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21 May 2021
Federal Jury in Lafayette Returns Guilty Verdict following Week-Long TrialRead the Press Release
LAFAYETTE, La. – A federal jury seated in Lafayette has returned a guilty verdict against Jarvis Pierre, 38, of Houston, Texas, convicting him on firearms charges following a week-long trial before United States District Judge James D. Cain, Jr., announced Acting United States Attorney Alexander C. Van Hook.
Pierre was charged in a Second Superseding Indictment on April 28, 2021 with two counts of possession of a firearm and ammunition by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking crime. Evidence introduced at the trial revealed that Pierre was stopped by law enforcement officers on October 7, 2018 and December 27, 2018 for traffic violations.
On October 7, 2018, deputies with the Calcasieu Parish Sheriff’s Office responded to a shots fired call outside of the Cloud 9 night club in Lake Charles, Louisiana. When deputies arrived, the crowd began to disburse and many patrons left the parking lot. Deputies observed a vehicle that remained in the parking lot with the driver acting suspiciously. Law enforcement officers followed the vehicle once the driver left the parking lot and observed the vehicle drift from the lane of travel several times and conducted a traffic stop. Pierre was the driver of the vehicle and as deputies approached the vehicle, they detected a strong odor of marijuana coming from inside. After a search of Pierre’s person, deputies found large amounts of cash, and a brown, powdery substance which was determined to contain heroin and fentanyl. While searching the vehicle further, deputies found a loaded FN57 handgun under the driver’s seat, as well as a loose 5.7mm round of ammunition, a rolled marijuana cigarette, and a baby bottle containing promethazine. Memo books containing writing that was determined to be prices for different amounts of narcotics with names and addresses were also found in the vehicle. The amount of cash found on Pierre’s person and in the vehicle totaled over $11,000.
When Pierre was stopped by Calcasieu Parish Sheriff’s Office deputies for a traffic violation on December 27, 2018, they found him to have a loaded handgun between the driver’s seat and center console of his vehicle, along with marijuana on his person and in the vehicle, and two cellular phones. Deputies determined at that time that Pierre had an active warrant out of Texas stemming from a traffic stop in February 2018 in Pearland, Texas by officers with the Pearland Police Department. During the Pearland, Texas stop, law enforcement officers found a loaded 9mm handgun, over 400 oxycodone pills and $11,629 in cash, as well as 4 cellular telephones.
Pierre has previous felony convictions for possession of cocaine with intent to distribute (2001); distribution of cocaine (2002); and aggravated assault with a firearm (2013). It is illegal for individuals with a prior felony conviction to possess a firearm or ammunition.
The defendant faces no less than 15 years nor more than life in prison on the two convicted felon in possession of a firearm counts of the indictment, a $250,000 fine, or both. He faces a statutory mandatory minimum of not less than 5 years and up to life on the possession of a firearm in furtherance of a drug trafficking crime count in the indictment, to run consecutive to the other counts.
Sentencing has been set for September 23, 2021 at 10:00.
The ATF and Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys John W. Nickel and J. Luke Walker prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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FBI Employee Indicted for Illegally Removing National Security Documents, Taking Material to Her HomeRead the Press Release
Note: A full copy of the indictment can be viewed
here.WASHINGTON – An employee of the FBI’s Kansas City Division has been indicted by a federal grand jury for illegally removing numerous national security documents that were found in her home.
Kendra Kingsbury, 48, of Dodge City, Kansas, was charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Missouri, on Tuesday, May 18. That indictment was unsealed and made public today upon Kingsbury’s arrest and initial court appearance in the District of Kansas.
“As an intelligence analyst for the FBI, the defendant was entrusted with access to sensitive government materials," said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Kingsbury is alleged to have violated our nation’s trust by stealing and retaining classified documents in her home for years. Insider threats are a significant danger to our national security, and we will continue to work relentlessly to identify, pursue and prosecute individuals who pose such a threat.”
“The breadth and depth of classified national security information retained by the defendant for more than a decade is simply astonishing,” said Alan E. Kohler, Jr. Assistant Director of the FBI’s Counterintelligence Division. “The defendant, who's well trained in handling classified information, put her country’s sensitive secrets at risk. The FBI will go to great lengths to investigate individuals who put their own interests above U.S. national security, including when the individual is an FBI employee.”
“Our community’s safety and our nation’s security were jeopardized by this criminal behavior,” said Acting U.S. Attorney Teresa Moore for the Western District of Missouri. “Those entrusted with such grave responsibility must be held accountable if they violate their oath and betray their country. I appreciate the diligence and professionalism with which the FBI thoroughly investigated one of their own and brought the perpetrator to justice.”
“Every FBI employee swears to support and defend the Constitution of the United States,” said Special Agent in Charge Timothy Langan of the FBI Kansas City Field Office. “With that oath comes the obligation to protect classified information from unauthorized disclosure to safeguard our national security. Kingsbury’s actions are a betrayal of trust not only to the FBI but also the American people. They can be reassured that the FBI takes any and all allegations of wrongdoing by employees with the utmost gravity and remain committed to investigating these allegations to the fullest extent.”
The federal indictment alleges that Kingsbury improperly removed sensitive government materials – including national defense information and classified documents – from June 2004 to Dec. 15, 2017. Kingsbury allegedly retained these materials in her personal residence.
Kingsbury worked as an intelligence analyst for more than 12 years in the Kansas City Division of the FBI, until she was placed on suspension in December 2017. She was assigned to several different FBI squads during that time, including squads that focused on illegal drug trafficking, violent crime, violent gangs, and counterintelligence. Kingsbury, who held a top secret security clearance, had access to national defense and classified information.
The federal indictment charges Kingsbury with two counts of having unauthorized possession of documents relating to the national defense.
Count one of the federal indictment relates to numerous documents classified at the secret level that describe intelligence sources and methods related to U.S. government efforts to defend against counterterrorism, counterintelligence and cyber threats. The documents include details on the FBI’s nationwide objectives and priorities, including specific open investigations across multiple field offices. In addition, there are documents relating to sensitive human source operations in national security investigations, intelligence gaps regarding hostile foreign intelligence services and terrorist organizations, and the technical capabilities of the FBI against counterintelligence and counterterrorism targets.
Count two of the federal indictment relates to numerous documents classified at the secret level that describe intelligence sources and methods related to U.S. government efforts to collect intelligence on terrorist groups. The documents include information about al Qaeda members on the African continent, including a suspected associate of Usama bin Laden. In addition, there are documents regarding the activities of emerging terrorists and their efforts to establish themselves in support of al Qaeda in Africa.
According to the indictment, Kingsbury was not authorized to remove and retain these sensitive government materials, nor did she have a need to know most, if not all, of the information contained in those materials. Kingsbury knew the unauthorized removal of classified materials and transportation and storage of those materials in unauthorized locations risked disclosure and transmission of those materials, and therefore could endanger the national security of the United States and the safety of its citizens. She also knew that violating the rules governing the handling of classified information could result in criminal prosecution.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and David Raskin in the Western District of Missouri, with the assistance of DOJ Trial Attorney Scott Claffee with the Counterintelligence & Export Control Section of the National Security Division. It was investigated by the FBI Field Office in Omaha, Nebraska.
Drug User Sentenced to over Two Years in Federal Prison for Unlawfully Possessing FirearmRead the Press Release
A Waterloo, Iowa, man that fired several shots into the air in a residential area was sentenced today to more than two years in federal prison.
Marcus DeShawn Harmon-Wright, age 35, from Waterloo, Iowa, received the prison term after a December 16, 2020 guilty plea to one-count of possession of a firearm by a prohibited person.
Evidence at sentencing showed that, on April 12, 2020, Harmon-Wright fired several shots into the air, striking his own residence, after observing individuals breaking into his partner’s car. Several minutes later, Harmon-Wright got into an argument with his neighbor, while he continued to possess the firearm. After officers arrived, Harmon-Wright was uncooperative, knocking off an officer’s body worn camera and spitting in that officer’s face intentionally. Harmon-Wright was prohibited from possessing firearms because he was a drug user.
Harmon-Wright was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harmon-Wright was sentenced to 33 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Harmon-Wright is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case is being prosecuted by Special Assistant United States Attorney Dillan Edwards and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02044.
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Dominican National Sentenced for Fentanyl PossessionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for possession with intent to distribute fentanyl.
Jose Villar, 29, was sentenced by U.S. Senior District Court Judge William G. Young to 18 months in prison and four years of supervised release. Villar will face deportation upon completion of his sentence. On Jan. 20, 2021, Villar pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
In November 2019, undercover investigators arranged to make a controlled purchase of fentanyl from a drug supplier. When agents arrived to the location, Villar motioned to them to pull over the car. As the agents exited their vehicle, Villar attempted to run, but was quickly apprehended. Agents subsequently seized 88 grams of fentanyl that Villar was observed throwing over a fence.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Mendell’s Major Crimes Unit prosecuted the case.
Delaware Man Sentenced to Nearly Four Years in Federal Prison for Conspiracy and Interstate Transportation of Stolen PropertyRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Thi Van Ho, age 51, of Bear, Delaware to 46 months in federal prison, followed by three years of supervised release, for conspiracy and interstate transportation of stolen property. Judge Bredar has also ordered Ho to pay $ 2,478,069.16 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from September 2015 to March 2019, Ho and four co-conspirators devised and executed a plan to defraud a beauty product manufacturer (“Victim Company 1”) by submitting fraudulent invoices in the names of shell companies for services and products that were never actually provided to Victim Company 1.
In September 2015 Co-conspirator 1, who was the Director of Planning, Logistics, and Control at Victim Company 1, was tasked with arranging vendors for the disposal of waste at two of Victim Company 1’s warehouses. In his position, Co-conspirator 1 had total autonomy in the approval process and payment of invoices.
Co-conspirator 1, Ho, and three co-conspirators created the shell entities of MPC II, LLC, Marka Warehouse System, LLC., and SMNI, LLC. The co-conspirators registered the shell entities in their names, listed themselves as president or resident agent, and rented PO Boxes in different States which served as the alleged business address for each of the shell companies.
Ho also admitted that the conspiracy cashed the fraudulently obtained checks that Victim Company 1 issued to pay for the false invoices at check cashing facilities in Philadelphia, Pennsylvania. After the checks were cashed, the co-conspirators would divide the cash proceeds among themselves. Ho received roughly 53% of each fraudulently obtained check and used the remainder of his proceeds for personal expenses.
In sum, Ho and his co-conspirators caused Victim Company 1 to issue approximately $2,527,234 for false and fraudulent services. Three of Ho’s co-conspirators have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Jonathan F. Lenzner praised the FBI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kathleen O. Gavin who prosecuted the case.
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Delaware County Man Sentenced to 20 Years for Collecting 22,000+ Images Involving the Sexual Abuse of ChildrenRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ryan Davis, 24, formerly of Glen Mills, PA, was sentenced to 20 years in prison, a lifetime of supervised release, and was ordered to pay $15,000 restitution after a nearly 10-hour hearing by United States District Judge Gerald Pappert for his possession of more than 22,000 images and videos of child pornography that Davis concealed on his electronic devices and in his online accounts.
In July 2019, the defendant pleaded guilty to transporting and possessing a collection of more than 22,000 extremely graphic and sadistic images and videos of children being raped, sexually assaulted, and depicted in sexually explicit positions. Most of the children depicted in his collection were prepubescent, and included infants and toddlers being sexually abused. An investigation into the defendant’s online Dropbox account revealed that the IP addresses used to access his child pornography were linked to various residences associated with the defendant, including his student account at West Chester University.
At the time he committed these child sex crimes, Davis was under court supervision and still serving his juvenile sentence for sexually assaulting two prepubescent boys who were just 6 and 9-years old at the time that Davis victimized them. Davis was also in sex offender treatment during the same time he committed these federal child sex crimes.
“Child pornography offenses victimize real children – they are first abused by those who produce these images, and re-victimized every time a child sex offender engages in these online crimes,” said Acting U.S. Attorney Williams. “Davis is very clearly a danger to children in the community as a previously adjudicated child sex offender, and he will now spend years behind bars to ensure he can no longer hurt any more children. Investigating and prosecuting these cases are a priority for our Office, as is ensuring that the offenders are held fully accountable.”
“Ryan Davis admitted to amassing many thousands of images of babies, toddlers, and children suffering horrific sexual abuse, and doing so while in treatment for sexually abusing two children himself,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Those photos and videos represent unimaginable pain forced upon utterly vulnerable victims, some too young to walk or talk. Know that the FBI will never stop looking for, and locking up, those involved in the sexual exploitation of children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
The case was investigated by the Federal Bureau of Investigation and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Convicted Sex Offender Arrested on Child Pornography ChargesRead the Press Release
ANCHORAGE – An Anchorage man was arrested by the Federal Bureau of Investigation’s (FBI) Crimes Against Children Human Trafficking Task Force for suspected child exploitation offenses.
According to court documents, Timothy Swensen, Jr., age 29, is charged by information with violations related to the alleged production, distribution and possession of child pornography. Swensen was previously convicted of sexual assault in the second degree by the State of Alaska in 2011.
As detailed in the affidavit in support of the criminal complaint initially filed in this matter, the case first came to the attention of the FBI following a report to the Anchorage Police Department (APD) of a suspected sexual assault of a vulnerable adult woman. During the interview with detectives, the alleged adult victim shared text messages allegedly sent by Swensen that included a series of images depicting the sexual abuse of a female toddler.
If the public has any further information regarding Swensen’s activities, please contact the FBI Anchorage Field Office at (907) 276-4441.
The FBI and APD, as part of the FBI’s Crimes Against Children Human Trafficking Task Force, conducted the investigation leading to Swensen’s arrest.
Assistant U.S. Attorney Adam Alexander is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A criminal complaint or information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Convicted Felon Sentenced to 180 Months in Federal Prison for Drug and Gun CrimesRead the Press Release
Acting United States Attorney Ellison C. Travis announced that Chief Judge Shelly D. Dick sentenced Louis Butler, III, age 40, of Baton Rouge, Louisiana, to 180 months in federal prison, following his convictions for possession with the intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The Court also sentenced Butler to three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, on September 2, 2020, law enforcement officials executed a valid search warrant on Butler’s residence in Baton Rouge. During the search, officials located approximately 244.6 grams of methamphetamine, three digital scales, baggies, packaging material, cutting agents (quinine), empty pill capsules, a loaded Jimenez Arms 9mm pistol, and $2,040 in cash.
During a post-Miranda interview, Butler admitted knowledge and possession of these items. He further admitted that the substance recovered from his residence was, in fact, methamphetamine and that he sells methamphetamine to supplement his income. Prior to possessing the firearm, Butler had two felony convictions: In January 2008, Butler was convicted of illegal use of a weapon, and in November 2008, he was convicted of possession of cocaine.
Acting U.S. Attorney Travis stated, “Keeping guns out of the hands of violent felons is one of my office’s top priorities. We will continue to work tirelessly with our federal, state, and local partners to protect our district from chronic offenders. I want to thank our prosecutors, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”
“One of ATF’s primary missions is to investigate illegal possession of firearms by violent individuals,” said New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “ATF works with our law enforcement partners to ensure that violent criminals are held accountable for their actions.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with critical assistance from the East Baton Rouge Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jeremy S. Johnson.
Convicted Felon Sentenced to Nearly 10 Years for Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Xavier Sims (36, Ocala) to nine years and seven months in federal prison for possessing a firearm and ammunition as a convicted felon.
A federal jury had found Sims guilty on February 23, 2021.
According to testimony and evidence presented at trial, in February 2020, deputies from the Marion County Sheriff’s Office responded to a shooting at a residence. The victim and her three children had been sleeping when multiple gunshots hit their home. Sims, the victim’s ex-boyfriend, had threatened to “shoot up” her house earlier that day during an argument. Following the shooting, deputies observed Sims’s vehicle near the scene—he was the driver and sole occupant. During a search of the vehicle, deputies recovered a Glock .40 caliber pistol from the trunk along with 10 spent .40 caliber shell casings and 20 live rounds. Subsequent forensic analysis confirmed that the casings and a bullet fragment found at the scene of the shooting matched the firearm from Sims’s vehicle. DNA analysis also confirmed the presence of Sims’s DNA on the live .40 caliber rounds. Sims, a multi-convicted felon, is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Michael P. Felicetta.
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.
Company’s Vice President Pleads Guilty to Negligently Releasing AsbestosRead the Press Release
A New York man pleaded guilty today to negligently releasing asbestos and thereby exposing victims to an increased risk of death or serious bodily injury.
Roger Osterhoudt, 58, of Saugerties, New York, entered a guilty plea to a Clean Air Act violation before the Hon. Judge McAvoy sitting in Binghamton. Sentencing is currently scheduled for Sept. 28. Osterhoudt faces up to a year in prison, five years’ probation, a $50,000 criminal fine, and will likely be held liable for providing restitution to any victims.
"Operators of asbestos demolition and renovation projects are responsible for how this dangerous material is handled," said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division. "Negligently placing people in grave danger from air pollution is a crime that this Division will investigate and, when appropriate, prosecute. This is one of those cases."
According to court documents, between 2015 and 2016, Osterhoudt, negligently permitted abatement workers to remove asbestos from a former IBM site in Kingston, now known as TechCity. As Osterhoudt, knew, the facility in question contained over 400,000 square feet of regulated asbestos-containing material (RACM), as well as an additional 6,000 linear feet of RACM pipe wrap. Osterhoudt, as the Vice President of Property Management for TechCity, hired an asbestos abatement contractor and a project monitoring company to remove all the asbestos from the facility prior to its renovation and/or demolition.
Between 2015 and 2016, Osterhoudt was made aware that these abatement and project monitoring companies were violating asbestos regulations related to the safe containment, handling, and disposal of asbestos wastes. These regulations are intended to protect workers and prevent releases into surrounding communities and the environment. New York State issued notices of violation (“NOVs”) as a result of many of these infractions. Nonetheless, Osterhoudt not only permitted the work to continue, but further pressured asbestos abatement supervisors and workers to expedite the removal of asbestos at the site to meet contract deadlines. At times, A2ES’s owner, Stephanie Laskin, and other A2ES supervisors, including Gunay Yakup (both of whom have previously entered guilty pleas), instructed workers to remove RACM dry—leading to visible emissions of asbestos—and directed work to proceed in areas that were not properly sealed off with “critical barriers” intended to prevent the escape of asbestos contamination into the surrounding community and environment.
Osterhoudt admitted that he was aware of the numerous NOVs, and that he should have known that by permitting the asbestos abatement and project monitoring companies to continue their illegal practices, he negligently permitted the release of asbestos contamination into the environment and placed others at an increased risk of death or serious bodily injury. Asbestos has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. The EPA has determined that there is no safe level of exposure to asbestos.
Special agents of the EPA and individuals from the New York Departments of Labor and Environmental Conservation investigated the case. Todd W. Gleason and Gary N. Donner of ENRD’s Environmental Crimes Section prosecuted the case with the assistance of paralegal Chloe Harris.
Colorado Tax Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that a Federal Grand Jury has returned an indictment charging Jimmie Lucero with eight counts of aiding or assisting in the preparation of false and fraudulent federal income tax returns.
According to the allegations in the indictment, between 2016 and 2018, Lucero prepared individual tax returns for clients that Lucero knew included materially false amounts of reportable taxable income. The false tax returns were then submitted to the Internal Revenue Service.
Each count of aiding or assisting in the preparation of false and fraudulent federal income tax returns carries a penalty of up to three years imprisonment and a fine of up to $250,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Jeremy Sibert is handling the prosecution.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Case Number: 21-cr-0166-DDD
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Collinsville Man Pleads Guilty to Selling MethamphetamineRead the Press Release
East St. Louis, Ill. – A Collinsville man pled guilty today to a Federal Grand Jury Indictment charging him with distributing methamphetamine in East St. Louis, Illinois.
According to plea documents filed in United States District Court, Deonta J. Thomas, of
Collinsville, Illinois, sold 442 grams of methamphetamine during a Drug Enforcement Administration undercover operation in East St. Louis, Illinois.Thomas is scheduled to be sentenced in United States District Court on August 18, 2021. At sentencing, Thomas faces a period of incarceration from 10 years to life imprisonment.
In addition, Thomas faces 5 years of supervised release following release from prison and could be fined up to $10,000,000.The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Clackamas County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A Boring, Oregon man was sentenced to federal prison today for distributing illegal narcotics in and around the Portland Metropolitan Area.
Thomas Lewis Ogden, 55, was sentenced to 10 years in federal prison and three years’ supervised release.
According to court documents, on several occasions investigators from the Multnomah County Sheriff’s Office completed controlled buys of illegal narcotics from Ogden at his residence in Clackamas County. On December 11, 2019, investigators executed a search warrant on Ogden’s residence and seized a kilogram of methamphetamine, 150 grams of heroin, and approximately 35 pounds of marijuana. While searching Ogden’s truck, the investigators found a. 38 caliber revolver in the driver’s seat as well as drug paraphernalia, packaging materials, digital scales, and a stun gun.
On December 18, 2019, a federal grand jury in Portland returned a 5-count indictment charging Ogden with possession with intent to distribute methamphetamine and heroin, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm.
On January 15, 2021, Ogden pleaded guilty to possession with intent to distribute methamphetamine.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Multnomah County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Kemp L. Strickland.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
California Resident Sentenced to 121 Months in Prison for Facilitating Telemarketing Conspiracy that Defrauded Thousands of Vulnerable U.S. ConsumersRead the Press Release
A California man has been sentenced to more than 10 years in prison for partnering with call centers in Peru that defrauded Spanish-speaking U.S. residents through lies and threats.
“The Department of Justice’s Consumer Protection Branch will vigorously pursue and prosecute fraudsters who prey on others through international telemarketing schemes,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Consumer Protection Branch, working alongside the Postal Inspection Service and our U.S. Attorney’s Office partners, will bring to justice those who threaten and defraud consumers, including immigrants who may be vulnerable to schemes that involve false threats to their liberty and ability to remain in the United States.”
According to court documents, Angel Armando Adrianzen, 46, partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were vulnerable recent immigrants, using internet-based telephone calls. Those callers claimed to be attorneys or government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made payments based on these baseless threats. Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that the call centers used fraudulent and extortionate means to extract money from vulnerable victims. Adrianzen was also convicted of and sentenced for two counts of possession of child pornography, found on his laptop computer and cell phone when search warrants were executed upon those devices.
As part of his guilty plea, Adrianzen admitted that from April 2011 until at least September 2019, he was the owner and operator of AAD Learning Center (AAD). Adrianzen operated and oversaw AAD from California and worked in partnership with call centers in Peru to contact Spanish-speaking consumers in the United States, including in the Southern District of Florida. At AAD, Adrianzen participated in a fraudulent telemarketing scheme that offered various products to Spanish-speaking consumers in the United States to obtain payments from vulnerable victims.
“Today’s sentence serves not only as just punishment for this defendant, but also as notice to others who may prey on vulnerable victims,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “The Justice Department and its partners will aggressively investigate such criminal activity. We will find you and ensure you are held accountable for your crimes.”
“In this international telemarketing scheme, deceptive scare tactics were used to threaten thousands of vulnerable U.S. consumers into purchasing undelivered products by falsely purporting to use America’s legal system against them and coercing them out of millions of dollars,” stated Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Miami Division. “Today’s sentencing hopefully brings relief to U.S. residents and immigrants who were victimized by this transnational fraudulent scheme. The U.S. Postal Inspection Service, along with the Department of Justice’s Consumer Protection branch and the U.S. Attorney’s Office, are committed to holding individuals who use the U.S. Mail to defraud consumers accountable.”
In pleading guilty, Adrianzen admitted that he assisted his co-conspirators in Peru in setting up and staffing call centers that contacted victims in the United States and, at times, provided the call centers with lists of consumers to contact and call scripts to use when doing so. The scripts incorporated various false statements, including directing callers to falsely claim to be attorneys with the U.S. Department of Education. In other scripts, the callers were directed to falsely claim to be associated with Spanish language television channels, radio stations, or toothpaste companies.
Adrianzen further admittd that his co-conspirators falsely claimed that they were lawyers, sometimes calling from a “legal department” of a company, or from a supposed “minor crimes court.” Adrianzen’s co-conspirators falsely threatened to have victims deported, arrested, and charged with crimes, and to have negative marks placed on their credit reports if they failed to pay the hundreds of dollars of demanded fees. Ultimately, Adrianzen processed over $3,500,000 in payments as part of the scheme.
Adrianzen was sentenced to serve 121 months in prison by U.S. District Judge Robert N. Scola Jr., to be followed by fifteen years’ supervised release. He was also ordered to make restitution payments to victims of his offenses. Adrianzen was arrested on Sept. 16, 2019, and has remained incarcerated. On Nov. 21, 2019, he pleaded guilty to conspiracy to commit mail and wire fraud.
The U.S. Postal Inspection Service’s Miami Division and the Civil Division’s Consumer Protection Branch investigated the case.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Consumer Protection Branch prosecuted the case. Assistant U.S. Attorney Bertila Fernandez of the Southern District of Florida assisted with the prosecution of the child pornography charges.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Click to view the Spanish language version of this press release.
California Resident Sentenced to 121 Months in Prison for Facilitating Telemarketing Conspiracy that Defrauded Thousands of Vulnerable U.S. ConsumersRead the Press Release
Miami, Florida -- A California man has been sentenced to more than 10 years in prison for partnering with call centers in Peru that defrauded Spanish-speaking U.S. residents through lies and threats.
According to court documents, Angel Armando Adrianzen, 46, partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were vulnerable recent immigrants, using internet-based telephone calls. Those callers claimed to be attorneys or government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made payments based on these baseless threats. Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that the call centers used fraudulent and extortionate means to extract money from vulnerable victims. Adrianzen was also convicted of and sentenced for two counts of possession of child pornography, found on his laptop computer and cell phone when search warrants were executed upon those devices.
As part of his guilty plea, Adrianzen admitted that from April 2011 until at least September 2019, he was the owner and operator of AAD Learning Center (AAD). Adrianzen operated and oversaw AAD from California and worked in partnership with call centers in Peru to contact Spanish-speaking consumers in the United States, including in the Southern District of Florida. At AAD, Adrianzen participated in a fraudulent telemarketing scheme that offered various products to Spanish-speaking consumers in the United States to obtain payments from vulnerable victims.
“Today’s sentence serves not only as just punishment for this defendant, but also as notice to others who may prey on vulnerable victims,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “The Justice Department and its partners will aggressively investigate such criminal activity. We will find you and ensure you are held accountable for your crimes.”
“The Department of Justice’s Consumer Protection Branch will vigorously pursue and prosecute fraudsters who prey on others through international telemarketing schemes,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Consumer Protection Branch, working alongside the Postal Inspection Service and our U.S. Attorney’s Office partners, will bring to justice those who threaten and defraud consumers, including immigrants who may be vulnerable to schemes that involve false threats to their liberty and ability to remain in the United States.”
“In this international telemarketing scheme, deceptive scare tactics were used to threaten thousands of vulnerable U.S. consumers into purchasing undelivered products by falsely purporting to use America’s legal system against them and coercing them out of millions of dollars,” stated Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Miami Division. “Today’s sentencing hopefully brings relief to U.S. residents and immigrants who were victimized by this transnational fraudulent scheme. The U.S. Postal Inspection Service, along with the Department of Justice’s Consumer Protection branch and the U.S. Attorney’s Office, are committed to holding individuals who use the U.S. Mail to defraud consumers accountable.”
In pleading guilty, Adrianzen admitted that he assisted his co-conspirators in Peru in setting up and staffing call centers that contacted victims in the United States and, at times, provided the call centers with lists of consumers to contact and call scripts to use when doing so. The scripts incorporated various false statements, including directing callers to falsely claim to be attorneys with the U.S. Department of Education. In other scripts, the callers were directed to falsely claim to be associated with Spanish language television channels, radio stations, or toothpaste companies.
Adrianzen further admitted that his co-conspirators falsely claimed that they were lawyers, sometimes calling from a “legal department” of a company, or from a supposed “minor crimes court.” Adrianzen’s co-conspirators falsely threatened to have victims deported, arrested, and charged with crimes, and to have negative marks placed on their credit reports if they failed to pay the hundreds of dollars of demanded fees. Ultimately, Adrianzen processed over $3,500,000 in payments as part of the scheme.
Adrianzen was sentenced to serve 121 months in prison by U.S. District Judge Robert N. Scola Jr., to be followed by fifteen years’ supervised release. He was also ordered to make restitution payments to victims of his offenses. Adrianzen was arrested on Sept. 16, 2019, and has remained incarcerated. On Nov. 21, 2019, he pleaded guilty to conspiracy to commit mail and wire fraud.
The U.S. Postal Inspection Service’s Miami Division and the Civil Division’s Consumer Protection Branch investigated the case.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Consumer Protection Branch prosecuted the case. Assistant U.S. Attorney Bertila Fernandez of the Southern District of Florida assisted with the prosecution of the child pornography charges.
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California Man Sentenced to Nine and a Half Years for Trafficking Fentanyl and Firearms OffensesRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on Thursday, May 20, 2021, Brandon D. Hibler, 35, of California, was sentenced by U.S. Judge Donald C. Nugent to 115 months imprisonment. Hibler pleaded guilty to possession with the intent to distribute fentanyl, possession of a firearm in furtherance of a drug tracking crime and felon in possession of a firearm in January of 2021.
According to court records, on the night of April 26, 2020, while conducting a routine patrol, an officer with the Peninsula Police Department observed a vehicle parked overnight in a parking lot area of the Cuyahoga Valley National Park. The officer investigated the vehicle due to the park’s closure and discovered that the vehicle had been reported stolen. At this time, additional police officers with the Richfield Police Department arrived to assist the officer. The officers then approached the vehicle and discovered a man, later identified as Hibler, and an adult female sleeping in the rear.
Shortly thereafter, a Park Ranger with the National Park Service arrived to conduct a search of the vehicle and assist with the investigation. During the search, the Ranger located numerous personal drug use and drug trafficking items, including digital scales, hypodermic syringe needles, a Naloxone spray cartridge, multiple fentanyl test strips and a loaded .44-caliber revolver. An additional 9mm-caliber pistol containing Hibler’s DNA was later discovered in the area near where the vehicle was parked.
The Park Ranger then searched Hibler himself and found a plastic bag containing a substance later determined to consist of a fentanyl mixture. After Hibler's identity was established, he told the law enforcement officers present that he believed he had an existing warrant from the state of California and that he sells heroin to make money. Hibler is prohibited from possessing a firearm due to previous convictions for assault and child abuse in the Superior Court of California.
This investigation was conducted by the Federal Bureau of Investigation, National Park Service, Summit County Sheriff’s Office, Peninsula Police Department and Richfield Police Department. This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.
Bulgarian National Sentenced to Federal Prison for Illegal Exports to Russian Military and Space ProgramRead the Press Release
DENVER, Co. – A Bulgarian national was sentenced today to 24 months in prison for violating the International Emergency Economic Powers Act (IEEPA) by seeking to export controlled electronic equipment from the United States to the Russian military and space program under false pretenses.
Tsvetan Kanev, 49, of Sofia, Bulgaria, pleaded guilty to violating the International Emergency Economic Powers Act in March 2021. According to court documents, the defendant inquired with a U.S. manufacturer about purchasing radiation hardened integrated circuits that are commonly used in satellites. Because those circuits are controlled American technologies under the Export Administration Regulations, they require a license from the U.S. Department of Commerce to export them to certain countries including Russia. The defendant told the U.S. manufacturer that the circuits were sought by the Bulgarian Academy of Science, but the manufacturer was suspicious of the defendant’s claim and referred the matter to agents from the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Counter-Proliferation Investigations Center (CPIC) in Colorado Springs.
Acting in an undercover capacity, HSI agents engaged with the defendant and offered to sell the controlled parts that he sought. In extensive communications with the defendant, HSI agents learned that the defendant intended to transship the exports from Bulgaria through Finland to an end user in Russia. Specifically, after shipping the technology to Finland, the defendant planned to reexport them to Russia in a suitcase to avoid documentation of their ultimate destination. The defendant later confirmed that the end users of the controlled American technology were the Russian military and space program.
The defendant engaged the undercover HSI agents in two transactions, and he acknowledged the illegality of each during negotiations. In October 2015, the defendant transferred $234,938.00 to the undercover agent to purchase clock driver and random-access memory programmable multi-chip modules. In December 2015, the defendant transferred $122,323.00 to the undercover agent to purchase a multiple analogue-to-digital converter. The particular technologies he sought are designed for aerospace applications and controlled under U.S. Department of Commerce regulations for national security reasons.
The defendant acknowledged to the HSI agents that exporting these technologies to Russia is illegal under U.S. law. He structured payments to avoid triggering scrutiny from banking authorities. He completed fraudulent end user statements to deceive U.S. Customs authorities and he encouraged the HSI agents to create additional fraudulent paperwork. The defendant paid the undercover HSI agents extra fees of $25,172.00 and $31,550.42 to compensate them for taking risks and violating U.S. laws. All monies transferred from the defendant to the undercover HSI agents were seized and forfeited to the United States.
The defendant was arrested in Germany in January 2020 and then extradited to Colorado.
“Because a U.S. manufacturer alerted the government to a suspicious foreign inquiry, transfers of American technology to the Russian military and space program were thwarted and this defendant was brought to justice,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “This kind of public-private partnership is key to protecting American technology and national security.”
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Julia Martinez, Wayne Paugh and David Tonini handled the prosecution of the case, with valuable assistance from Trial Attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section at the U.S. Department of Justice.
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Boca Raton Man Sentenced to 50 Years’ Imprisonment for Production, Distribution and Possession of Child Sexual Abuse MaterialRead the Press Release
Miami, Florida – A Boca Raton man convicted of producing, distributing, and possessing sexual abuse material of children, including a toddler, was sentenced yesterday by a West Palm Beach federal district judge to 50 years in prison, followed by a lifetime of supervised release. He also was ordered to pay $1.3 million in restitution to his victims.
Robert Solove, 29, used social networking applications on his cellular telephone to communicate with children and to solicit and distribute child sexual abuse material. Solove created illegal photos and videos of an 18-month-old child in his care and shared them in chat rooms using his smartphone’s social networking application and with individuals. Solove also developed an online relationship with a 13-year-old girl in a different state. He directed the 13-year-old to take pornographic photographs and videos of herself and send them to Solove through a second smartphone application. In addition, Solove acquired sexual abuse material of other children from several internet platforms and stored them on his cellular telephone. In connection with this matter, officers rescued an 18-month-old girl.
Solove pled guilty to producing, distributing, and possessing child pornography during a hearing before U.S. District Judge Donald Middlebrooks on March 4, 2021.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI), Miami Field Office, announced the sentence.
Homeland Security Investigations (HSI), West Palm Beach investigated the case with assistance from the HSI Chattanooga and HSI Detroit field offices, PBSO, and the Winnebago County Sheriff’s Office. Victim services were provided by the Florida Department of Children and Families.
Assistant U.S. Attorney Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-80025.
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Beverly Hills Man Arrested on Federal Charges of Attempting to Hire Hitman to Murder One-Time Girlfriend Who Had Rebuffed HimRead the Press Release
LOS ANGELES – A Beverly Hills man was arrested today on a murder-for-hire charge that alleges he tried to hire a hitman to kill a woman he briefly dated and who had repeated tried to break off the relationship.
Scott Quinn Berkett, 24, was arrested this afternoon without incident after being charged in a federal criminal complaint that alleges he sent thousands of dollars in bitcoin to arrange the murder and then wired another $1,000 to the “hitman,” who was actually an undercover FBI agent.
According to the affidavit in support of the complaint, Berkett met “Victim 1” online last year, and the woman flew to Los Angeles to meet Berkett in late October. Victim 1, who described Berkett’s behavior as “sexually aggressive,” tried on several occasions to break off the relationship following the October trip, the affidavit states.
In April, a family member who had learned that Berkett continued to contact Victim 1 called and sent text messages to Berkett’s father’s phone, and, on April 20, Berkett appears to have responded saying “consider this matter closed.”
But, Berkett allegedly contacted a group on the dark web that advertised murder-for-hire services. While law enforcement believes that this dark web group was a scam, the group contacted a media outlet, which provided information to the FBI, including messages from Berkett, who was using a screenname of “Ula77,” and documentation of payments by Berkett, according to the affidavit.
The media outlet provided “transaction information from an unnamed source on the Dark Web that showed that Bitcoin payments were made with an understanding that an unknown individual would murder Victim 1,” the affidavit states. “The information provided was specific about the identity and location of Victim 1, as well as social media accounts, nicknames, email, and a distinctive tattoo of Victim 1.”
Berkett allegedly submitted his order for the hit on April 28, writing to the dark web group: “I’d like it to look like an accident, but robbery gone wrong may work better. So long as she is dead. I’d also like for her phone to be retrieved and destroyed irreparably in the process.” The information provided to the FBI indicated that Berkett made Bitcoin payments totally $13,000 between April 5 and May 5.
An undercover FBI agent, posing as a hitman, made contact with Berkett on Wednesday and eventually sent a photo of Victim 1, which Berkett confirmed was the victim, according to the affidavit. During the discussions with the purported hitman, Berkett demanded a proof-of-death photo that would show the corpse and Victim 1’s distinctive tattoo.
Berkett made the final $1,000 payment via Western Union late Thursday afternoon, the affidavit states.
Berkett is expected to make his initial appearance in United States District Court on May 25.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the murder-for-hire count, Berkett would face a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section is prosecuting the case.
Baltimore Drug Dealer Sentenced to Nine Years in Federal Prison for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Daniel Taylor, age 36, of Baltimore, Maryland to nine years in federal prison, followed by five years of supervised release, for possession of a firearm in furtherance of drug trafficking.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, from June 2020 to August 2020, Taylor conspired with others to distribute quantities of cocaine in Baltimore. For example, on June 26, 2020 Taylor spoke with an inmate on a recorded line. During the conversation the inmate asked Taylor where he was located and Taylor stated, “the block,” a term used to refer to an area in which narcotics are sold. Later in the conversation, Taylor stated the “girl” was the only thing that was “moving,” meaning that Taylor was trafficking narcotics and cocaine was making the most money. The term “girl” is used to refer to cocaine.
On August 20, 2020, the ATF executed a search warrant at Taylor’s Baltimore residence where law enforcement recovered a 12-gauge shotgun, five rounds of 12-gauge ammunition, and two rounds of 12-gauge shotgun slugs. Taylor admitted that he possessed the firearm in furtherance of the cocaine distribution conspiracy.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley who prosecuted the case.
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Atlanta-Based National Chain of Skilled Nursing Facilities to Pay $11.2 Million to Resolve Allegations of Providing Substandard Care, Medically Unnecessary Therapy ServicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that SavaSeniorCare LLC and related entities (Sava), have agreed to pay $11.2 million, plus additional amounts if certain financial contingencies occur, to resolve allegations that it violated the False Claims Act by causing its skilled nursing facilities (SNFs) to bill Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, and to resolve allegations that Sava billed Medicare and Medicaid for grossly substandard skilled nursing services. Sava, based in Atlanta, Georgia, currently owns and operates more than 160 skilled nursing facilities across the country, including three facilities in Pennsylvania.
“Nursing home residents should not be at the mercy of nursing home operators that put their own economic gain ahead of the needs of the residents, and we will continue to aggressively pursue those operators who bill Medicare and Medicaid for substandard care,” said Acting U.S. Attorney Williams. “This settlement holds Sava accountable, and the resulting Corporate Integrity Agreement should ensure that Sava provides seniors with quality care and treats its residents with dignity and respect.”
This settlement resolves four False Claims Act lawsuits, one in the United States District Court for the Eastern District of Pennsylvania and three consolidated in the United States District Court for the Middle District of Tennessee. The lawsuits allege that Sava submitted false claims for rehabilitation therapy services by engaging in a systematic effort to increase its Medicare billings. Through corporate-wide policies and practices, Sava allegedly exerted significant pressure on its SNFs designed to meet unrealistic financial goals, resulting in the provision of medically unreasonable, unnecessary and unskilled services to Medicare patients. Sava allegedly set these aggressive, prospective corporate targets for the highest Medicare reimbursement rates to significantly increase Sava’s revenues without regard for its patients’ actual clinical needs and then pressured its staff to meet those targets. Sava also allegedly delayed discharging patients from its facilities in order to increase its Medicare payments, even though the patients were medically ready to be discharged.
This settlement also resolves allegations that between Oct. 1, 2008 and Sept. 30, 2012, Sava submitted false claims to Medicaid for coinsurance amounts related to rehabilitation therapy services for beneficiaries who were eligible for both Medicare and Medicaid.
In addition, this settlement resolves allegations that between Jan. 1, 2013 and Dec. 31, 2018, Sava submitted false claims for payment to Medicare and Medicaid for grossly and materially substandard and/or worthless skilled nursing services, which were caused in large part by Sava’s failure to provide a sufficient number of skilled nursing staff to adequately care for its nursing home residents. This failure of care allegedly resulted in preventable pressure ulcers, preventable falls, and preventable medication errors.
“Nursing home operators will be held to account when they put their own financial interests ahead of the needs of their residents,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This settlement demonstrates the Department’s continued commitment to aggressively pursue those operators who bill Medicare and Medicaid for unnecessary and grossly substandard services and who fail to adequately care for the residents entrusted to their care.”
Under the settlement with the United States, and separate settlements with participating states, Sava has agreed to pay a total of approximately $11.2 million, plus additional amounts if certain financial contingencies occur.
Contemporaneous with this settlement, Sava has also entered into a five-year, chain-wide Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent organization to annually review patient stays and associated paid claims by Medicare for those stays, including provision of rehabilitation therapy services to ensure that they are reasonable and necessary to improve, maintain, or slow deterioration of the patient’s condition, or restore the patient’s prior level of function. In addition, Sava is required to engage an independent monitor to review the quality of resident care. CIAs promote compliance and protect vulnerable nursing home residents.
The matters were handled by U.S. Attorney’s Offices for the Eastern District of Pennsylvania and Middle District of Tennessee, the Civil Division’s Commercial Litigation Branch, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices of the Southern District of Texas and the Western District of Texas and the National Association of Medicaid Fraud Control Units. In the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Assistant U.S. Attorney David A. Degnan, Assistant U.S. Attorney Gerald B. Sullivan, and Auditor George R. Niedzwicki handled the investigation and settlement.
The cases are captioned United States, et al. ex rel. Doe, et al. v. SavaSeniorCare, Inc., et al., Civil Action No. 16-CV-0840 (E.D. Pa.); United States ex rel. Hayward v. SavaSeniorCare, LLC, et al., No. 3:11-0821 (M.D. Tenn.); United States ex rel. Scott v. SavaSeniorCare Administrative Services, LLC, 3:15-0404 (M.D. Tenn.); and United States ex rel. Kukoyi v. Sava Senior Care, L.L.C., et al., No. 3:15-1102 (M.D. Tenn.). The relator in the Eastern District of Pennsylvania action is represented by David T. Marks of Marks Balette Giessel & Young, P.C., Thomas Sheridan of Sheridan & Murray, LLC, and Joseph Trautwein of Joseph Trautwein & Associates, LLC.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Aroostook County Man Sentenced on Federal Drug ChargesRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced yesterday in federal court in two separate cases for conspiring to distribute and possessing with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Taylor Lovely, 34, to 158 months in prison and five years of supervised release. Lovely pleaded guilty in December 2020.
According to court records, between approximately January 2017 and August 2018, a drug trafficking organization distributed large quantities of methamphetamine in northern Maine. The organization obtained the drugs from out-of-state sources in Colorado and Arizona. Lovely and his co-conspirators distributed the drugs in northern Maine.
Also according to court records, between approximately July 2018 and May 2019, members of a separate conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Lovely and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine.
The U.S. Drug Enforcement Administration; Homeland Security Investigations; the Bureau of Alcohol, Firearms, Tobacco and Explosives; and the Maine Drug Enforcement Agency investigated these cases with the assistance of multiple state and local law enforcement agencies.
These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Arkansas RV Salesman Indicted for Income Tax EvasionRead the Press Release
An indictment was unsealed today charging an Arkansas man with three counts of evading his individual income taxes.
According to the indictment, Joshua Wood, formerly a resident of Alma, Arkansas, was employed as a recreational vehicle and automobile salesman from 2014 through 2016. Despite earning total gross income during these three years in excess of $300,000, Wood allegedly did not file his 2014 through 2016 income tax returns as required by law. In addition Wood allegedly supplied his employers with forms W-4 falsely claiming he was exempt from federal income tax withholding. When questioned by IRS Criminal Investigations (IRS-CI) special agents about why he had failed to file his income tax returns, Wood allegedly gave a false statement.
If convicted, Wood faces a maximum penalty of five years in prison on each count of tax evasion. Each count also carries the possibility of a fine and supervised release upon completion of any sentence of incarceration. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS-CI is investigating the case.
Trial Attorney Robert Kemins of the Justice Department’s Tax Division is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Appleton Man Sentenced to 15 Years of Imprisonment for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Darrin S. McElhatton (age: 41) of Appleton, Wisconsin, was sentenced to 180 months in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, McElhatton received and possessed numerous digital images and videos of child pornography. A routine security check at a Grand Chute motel led to the discovery of child pornography on McElhatton’s cell phone. He was previously convicted in Wisconsin state courts for similar crimes involving child pornography.
In imposing sentence, Judge Griesbach noted the serious nature of the charge, McElhatton’s aggravated criminal record, and the need for just punishment. Following his release from prison, McElhatton will spend the remainder of his life on supervised release. He also will be required to register as a sexual offender.
This case was investigated by the Grand Chute Police Department and the Wisconsin Department of Community Corrections. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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.
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For further information contact: Public Information Officer [email protected]
414-297-1700
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Alleged Ringleader of International Methamphetamine Trafficking Operation Extradited to the United States from FranceRead the Press Release
LOS ANGELES – The lead defendant in an indictment alleging that a drug trafficking organization shipped thousands of pounds of methamphetamine all over the world – sometimes hidden inside consumer and industrial products – arrived in the United States today after being extradited from France.
Jose Guillermo Grosso Gamez, 41, of Sinaloa, Mexico, arrived at Los Angeles International Airport early this afternoon. Grosso is expected to be arraigned Monday afternoon in United States District Court in downtown Los Angeles.
Grosso – who used various aliases, including “Greenhills” and “Martinez Asociados” – is charged with brokering and organizing methamphetamine shipments to destinations around the world. To evade law enforcement, Grosso allegedly concealed drug shipments in industrial machinery and bribed government officials in Mexico.
According to an eight-count indictment returned by a federal grand jury in 2018, Grosso attempted to ship approximately 265 pounds of methamphetamine from Mexico to Australia concealed in computer equipment. The shipment was intercepted by U.S. law enforcement in Memphis, Tennessee.
During the investigation, law enforcement in other countries also seized methamphetamine allegedly shipped by Grosso. Those seizures included approximately 725 pounds of methamphetamine hidden inside an industrial ore crusher and an asphalt roller in Manzanillo, Mexico, and approximately 185 pounds of methamphetamine found on a rooster ranch in the Philippines.
The investigation also led to the discovery of a laboratory in Pomona that converted methamphetamine into crystal form and the seizure of over 12 metric tons of amphetamine powder in Guatemala.
Grosso is the third defendant to be taken into custody pursuant to the indictment that charges 17 defendants, most of whom are believed to be in Mexico. An Inland Empire man who was previously arrested died in December. The other defendant -- Milton Eduardo Aquino Castaneda, 51, of the Harbor City neighborhood in Los Angeles – was arrested in November after he entered the United States from Mexico.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of all charges, Grosso would face a potential sentence of decades in federal prison.
This matter is being investigated by special agents with the Drug Enforcement Administration. The Organized Crime Drug Enforcement Task Force is providing support. Substantial assistance was provided by the Office of International Affairs, the Australian Federal Police, the Australian Criminal Intelligence Commission, and the governments of France and Australia.
This case is being prosecuted by Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Benedetto L. Balding of the International Narcotics, Money Laundering, and Racketeering Section.
Alleged Austin Drug Dealer Indicted for Distributing Controlled Substance Containing Fentanyl Resulting in DeathRead the Press Release
AUSTIN – Today, authorities arrested 27-year-old Jean Claude Anthony Meama-Kajue of Austin for allegedly distributing a controlled substance containing fentanyl that resulted in a person’s overdose death in December of last year.
A five-count indictment unsealed today charges Meama-Kajue with one count of distribution of a controlled substance containing fentanyl resulting in death and four counts of distribution of a controlled substance containing fentanyl. Upon conviction, Meama-Kajue faces between 20 years and life in federal prison for the drug charge resulting in death and up to 20 years in federal prison for each of the remaining drug charges.
The indictment alleges that on December 13, 2020, Meama-Kajue possessed and sold a controlled substance containing fentanyl to an individual. That individual subsequently died after consuming the narcotic. Furthermore, the indictment alleges that the defendant distributed a controlled substance containing a detectable amount of fentanyl on four separate occasions in Austin earlier this year.
U.S. Attorney Ashley C. Hoff, Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Field Office, Acting Pflugerville Police Chief Jason Smith and Cedar Park Police Chief Mike Harmon made today’s announcement.
Meama-Kajue remains in federal custody. His initial appearance is scheduled for 2:00 p.m. on Monday before U.S. Magistrate Judge Mark Lane in Austin.
The DEA Austin Tactical Diversion Squad, Pflugerville Police Department and the Cedar Park Police Department investigated this case. Assistant U.S. Attorney Mark Marshall is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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20 May 2021
Windber Man Sentenced to 5 Years’ Probation for Knowingly Selling Stolen MerchandiseRead the Press Release
JOHNSTOWN, Pa. – A resident of Windber, Pa., has been sentenced in federal court to 5 years’ probation for his convictions of conspiracy and interstate transportation of stolen property, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Kim R. Gibson imposed the sentence on Bradley J. Charlton, 38, of Windber, Pa.
According to information presented to the court, from Aug. 1, 2016, to Oct. 3, 2018, Charlton conspired with others to commit certain offenses against the United States, that is, to unlawfully transport, transmit and transfer in interstate commerce goods, wares and merchandise knowing the same to have been stolen, converted, and taken by fraud.
Assistant United States Attorney Maureen Sheehan-Balchon. prosecuted this case on behalf of the government.
Mr. Kaufman commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency, the Cambria County Detective Bureau, and the Richland Township Police Department for the investigation that led to the successful prosecution of Charlton.
Wetumpka Woman Sentenced to Prison for Embezzling Money from A Doctor’s Office and Falsifying Her Tax ReturnsRead the Press Release
Montgomery, Alabama – On Wednesday, May 19, 2021, Stephanie Hafley, also known as Stephanie A. Rooney, 53, from Wetumpka, Alabama, was sentenced to 22 months in prison for embezzling nearly $400,000.00 from her employer and failing to pay taxes, announced Acting U.S. Attorney Sandra J. Stewart. In addition to her prison sentence, Hafley was ordered to serve three years of supervised release and to pay $393,134.02 restitution to the victim, and $108,610.00 to the United States Internal Revenue Service (IRS). There is no parole in the federal system.
According to court records and statements made in open court, from at least 2012 through 2016, Hafley was the office manager of Medical Care Associates (MCA) in Prattville, Alabama where she was in charge of handling the company’s finances. These duties included paying the office’s bills, making bank deposits of revenue generated by MCA, making entries to the general ledger, preparing the business payroll ledger and making the payment of employment taxes to the Alabama Department of Revenue and the IRS. In 2015, another individual associated with MCA noticed suspicious activity in some of the office’s financial statements. The Federal Bureau of Investigation (FBI) and the IRS began to investigate and soon developed Hafley as a potential suspect. The investigation ultimately revealed that Hafley wrote checks from MCA’s bank account and deposited them into her personal account. She also wrote checks to cash from one of MCA’s accounts and used MCA funds from another bank to pay her personal credit card debt. Unsurprisingly, Hafley did not report any of this stolen income on her federal income tax returns. Over a four-year period, records indicate that Hafley embezzled approximately $393,000.00 from MCA. Hafley’s failure to report the stolen income resulted in an aggregate tax loss of over $100,000.00.
Based on the information gathered during the investigation, Hafley was charged on November 1, 2019 with two counts of bank larceny and one count of including false information on a federal tax return. An individual is guilty of bank larceny if it is proven he or she stole money or property that was in the care, custody, or control of a bank insured by the Federal Deposit Insurance Corporation (FDIC). Hafley pleaded guilty to the charges on May 26, 2020. During the plea hearing, she admitted to stealing MCA funds that were being held in accounts at two separate banks.
The Federal Bureau of Investigation (FBI) and the IRS’s Criminal Investigations Division (IRS-CI) investigated this case. Assistant United States Attorney Brett Talley prosecuted the case.
Virginia Beach Businessman Sentenced for COVID-Relief Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to two years in prison for bank fraud by submitting a fraudulent application for a Paycheck Protection Program (PPP) loan, and then using the loan proceeds for his own personal benefit.
“The defendant used fraud and deception to exploit a critical COVID-19 relief program for his own personal gain,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Defrauding the Paycheck Protection Program wastes taxpayer dollars and keeps vital assistance from reaching those who are in genuine need of these funds. EDVA will continue bringing to justice those who seek to illegally profit from the pandemic.”
According to court documents, in June 2020, Scott Suber, 39, submitted to Celtic Bank a fraudulent application for a loan under the PPP, a program designed to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees. In the application, it was falsely represented that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000. In support of the fraudulent application, Suber submitted a false quarterly tax return claiming that the business had quarterly wages of $420,000 and federal tax withholdings of $36,620. In addition, Suber submitted a bank statement with an altered date in support of the application.
Celtic Bank approved and funded a PPP loan for the business in the amount of $350,000 and transferred the funds to an account Suber maintained in the name of his company. The loan application stated that Suber’s company would use the loan proceeds for business-related purposes, such as the costs of payroll, lease, and utilities. Instead, Suber used the proceeds for his own personal benefit, including making large cash withdrawals, traveling to Las Vegas, and making non-business-related payments to several individuals.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration (SBA) Office of Inspector General, Eastern Region; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-110.
U.S. Government Seizes 68 Protected Big Cats and a Jaguar from Jeffrey and Lauren LoweRead the Press Release
The United States has seized 68 protected lions, tigers, lion-tiger hybrids, and a jaguar from Jeffrey and Lauren Lowe’s Tiger King Park in Thackerville, Oklahoma, pursuant to a judicially-authorized search and seizure warrant, for ongoing Endangered Species Act (ESA) violations. The Justice Department will seek civil forfeiture of these animals and any offspring pursuant to the ESA’s forfeiture provision.
Pursuant to a court-approved stipulation in United States v. Lowe, et al., No. 20-423 (E.D. Okla.), the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service has conducted three inspections of Tiger King Park since mid-December 2020. During these inspections, the Lowes received citations for failing to provide the animals with adequate or timely veterinary care, appropriate nutrition, and shelter that protects them from inclement weather and is of sufficient size to allow them to engage in normal behavior. The Lowes were recently found in contempt after months of noncompliance with court orders requiring the Lowes, in part, to employ a qualified veterinarian and establish and maintain a program of veterinary care that meets the requirements of the Animal Welfare Act. The United States alleges that these violations as to ESA-protected animals also constitute violations of the ESA.
“This seizure should send a clear message that the Justice Department takes alleged harm to captive-bred animals protected under the Endangered Species Act very seriously,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division.
“This important animal rescue operation of nearly 70 endangered and allegedly abused lions, tigers, and a jaguar shows how effective civil forfeiture can be when utilized in conjunction with statutes like the Endangered Species Act,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “We are proud to have partnered with the Environment and Natural Resources Division to protect these amazing animals, and will work to ensure that they go to responsible animal preserves where they can be safely maintained rather than exploited.”
“The U.S. Fish and Wildlife Service enforces the Endangered Species Act,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s (FWS) Office of Law Enforcement. “The law protects imperiled species, such as tigers, both in the wild and in captivity. We work jointly with our federal law enforcement partners to conserve and protect natural resources and we are pleased that we could provide our expertise to assist the U.S. Marshals and USDA officers. Together, we will ensure these animals receive proper care and rehabilitation.”
The case is being investigated by USDA and the Department of the Interior’s FWS. The U.S. Marshals were integral in executing the seizure warrant and securing the property, which allowed for the swift removal of the animals.
The case is being handled by Senior Trial Attorney Mary Hollingsworth, Trial Attorneys Briena Strippoli, and Devon Flanagan from the Environment and Natural Resources Division and Senior Policy Advisor Darrin McCullough of the Criminal Division’s Money Laundering and Asset Recovery Section. They are assisted by attorneys from the Civil Division of the U.S. Attorney’s Office for the Eastern District of Oklahoma.
U.S. Government Seeks Information About Victims of December 2017 EtherDelta HackRead the Press Release
SAN FRANCISCO – The Office of the United States Attorney and the United States Secret Service have issued a call for victims of a December 2017 hack to come forward, announced Acting United States Attorney Stephanie M. Hinds and U.S. Secret Service (USSS) Special Agent in Charge James E. Anderson Jr. The hack was perpetrated by Anthony Tyler Nashatka, a/k/a “psycho,” and a co-conspirator who were indicted in 2019 in connection with a scheme to defraud victims of at least $1.4 million in cryptocurrency; Nashatka and a codefendant were charged with conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, aggravated identity theft, and other charges. Victims of the hack may provide information to the government about their losses by clicking here and filling out the questionnaire at the website.
The call for victims follows the August 13, 2019, indictment handed down by a federal grand jury. According to the indictment, in December of 2017, Nashatka conspired with others to target cryptocurrency exchange platform EtherDelta to obtain the private keys and other information of hundreds of its users as part of a scheme to steal the users’ cryptocurrency. The indictment further describes how Nashatka and his co-conspirators unlawfully used the identity of a victim to gain access to the platform’s domain name settings, caused the transmission of a command to divert users from the actual platform to a fake website, and fraudulently induced victims to input their cryptocurrency addresses and private keys into the fake website. Between December 20 and 21, 2017, Nashatka and his co-conspirators logged the credentials of hundreds of victims, stole their cryptocurrency, and transferred approximately $600,000 in cryptocurrency to one cryptocurrency address controlled by Nashatka and his co-conspirators. In addition, using this fraud scheme, Nashatka and his co-conspirators stole and additional $800,000 from a single victim on December 26, 2017. The investigation to identify additional victims is continuing. Nashatka and his codefendant each were charged with one count of the following crimes: conspiracy to commit computer fraud and abuse, in violation of 18 U.S.C. § 1030(b); transmission of a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A), (c)(4)(B)(i) and (c)(4)(A)(i)(VI); unauthorized access to a protected computer to obtain value, in violation of 18 U.S.C. §§ 1030(a)(4) and (c)(3)(A); conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
The United States Attorney’s Office for the Northern District of California and the USSS have posted the following message seeking information about users of the EtherDelta cryptocurrency platform between December 19, 2017, and December 21, 2017, who may have later suffered losses as a result of the scheme:
Anyone with questions or concerns about their EtherDelta account, including anyone who believes they are a victim, should fill out the questionnaire at this website https://go.usa.gov/xHCP2 and email it to [email protected]. The email should have “US v Gunton, et al” in the Subject Line. All responses are voluntary, but complete responses would be useful to identify respondents as potential victims of the fraud scheme. Based on the information provided, respondents may be contacted by the U.S. Secret Service and asked to provide additional information.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendants face the following maximum statutory sentences:
CHARGE
MAXIMUM PENALTY
Conspiracy to Commit Computer Fraud and Abuse
10 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Transmission of a Program, Information, Code, and Command to Cause Damage to a Protected Computer
10 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Unauthorized Access to a Protected Computer To Obtain Value
5 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Conspiracy to Commit Wire Fraud
20 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Aggravated Identity Theft
2 years in prison (to run consecutive to any other term imposed) and a $250,000 fine or twice the gross gain or loss resulting from the scheme
The court also may order additional periods of supervised release, fines, and restitution for each violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office. The prosecution is the result of an investigation by the United States Secret Service.
U.S. Attorney's Office Settles Disability Discrimination Case with New England Orthopedic SurgeonsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with New England Orthopedic Surgeons (NEOS) in Springfield, Mass. to resolve allegations that the practice violated the Americans with Disabilities Act (ADA) by turning away patients who were also being treated for Opioid Use Disorder (OUD).
“The Americans With Disabilities Act protects healthcare access for people under medical treatment for Opioid Use Disorder,” said Acting U.S. Attorney Nathaniel R. Mendell. “Health care providers must comply with the ADA, even when doing so is inconvenient or makes them uncomfortable.”
According to multiple complaints, in 2019, two patients being treated with buprenorphine, a medication used to treat Opioid Use Disorder, sought full-joint replacement from NEOS surgeons. The government found that though NEOS surgeons could have accommodated the patients, they ultimately referred the patients elsewhere because the surgeons were not comfortable with the post-operative pain management protocol needed for patients prescribed buprenorphine, thereby violating the ADA.
Individuals receiving treatment for Opioid Use Disorder are generally considered disabled under the ADA, and denial of a medical procedure because a person is taking a medication to treat a disability, when the medical procedure is still possible for persons taking the medication, violates the ADA.
Under the terms of the agreement, NEOS will, among other things, adopt a non-discrimination policy, provide training on the ADA and Opioid Use Disorder and pay two complainants $15,000 each for pain and suffering.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce Title III of the ADA to eliminate discriminatory barriers to treatment for Opioid Use Disorder. This is the Office’s fifth settlement agreement with healthcare providers since May 2018 resolving allegations of ADA violations arising from Opioid Use Disorder treatment.
This matter was handled by Assistant U.S. Attorney Gregory Dorchak of Mendell’s Civil Rights Unit.
Two Men Charged with Carjacking in LuquilloRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a two-count indictment charging Edgar Pabón Rivera and Axel Juarides Orozco with an armed carjacking of a couple in Luquillo, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on May 8, 2011, a couple was entering their Hyundai Sonata around 10 PM in Luquillo when two men approached them. The men forced the couple out of the car at gunpoint. Police agents responded quickly to the carjacking and pursued the Sonata, which fled. Eventually, Pabón Rivera and Juarides Orozco stopped the car and exited the vehicle, with one of them brandishing a gun in the direction of the officers. In the ensuing gunfire, both subjects were injured.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. The case was worked in collaboration with Gabriel Redondo Miranda of the Puerto Rico Department of Justice and with the Bureau of Puerto Rico Police, who arrested the suspects. If convicted, the defendants face a sentence of up to fifteen years in prison for the carjacking and a minimum of seven years in prison for the firearm offense.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Jackson Men Charged in Multi-Million Dollar Fraud Scheme ConspiracyRead the Press Release
Jackson, Miss. – Two Jackson men have been indicted by a federal grand jury for their role in a large multi-million dollar Ponzi scheme that adversely affected hundreds of victims across multiple states over a number of years, announced Acting U.S. Attorney Darren J. LaMarca and FBI Special Agent in Charge Michelle Sutphin.
Ted Brent Alexander, 55, and Jon Darrell Seawright, 49, both of Jackson, appeared before U.S. Magistrate Judge LaKeysha G. Isaac today for their initial appearance and arraignment on the indictment. The case is currently scheduled to go to trial on July 6, 2021, before United States District Judge Carlton W. Reeves in Jackson.
Both Alexander and Seawright are charged with one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; and four counts of wire fraud involving a scheme to defraud investors, all in connection with a Ponzi scheme promising guaranteed returns to investors who thought they were lending money to a ‘broker” enterprise purchasing timber that was then marketed to multiple lumber mills.
According to the indictment, from January 2011 through December 2018, Alexander and Seawright misled their investors to believe that Alexander and Seawright were the principal actors in the venture, while downplaying and concealing from investors the true fact that the “broker” was Madison Timber Properties, LLC, a company wholly owned by Arthur Lamar Adams, and there were no real contracts for timber and lumber mills. Adams was previously convicted and sentenced for his role in the Ponzi scheme.
In addition, the indictment alleges that Alexander and Seawright represented to their investors that the two men would inspect each property underlying each investment, and they would verify that supposed lumber mill agreements were in existence and valid. Alexander and Seawright failed to do any of those things. Throughout the fraud scheme, Alexander and Seawright persuaded their investors to maintain their investments and to invest additional funds, by asserting that Alexander and Seawright had their own personal funds invested in the venture.
Alexander and Seawright represented to their investors that the investors would be first repaid all of their principal and interest before Alexander and Seawright would receive fees, and therefore Alexander and Seawright would only earn money from each investment if they performed as promised to their investors. In fact, in addition to receiving a percentage of return on the investors’ funds, Alexander and Seawright also received payments from the broker for recruiting investors into the scheme. Alexander and Seawright did not disclose to the investors (a) that they were receiving those payments, or (b) the amount of the payments, or (c) that Alexander and Seawright were getting paid before any payment was made to the investors.
The indictment alleges that, during the course of their scheme and artifice to defraud, Alexander and Seawright solicited over twenty million dollars ($20,000,000) from more than fifty (50) investors.
Following the 2018 criminal prosecution of Arthur Lamar Adams, the United States District Court appointed a receiver, who is actively seeking to recover and maximize assets for restitution to investor victims. Information regarding the Receiver’s activities can be found at the receiver’s website, madisontimberreceiver.com. Although we cannot provide further details at this time, please be assured that all those involved are working diligently to investigate this matter and to locate and preserve assets that can be used for restitution to defrauded investors.
The case is being investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. The criminal case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Two Camden County Residents Charged with Conspiracy to Defraud Victims of More Than $1.4 Million in Coronavirus Relief Fraud SchemeRead the Press Release
CAMDEN, N.J. – Two Camden County, New Jersey, residents were charged for their role in fraudulently obtaining federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) totaling $1.4 million, Acting U.S. Attorney Rachael A. Honig announced today.
Stephen Bennett, 45, of Berlin, New Jersey, and Rhonda Thomas, 36, of Sicklerville, New Jersey, are each charged by complaint with one count of conspiracy to commit wire fraud and bank fraud, one count of bank fraud, and one count of conspiracy to commit money laundering. Bennett and Thomas are scheduled to appear by videoconference today before U.S. Magistrate Judge Karen M. Williams.
According to the criminal complaints:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
The PPP allows qualifying small businesses and other organizations to receive loans, which must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The CARES Act authorized the Small Business Administration (SBA) to provide EIDLs of up to $2 million to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. A company may use EIDL funds for payroll expenses, sick leave, production costs, and business obligations, such as debts, rent, and mortgage payments.
To obtain a PPP loan or EIDL, a qualifying business must apply and provide information on its operations, such as the number of employees, gross revenues, and cost of goods sold. Supporting documentation may also be required.
Bennett, Thomas, and their conspirators submitted 15 fraudulent PPP loan applications and six fraudulent EIDL loan applications to several lenders and the SBA on behalf of 12 purported businesses. The applications contained fraudulent representations to the participating lenders, including forged documentation of federal tax returns and altered bank statements. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the businesses between 2018 and 2020.
Based on these alleged misrepresentations, the lenders approved 13 of the PPP and EIDL applications and provided the businesses with approximately $1.4 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Bennett and Thomas used the proceeds to purchase personal items, including vehicles and jewelry.
The counts of bank fraud and conspiracy to commit wire fraud and bank fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater. The count of conspiracy to commit money laundering is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Regional Office, under the direction of Special Agent in Charge Patricia Tarasca; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Acting Special Agent in Charge Nikitas Splagounias, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s charges. She also thanked the Pennsylvania Department of Labor and Industry, under the direction of Acting Secretary Jennifer Berrier, for its assistance.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tennessee Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that JEREMY BRANSON GARNER, age 41, of Memphis, Tennessee, pleaded guilty on May 12, 2021, before U.S. District Judge Lance Africk to a one count indictment for failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
GARNER faces a maximum term of 10 years in prison, a $250,000.00 fine, a term of supervised release between 5 years and life and a $100 mandatory special assessment fee. Judge Africk set his sentencing for August 25, 2021.
U.S. Attorney Evans praised the work of the United States Marshals Service. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Teacher's Assistant Charged with Multiple Child Pornography CrimesRead the Press Release
LITTLE ROCK— A teacher’s assistant has been arrested and charged with production of child pornography. Augustus “Gus” Shenker, 21, was charged in a criminal complaint on May 19, 2021. He was arrested today and will be arraigned this week before United States Magistrate Judge J. Thomas Ray.
On May 18, 2021, FBI agents arrested Shenker on a criminal complaint alleging transportation of child pornography and possession of child pornography. Through the course of the investigation, law enforcement learned that Shenker has been employed as a teacher’s assistant at Miss Selma’s School in Little Rock since 2017. On May 18, 2021, Shenker was released on conditions of bond, but the investigation continued, and based on new information, federal prosecutors filed a second criminal complaint charging him with production of child pornography.
The FBI is seeking to identify potential victims in this case. Anyone with additional information to report about Augustus Shenker can call the FBI at 501-221-9100.
The investigation is being conducted by the FBI and is being prosecuted by Assistant United States Attorneys Joan Shipley and Kristin Bryant.
A criminal complaint only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Statement from Attorney General Merrick B. Garland on the COVID-19 Hate Crimes ActRead the Press Release
Attorney General Merrick B. Garland made the following statement after President Biden's signing of the COVID-19 Hate Crimes Act into law:
“Today’s bill signing is an important step toward protecting everyone in our country from acts of hate and intolerance.
“We have seen a substantial rise in hate crimes and bias-related incidents against the Asian-American and Pacific Islander community since the beginning of the pandemic.
“This new law will help speed our response to hate crimes and provide resources to law enforcement to improve hate crime reporting. The law will assist law enforcement in targeting its efforts, which will help to prevent these devastating crimes and to respond efficiently and effectively to crimes, when they occur.
“The Department of Justice is proud to play a central role in implementing this legislation. Investigating and prosecuting hate crimes is a top priority, deeply rooted in the department’s founding. We will use the new law to enhance the aggressive measures we are taking to combat crime motivated by bigotry and discrimination.”
Six Indicted in Importation and Distribution of MDMA Drug CaseRead the Press Release
SALT LAKE CITY – Six members of a Utah County based drug distribution ring allegedly responsible for distributing large amounts of the drug 3,4-Methylenedioxymethamphetamine, commonly known as MDMA or Ecstasy, are now facing federal charges in a superseding indictment unsealed in federal court on Thursday.
The charges in the indictment include conspiracy to distribute MDMA, two counts of possession of MDMA with intent to distribute, and three counts of aiding and abetting the importation of MDMA.
According to a complaint filed in the case, the investigation into the defendants’ importation of MDMA began in February of 2021, when an international mail shipment was seized by U.S. Customs and Border Protection (CBP) at the port of Cincinnati DHL Hub. The seized package was manifested to CBP as containing a hair dryer with a claimed value of $36.00 and a claimed weight of two kilograms. Upon further inspection, it was revealed that the package contained vacuum sealed plastic bags containing 2.1 kilograms of gray pills pressed with skulls and the words “Reaper 350 mg” on the back. CBP agents tested the gray pills with a field test kit, which presumptively identified the gray pills as containing MDMA, a schedule I controlled substance. The package was then delivered to its intended recipient in Vineyard, Utah, by Special Agents from Homeland Security Investigations, who began the investigation into the MDMA distribution scheme in Utah. A search warrant was later executed for another residence in Vineyard that yielded 23 pounds of MDMA. After the execution of the search warrant, a package like the first was seized by CBP in Cincinnati. This packaged was destined for another address connected to the distribution ring in Salt Lake City and contained 2.3 kilograms of gray pills that also field tested positive for MDMA.
Charged in the indictment are Bryan Hernandez, 25, of Vineyard; Cindy Hurtado, 23, of Vineyard; Rodrigo Padilla, 23, of Salt Lake City; Roberto Reyes, 28, of Vineyard; Michael Ortiz, 25, of Salt Lake City; Junior Morales, 29, of Salt Lake City; and Larry Durrer, 26, of West Valley City.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office and Special Assistant United States Attorneys from the Department of Homeland Security are prosecuting the case. Special Agents from Homeland Security Investigations, the Utah State Bureau of Investigations, and Inspectors from the United States Postal Inspection Service conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Sioux City Man Pleads Guilty in Federal Court for Meth and Firearm ChargesRead the Press Release
A man who conspired to distribute methamphetamine and possessed a firearm during his drug trafficking pled guilty May 19, 2021, in federal court in Sioux City.
Jerry Powell, 32, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, one count of illegal possession of a firearm, and one count of possessing a firearm in furtherance of drug trafficking crimes. Powell was previously convicted of two felony drug offenses, namely, felony possession of a controlled substance in South Dakota in 2007, and felony possession of a controlled substance – 3rd offense in Iowa in 2018.
At the plea hearing, Powell admitted that between 2016 through about December 17, 2020, he and others conspired to distribute 50 grams or more of actual (pure) methamphetamine in the Sioux City area. On December 17, 2020, in Sioux City, Iowa, law enforcement caught Powell attempting to flee a legal traffic stop, at first by vehicle, including at speeds in excess of 100 mph on city streets, then after crashing the vehicle, on foot. Law enforcement observed Powell, while running, possess and then throw a handgun (later determined to be a loaded .357 magnum revolver) away during his attempted flight. Law enforcement later seized the firearm and six ounces of methamphetamine from the vehicle operated by Powell. Powell admitted he had acquired the methamphetamine from a source and possessed it with the intent to distribute some or all of it to another person or persons. Powell also admitted he was prohibited from the possession of the firearm due to being a previously convicted felon.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Powell was previously in the custody of the United States Marshals Service and after the guilty plea will remain in custody pending sentencing. On all of the convictions, Powell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Sioux City Police Department and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4005. Follow us on Twitter @USAO_NDIA.
Sharpsburg Felon Sentenced to 4 Years in Prison for Illegal Gun PossessionRead the Press Release
PITTSBURGH, PA - A resident of Sharpsburg, Pennsylvania, has been sentenced in federal court to four years of imprisonment followed by three years of supervised release for his conviction of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Christopher Flewellen, age 28.
According to the information presented to the court, Detectives from the Allegheny County Police Department observed Mr. Flewellen in possession of a firearm, which we was prohibited from possessing due to a prior conviction for a crime punishable by imprisonment for a term exceeding one year.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Allegheny County Police Department and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Christopher Flewellen. This case is brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rocky Mount Gang Member Receives Fourteen Years in Prison After Running from Police with a FirearmRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced today to 144 months in prison for possessing a firearm while on post-release supervision for a prior federal felony. This sentence is the result of a federal jury convicting Kalid Koron Ocean-Avent, 24, on a charge of possessing a firearm by a convicted felon on January 26, 2021.
According to court documents and other information presented in court, Ocean-Avent, a member of the 9-Trey Bloods in Rocky Mount, led Rocky Mount Police Officers on a high-speed car chase through a residential neighborhood on January 16, 2020. After Ocean-Avent wrecked the car into several parked cars, officers found a firearm and marijuana amongst Ocean-Avent’s belongings. At the time of the incident, Ocean-Avent was serving a term of post-release supervision stemming from a federal drug charge the year prior.
In issuing a 120-month sentence for the conviction and a 24-month consecutive sentence for the revocation of supervision, the Court noted the immediate lack of respect for the law and the danger posed by Ocean-Avent’s repeated criminal behavior.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated case and Assistant U.S. Attorneys J.D. Koesters and Nick Miller prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-17-D and 5:18-CR-487-D.
Richmond Man Convicted of Methamphetamine Trafficking and Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. - A Richmond, Kentucky, man was found guilty today, by a federal jury sitting in Covington, of possession with the intent to distribute 50 grams or more of methamphetamine and of being a felon in possession of a firearm.
After less than two hours of deliberation, following a four-day trial, the jury convicted 35-year old Lavone Dixon of both charges.
Dixon was indicted in January 2020. His co-defendant, Tiffany Thompson, is awaiting a separate trial. According to the testimony at trial, on September 17, 2019, Dixon traveled to Dayton, Ohio, to pick up over three ounces of crystal methamphetamine for distribution, and was arrested in Grant County, Kentucky while in route to Richmond with the methamphetamine. Agents executed a search warrant on Dixon’s residence, on September 22, 2019, and located three firearms concealed in the residence. Dixon was a convicted felon at the time of these offenses and was not permitted to legally possess firearms. The testimony also indicated that Dixon had traveled to Dayton for methamphetamine and heroin, multiple times, and distributed those drugs in the Richmond area
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, jointly announced the verdict.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the AHIDTA Richmond Task Force, the AHIDTA Mount Sterling Task Force, Miami Valley Bulk Smuggling Task Force, and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.
Dixon will appear for sentencing on September 7, 2021. He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
Retired Bucks County Credit Union CEO Sentenced to over Three Years for Embezzlement from Six Philadelphia-Area Federal Credit UnionsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Joan Brown, 80, of Bristol, PA, was sentenced to three years and eight months in prison, five years of supervised release, and ordered to pay $1,016,900 in restitution by United States District Judge Joshua Wolson for her scheme to embezzle credit union funds for which she provided management services through a company which she co-founded.
In September 2020, the defendant pleaded guilty to six counts of embezzlement of credit union funds and 11 counts of making false entries in credit union records arising from her embezzlement of more than $1 million over several years from six small credit unions. Brown is the former CEO of the Bensalem-based Service Center for Credit Unions, and in that position was well-known in the credit union community in the Philadelphia area. In fact, according to court document, in the past she had been described as “the face of credit unions in Philadelphia.” As a result of her actions, six small credit unions failed and were liquidated by the National Credit Union Association.
“Credit unions, by their nature, are cooperative institutions which rely on the support of everyone involved to function and remain safe places to save and borrow money,” said Acting U.S. Attorney Williams. “In her position as the CEO of a credit union management company, Brown destroyed six such credit unions with her greed and dishonesty. Our office will continue to work with our law enforcement partners to ensure that anyone who commits this type of fraud will be held accountable for their actions.”
“The credit unions contracting with SCCU depended on the company to ably manage their financial matters,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Joan Brown took full advantage of that trust, dipping into accounts and stealing money for herself, over and over again, for years. Her criminal actions caused the insolvency and shutdown of six local financial institutions. Brown is finally being held accountable for this extensive and clear-cut fraud.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
Readout of Attorney General Merrick B. Garland’s Call with the United Kingdom’s Home Secretary Priti PatelRead the Press Release
Attorney General Merrick B. Garland spoke by phone yesterday with Priti Patel, the United Kingdom’s Home Secretary. In this inaugural conversation, the Attorney General and Home Secretary reaffirmed their shared commitment to deepening cooperation on countering common threats, including those posed by international terrorism. The two leaders also discussed their efforts to address challenges posed by technology and to combat online child sexual exploitation and abuse. They look forward to further in-depth discussions on these and other issues central to the protection of the citizens of both our countries.
Puyallup, Washington, man pleads guilty to trafficking heroin, fentanyl, and methamphetamineRead the Press Release
Tacoma – A 34-year-old resident of Puyallup, Washington, pleaded guilty today in U.S. District Court in Tacoma to possession of heroin and methamphetamine with intent to distribute, announced Acting U.S. Attorney Tessa M. Gorman. Defendant Jeremy Gongas faces a mandatory minimum of 10 years in prison when sentenced by U.S. District Judge Benjamin H. Settle on September 13, 2021.
According to the plea agreement, on June 23 and 24, 2020, Gongas sold heroin to a person who was working with law enforcement. Gongas was arrested in July 2020, and a law enforcement search of his residence turned up dealer-sized quantities of heroin, fentanyl pills, and methamphetamine, plus more than $24,000 cash. Less than a month later, investigators observed Gongas meeting with another suspected drug trafficker who was under law enforcement surveillance.
On August 20, 2020, Gongas and the suspected trafficker met at a convenience store in Des Moines, Washington. Law enforcement stopped Gongas as he drove away from the meeting. A drug-sniffing dog soon found heroin, methamphetamine, and fentanyl pills near Gongas’s stopped car. Gongas ultimately admitted that he tossed the drugs out the car window when he realized law enforcement was closing in.
Gongas was charged federally on August 21, 2020, and has been detained at the Federal Detention Center at SeaTac since then.
Due to the drug quantities involved, Gongas faces a mandatory minimum 10 years in prison and a maximum prison sentence of up to life. Both the government and the defense have agreed to recommend a 10-year prison sentence. The district court is not bound by that recommendation and can impose any sentence allowed by law.
The case was investigated by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Puyallup Police Department Crime Suppression Unit, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF).
The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Pittsburgh Man Sentenced to 10 Years for Illegally Possessing Firearms and DrugsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to ten years of imprisonment followed by four years of supervised release for his conviction for charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Kevin Clay Jr., age 27.
According to the information presented to the court, Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search warrant at Mr. Clay’s residence. During the execution of the search warrant, Agents recovered five firearms and a bag containing 48 grams of a substance containing a mixture of fentanyl, heroin, and tramadol.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Kevin Clay Jr.
Pink Hill Man Sentenced to 6 ½ Years After Causing More Than $600 Million in Losses from Tobacco Smuggling and Tax SchemeRead the Press Release
RALEIGH, N.C. – A Pink Hill man was sentenced today to 78 months in prison for conspiring to commit money laundering and filing a false 2014 tax return, after he pled guilty to the charges on October 7, 2020.
According to court documents and other information presented in court, Phil Caprice Howard, age 55, arranged on at least 221 different occasions for cut-rag tobacco to be transported by trucks from Wilson, North Carolina to an area on or near the Akwesasne Mohawk Nation Reservation (“Akwesasne Reservation”) as part of a conspiracy to smuggle the tobacco into Canada without paying Canadian federal excise duties and provincial taxes. The Akwesasne Reservation straddles the United States and Canada borders on both banks of the St. Lawrence River. Co-conspirators then smuggled the cut-rag tobacco over the St. Lawrence River and on to the Kahnawake Mohawk Nation Reservation in Quebec. There, the cut-rag tobacco was manufactured into contraband cigarettes. Many of the co-conspirators possessed ties to organized crime syndicates.
In all, the conspiracy smuggled more than 6 million pounds of cut-rag tobacco into Canada, resulting in a tax loss to Canada exceeding $600,000,000. Howard received payment in the form of cash and cigarettes that were driven back to the Eastern District of North Carolina, as well as in the form of wires, in all obtaining more than $2 million dollars in criminal proceeds, which he laundered through a series of financial transactions. Howard failed to file Forms 8300 for his receipt of cash. In addition, Howard failed to report his criminal profits on his tax returns, including by filing false tax returns for tax years 2014-2018. In all, the defendant’s tax crimes, which date back to tax year 2008, caused a tax loss to the United States of more than one million dollars.
“This prosecution demonstrates the far-reach of organized crime and the success of international and multi-district law enforcement cooperation in holding those individuals responsible for their criminal conduct, whether it be obstruction of justice, money laundering, or tax evasion,” said Acting U.S. Attorney G. Norman Acker III. “Our office will continue to vigorously pursue the investigation and prosecution of such crimes.”
“To build faith in our nation’s tax system, honest taxpayers need to be reassured that IRS Criminal Investigation is diligent when it comes to enforcing the tax laws, such as Howard’s attempt to underreport his income,” Acting Special Agent in Charge of the Charlotte Field Office Mona Passmore stated. “By joining forces with our law enforcement partners and the Department of Justice to investigate financial related crimes, the IRS uncovers tax crimes which are equally as important to pursue.”
Howard also provided false testimony under oath to a federal grand jury investigating federal crop insurance fraud as part of a joint investigation by the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG) and Internal Revenue Service (IRS).
“Truthful testimony to a federal grand jury is a critical part of any criminal investigation including this investigation which involved in part Federal Crop Insurance Program fraud,” said Special Agent in Charge Jason M. Williams for U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG). “The sentencing in this case emphasizes that giving false statements is an obstruction to the administration of justice and will not be tolerated.”
In addition to the term of imprisonment, U.S. District Judge James C. Dever III ordered Howard to serve three years of supervised release and to pay approximately $1,062,192 in restitution to the United States. Howard was also ordered to forfeit $2,232,814 as proceeds of his money laundering activity.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement after sentencing by U.S. District Judge James C. Dever III. USDA-Office of Inspector General and IRS-Criminal Investigation investigated the case, with assistance from Canadian Border Services Agency – Enforcement and Intelligence Operations Division, Intelligence Section; Surete du Quebec Police; the Buffalo Homeland Security Investigations (HSI) Office and HSI Massena’s Border Enforcement Security Task Force; Bureau of Alcohol, Tobacco, Firearms, and Explosives, Charlotte Field Division; and the United States Attorneys’ Offices for the Northern District of New York and the Western District of New York. Former Assistant United States Attorney Banumathi Rangarajan and Tax Division Trial Attorney Will Guappone prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:18-cr-60. Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Pender County Man Sentenced for Armed Robbery of Scotchman Convenience StoreRead the Press Release
WILMINGTON, N.C. –A Pender County man was sentenced today to 91 months in prison and five years of supervised release for robbery affecting interstate commerce and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and other evidence, Dontee Deshawn Forte, 21, and a co-defendant went to the Scotchman gas station and convenience store in Burgaw on June 4, 2019 and robbed the store. Forte’s co-defendant entered the store and held the clerk at gunpoint while he demanded money. The clerk opened the cash register and the co-defendant took the money out of the register. Forte drove the co-defendant to the store to effectuate the robbery and was going to be the get-away driver. However, the co-defendant ran the opposite direction from where the car was parked and Forte drove away from the scene without his co-conspirator.
The store clerks were able to describe the car that fled the area which enabled officers with the Burgaw Police Department to locate the car very shortly after the robbery. Forte was with the car and was detained for questioning. Forte’s co-defendant was found a short time after the robbery walking within 3 blocks of the Scotchman. The co-defendant was wearing clothing consistent with the robber’s description. Officers found money from the store on his person as well as a firearm. The firearm belonged to Forte’s sister. Both men were transported to the Burgaw Police Department. Forte was found in possession of Xanax pills that were hidden on his person and provided a statement to law enforcement. After first denying any knowledge of the robbery, he ultimately told law enforcement that he dropped off his co-defendant, who was armed with a weapon, at the Scotchman and went back home.
Forte had prior convictions for Discharging a Weapon Into an Occupied Vehicle. According to law enforcement, Forte was a validated gang member.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Burgaw Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00080-M-1.
PA Electrical Supplier Agrees to Pay over $50,000 to Resolve Claims it Failed to Adhere to ‘Buy American’ Preference on 30th Street Station Renovation ProjectRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Wescott Electric Company (“Wescott”), of Aston, PA, has agreed to pay $54,983 and implement enhanced compliance measures to resolve claims arising from its use of Chinese-made parts during a fire alarm installation and renovation project at Amtrak’s William H. Gray 30th Street Station in Philadelphia, PA.
Companies contracting with Amtrak are responsible for complying with a federal regulation which establishes a preference for using American-made parts when fulfilling those contracts. The United States alleges that Wescott neither determined that its parts were American-made nor worked through Amtrak’s process for obtaining a waiver to this rule. The renovation at William H. Gray 30th Street Station was funded by a grant from the United States Department of Transportation.
“Amtrak and the Department of Transportation have established a preference to support American jobs by using American-made parts, and taxpayers have a right to know that policy is being honored,” said Acting U.S. Attorney Williams. “If contractors believe that doing so is impossible, they have a responsibility to raise the issue with contracting officers openly and to work with government authorities on a mutually agreeable resolution.”
“The Department of Transportation Office of Inspector General (DOT-OIG), along with our prosecutorial and law enforcement partners, is committed to protecting the integrity of the Federal procurement process and ensuring that government contractors comply with all applicable laws and regulations, including the Buy American and Trade Agreements Acts,” said Brian Gallagher, DOT-OIG Acting Special Agent in Charge Northeastern Region. “Today’s resolution is a testament to that commitment.”
“The American people deserve fair and honest services from Amtrak contractors, and this includes adhering to laws which require them to use American-made products to the greatest extent reasonable, consistent with public interest,” said Michael Waters, Special Agent in Charge of Amtrak OIG’s Northeast Field Office. “This settlement underscores our commitment to protect Amtrak funds, American taxpayers, and the traveling public, and we appreciate the seamless collaboration with the U.S. Attorney's Office and the Department of Transportation OIG throughout this investigation.”
Acting United States Attorney Williams also highlighted Wescott’s agreement to enhance its compliance program: “Wescott reacted promptly to the government’s investigation and cooperated fully, taking serious steps to make sure this issue never recurs. We hope Wescott’s compliance measures will be a model for other grantees and contractors looking to meet their responsibilities to the United States.”
This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force’s procurement fraud initiative with investigators from Amtrak Office of Inspector General and the Department of Transportation Office of Inspector General. Assistant United States Attorney Paul W. Kaufman of the Eastern District of Pennsylvania handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.