of a mixture or substance containing a detectable amount of cocaine base in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846. In Count 2, LANDRY pled guilty to use of a communication facility to further a drug trafficking crime in violation of Title 21, United States Code, Section 843(b). After his release, LANDRY will be placed on a period of supervised release of three (3) years and must pay a mandatory special assessment fee of $100 for each count.
According to court documents, LANDRY conspired with other members of a drug trafficking organization to distribute and possess with the intent to distribute crack cocaine. Additionally, LANDRY used a communication facility, the telephone, to facilitate the distribution and possession with intent to distribute cocaine base.
The case was investigated by the Drug Enforcement Administration. This case is being prosecuted by Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Mount Pleasant Man Sentenced to 9 Years in Federal Prison for Series of Fraud SchemesRead the Press Release
Charleston, South Carolina –– Acting United States Attorney M. Rhett Dehart announced today that Cameron Banks, a/k/a “Reggie Staggers”, a/k/a “Roy Hamilton,” 36, of Mount Pleasant, was sentenced to nine years in federal prison for wire fraud, bank fraud, mail fraud, and health care fraud schemes.
Evidence presented to the Court established that Banks began his schemes in 2013, when he submitted a falsified loan application to obtain a 2014 Bentley Sedan for $212,034.000. Thereafter, while employed by Dr. Cornelius J. Beck, Banks ran a loan program in which he stole Dr. Beck’s identity and submitted falsified loan applications on behalf of patients to obtain dental work. To obtain these loans, Banks created fraudulent loan documents using Dr. Beck’s forged signature. While the funds were supposed to be used for dental procedures, few people received any dental work. Banks transferred most of the funds into his personal bank accounts for his own use.
Further evidence outlined another fraudulent scheme, beginning in 2015 and continuing into 2018, in which Banks submitted requests to the Department of Transportation to receive numbers to operate commercial vehicles. The requests contained false information and withheld information Banks was required to disclose, namely his relationship with other entities licensed by the Federal Motor Carrier Safety Administration.
While Banks was on bond for the conduct outlined above, investigators uncovered a third fraudulent scheme in which Banks operated a Ponzi scheme. Investors believed they were investing in the operation of commercial trucking business. Under the lease agreements, Banks would provide the truck, the driver, and the insurance, and in exchange, investors were promised a majority of the profits. In reality, Banks spent the investment funds on personal expenses, including car leases, jewelry, and travel. To keep the scheme going, Banks mailed investors checks that represented a portion of the funds to which they were entitled and created false expense documents to explain the lack of profits. There were at least 32 victims of this scheme, many of which experienced substantial financial hardship after investing their life savings.
Evidence presented during the hearing outlined that Banks’ criminal record of stealing peoples’ identities and submitting false documents began at a young age. Banks’ criminal history evinces a lifetime of undeterred forgery, theft, and deception. Banks has prior convictions for forgery, fraudulent checks, bank fraud, financial identity fraud, financial transaction card theft, tax evasion, and numerous instances of probation violations.
United States District Judge David C. Norton sentenced Banks to 108 months imprisonment, followed by a three-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the United States Department of Transportation Office of the Inspector General, the South Carolina Law Enforcement Division, and the South Carolina Department of Revenue.
Assistant United States Attorneys Emily Limehouse and Jason Peavy prosecuted the case.
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Monticello Man Sentenced to Prison for Arson of Minneapolis BankRead the Press Release
ST. PAUL, Minn. – A Monticello man was sentenced today to 30 months in prison followed by three years of supervised release for conspiring to commit arson at a Minneapolis bank.
According to court documents, Alexander Steven Heil, 22, admitted that on May 28, 2020, he and other individuals intentionally aided in the arson of the Wells Fargo Bank building located in south Minneapolis. Heil added fuel to an existing fire by throwing items into the flames with the intent to accelerate the burning of the building.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendant.
This case was the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
Assistant U.S. Attorney Andrew R. Winter prosecuted the case.
Middlesex County Man Sentenced to Two Years in Prison for Conspiring to Export Firearms and Items Subject to Export Control List to UkraineRead the Press Release
NEWARK, N.J. – An Edison, New Jersey man was sentenced today to 24 months in prison for conspiring to export, without a license, firearms, and other items subject to the export control list, Acting U.S. Attorney Rachael A. Honig announced.
Gene Shilman, 63, a native of the Soviet Union, previously pleaded guilty before U.S. District Court Judge Katharine S. Hayden to an information charging him with one count of conspiracy to violate the Arms Export Control Act, the International Emergency Economic Powers Act, and the Export Control Reform Act.
According to documents filed in this case and statements made in court:
From May 2014 through October 2018, Shilman entered a conspiracy with others, including a conspirator residing in Ukraine. Shilman exported defense articles regulated by the Arms Export Control Act. Shilman also exported items that were included on the commerce control list as well as defense articles and items with both defense and civilian uses that are subject to the Export Control Reform Act. At no point did Shilman ever obtain the required export license from the U.S. Department of Commerce.
Shilman ordered and received firearms components and parts, ammunition, night-vision goggles and bulletproof vests from various vendors and firearms dealers in the United States. He received numerous wire transfers from overseas locations, including Ukraine and Russia, to pay for the purchase of these items. After receiving these items from the vendors and firearms dealers, Shilman repackaged and shipped them to overseas locations without the required export licenses.
For example, in September 2018 Shilman completed a Customs Declaration form at a U.S. Post Office in Middlesex County and falsely represented that the contents of the parcel destined for Ukraine contained tools and cartridges. An inspection of the parcel revealed that it contained multiple upper receivers for handguns, multiple ammunition magazines for handguns, multiple threaded barrels for handguns, and a set of front and rear sights for a handgun.
In addition to the prison term, Judge Hayden sentenced Shilman to one year of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Department of Commerce, under the direction of Special Agent in Charge Jonathan Carson, and the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, Newark Division, with the investigation leading to the today’s sentencing.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Mercer County Man Sentenced to Seven Years in Prison for Participation in Heroin Conspiracy and Firearms OffensesRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 84 months in prison for his role as a member of a drug trafficking conspiracy and his possession of multiple semiautomatic firearms in furtherance of his unlawful drug-trafficking activities, Acting U.S. Attorney Rachael A. Honig announced.
Jubri West, 21, of Trenton, previously pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to a superseding information charging him with one count each of conspiracy to distribute and possess with intent to distribute heroin; possession with intent to distribute heroin; and possession of firearms in furtherance of a drug-trafficking crime. Judge Wolfson imposed the sentence today in Trenton federal court.
In October 2018, West and 25 other individuals were charged by criminal complaint with conspiracy to distribute heroin; West and others also were charged with firearms offenses relating to their drug trafficking. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging West and six other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses. Of the 26 defendants originally charged in the criminal complaint, West is the 23rd defendant to have pleaded guilty. The charges in the third superseding indictment remain pending against three defendants.
According to documents filed in this case and statements made in court:
From as early as October 2017 to October 2018, West and others engaged in a large drug trafficking conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, Chambers Street, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, law enforcement learned that Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from David Antonio, whom they referred to as “Pop” and “Papi,” and that they distributed those supplies of heroin to other dealers and end users in and around Trenton.
During the investigation of the conspiracy, on Sept. 6, 2018, law enforcement officers stopped a green 2002 Volkswagen Passat driven by, and registered to, Timothy Wimbush, a/k/a “Young Money,” and occupied by West, Taquan Williams, a/k/a Trip,” and a juvenile. Law enforcement officers recovered from West’s pocket a quantity of heroin, and during a subsequent search of the vehicle, law enforcement recovered from a secret trap compartment under the rear passenger’s seat approximately 57 bricks of heroin, four semiautomatic firearms – including a .223 caliber assault rifle linked with a shooting in Trenton four days earlier – and hundreds of rounds of ammunition. Law enforcement officers identified the heroin as having been supplied by other members of the conspiracy. The charges against Wimbush and Williams remain pending.
In addition to the prison term, Judge Wolfson sentenced West to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Craig B. Kailimai; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty plea. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.
The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations pending in the third superseding indictment against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Melbourne Man Sentenced to Federal Prison for Money Mule ActivitiesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Joseph Daniel Harrison (43, Melbourne) to 12 months and 1 day in federal prison for participating in a wire fraud conspiracy. Harrison had pleaded guilty on February 1, 2021.
According to court documents, between September 2018 and May 2020, Harrison acted as a “money mule” for individuals believed to be located overseas who were defrauding victims. Money mules are individuals who receive and move money obtained from victims of fraud. Harrison assisted in the fraud by receiving fraud proceeds in his personal and business bank accounts. Harrison then transferred most of the fraud proceeds to other members of the conspiracy, while keeping some funds for his own use. The types of fraud through which Harrison’s co-conspirators obtained the funds included COVID-19 related unemployment fraud on the State of Washington, email compromise fraud on a school district in Illinois, email compromise fraud on businesses in Maryland, Texas, and Virginia, and romance fraud on a victim in California.
The amount of fraud proceeds that were routed through bank accounts controlled by Harrison totaled $2,091,576.50.
This case was investigated by the Federal Bureau of Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorneys Chauncey A. Bratt and Jennifer Harrington.
Manchester Woman Pleads Guilty to Wire FraudRead the Press Release
CONCORD - Katherine Torres, 47, of Manchester, pleaded guilty in federal court to wire fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Torres was employed as an office manager for Pine Haven Boys School in Allenstown, New Hampshire (Pine Haven) from 2012 until March 25, 2019. As office manager, Torres was the sole employee responsible for administering payroll. On various occasions, Torres submitted false information to Pine Haven’s payroll company, causing direct deposits to be made into her personal bank accounts. In total, Torres received approximately $240,000 through this scheme.
Torres is scheduled to be sentenced on August 31, 2021.
“This defendant took advantage of the trust that was placed in her and stole nearly a quarter million dollars,” said Acting U.S. Attorney Farley. “Fraud schemes are serious crimes that can have a substantial impact on victims. To seek justice for crime victims, we continue to work closely with the FBI and our other law enforcement partners to identify and prosecute white collar criminals.”
“The allegations to which Katherine Torres pleaded guilty today indicate both a disdain for the rule of law and a clear-cut case of greed. Ms. Torres betrayed the trust of her employer by using her position at a residential facility that cared for boys with behavioral, educational, and emotional issues, to defraud them of hundreds of thousands of dollars to line her own pockets,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “What she did is disgraceful, and make no mistake, the FBI is committed to investigating anyone engaged in this type of criminal activity.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Manchester Man Sentenced to 30 Months for Unlawful Possession of Gun and AmmunitionRead the Press Release
CONCORD - Joseph Taylor, 31, of Manchester, was sentenced to 30 months in federal prison for possession of a firearm and ammunition by a convicted felon, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 9, 2020, Manchester police officers stopped a car operated by Taylor after observing suspected drug activity and a motor vehicle violation. Taylor agreed to speak with the detectives outside the car. The detectives asked Taylor if he had anything illegal on him and he said he did not. After he consented to a search of his person and car, detectives found over $1,800 and a loaded 9mm handgun hidden in an area behind the glove compartment. Detectives later learned the firearm was stolen.
Taylor admitted he was a convicted felon and that he had the firearm for protection. He explained it was hidden because he knew he could not possess a firearm as a convicted felon.
Taylor previously pleaded guilty on January 13, 2021.
“In order to keep our communities safe from violent crime, we must keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “Thanks to good police work, this armed criminal has been brought to justice. To help prevent violent crime, we will continue to work closely with our law enforcement partners to identify and prosecute criminals who possess firearms unlawfully.”
This matter was investigated by the Manchester Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
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 Pleads Guilty to Abusive Sexual Contact with a Child Under 12Read the Press Release
A man who sexually abused a young child starting in 2003 pleaded guilty Monday in federal court, announced Acting U.S. Attorney Clint Johnson.
Travis Dray Stewart, 41, pleaded guilty to abusive sexual contact in Indian Country. U.S. District Judge Gregory K. Frizzell set sentencing for Sept. 15, 2021.
In his plea agreement, Stewart admitted to making sexual contact with a child under 12 years of age between June 2003 and September 2005. The U.S. Attorney’s Office charged Stewart after his May 2015 conviction in Tulsa County District Court was overturned due to jurisdiction following the Supreme Court’s McGirt v Oklahoma decision.
The resulting trauma associated with child sexual abuse can be long lasting. There are agencies to assist in recovery or that can share resources. You can start your search for assistance by contacting:
-Oklahoma’s SafeLine at 1-800-522-SAFE (7233).
-National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678). Information on reporting and recovery can be found on NCMEC’s site https://www.missingkids.org/gethelpnow/csam-resources.
Suspected child neglect and abuse can be reported to the Oklahoma Child Abuse Hotline at 1-800-522-3511 and/or to local law enforcement.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Reagan Reininger is prosecuting the case.
Madisonville Man Sentenced for 50 Years in Prison for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On May 24, 2021, Terry Lee Gilbreath, age 52, was sentenced by the Honorable Judge Thomas A. Varlan, United States District Judge, to serve 50 years in prison for producing child pornography.
In February 2020, a federal jury convicted Gilbreath of two counts of production of child pornography. The evidence presented at trial established that on two separate occasions in 2015 the defendant video recorded and photographed his sexual molestation of an eight-year-old child. Following his imprisonment, Gilbreath will be supervised by the United States Probation Office for the rest of his life and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The case was jointly investigated by Department of Homeland Security, Homeland Security Investigations; the Knoxville Police Department, Internet Crimes Against Children Unit; the City of Madisonville Police Department; and the Monroe County Sheriff’s office.
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, visit www.justice.gov/psc/resources.html and click on the tab “resources.”
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Local Firm and Owner Plead Guilty to Illegal Importation, Sale and Mailing of Badges Marketed as COVID-19 KillerRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – May 25, 2021
SAN DIEGO – A San Diego firm and its owner pleaded guilty in federal court today to charges relating to the unlawful importation, sale and mailing of an unregistered pesticide product from Japan marketed as a killer of airborne viruses such as COVID-19.
The product, known as EcoAirDoctor, was a small badge represented to emit a gas that would kill viruses within a certain distance. Such products are required to be registered as pesticides in the United States; no such registration was obtained.
Samir Haj, owner of EcoShield, LLC, admitted that he negotiated an agreement on behalf of the company with a foreign exporter that allowed him to import the product for a cost of $6.25 per unit. When he imported 125,000 units into the United States on June 10, 2019, he falsely declared the value to be approximately $2.07 per unit, resulting in an underpayment of Customs duty of $33,919.
The product was falsely described as an air purifier rather than a pesticide. The defendants shipped the product to individuals who purchased from their website via U.S. Mail, including a shipment to an undercover mailbox in Arizona in May of 2020. The product, as noted on the label, contains sodium chlorite, which is an item declared to be unmailable under U.S. Postal rules and regulations. Sodium chlorite was deemed unmailable because of its propensity to cause a fire or explosion.
As part of the plea agreements, the defendants agreed to forfeit $427,689, the proceeds from the sale of the illegal product, and to pay restitution of $86,754 for the unpaid duty and the cost of disposing of the product that was not sold. In addition, the company agreed to pay a fine of $42,000, for a total financial penalty of $556,443.
“This defendant took advantage of COVID-19 fears to market an illegal product,” said Acting U.S. Attorney Randy Grossman. “We are aggressively pursuing opportunists who exploit the pandemic to make money.” Grossman praised Assistant U.S. Attorney Melanie Pierson; trial attorney Stephen DaPonte of the Department of Justice’s Environmental Crimes Section; and agents with the U.S. Environmental Protection Agency, Criminal Investigations Division; Homeland Security Investigations; and the U.S. Postal Inspection Service for their exceptional work on this case.
“Profiting from the illegal import, sale, and shipment of an unregistered, untested, and potentially dangerous pesticide, especially at a time when the public had legitimate safety concerns about the transmission of COVID-19, is egregious criminal conduct that must be stopped,” said Acting Assistant Attorney General Jean Williams of the Justice Department’s Environment and Natural Resources Division. “We will work with our partners at U.S. Attorneys’ Offices and law enforcement agencies in prosecuting such conduct to the fullest extent of the law.”
“Unregistered pesticide products pose serious public health dangers,” said Special Agent in Charge Scot Adair of EPA’s criminal enforcement program in California. “Today’s guilty plea demonstrates that EPA and our law enforcement partners are committed to protecting the American people from products that make fraudulent – and potentially harmful - COVID-19 protection claims.”
“Whenever someone uses the U.S. Mail to send dangerous, illegal or improper items, Postal Inspectors will find them and bring them to justice,” said Eric Shen, Acting Postal Inspector in Charge, Los Angeles Division of the U.S. Postal Inspection Service. “We remain committed to keeping the mail safe for our customers and our employees.”
“This individual violated several federal laws and jeopardized public safety by marketing and selling an unproven device,” said Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI). “It’s despicable that he preyed upon people’s fear of COVID-19 to turn a profit. HSI will continue to work with our partners at Environmental Protection Agency -Criminal Investigation Division, California Department of Toxic Substances Control, U.S. Postal Inspection Service, Customs and Border Protection, and the U.S. Attorney’s Office to ensure public safety during this pandemic.”
Sentencing is scheduled for August 13, 2021 at 9 a.m. Before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number 21cr1463
EcoShield, LLC Formed: July 2018 San Diego, California
Samir Haj Age: 46 San Diego, California
SUMMARY OF CHARGES
For Eco Shield LLC
Entry of Goods Falsely Classified – Title 18, U.S.C., Section 541
Maximum penalty: Five years of probation and $500,000 fine or twice the amount of gross gain or loss, restitution to victims, forfeiture of proceeds
For Samir Haj
Entry of Goods Falsely Classified – Title 18, U.S.C., Section 541
Maximum penalty: Two years in custody and $250,000 fine, restitution to victims, forfeiture of proceeds
Nonmailable Injurious Articles – Title 18, U.S.C., Section 1716(j)(1)
Maximum penalty: One year in custody and $100,000 fine
Distribution or Sale of Unregistered Pesticides – Title 7, U.S.C., Sections 136j(a)(1)(A) and 136l(b)(1)(B)
Maximum penalty: One year in custody and $100,000 fine
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigations Division
Homeland Security Investigations
U.S. Postal Inspection Service
Lee County Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Possessing Child Sexual Abuse Images and VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Steven Thomas Baryla (39, Lehigh Acres) to 10 years in federal prison for possessing images and videos depicting the sexual abuse of children. Baryla was also sentenced to a lifetime term of supervised release and ordered to register as a sex offender.
Baryla had pleaded guilty on January 14, 2021.
According to court documents, Baryla knowingly possessed child sexual abuse images and videos that he had obtained from the internet; he also accessed similar images depicting children engaged in sexually explicit conduct via social media applications such as Kik and Snapchat. On June 20, 2019, a search warrant was executed at Baryla’s residence where agents from Homeland Security Investigations recovered Baryla’s cellphone. Subsequent forensic analysis of Baryla’s cellphone revealed that it contained 106 images and 10 videos depicting children being sexually abused. The internet history of the cellphone showed certain internet search terms, including “best state for sex offenders to live 2017” and “registered sex offender name change.”
In 2011, Baryla was convicted on federal charges of transporting child pornography in New Jersey.
“Thanks to HSI special agents, this child predator will have a decade to think about his crimes,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case 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.justice.gov/psc.
Justice Department Requires Divestitures in Huntington Bancshares Incorporated’s Acquisition of TCF Financial CorporationRead the Press Release
The Department of Justice announced today that Huntington Bancshares Incorporated and TCF Financial Corporation have agreed to sell 13 branches in Michigan, with approximately $872.3 million in deposits, to resolve antitrust concerns arising from Huntington’s planned acquisition of TCF Bank. The divested assets include all of the deposits and loans associated with the divested branches, as well as the physical assets.
“Banks are a critical part of the American economy,” said Acting Assistant Attorney General Richard A. Powers for the Justice Department’s Antitrust Division. “Families and small businesses rely on them to keep their money safe and obtain credit for important life purchases and investments. This settlement protects banking customers by ensuring that they continue to have access to competitively priced banking products and services.”
Under the agreement with the Justice Department, the parties will divest branches in Michigan, located in Arenac, Charlevoix, Crawford, Newaygo, Otsego, Mecosta, Shiawassee, Wexford and Missaukee counties, and in the City of Midland. The companies also have agreed to suspend existing, and not to enter into new, non-compete agreements with branch managers and loan officers located in the divestiture counties for a period of 180 days following the consummation of their merger. Further, the companies have agreed that any traditional branches located in any overlap market in Michigan and Ohio that are closed within three years of the merger’s closing will be sold or leased to an insured depository institution that offers deposit and credit services to small businesses. As a result of the acquisition, Huntington will become the 25th largest bank holding company based on assets.
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System. The department’s role when reviewing a proposed bank merger necessarily focuses on the merger’s competitive effects. Here, the department has advised the Federal Reserve Board that the department will not challenge the merger provided that the parties divest branches in certain areas of overlap and agree that any traditional branches in Michigan and in the five overlapping counties in Ohio that are closed within three years following the merger, will be marketed to an institution with a demonstrated record of providing services and loans to the local community. The parties’ commitments to the department are included as a condition to the Federal Reserve Board Order allowing the transaction.
Huntington is the holding company of The Huntington National Bank, Columbus, Ohio, with approximately $120 billion in assets. Huntington has 839 full-service branches across seven Midwestern states. Huntington provides a wide range of banking and other financial services to consumers, businesses and wealth management customers.
TCF is the holding company of TCF National Bank, Detroit, Michigan, and has approximately $48 billion in assets. TCF has 475 branches primarily located in Michigan, Illinois and Minnesota. TCF also provides a broad array of consumer and business banking services, along with other services like wealth management and specialty leasing services, to its customers.
A list of the branches to be divested is below.
Branch
Address
City
County
State
Zip Code
Au Gres Branch
144 W Huron Road
Au Gres
Arenac
MI
48703
Standish Branch
220 South Main Street
Standish
Arenac
MI
48658
Grayling Main
2500 South I-75 Business Loop
Grayling
Crawford
MI
49738
Charlevoix Branch
1425 Bridge Street
Charlevoix
Charlevoix
MI
49720
Fremont Branch
211 W Main Street
Fremont
Newaygo
MI
49412
Cadillac North End
1408 N Mitchell Street
Cadillac
Wexford
MI
49601
Cadillac Downtown
302 S Mitchell Street
Cadillac
Wexford
MI
49601
McBain Branch
101 N Roland Street
McBain
Missaukee
MI
49657
Gaylord Main
521 W Main Street
Gaylord
Otsego
MI
49735
Circle Branch
2910 Jefferson Avenue
Midland
Midland
MI
48640
Big Rapids Main
125 N Michigan Avenue
Big Rapids
Mecosta
MI
49307
Corunna Office
310 N Shiawassee Street
Corunna
Shiawassee
MI
48817
Owosso East Branch
1345 E Main Street
Owosso
Shiawassee
MI
48867
Justice Department Reaches Settlement with New Hampshire School District to Protect English Learner StudentsRead the Press Release
WASHINGTON – Today the Justice Department announced a settlement agreement with the Nashua School District to resolve the department’s investigation into the school district’s programs for its English learner students. The department’s investigation found widespread failures to provide these students with the instruction and support they need to learn English and participate fully in school. The Civil Rights Division and the U.S. Attorney’s Office for the District of New Hampshire conducted the investigation under the Equal Educational Opportunities Act of 1974.
“School districts must step up and give English learners the language services and supports they are entitled to under federal law. This agreement is a reminder that teachers cannot deliver those supports and services without training and resources from their district,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously enforce the law to open the doors of opportunity for all students in our nation’s schools. We commend the Nashua School District for opening those doors to its English Learners by entering into this agreement.”
“We are committed to protecting the civil rights of all students, including English language learners,” said Acting U.S. Attorney John J. Farley for the District of New Hampshire. “We make our communities better when our local schools serve the needs of all students and parents. This agreement will help ensure that Nashua schools are places where all students have a chance to learn and grow and all parents have an opportunity to follow their children’s progress.”
The district cooperated at every stage of the investigation and is committed to improving its practices through the comprehensive agreement. Under the agreement, the district will:
- Identify English learners and enroll them in appropriate classes;
- Provide English as a second language instruction to all English learner students, including students with disabilities, and ensure the district has enough teachers certified to teach English as a second language;
- Train teachers of academic core subjects like math, science and social studies on how to help English learner students understand the content in their grade-level courses;
- Train school principals on how to evaluate teachers of English learner students and support effective teaching strategies;
- Communicate essential school-related information in a language that Limited English Proficient parents can understand so their children can access all school programs; and
- Monitor students’ progress and evaluate the effectiveness of its English learner programs over time.
The Justice Department will monitor the district’s implementation of the settlement for three full school years.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available here. Members of the public may report possible civil rights violations here.
Note: A full copy of the settlement agreement can be viewed here.
This press release is also available in Spanish and Portuguese.
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Justice Department Observes National Missing Children’s DayRead the Press Release
As part of the 38th annual commemoration of National Missing Children’s Day, the Department of Justice today honored nine courageous individuals for their extraordinary efforts to recover missing children and bring sexual predators to justice. This year’s award recipients include four detectives and a sergeant from Fresno, California; two coordinators in the Missing Child Center-Hawaii in Honolulu; a sergeant from Addison, Illinois; and a U.S. Postal Service employee from Columbia, Maryland.
“These brave and resourceful professionals have earned our greatest respect and deserve our deepest gratitude,” said Attorney General Merrick B. Garland. “The Department of Justice is proud to stand with these heroes, and we are grateful to the thousands of law enforcement officers and missing children’s advocates throughout the nation who work so hard to protect our children.”
The Department’s Office of Justice Programs (OJP) and OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) lead the nation in observing National Missing Children’s Day. The observance was first proclaimed by President Ronald Reagan in 1983 in memory of 6-year-old Etan Patz, who disappeared while walking to his bus stop in lower Manhattan on May 25, 1979. National Missing Children’s Day honors his memory and those children still missing. Etan’s killer was convicted in February 2017, but the case remains active because his body was never found.
“There is no clearer expression of our priorities as a society than the safety and welfare of our young people,” said OJP Principal Deputy Assistant Attorney General Amy Solomon. “These outstanding law enforcement professionals, committed advocates and compassionate citizens show us at our collective best – as a nation dedicated to protecting the most vulnerable and determined to secure a bright future for its youngest members.”
In lieu of an in-person ceremony, OJJDP has launched a website today featuring information about the awardees and statements from Attorney General Garland, Associate Attorney General Vanita Gupta, OJP Principal Deputy Assistant Attorney General Solomon, OJJDP Acting Administrator Chyrl Jones, and President and CEO of the National Center for Missing & Exploited Children John F. Clark.
“These nine individuals have displayed exceptional bravery and dedication in reuniting missing children with their families,” said OJJDP Acting Administrator Jones. “We are thrilled to honor them on this special day.”
This year’s recipients are honored with the following awards:
Attorney General’s Special Commendation: This commendation recognizes the extraordinary efforts of an Internet Crimes Against Children task force, an affiliate agency or an individual assigned to either for making a significant investigative or program contribution to the ICAC task force program.
Recipients: Sergeant Chad Stokes, Detective Cassandra Stevens, Detective Scott Schwamb, Detective Randall Heckman and Detective Steven Souphasith from the Fresno County Sheriff’s Office’s Central California ICAC Task Force in Fresno, California. They led an investigation that resulted in the arrest of 34 sexual predators who sought to take advantage of children’s increased presence online during the pandemic.
Missing Children’s Citizen Award: This award recognizes the extraordinary efforts of private citizens for their unselfish acts to safely recover missing or abducted children.
Recipient: Keith Rollins, from the United States Postal Service in Columbia, Maryland. Mr. Rollins helped locate a 2-year-old boy who had been reported missing after he followed an adult out of the house and wandered away.
Missing Children’s Law Enforcement Award: This award recognizes the extraordinary efforts of law enforcement officers who have made a significant investigative or program contribution to the safety of children.
Recipient: Sergeant Stefan Bjes from the Addison, Illinois, Police Department. Sergeant Bjes has developed several programs that have enhanced the safety of children with special needs. He has also trained officers at 15 police departments across the Midwest and frequently presents at police conferences nationwide.
Missing Children’s Child Protection Award: This award recognizes the extraordinary efforts of child protective service agency personnel, law enforcement officers or other professionals who have made a significant investigative or program contribution to protecting children from abuse or victimization.
Recipients: Amanda Leonard and Kaleilani Grant from the Department of the Attorney General’s Missing Child Center-Hawaii in Honolulu. Ms. Leonard and Ms. Grant were instrumental in implementing Operation Shine the Light, a cooperative effort between Missing Child Center-Hawaii; federal, state and local law enforcement agencies; and four nonprofit organizations, which recovered 180 missing children in Hawaii between November 2019 and November 2020.
The Department also named Heidy Jimena Perez Veleta from Sunnyside Elementary School in Dodge City, Kansas, winner of the 2021 National Missing Children’s Day poster contest. The contest creates an opportunity for schools, law enforcement and child advocates to discuss the issue of child safety with youth and their parents.
The FBI received more than 365,000 reports of missing children last year. Additional information about National Missing Children’s Day is available on OJJDP’s website.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Files Lawsuit on Behalf of Indiana GuardsmanRead the Press Release
INDIANAPOLIS – Acting U.S. Attorney John E. Childress and Principal Deputy Assistant Attorney General Pamela S. Karlan announced today, a complaint was filed in the United States District Court for the Southern District of Indiana on behalf of Captain Christopher Robbins of the Indiana Army National Guard against DSG Indiana, a limited liability corporation, doing business as Ashley Home Store (“Ashley Furniture”), alleging that Ashley Furniture violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when it failed to promptly offer Robbins re-employment after his return from active duty military service.
“The Department of Justice expects employers to fully comply with their reemployment obligations under the law,” said Acting U.S. Attorney Childress. “Where employers fall short in doing so, we will aggressively vindicate the reemployment rights of servicemembers.”
According to the Justice Department’s complaint, Captain Robbins has been a member of the Indiana Army National Guard since 2006. In 2014, Robbins began working as a salesman at an Ashley Furniture Store in Greenwood, Indiana. During the summer of 2017, Robbins provided notice to Ashley Furniture that his military service obligations with the National Guard required him to attend mandatory, out-of-state military training exercises with his unit. The training was scheduled for one month’s duration. The complaint alleges that at the completion of his training obligation, Robbins promptly sought re-employment as a salesman with Ashley Furniture and agreed with the company’s representatives on a return to work date. According to the allegations in the complaint, Ashley Furniture, however, did not allow Robbins to return to work on the agreed upon date. Instead, two days before the agreed upon return date, Robbins was fired by Ashley Furniture.
“Federal law protects the right of servicemembers like Captain Robbins to resume their jobs when they return home,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “It guarantees that members of the armed forces are not forced to sacrifice their continued employment on top of the sacrifices they have already made in order to fulfill their military obligations.”
This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt-military/employment-rights-userra and
https://www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at https://www.dol.gov/agencies/vets/programs/userra.
This case is being handled by Trial Attorney Christopher Woolley in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Jeffrey Preston in the U.S. Attorney’s Office for the Southern District of Indiana.
Jacksonville Man Pleads Guilty to Making A False Statement to A Firearms DealerRead the Press Release
Jacksonville, Florida – Jarrod Austin (33, Jacksonville) has pleaded guilty to making a false statement to a federally licensed firearms dealer. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Austin was subject to an injunction for protection against domestic violence that had issued by the Circuit Court of the Fourth Judicial Circuit in Nassau County on December 23, 2014. The injunction specifically prohibited Austin from possessing a firearm and federal law makes it a felony for anyone who is subject to an injunction against domestic violence to possess or purchase a firearm.
In August 2019, Austin tried to buy a firearm and was denied on the background check because of the injunction. Austin contacted the Florida Department of Law Enforcement (FDLE) to dispute the denial and FDLE advised Austin that he was in fact prohibited from purchasing a firearm. On December 11, 2019, Austin went to a federally licensed firearms dealer in Jacksonville and again tried to purchase a firearm. Austin falsely stated on the ATF Form 4473 that he was not subject to an injunction, specifically a court order restraining him from harassing, stalking, or threatening an intimate partner. Austin was again denied on the background check and did not obtain a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce Federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of Federal, State, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Indiana Natives Plead Guilty for 2019 Attempted Armed Robbery of Uptown CVS Which Resulted in Shooting of NOPD OfficerRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Tuesday, May 21, 2021 that RICHARD SANSBURY, age 28, and ALAN PARSON, age 20, residents of Indianapolis, Indiana, plead guilty to the three count Indictment for their participation in the June 17, 2019 robbery of the CVS pharmacy located at 4901 Prytania Street.
At approximately 6:06 a.m., SANSBURY and PARSON entered the 24-hour pharmacy, armed with weapons. Both wore hooded sweatshirts and blue medical gloves. Upon entering the store, SANSBURY removed a firearm from his waistband, went behind the front counter, and detained a cashier by using zip-ties. SANSBURY led the cashier to another area of the store. PARSON relocated to the rear of the store, in the pharmacy area, and forced another employee to the ground before securing the employee’s feet with zip-ties. PARSON then filled a large trash bag with several pill bottles that he retrieved from the pharmacy’s safe. SANSBURY relocated to the pharmacy area where he continued to zip-tie the employee’s hands whom PARSON initially detained.
Upon exiting the store, PARSON and SANSBURY engaged in a shootout with responding officers of the New Orleans Police Department. The confrontation resulted in one of the officers suffering a bullet wound to the shoulder. Video surveillance captured the robbery as it occurred from both inside and outside the pharmacy.
SANSBURY and PARSON plead guilty to conspiracy to commit a robbery involving a controlled substance, in violation of Title 18, United States Section, 2118. Both face a maximum sentence of 10 years of imprisonment, a fine up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment of $100.00. Additionally, SANSBURY and PARSON plead guilty to armed robbery involving controlled substances in violation of Title 18, United States Sections, 2118(a) and (c)(1). Both face a maximum sentence of 25 years of imprisonment, a fine up to $250,000.00, a period of up to 5 years supervised release, and a mandatory special assessment of $100.00. Lastly, SANSBURY and PARSON plead guilty to discharge of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Sections, 924(c)(1)(A)(iii). SANSBURY and PARSON each face a consecutive mandatory minimum sentence of 10 years up to life imprisonment, a fine up to $250,000.00, a period of up to 5 years supervised release, and a mandatory special assessment of $100.00.
United States District Court Judge Greg G. Guidry will sentence SANSBURY and PARSON on August 24, 2021.
The case was investigated by the Federal Bureau of Investigations and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys David Haller and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Indiana Man Pleads Guilty to Lacey Act ViolationsRead the Press Release
An Indiana man pleaded guilty today to three felony counts of illegally harvesting American paddlefish and its roe.
According to court documents, on three separate days in December 2015 and February 2016, Joseph R. Schigur, a licensed commercial fisherman, and his deckhand, harvested 96 American paddlefish from the Ohio waters of the Ohio River that he knew were closed to commercial fishing. After capturing the paddlefish using gill nets, Schigur transported each catch to his shop in English, Indiana, where the roe was extracted from the females and processed to make caviar and the carcasses were carved up into smaller portions, commonly referred to as “bullets.” The caviar and bullets were then stored in freezers on site for future sale to out-of-state customers. Schigur’s three fishing trips resulted in approximately 1,400 pounds of fish meat and 72 pounds of caviar, most of which was sold to commercial vendors in New York City. To conceal his illegal harvests, Schigur falsified monthly reports of commercial fish harvest and daily roe harvest reports by claiming he caught the paddlefish in Kentucky waters.
Schigur pleaded guilty to three felony counts of Lacey Act violation before the Honorable Judge Douglas R. Cole in the Southern District of Ohio. A sentencing date will be set upon completion of a presentence report. Schigur faces up to five years in prison, a $250,000 criminal fine, and a possible order requiring restitution payable to the State of Ohio.
Special agents of the Fish and Wildlife Services and law enforcement officers from both the Ohio and Indiana Department of Natural Resources investigated the case.
Trial Attorney R.J. Powers of the Justice Department’s Environmental Crimes Section (ECS) and Assistant U.S. Attorney Laura Clemmens of the Southern District of Ohio prosecuted the matter with the assistance of paralegal Samantha Goins of ECS.
Houston Man Sentenced for Federal Violations Related to Identity Theft SchemeRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced to prison for federal violations related to identity theft in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
French Latrelle Carpenter, 45, pleaded guilty on Feb. 4, 2021, to access device fraud and was sentenced to 40 months in federal prison today by U.S. District Judge Michael J. Truncale.
“Anybody who has ever been a victim of identity theft can attest to how stressful the experience can be and how difficult it can be to get your finances back in order,” said Acting U.S. Attorney Nicholas J. Ganjei. “Identity theft wreaks havoc on the finances of its victims, which can take literally years to repair. Criminals that victimize others through identity theft in the Eastern District of Texas should expect to receive a visit from law enforcement.”
According to information presented in court, a search of Carpenter’s vehicle on August 28, 2020 produced four credit card skimmers, a laptop computer, blank credit cards and several birth certificates bearing the names of other individuals. A search of the laptop, pursuant to a search warrant, revealed more than 100 credit card numbers and names along with personal identifying information for three individuals. The computer also contained a user guide for card/magnetic strip reader/writer software, a document related to credit card fraud and an internet search history related to the buying of stolen credit card data.
Carpenter was indicted by a federal grand jury on Nov. 4, 2020, and charged with federal violations.
This case was investigated by Homeland Security Investigations and the Corrigan Police Department and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman.
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Houston Man Guilty of Laundering Drug ProceedsRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations related to drug trafficking in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Roberto Fuentes, 42, pleaded guilty to conspiracy to launder money today before U.S. Magistrate Judge Zack Hawthorn.
“Money laundering is a key part of hiding evidence of criminal activity such as illegal narcotics distribution,” said Acting U.S. Attorney Nicholas J. Ganjei. “When we disrupt a drug trafficking organization’s ability to profit from their illegal conduct, we are helping prevent dangerous, addictive substances from being distributed in East Texas. I continue to be grateful for the great work and dedication of the DEA and their efforts to combat all aspects of the illegal drug trade.”
According to information presented in court, Roberto Fuentes was an associate of Ruben Pulido Flores and participated in transactions to conceal currency that was the proceeds of Flores’ illegal drug trafficking. Since at least May 2017, Flores has supervised, managed and controlled a drug trafficking organization of more than five people that distributed cocaine and other narcotics in the Houston area, which was subsequently redistributed to customers throughout Southeast Texas, Atlanta, and Chicago.
Fuentes was indicted by a federal grand jury on Dec. 6, 2018 and charged with federal violations. Under federal statutes, Fuentes faces up to 20 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 being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.
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Hooksett Man Sentenced to over a Year in Prison for Computer Hacking OffensesRead the Press Release
CONCORD - Wayne Kenney, 31, of Hooksett, was sentenced to 12 months and one day in federal prison for unauthorized access to a computer and damage to protected computers, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in early 2015, Kenney was arrested by a police officer with the Auburn Police Department (hereafter referred to as “John Doe 1” to protect his identity) for possession of heroin, for which he received a suspended sentence and was required to attend drug counseling sessions at the Farnum Center, an addiction treatment center located in Manchester. Thereafter, Kenney engaged in a retributive course of action that involved hacking into various computers of the Auburn Police Department, the Town Offices of Auburn, and the Farnum Center.
From February 2015 through July 2015, Kenney hacked into Auburn Police Department and Town of Auburn computers and deployed malicious “keylogging” software that he created, and stole employees’ log-in credentials. He then hacked into, deleted files from, and defaced employees’ online accounts. In addition, Kenney deployed malicious software that caused pop up messages to appear that stated “I pray for the death of [John Doe 1].”
Also according to court documents, on or about July 1, 2015, Kenney hacked into the website for the Farnum Center and took control of the site. He disabled a link that would have provided website visitors access to information about alcohol and drug treatment assistance. He also changed their 24-hour emergency drug hotline phone number so that anyone calling for help would be re-routed to a number associated with adult entertainment services and would be unable to reach the Farnum Center’s emergency services.
Kenney previously pleaded guilty on November 18, 2021.
“The defendant’s reprehensible actions caused significant harm to entities that seek to help the public,” said Acting U.S. Attorney Farley. “By disabling access to drug and alcohol treatment information, the defendant cruelly impeded innocent people from getting help for their substance abuse problems. His actions also harmed innocent public servants in Auburn. To protect the community from such crimes, we work closely with the FBI to identify and prosecute computer hackers.”
“The facts of this case speak for themselves. You can’t hide in the shadows of the internet and hack into computers and impede others from accessing emergency substance abuse treatment services and get away with it,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence holds Wayne Kenney accountable for his vindictive crimes and should serve as a warning to others that the FBI will continue to work with our law enforcement partners to thoroughly investigate all cyber intrusions and hold the criminals behind them accountable.”
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Georgiana L. MacDonald of the District of New Hampshire. Former Assistant U.S. Attorney Arnold H. Huftalen previously worked on this matter.
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Guatemalan Man Pleads Guilty to Unlawful Return of an Alien After RemovalRead the Press Release
Gulfport, Miss. - A Guatemalan national pleaded guilty to unlawful return of an alien after removal, announced Acting U.S. Attorney Darren J. LaMarca and Jason E. Schneider, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Julio Pablo-Chan, 39, of Guatemala, was arrested on February 26, 2020, on Interstate 10 in Jackson County. An agent of the South Mississippi Metro Enforcement Team (SMMET) conducted a traffic stop on a vehicle driven by Pablo-Chan, who did not have a driver’s license. The deputy requested assistance from the U.S. Border Patrol and a Border Patrol Agent responded on-site. The agent informed Pablo-Chan that due to his immigration history, and the fact that he did have proper immigration documents to enter, pass through or remain in the U.S. legally, he was being placed under arrest.
Pablo-Chan was transported to the Gulfport Border Patrol Station, where an agent with Homeland Security Investigations joined the investigation. Pablo-Chan’s identity was positively confirmed and records revealed that Pablo-Chan had illegally entered the United States and been removed from the United States back to his home nation of Guatemala in August 2011 and again in December 2018.
Pablo-Chan pleaded guilty to unlawful return of an alien after removal, and is scheduled to be sentenced on August 26, 2021. He faces a maximum penalty of two years in prison and a $250,000 fine. After completing any sentence of incarceration, he also could face Homeland Security proceedings to remove him again from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations and the Jackson County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Fort Myers Felon Sentenced to Ten Years in Prison for Discharging Firearm in Apartment Complex Parking LotRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jamar Maurice James (31, Fort Myers) to 10 years in federal prison for possessing ammunition as a convicted felon in connection with a shooting at an apartment complex parking lot in Fort Myers.
James had pleaded guilty on January 13, 2021.
According to court documents, on February 17, 2020, at approximately 3:15 a.m. officers from the Fort Myers Police Department responded to a “ShotSpotter” alert at the Jones Walker Palm Gardens Apartments in Fort Myers. ShotSpotter® is a gunfire locator or gunshot detection system that detects and conveys the location of gunfire or other weapons fire using a combination of sensors in a geographic area. When officers arrived, although they did not locate any injured persons or a gunman, they found six spent ammunition cartridge casings in the apartment complex parking lot. A subsequent investigation revealed that James had discharged an AK-47 firearm in the parking lot of the complex and then fled the scene before law enforcement arrived.
James had previously been convicted of six felonies, including multiple prior convictions for possessing a firearm as a convicted felon. As a result, federal law prohibits him from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Former Washington County Assistant District Attorney Pleads Guilty to Trading Sex for Dismissal of ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 25, 2021, William E. McManus, Jr., age 50, pleaded guilty before the Honorable J. Ronnie Greer, Senior United States District Judge, to soliciting a bribe in December 2018 in exchange for dismissal and expungement of criminal charges. Sentencing is set for November 15, 2021, at 10:30 a.m., before the Honorable J. Ronnie Greer in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the filed plea agreement, McManus admitted that, while acting in his capacity as an Assistant District Attorney for the First Judicial District, he dismissed and expunged shoplifting and possession of methamphetamine charges pending in the Sessions Court of Washington County, Tennessee, in exchange for a commercial sex act with someone with whom he had previously engaged in commercial sex acts. The maximum punishment for the offense is a term of imprisonment of up to ten years and a fine of up to $250,000.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The case was jointly investigated by the Federal Bureau of Investigation, investigators of the First Judicial District Attorney General’s Office, and the Johnson City Police Department. The prosecution was coordinated with the Sixth Judicial District Attorney’s Office, which was appointed to be a special state prosecutor for this investigation.
Assistant United States Attorney Matthew T. Morris represented the United States in Court.
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Former San Antonio Bookkeeper Pleads Guilty to Stealing $1.7 MillionRead the Press Release
SAN ANTONIO – Irene M. Scott, former bookkeeper and financial manager for a San Antonio private law firm, admitted to stealing approximately $1,696,996 from the law firm’s operating account today.
Appearing before U.S. District Judge Fred Biery, Scott pleaded guilty to three counts of wire fraud and one count of bank fraud. According to court documents, Scott worked for the law firm between August 2011 and February 2020. Her duties included issuing business credit cards to employees and closing those business credit card accounts when an employee separated from the firm. She also maintained the firm’s financial ledgers and paid vendors and operating expenses.
Scott admitted that from 2012 to 2020, she used three office credit cards assigned to employees or former employees to make non-firm related purchases totaling over $1.2 million. An estimated three-fourths of those funds went to support her husband’s outdoor lighting business. She concealed on the firm’s financial ledgers credit card payments she made using the firm’s operating account. Scott also stole an estimated $417,000 by fraudulently withdrawing from the firm’s operating bank account about 200 times during a two-year period beginning in January 2018. She disguised those withdrawals in the firm’s ledger as vendor payments. Scott committed these fraudulent acts without the knowledge or authorization of any member of the firm.
Scott remains on bond. Judge Biery scheduled sentencing for 9:30 a.m. on November 9, 2021.
U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division made today’s announcement.
The FBI investigated this case. Assistant U.S. Attorneys Matthew W. Kinskey and Joseph E. Blackwell are prosecuting this case.
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Former Nurse Sentenced for Tampering with Fentanyl Vials Intended for Patients at Fertility ClinicRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced DONNA MONTICONE, 49, of Oxford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven for tampering with fentanyl vials intended for patients at the fertility clinic where she was employed. Monticone was ordered to serve three years of supervised release, four weekends of incarceration, and three months of home confinement.
According to court documents and statements made in court, Monticone was a nurse employed by the Yale Reproductive Endocrinology and Infertility clinic (“Yale REI clinic”) in Orange. As part of her responsibilities at the Yale REI, Monticone ordered and inventoried a variety of narcotics used by the clinic, including fentanyl, which is a component of a cohort of drugs used by Yale physicians during outpatient surgical procedures to anesthetize patients and protect them from feeling pain.
In June 2020, Monticone began stealing fentanyl for her own use. She accessed secure storage areas and took vials of fentanyl, used a syringe to withdraw the narcotics from the vials, and reinjected saline into vials so that it would appear as if none of the narcotics were missing. The investigation revealed that approximately 75 percent of the fentanyl given to patients at the Yale REI clinic from June to October 2020 was adulterated with saline. Some of the vials contained diluted fentanyl, while others contained no drug at all and contained just saline.
Monticone knew that the adulterated vials of fentanyl she replaced at the Yale REI clinic would be used in surgical procedures, and that the absence of an anesthetic during an outpatient procedure may cause serious bodily injury to the patient. Monticone initially injected herself with the fentanyl while working at the Yale REI clinic and eventually began taking the vials home. She would refill the vials with sterile saline at home, bring them back to the clinic, and reintroduce them into the stock of fentanyl available for use during surgical procedures. On approximately November 1, 2020, Monticone brought approximately 175 vials of fentanyl that she had taken from the Yale REI clinic and discarded them in waste containers at the clinic.
Numerous victims submitted letters to Judge Hall describing physical pain they experienced during their procedures at the Yale REI clinic during this time period.
On March 2, 2021, Monticone pleaded guilty to one count of tampering with a consumer product.
Monticone has surrendered her nursing license.
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations; the DEA’s New Haven Tactical Diversion Squad; and the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorney Ray Miller.