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Friday 2 April 2021
Warren County Man Sentenced for Threatening North Carolina Court EmployeesRead the Press Release
ALBANY, NEW YORK – Fredrick Eli Knapp, age 52, of Pottersville, New York, was sentenced today to 24 months in prison for interstate transmission of threats to injure another person.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Acting United States Attorney for the Eastern District of North Carolina G. Norman Acker, III; William T. Bowman, Marshal of the Supreme Court of North Carolina; Special Agent in Charge Robert Wells of the Federal Bureau of Investigation (FBI) Charlotte Field Office; and Chief R.E. “Chip” Hawley of the North Carolina State Capitol Police Department.
In November 2019, Knapp sent profanity-laden emails from Warren County, New York, to court employees in North Carolina threatening, among other things, to “kill[] court employees,” and posted a message to the North Carolina court system’s Facebook page threatening to “find a way to get back to that state just to kill people in your courthouses.” He also left a voicemail for a North Carolina police officer stating that police officers “don’t deserve to live.” In response to Knapp’s threats, bomb-detection dogs were dispatched to a North Carolina courthouse.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Knapp’s release from prison.
This case was investigated by the State Marshals of North Carolina Judicial Branch, FBI, and the North Carolina State Capitol Police Department, and was prosecuted by Assistant U.S. Attorney Sebastian Kielmanovich of the United States Attorney’s Office for the Eastern District of North Carolina and Assistant U.S. Attorney Cyrus P.W. Rieck of the United States Attorney’s Office for the Northern District of New York.
Warden Man Pleads Guilty to Child Sex Trafficking and Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Carlos Salgado Velasquez, age 30, of Warden, Washington, pleaded guilty on March 31, 2021 pursuant to a plea agreement to one count of Production of Child Pornography and one count of Child Sex Trafficking. In the plea agreement, Velasquez and the United States agreed to a sentence of 23 years in prison. Senior District Judge Wm. Fremming Nielsen will decide whether to accept the plea agreement during the sentencing hearing set for July 6, 2021.
According to information disclosed during court proceedings, beginning in September 2016 and continuing through September 2018, Velasquez engaged in conduct with four minor female victims within the Eastern District of Washington that constituted both the production of child pornography and child sex trafficking, in violation of federal law. Velasquez admitted that he knowingly took part in sexually explicit conduct with the four minor victims for the purpose of producing visual depictions of the sexually explicit conduct. Velasquez also admitted that he engaged in commercial sex acts with the four minor victims by soliciting them to engage in sexual intercourse with him in exchange for things of value. Velasquez solicited the four victims to engage in commercial sex acts with him by arranging to meet them using various internet communications platforms.
Acting United States Attorney Harrington said, “Crimes against children are one of the highest priorities of the Department of Justice and will continue to be vigorously prosecuted in the Eastern District of Washington. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Moses Lake Police Department, the Southeast Regional Internet Crimes Against Children Task Force, and the United States Department of Homeland Security who investigated this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the United States Department of Homeland Security, the Southeast Regional Internet Crimes Against Children Task Force, which includes detectives from the Kennewick and Richland Police Departments, and the Moses Lake Police Department. This case was prosecuted by Ann T. Wick and James A. Goeke, Assistant United States Attorneys for the Eastern District of Washington.
U.S. Attorney’s Office Prosecutes COVID-19 Fraud and Price-Gouging of Personal Protective EquipmentRead the Press Release
NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig today announced an update on the Office’s enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Unemployment Insurance (UI) programs, and schemes involving the price-gouging and hoarding of critical personal protective equipment
In the past year, the U.S. Attorney’s Office for the District of New Jersey has charged 18 defendants, including individuals and companies, with offenses based on fraud schemes, price-gouging, hoarding, and other crimes connected to the COVID-19 pandemic.
“Exploitation of the global pandemic for illicit financial gain victimizes consumers, taxpayers, and federal programs alike,” Acting U.S. Attorney Honig said. “We are working with our law enforcement partners to investigate these schemes and bring to justice all those who would try to take advantage of the programs established by Congress to help America through the pandemic. We will vigorously pursue anyone trying to steal from those programs, engage in the hoarding or price-gouging of necessary personal protective equipment, or otherwise defraud the public.”
Most recently, three defendants were charged last month in connection with an EIDL scheme: George Leguen, 46, of Paramus, New Jersey, and Shyteek Stevenson, 30, of Harrisburg, Pennsylvania, were charged in separate complaints with one count each of wire fraud and money laundering. Marc Orival, 37, of College Park, Georgia, is charged in a third complaint with two counts each of wire fraud and money laundering.
Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. The Act is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. The U.S. Attorney’s Office for the District of New Jersey continues to lead the Department of Justice’s Hoarding and Price-Gouging Task Force.
Other cases charged in New Jersey include:
Date of Charge
Lead Defendant
3/30/2020
Baruch Feldheim
3/30/2020
Erik Santos
6/5/2020
King Year Packaging and Printing
6/17/2020
Crawford Technology Group
8/14/2020
CSG Imports LLC and KG Imports LLC
9/3/2020
Jae Choi
9/17/2020
Jeffrey Bennett
9/29/2020
Dang Chanchai
10/21/2020
Jefferson Robert
10/23/2020
Justin Ezeiruaku
11/19/2020
Rocco Malanga
12/14/2020
Azhar Rana
12/16/2020
Maurice Mills
1/20/2021
Gauravjit Singh
3/18/2021
John Jhong
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Two indicted in Northern District on child pornography chargesRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury indicted two men in the Northern District of Ohio this week on child pornography charges. These are separate cases and are not related.
Jeffrey ARMSTRONG, 51, of Rockford, Ohio, was charged in a one-count indictment with receipt and distribution of child pornography. According to court records, from February 10 to February 22, 2021, ARMSTRONG is accused of engaging in an online conversation with an FBI covert employee on a mobile messenger application during which he sent sexually explicit material of minors or child pornography.
This investigation was conducted by the Cleveland Division of the FBI – Toledo Resident Agency and is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Allen Joseph KAMANN, 34, of Shelby, Ohio, was charged in a two-count indictment with receipt and distribution of visual depictions of minors engaged in sexually explicit conduct and possession of child pornography. According to court records, in February of 2021, KAMANN is accused of engaging in an online conversation with an FBI covert employee on a mobile messenger application regarding the sexual exploitation of minors. Throughout the conversation, KAMANN allegedly transmitted child pornographic materials to the FBI agent. In addition, KAMANN is accused of uploading several images of child pornography to the messenger application in November of 2020.
On February 26, 2021, a search warrant was executed on the person of KAMANN and his property. During the search, law enforcement officers recovered a cellphone containing alleged depictions of child pornography.
This investigation was conducted by the Federal Bureau of Investigation – Sandusky Resident Agency and is being prosecuted by Assistant U.S. Attorney Carol Skutnik.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
Tulsa Man Sentenced to 96 months in Federal Prison for Distributing HeroinRead the Press Release
A Tulsa man was sentenced Wednesday in federal court for distribution of heroin, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil III sentenced Jimmie Luna III, 56, of Tulsa, to 96 months in federal prison followed by 10 years of supervised release. When determining the sentence, Judge Heil also considered the extensive history and nature of Luna’s prior convictions.
On June 5, 2020, Tulsa County Deputies attempted to serve a felony arrest warrant on Luna. Deputies located Luna at a local hotel, and after arriving saw the defendant’s girlfriend exit the room. Deputies approached her and asked if she had any drugs. She told them she had drugs that belonged to Luna who was in the hotel room and retrieved multiple baggies from her bra: five baggies containing brown and black tar heroin and another containing Alprazolam, also known as Xanax. Luna had directed her to dispose of the drugs.
The Tulsa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys David Nasar and Joel-lyn McCormick prosecuted the case.
Trenton Man Charged with Assaulting and Robbing Federal Agent at GunpointRead the Press Release
TRENTON, N.J. –A Trenton man was charged today with assaulting a federal agent with a deadly weapon, armed robbery, and discharging a firearm during and in relation to a crime of violence, Acting U.S. Attorney Rachael A. Honig announced.
Jabree Johnson, 28, of Trenton, is charged by complaint with one count of assault on a federal officer with a deadly weapon, one count of robbery with a dangerous weapon of an individual with custody of federal property, and one count of using and carrying a firearm during and in relation to a crime of violence, in which the firearm was discharged. Johnson is currently in custody on related charges filed by the Mercer County Prosecutor’s Office in connection with the assault. He will make his initial appearance by videoconference before U.S. Magistrate Judge Zahid N. Quraishi on a date to be determined.
According to documents filed in this case and statements made in court:
On March 22, 2021, federal law enforcement officers were investigating firearms trafficking and other illegal activities in Trenton and Hamilton, New Jersey. An undercover federal law enforcement agent arranged to purchase multiple firearms from an individual later identified as Johnson.
After arriving at an agreed-upon location for the firearms transaction, Johnson entered the undercover federal agent’s vehicle and handed the agent a black, semi-automatic firearm. The undercover federal agent inspected the firearm and then returned it to Johnson, and requested to see the other firearms that Johnson had agreed to sell. Instead, Johnson pointed the loaded firearm directly at the undercover federal agent and demanded money from the agent. In response, the undercover federal agent provided Johnson with an amount of U.S. currency. Johnson then ordered the undercover federal agent out of the vehicle at gunpoint. The agent exited the vehicle as ordered, drew a service-issued firearm, and fired at Johnson, striking Johnson in the shoulder. Johnson fired his handgun multiple times at the undercover federal agent before fleeing the area. Johnson was later identified at a local hospital as the individual who had assaulted and robbed the undercover federal agent at gunpoint.
The charge of assault on a federal officer with a deadly weapon carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of robbery of federal property with a dangerous weapon carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and carrying a firearm during and in relation to a crime of violence carries a statutory mandatory minimum sentence of 10 years in prison, which must run consecutive to any other sentence imposed, and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Hamilton Township Police Department, under the direction of Police Chief James Stevens; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden and Special Assistant U.S. Attorney Katie Magee Lee of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Tax Fugitive Sentenced and FinedRead the Press Release
PHOENIX, Ariz. – On Wednesday, Kevin Scott Wynn, 59, of Scottsdale, Arizona, was sentenced by United States District Judge Susan M. Brnovich to 46 months in prison. The Court also imposed a fine of $7,500 on Wynn. Wynn was previously found guilty by a jury of tax evasion and failure to file tax returns in December 2019.
The sentence included an upward adjustment for obstruction of justice: Wynn withdrew $1,500,000 in cash from his business bank account in thirteen separate transactions in the first several months of 2020, and subsequently cut his ankle monitor and fled Arizona before a scheduled sentencing hearing. He was apprehended by Mexican law enforcement authorities in Mexico City in August and deported back to the United States. Upon release from prison, Wynn will be placed on supervised release for three years. As a condition of supervision, he will be required to pay more than $700,000 in back taxes as restitution to the Internal Revenue Service.
Internal Revenue Service – Criminal Investigation conducted the underlying investigation, and the United States Marshals Service led the fugitive apprehension efforts. Assistant United States Attorneys Gary M. Restaino and James R. Knapp handled the prosecution.
CASE NUMBER: CR-18-1649-PHX-SMB
RELEASE NUMBER: 2021-020_Wynn# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Syracuse Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Thomas Sczerbaniewicz, age 52, of Syracuse, pled guilty yesterday to one count of possessing and accessing with intent to view child pornography, announced Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea agreement and during the plea hearing before United States District Judge David N. Hurd in Utica, Sczerbaniewicz admitted that, in January 2021 while at his sex offender counseling service, he went into the bathroom and used a mobile phone to access the internet and view child exploitation images.
Sczerbaniewicz, who was convicted of possessing child pornography in 2009 and was on supervised release at the time he committed the current offense, faces at least 10 years and up to 20 years in prison on the new conviction. The Court also will impose a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
Sczerbaniewicz’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), after a referral from the United States Probation Office. The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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 https://www.justice.gov/psc.
Statement by the Principal Deputy Assistant Attorney General for Civil Rights Leading a Coordinated Civil Rights Response to Coronavirus (COVID-19)Read the Press Release
Principal Deputy Assistant Attorney General for Civil Rights Pamela S. Karlan issued the following statement and attached resource guide to assist Federal agencies, state and local governments, and recipients of Federal financial assistance in addressing ongoing civil rights challenges related to the COVID-19 pandemic:
The COVID-19 pandemic has stressed our Nation’s commitment to an open, equal, and inclusive society. We have seen hateful and xenophobic rhetoric and violence aimed at Asian American and Pacific Islander (AAPI) communities and businesses. We have also seen Black, Indigenous, Latino, and Pacific Islander communities, as well as people with disabilities, suffer disproportionately high rates of death and greater risk of infection and hospitalization. COVID-19 has magnified social, economic, and environmental inequalities that we cannot ignore.
As a Nation, we cannot adequately respond to, and recover from, COVID-19 if we do not protect all of our neighbors. That requires us to pursue justice on behalf of those targeted because of their race, color, religion, national origin, sex (including sexual orientation and gender identity), disability, or citizenship.
The Department of Justice will vigorously enforce Federal civil rights as we continue the process of national reckoning, recovery, and healing. Civil rights protections and responsibilities still apply, even during emergencies. They cannot be waived. Federal agencies, state and local governments, and recipients of Federal financial assistance are an integral part of our shared effort to uphold civil rights.
The following principles should assist in meeting these nondiscrimination obligations:
1. Combat hate crimes, harassment, and other discrimination against the AAPI community. There has been a disturbing rise in violence, harassment, and discrimination directed at the AAPI community. Laws prohibiting such conduct must be vigorously enforced by the Federal government, acting with its state and local partners. We must support and provide services to victims of hate crimes, harassment, or unlawful discrimination and ensure the safety of schools, workplaces, and communities through prompt and thorough investigation of complaints. The attached guide includes resources to support prevention and reporting of hate crimes in communities. It also explains how to report discrimination, harassment, or hate incidents in housing, education, employment or other civil rights violations. The Civil Rights Division is prepared to work with sister Federal agencies to support state and local efforts aimed at preventing pandemic-related harassment and discrimination targeting AAPI communities. For more information on preventing hate crimes in your community, visit the Department of Justice’s hate crimes resource page: https://www.justice.gov/hatecrimes.2. Ensure equal access for people with disabilities and avoid disability discrimination. COVID-19 has had a devastating and disproportionate impact on people with disabilities. Governments, health care providers, and long-term care facilities must comply with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). This includes when making decisions about who will receive medical care, including vaccines and hospital beds. It also includes crafting and implementing policies such as crisis standards of care, visitation rules, and vaccine distribution plans. People living in nursing homes and other long-term care facilities have been placed at particular risk of COVID-19 infection and death. Some reports show that more than one-third of all deaths from COVID-19 in the U.S.—over 172,000 people—are linked to nursing homes and other long-term care facilities. Providing services in home- and community- based settings instead of in long-term care facilities can satisfy the ADA integration mandate by preventing unnecessary institutionalization. It can also reduce COVID-19 risk. As governments, employers, and businesses lift pandemic-related restrictions and reopen, they must comply with the ADA and Section 504. This includes providing reasonable accommodations and modifications, physical access, and effective communication. For information about rights and responsibilities under these statutes, please contact the ADA Information Line at 800-514-0301 (voice) or 800- 514-0383 (TTY) or visit https://www.ada.gov/. Additional relevant information can be found on the U.S. Department of Health and Human Services’ Office for Civil Rights’ website at https://www.hhs.gov/civil-rights/for-providers/civil-rights-covid19/.
3. Reduce further learning loss for vulnerable students. Education inequalities have worsened as COVID-19 continues to disrupt learning for millions of students. Students of color are experiencing disproportionate failure rates, a growing digital divide disadvantages students who cannot access the internet and miss school as a result, and students with limited English proficiency and/or a disability are suffering serious educational consequences. Students who are homeless or in juvenile justice facilities are particularly at risk of learning disruptions. Schools contribute to these challenges when they fail to communicate with limited English proficient families in a language they understand about how to access online learning and other important information about school activities. Whether schools begin to reopen or continue to teach virtually, they must do so in compliance with Titles IV and VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, the Equal Educational Opportunities Act of 1974, the ADA, and Section 504. COVID-19 resources for schools, students, and families can be found at https://www.ed.gov/coronavirus?src=feature.
4. Protect correctional staff, incarcerated and detained people, and their families. Studies have shown that compared to the general population, a disproportionate number of COVID-19 outbreaks and deaths occur in jails, prisons, and detention facilities across the country. Certain communities of color, including Black, Indigenous, and Latino people, as well as people with disabilities, are more likely to have comorbidities, and suffer serious and even fatal COVID-19 infections, both in the general population and in jails, prisons, and detention centers. Individuals with limited English proficiency and those with disabilities can face increased isolation and lack meaningful access to essential information during COVID-19. This can limit their ability to obtain treatment and timely escalation of care when needed. State and local jails, prisons, and detention centers that receive Federal financial assistance must not discriminate on the basis of race, color, and national origin under Title VI of the Civil Rights Act of 1964 and other statutes. They must also comply with the ADA’s and Section 504’s disability nondiscrimination mandate. In addition to the statutory prohibitions on discrimination, these facilities may not deprive prisoners of their rights guaranteed by the Eighth and Fourteenth Amendments. Federal prisons and detention facilities are subject to Executive Order 13166 and other authorities that protect the civil rights of Federal detainees and inmates. For further guidance on managing pandemic response and recovery in correction and detention facilities, see https://nicic.gov/coronavirus and https://www.cdc.gov/coronavirus/2019-ncov/community/correction-detention/guidance-correctional-detention.html.
5. Protect vulnerable populations facing housing instability. COVID-19 has exacerbated existing racial and economic disparities in access to safe and affordable housing. Despite these challenges, individuals retain their fundamental right to obtain housing free from discrimination. Direct providers of housing must still comply with the Fair Housing Act. Our country already faced a severe shortage in affordable housing before the economic impacts of COVID-19 caused significant increases in housing instability. With studies showing that certain communities of color are more likely to be at risk of eviction, we must ensure that discrimination is not an additional barrier. Information on where to find housing assistance during the pandemic can be found here: https://www.benefits.gov/news/article/402. The Department of Housing and Urban Development also maintains a list of resources, found at https://www.hud.gov/coronavirus.
6. Provide information in languages other than English. Large numbers of people in the United States do not read or understand English well. Yet all people need to understand the symptoms, when to stay home, and how to protect themselves and their families to prevent the spread of the virus. Federal, state, and local public messaging on pandemic safety measures and recovery efforts should be provided in the wide array of languages spoken by people with limited English proficiency. Likewise, it is important that we ensure language accessibility in law enforcement, courts, and victim services so that victims of hate crimes and discrimination can vindicate their rights. Title VI requires recipients of Federal financial assistance to provide meaningful access to Federally-funded programs and activities to people with limited English proficiency. More information about ensuring language access and the concentration of, and languages spoken by, persons with limited English proficiency in a particular community can be found at https://www.lep.gov/ and https://www.lep.gov/maps/.
7. Collect data to monitor, track, and ensure equitable outcomes. COVID-19 requires accountability and action to address longstanding disparities for Black, Indigenous, Latino, AAPI, and other people of color, as well as people with disabilities. Complete, consistent, and accurate data collection and reporting on race, ethnicity, disability, and limited English proficient status are essential to our ability to recognize and address disparities and inequality. Federal civil rights offices are authorized to use qualitative (studies, news reports, and other sources of information) and quantitative data to conduct outreach, technical assistance, and enforcement to ensure compliance with Title VI of the Civil Rights Act of 1964. The Civil Rights Division is available to consult with Federal agencies on approaches to data collection and assessments to determine whether policies or practices may have a discriminatory impact. For more information on identifying discrimination under Title VI and on data collection, see https://www.justice.gov/crt/fcs/T6Manual7#Z; see also Executive Order 13985 (addressing the need for race, ethnicity, and disability data collection).
The Civil Rights Division will do its part to facilitate a coordinated federal response to these issues. Under Executive Order 12250, the Department of Justice is responsible for ensuring the consistent and effective implementation of Federal civil rights laws “prohibiting discriminatory practices in Federal programs and programs receiving federal financial assistance.” Accordingly, I have directed the Civil Rights Division’s Federal Coordination and Compliance Section and the Disability Rights Section to ensure that Federal agencies use their authority to pursue a comprehensive approach to advance equity and redress inequities in pandemic response and recovery. Finally, the Civil Rights Division will continue to convene meetings of Federal civil rights offices to:
1) exchange information and resources for agencies to take action on COVID-19-related harassment and discrimination;
2) monitor and address civil rights issues related to COVID-19 and recipients of Federal financial assistance;
3) identify strategies to ensure Federal, state and local efforts achieve equitable outcomes in current and future emergency planning and response;
4) work with the Federal agencies to develop and identify data sources or indices that will assist recipients of Federal financial assistance to collect data from communities of color and other underserved populations. The Civil Rights Division, together with other agencies throughout the Federal government, will continue to monitor civil rights issues related to COVID-19 and vigorously enforce civil rights laws. To file a complaint with the Civil Rights Division, please fill out our online form at https://civilrights.justice.gov.
Springfield Man Sentenced for Possession of Stolen FirearmsRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for possessing three stolen firearms, including a rifle and two revolvers.
Luis Velez, 42, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 years in prison and three years of supervised release. On Jan. 12, 2021, Velez pleaded guilty to one count of possession of stolen firearms.
On July 5, 2019, Velez was in possession of three stolen firearms: a Savage Arms, Model 25 Walking Varminter, .22 caliber rifle, a Hermann Weihrauch, Model ARM 44, .44 caliber revolver and a Smith & Wesson, Model 625, .45 caliber revolver, knowing or having cause to believe these firearms were stolen.
Acting United States Attorney Nathaniel R. Mendell and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorneys Catherine G. Curley and Neil L. Desroches of Mendell’s Springfield Branch Office prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
South Carolina Man Pleads Guilty in Scheme Involving Fraudulent Business Accounts That Defrauded Lowe's of More Than $450,000Read the Press Release
CHARLOTTE, N.C. – Bobby Cherry, 58, of Manning, South Carolina, appeared before U.S. Magistrate Judge David C. Keesler yesterday and pleaded guilty to wire fraud conspiracy, for his role in a scheme that defrauded Lowe’s of more than $450,000, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Stetzer is joined in making this announcement by Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte.
According to filed plea documents and today’s court hearing, from August 2019 to March 2020, Cherry and his two co-defendants, Russell Leroy Calvin and Michael Marcel Montgomery, along with other co-conspirators, defrauded Lowe’s through a scheme involving fraudulent business accounts. According to court records, Cherry and his co-defendants created fictional landscaping and home improvement companies to open fraudulent business accounts with Lowe’s, which they then used to make multiple purchases at stores in the Charlotte area and throughout North Carolina, South Carolina and Georgia. Court records show that, once the fraudulent business accounts were approved and funded, the codefendants used them to purchase expensive landscaping equipment, such as zero turn mowers and other items. In total, during the course of the scheme, the co-conspirators opened at least 25 such fraudulent business accounts which they used to obtain more than $450,000 in fraudulently purchased goods. The scheme involved local Lowe’s stores in Mecklenburg, Gaston, Union, Lincoln, Cleveland, and Iredell Counties.
Cherry pleaded guilty to wire fraud conspiracy which carries a maximum sentence of 20 years in prison and a $250,000 fine. Michael Marcel Montgomery pleaded guilty to the same charge on February 1, 2021. A sentencing date for Cherry and Montgomery has not been set. The charges against the third co-defendant, Russell Leroy Calvin, are still pending, and Calvin is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked ICE-HSI for their investigation of the case.
Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Second Defendant in Retail Refund Fraud Scheme Sentenced to 12½ Years in PrisonRead the Press Release
SACRAMENTO, Calif. — A former resident of Union City was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 12 years and seven months in prison for a conspiracy to commit a bank fraud scheme that attempted to defraud financial institutions of more than $4.3 million, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2017 and February 2019, Monica Nunes, 41, conspired with Johnathon Ward and Talalima Toilolo to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to refund customers for returns, reimbursements, and erroneous charges.
The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular retail merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ payment processors to transfer funds to the defendants’ fraudulent accounts. The defendants then drained the stolen funds from the accounts and distributed them among members of the conspiracy.
Nunes has extensive experience with refund fraud and served as an organizer and manager over the conspiracy. She taught other members how to use POS terminals to defraud merchants and their banks. For example, in July 2017 while she was incarcerated, she mailed letters to co‑conspirators, teaching them how to use POS terminals to perpetrate the scheme and advising them to connect with one of the defendants.
Judge England also awarded over $1.7 million in restitution to victims of Nunes’s refund fraud. This amount reflected proceeds that the conspiracy was able to successfully withdraw from accounts that were funded by the fraudulent refunds.
This case is the product of an investigation by the Federal Bureau of Investigation and the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On Feb. 11, 2021, Talalima Toilolo was sentenced to 10 years in prison for his participation in the scheme. In July 2020, the government filed a superseding indictment in this case charging Johnathon Ward with multiple counts of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The superseding indictment also added Sabrina Toilolo who is the daughter of Talalima Toilolo. These new charges are still pending against Ward and Sabrina Toilolo. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Schoharie County Man Pleads Guilty to Distributing, Receiving and Possessing Thousands of Images and Videos of Child PornographyRead the Press Release
ALBANY, NEW YORK – Angel Gomez, age 28, of Richmondville, New York, pled guilty today to a nine-count information, admitting that he received, possessed and distributed child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Gomez admitted to using a peer-to-peer file-sharing program to download image and video files from the internet, which he then saved to electronic devices. In addition, Gomez admitted that he allowed others to download child pornography from him via the peer-to-peer network. The conduct involved over 13,000 still images and over 2,400 videos depicting the sexual abuse of children.
Chief United States District Judge Glenn T. Suddaby will sentence Gomez on August 5, 2021. Each of counts one through four, alleging receipt and distribution of child pornography, carries a maximum sentence of 20 years and a mandatory minimum sentence of 5 years in prison, as well as a fine of up to $250,000. Each of counts five through nine, alleging possession of child pornography, carries a maximum sentence of 20 years and a maximum fine of $250,000. For all counts, Gomez faces a term of post-imprisonment supervised release of between 5 years and life and a requirement that he register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, along with members of the New York State Police, as part of Project Safe Childhood, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Romanian National Pleads Guilty in Connection with ATM Skimming SchemeRead the Press Release
BOSTON – A Romanian national pleaded guilty in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New Hampshire, New York and South Carolina.
Nemanja Milosavljevic, 23, pleaded guilty on Wednesday, March 31, 2021 to conspiracy to conduct enterprise affairs through a pattern of racketeering activity (more commonly known as RICO conspiracy), conspiracy to use counterfeit access devices and aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for July 28, 2021.
Milosavljevic was a member of the Hornea Crew (“Crew”), led by co-conspirators Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices to steal debit card numbers and PINs from unsuspecting ATM customers in Massachusetts, Connecticut, South Carolina, Georgia and other locations within the United States. The stolen information was then used by Milosavljevic and others to clone the victim customers’ debit cards and make unauthorized withdrawals from those victim customers’ bank accounts at ATMs throughout the United States. Members of the Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, Judge Young sentenced Constantin Denis Hornea to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260. Judge Young sentenced Ludemis Hornea to 42 months in prison, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Customs and Border Protection; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; Connecticut State Police; the Amherst, Billerica, Braintree, Boston, Florence (S.C.); Greenwich (Conn.), Houston (Texas) New York City (N.Y.), Quincy, Saluda (S.C.), Southwick, Waltham, Whately, and Westwood Police Departments; South Carolina Law Enforcement Division; Richland County (S.C.) Sheriff’s Department; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran, Deputy Chief of Mendell’s Organized Crime and Gang Unit, is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Previously convicted felon pleads guilty to federal firearm charge after shooting rifle out of apartment window near Albuquerque High SchoolRead the Press Release
ALBUQUERQUE, N.M. – Roy Thundercloud, 38, of Albuquerque, plead guilty in federal court on March 26, to being a felon in possession of a firearm and ammunition.
According to public court records, Thundercloud fired several shots from a rifle out of his apartment window near Albuquerque High School on May 31, 2020. Thundercloud also tried to dispose of the rifle shell casings by throwing them in the apartment complex’s dumpster. Thundercloud eventually surrendered after police responded to the scene to secure the area and detain him.
Thundercloud could not lawfully possess the rifle or ammunition based on previous felony convictions for possession with intent to distribute marijuana, burglary and aggravated driving while intoxicated.
Thundercloud is currently in custody pending sentencing. He faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Task Force and Albuquerque Police Department investigated this case. Assistant U.S. Attorney Sarah Mease is prosecuting the case.
Philadelphia Man Pleads Guilty to Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – James Nelson Peeples, Jr., 35, of Philadelphia, Mississippi, pled guilty today before U.S. Chief District Judge Daniel P. Jordan III to possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 15, 2018 a woman called the Philadelphia Police Department and reported that a man she knew as “P James” was at her house threatening her with a gun. An officer responded immediately and spoke with the woman. The officer then left the woman’s residence and quickly located Peeples nearby driving a black Honda Accord. The officer stopped Peeples and when he approached Peeples’ vehicle saw Peeples attempting to hide a handgun. Peeples also appeared to be trying to put a bag of marijuana in his pants.
Peeples was arrested and a search was conducted of his person and his vehicle. Methamphetamine, Marijuana and three handguns were found. Peeples has multiple felony convictions in Neshoba County for drug sale offenses and for being a convicted felon in possession of a firearm. Peeples later gave a full confession to officers with PPD, a DEA Task Force Officer and an ATF Special Agent. Peeples admitted that he sold methamphetamine and that he had taken two of the guns found in trade for methamphetamine. Peeples also admitted that he was willing to use firearms to settle his disputes on the street.
Peeples was indicted by a federal grand jury on January 15, 2020.
He will be sentenced on July 23, 2021 by Judge Jordan and faces a minimum of five years in prison and a maximum of life in prison, as well as a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
Owners and Former Employee of Heath Care company Facing Federal Charges for Allegedly Paying Kickbacks to Homeless Patients and Fraudulently Billing MedicaidRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Julius Bakari and his wife Mboutchock Kabiwa a/k/a Eugenie Bakari, both age 43, of Silver Spring, Maryland, with health care kickbacks and conspiracy to receive unlawful kickbacks, in connection with their company Holy Health Care Services, LLC (“Holy Health”). Dominic Forka, age 56, of Lanham, Maryland, a Community Support Worker (CSW) employed by Holy Health, is charged with health care kickbacks, conspiracy to receive unlawful kickbacks, and health care fraud.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation (FBI), Washington Field Office’s Criminal Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); and Inspector General Daniel W. Lucas, District of Columbia, Office of the Inspector General (OIG).
According to the affidavit filed in support of the criminal complaint, Bakari owns and operates Holy Health and is the company’s Chief Executive Officer and President. Kabiwa is the Vice President of Holy Health. Dominic Forka was a Community Support Worker (“CSW”) for Holy Health. Holy Health entered into Medicaid Provider Agreements with the District of Columbia’s Department of Health Care Finance (“DHCF”), which permit Holy Health to provide healthcare services to D.C. Medicaid recipients. Holy Health is also certified by the District of Columbia’s Department of Behavioral Health (“DBH”) to perform mental health services. After services are performed, Holy Health documents notes for these services utilizing an electronic health record (“EHR”) system for DBH providers. Holy Health then submits batches of notes in invoices for those services to DHCF, which processes the invoices and pays Holy Health. Holy Health was authorized to provide services from two separate locations in Washington, D.C. (Premises 1 and Premises 2).
The affidavit alleges that beginning in at least April 2017, Holy Health paid homeless people to physically go to Premises 1 and sign in as patients, then fraudulently billed the Medicaid plans of those homeless individuals for mental health treatment services that Holy Health did not provide. According to witnesses, Holy Health allegedly operated a van service to transport the homeless individuals from a park near the Government Printing Office in Washington, D.C. to Premises 1. According to witnesses, after signing in, on some occasions, the witnesses saw a doctor who asked general questions about the witness’s health. On other occasions, the witnesses did not meet with a doctor or any other healthcare provider, and instead received payment for signing in on a Holy Health sign-in sheet. Patients allegedly received $25 for attending three appointments during each week. Specifically, they received $10 for each of the first two days and $5 for the third day. The affidavit alleges that Holy Health did not provide mental health services to the homeless individuals and continued to bill Medicaid for mental health services even after the individuals stopped attending appointments.
As detailed in the affidavit, from March 2019 to November 2019, two confidential sources conducted undercover, recorded appointments inside Holy Health at Premises 1. The affidavit alleges that Confidential Source 1 (“CS1”) attended nine appointments at Premises 1 as part of the investigation and each time, Holy Health billed CS1’s Medicaid Plan for unrendered services. In addition, Holy Health allegedly used CS1’s personal identifying information (“PII”) to bill Medicaid for an additional 25 appointments that CS1 never attended. Between September 19 and November 22, 2019, CS2 allegedly conducted 11 appointments at Premises 1 and on several occasions saw an individual who informed CS2 that he was CS2’s caseworker. According to the affidavit, after each of CS2’s visits, Holy Health billed CS2’s Medicaid plan for unrendered services. As was allegedly the case with CS1, Holy Health billed CS2’s Medicaid plan for approximately 60-minute treatment sessions, when the video and audio recordings show that the sessions in fact lasted only minutes. According to the affidavit, Holy Health has used CS2’s PII to bill Medicaid for an additional 32 appointments that CS2 never attended. According to the affidavit, the electronic health records show that Forka accessed Holy Health’s EHR system to input the 32 appointments that CS2 never attended, all for services purportedly rendered by Forka. As detailed in the affidavit, Holy Health also issued two prescriptions to CS2 that were filled at a pharmacy in Hyattsville, Maryland. CS2 did not request or fill the prescriptions.
Finally, the affidavit alleges that Bakari and Kabiwa utilized funds from a non-profit organization to provide kickback payments to patients, which Bakari and Kabiwa referred to as “stipends.” As detailed in the affidavit, Kabiwa founded and ran the Agatha Foundation, a non-profit organization, which listed Bakari as Vice President. According to its website, Agatha is “a non-profit organization based in Washington, D.C., Maryland, and Africa that provides various key activities in the U.S. … in order to bring positive changes to the lives of at-risk groups in Washington, D.C., Maryland, and in Africa.” Agatha is headquartered in Silver Spring, Maryland and operates at Premises 1. Kabiwa allegedly transferred money from Agatha’s bank account to Holy Health employees to provide kickback payments to Holy Health patients.
If convicted, the defendants each face a maximum sentence of five years in federal prison for conspiracy to receive unlawful kickbacks, and a maximum sentence of 10 years in federal prison for health care kickbacks. Forka also faces a maximum sentence of 10 years in federal prison for health care fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. The defendants had an initial appearance before U.S. Magistrate Judge Gina L. Simms in U.S. District Court in Greenbelt today. The defendants were released pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the HHS OIG, and the District of Columbia OIG’s Medicaid Fraud Control Unit for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Catherine K. Dick and Erin B. Pulice, who are prosecuting the case.
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Oklahoma City Man Sentenced to Serve 36 Months in Federal Prison for Possessing a Firearm While Using Illegal SubstanceRead the Press Release
OKLAHOMA CITY – Today, BARRY ROWLAND TITUS, II, 39, of Oklahoma City, was sentenced to serve 36 months in federal prison for being a prohibited person unlawfully in possession of a firearm, announced Acting U.S. Attorney Robert J. Troester.
On October 1, 2020, Titus pled guilty to one count of unlawfully possessing a firearm while being an unlawful user of a controlled substance. Specifically, Titus admitted that, on or about November 25, 2015, he possessed a firearm in violation of federal law because he was an unlawful user of a controlled substance at the time of possession.
Today, U.S. District Judge Scott L. Palk sentenced Titus to serve 36 months in federal prison, followed by three years supervised release. In announcing the sentence, Judge Palk noted the nature and circumstances of the offense, as well as the history and characteristics of Titus. Judge Palk specifically highlighted the danger that is present when the possession of firearms is combined with the use of illegal substances.
This case is a result of an investigation by partnering law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms & Explosives, the United States Marshals Service, and Oklahoma City Police Department. Assistant U.S. Attorneys Matthew P. Anderson, Jacquelyn M. Hutzell, and Danielle M. Connolly prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
North Andover Woman Pleads Guilty to Performing Illegal Silicone InjectionsRead the Press Release
BOSTON – A North Andover woman pleaded guilty today in federal court in Boston to performing illegal silicone injections in exchange for money.
Gladys Araceli Ceron, 72, pleaded guilty to five counts of delivery for pay of an adulterated or misbranded medical device received in interstate commerce with the intent to defraud or mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 5, 2021. Ceron was charged by criminal complaint and arrested in May 2019. A federal grand jury subsequently returned an indictment.
From approximately 2004 to 2019, Ceron, who operated her business in Lawrence, performed illegal bodily injections using “gluteal material” that she obtained from a source in Florida. Lab tests of the material subsequently confirmed that it contained silicone oil – a substance that the U.S. Food and Drug Administration warns can travel through blood vessels and cause a stroke, death or permanent disfigurement.
In 2018, Ceron agreed to perform buttock enhancing and facial injections for an individual. During a recorded meeting on May 24, 2018, Ceron told the individual that she charged $500 for buttock injections and $60 for each wrinkle-filling injection. A search of Ceron’s business in Lawrence the following month resulted in the seizure of several bottles and syringes of a substance that tests revealed to be silicone oil. Numerous uncapped, used syringes were also recovered from the business.
Ceron performed illegal injections to augment the buttock or fill wrinkles of four other women in exchange for money and misled her victims about her qualifications and the identity and safety of the material she was injecting.
The charging statute provides for a sentence on each count of up to three years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey J. Ebersole, Special Agent in Charge of the U.S. Food & Drug Administration, Office of Criminal Investigations, New York Field Office; and Justin C. Fielder, Special Agent in Charge of the U.S. Food & Drug Administration, Office of Criminal Investigations, Miami Field Office made the announcement today. Assistant U.S. Attorney Rachel Y. Hemani of Mendell’s Health Care Fraud Unit is prosecuting the case.
NDTX Round up: March 26 - April 1Read the Press Release
SENTENCING – ELIZABETH ANN EDWARDS
On March 26, Elizabeth Ann Edwards, 35, was sentenced to 121 months in federal prison for distribution of a mixture or substance containing methamphetamine. Edwards drove an individual to a location to purchase methamphetamine from a woman. When they arrived, Edward parked the care and called the woman over. The passenger in the Edwards’ vehicle paid the woman for the methamphetamine which was delivered in a green baggie. The DEA and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
SENTENCING – CHRISTY LYNN HERPECHE
On March 26, Christy Lynn Herpeche, 36, was sentenced to 37 months in federal prison for distribution of a mixture or substance containing methamphetamine. On January 20, 2020, Herpeche entered into negotiations with another individual to sell them methamphetamine. She made four transactions of methamphetamine. The DEA and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
SENTENCING – ALEXIS GONZALEZ-BANALES
On March 26, Alexis Gonzalez-Banales, 23, was sentenced to 5 years in federal prison for illegal transportation of an alien. The Wichita Falls Sheriff’s Office conducted a traffic stop of a sport utility vehicle driven by Gonzalez-Banales. The vehicle was found to contain multiple illegal aliens who were all citizens of Mexico. Gonzalez-Banales was transporting the group to various locations in across the United States including Arizona, Texas, Alabama, Georgia, and Florida. HSI and Wichita Falls Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.
GUILTY PLEA – JORGE LUIS GONZALEZ
On March 30, Jorge Luis Gonzalez, 27, plead guilty to possession with intent to distribute a controlled substance. Lancaster police officers were dispatched concerning a shooting complaint. When officers arrived at a location, the victim advised officers that they had been shot at by two men from a residential location. Law enforcement responded to the location of the shooting where they recovered several shell casings in the driveway. Additionally, law enforcement made contact with Gonzalez. He was arrested after officers located methamphetamine in his pants pockets. Inside the residence, law enforcement seized methamphetamine, heroin, promethazine, and methamphetamine in the conversion process from liquid to crystal form. Gonzalez faces up to 20 years in federal prison for his crimes. The DEA and Lancaster Police Department conducted the investigation. Assistant U.S. Attorney Myria Boehm is prosecuting the case.
SENTENCING – BEI-JING TASHAWNA WALKER
On March 31, Bei-Jing Tashawna Walker, 27, was sentenced to 4 years probation for accessory after the fact. In February 2018, Walker was driving her vehicle and the front passenger, Donnie Orlondo Ferrrell, fired a handgun from the passenger window in the direction of another motorist. Walker witnessed the other motorist crash his vehicle into a concrete retaining wall after the shots were fired by Ferrell. She continued to drive to her residence and allowed Ferrell to stay while he attempted to avoid law enforcement detection. It was not until police arrested Ferrell at Walker’s residence that she learned the motorist had been killed by a bullet fired from Walker’s handgun. The United States Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.
Minnesota man charged with possession of fraudulent identification documents and counterfeit checksRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury sitting in Toledo returned a six-count indictment charging Ronald Lee Jenkins, 38, of Blaine, Minnesota, with possession with intent to unlawfully use false identification documents, unlawful production of identification documents and possession of counterfeit securities.
Court documents state that on February 14, 2021, the Defendant was stopped by an officer with the Maumee Police Department after committing several traffic violations. Following the stop, it was determined that Defendant had active warrants out of Minnesota and Wisconsin. The Defendant was detained, and his vehicle searched. During the search of his vehicle and a subsequent search of a hotel room he had rented in Maumee, officers located 13 Social Security cards; 183 Armed Forces of the United States identification cards; 10 South Carolina driver’s licenses; and several personal checks. It is alleged in the indictment that the identification documents were fraudulent, and the checks forged and counterfeit.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, Defendant’s sentence will be determined by the Court after review of factors unique to this case, including Defendant’s prior criminal record, if any, Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Maumee Police Department and the United States Secret Service. This case is being prosecuted by Assistant U.S. Attorney Robert N. Melching and Deyana F. Unis.
Michigan Hotel Manager Indicted for Tax Fraud and ObstructionRead the Press Release
Two defendants indicted on tax fraud and obstruction charges made their first appearances in the U.S. District Court for the Eastern District of Michigan today.
According to the indictment returned on March 3, 2021, Harold Walls, of Clare, Michigan, managed the day-to-day operations of the Days Inn Clare, a hotel owned by his father, Karl Walls. Rather than pay himself regular wages through the hotel’s payroll system, Harold Walls allegedly caused himself to be paid by other means, including by paying personal expenses from the hotel’s operating account. Harold Walls then allegedly filed individual income tax returns for 2013 through 2017 that did not report any income from the hotel. Rather, Harold Walls allegedly only reported wages from his employment as a professor of hospitality management and income from the rental of farmland.
The indictment further charges that Karl Walls reported income and expenses for the Days Inn Clare on Schedules C attached to his individual tax returns. From 2012 through 2017, Harold Walls allegedly provided and caused his father to provide false and incomplete information to Karl Walls’ return preparer, which resulted in the preparation of Schedules C for the hotel that understated its gross receipts and overstated its expenses. In particular, the information allegedly provided to the tax return preparer did not include revenue for 11 “off book” rooms that were not tracked in the hotel’s reservation system and, as a result, the revenue for these rooms was not reported on the Schedules C. The information allegedly provided to the tax return preparer also included inflated expense figures for the hotel’s property taxes for 2013, 2014, and 2017.
Finally, the indictment charges that both Harold Walls and Karl Walls attempted to obstruct the criminal investigation of Harold Walls. In January 2017, after IRS-Criminal Investigation (IRS-CI) special agents notified Harold Walls that he was the subject of a criminal tax investigation, Harold Walls allegedly made false statements to the special agents about his work at the hotel and attempted to cause a hotel employee to make similar false statements. In October 2018, Karl Walls also allegedly attempted to corruptly persuade two witnesses to provide false testimony to the grand jury regarding his son’s employment at the hotel.
Harold Walls is charged with filing false tax returns, aiding in the preparation of false tax returns, and endeavoring to obstruct the IRS. If convicted, Harold Walls faces a maximum term of imprisonment of three years on each of the tax and obstruction charges. Karl Walls is charged with two counts of witness tampering. Karl Walls faces a maximum term of imprisonment of 20 years on each count of witness tampering. Both defendants also face a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Melissa S. Siskind and Samuel B. Bean of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 35 Years for Sexual Exploitation of a ChildRead the Press Release
A former executive director for a university’s donor relations and fundraising programs in New York was sentenced today to 35 years in prison for multiple child pornography crimes, including his participation in the sexual abuse of a 6-year-old.
According to court documents, on July 22, 2015, Scott Lane, 37, of New York, New York, and others were on a particular video-conferencing platform when a man in Pennsylvania, co-conspirator William Augusta, began sexually abusing a 6-year-old boy. Lane and others encouraged Augusta to sexually abuse the boy for everyone to watch live. Specifically, Lane, using the alias “NYC Perv,” instructed Augusta to “make out with him,” and further instructed Augusta to engage in specific sexual acts with the boy. An undercover Toronto Police detective constable observed the sexual abuse via the video-conferencing platform, and the following day, law enforcement rescued the child and arrested Augusta, who had been sexually abusing the child for approximately two years. A subsequent search of Lane’s electronic devices revealed that Lane possessed multiple videos of prepubescent child pornography.
“The successful prosecution of the 15 individuals in this case, many of whom were responsible for the reprehensible sexual abuse of a 6-year-old child on a live-streaming, video-conferencing platform, demonstrate the Department of Justice’s unwavering commitment to targeting dangerous sexual abusers of children, however they commit their crimes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “We will continue to work closely with our domestic and foreign law enforcement partners to identify, prosecute, and hold accountable those who exploit children, no matter the technological means they use to commit their heinous crimes.”
“This defendant and his co-conspirators engaged in truly hideous behavior toward a child,” said Acting U.S. Attorney Bruce D. Brandler of the Middle District of Pennsylvania. “The lengthy sentence imposed today, and the lengthy sentences imposed earlier, reflect our office’s commitment to protecting vulnerable victims and punishing individuals who engage in this type of abhorrent behavior. I want to thank all the prosecutors and law enforcement agents who worked tirelessly to make sure justice was served in this case.”
“Today’s sentence demonstrates the severity of the crimes committed in this case,” said Special Agent in Charge Brian A. Michael for Homeland Security Investigations (HSI) Philadelphia. “The defendant perpetuated unspeakable crimes against the most vulnerable of victims, a child. Homeland Security Investigations and our law enforcement partners are devoted to identifying, investigating, and prosecuting offenders like the defendant ensuring they will never harm another child. We hope today’s sentencing can bring some solace to the victim in their recovery.”
In May 2016, 15 individuals were charged in an 18-count superseding indictment by a grand jury in the Middle District of Pennsylvania with multiple child exploitation offenses, many of which related to 14 co-conspirators’ involvement in using the video-conferencing website to produce, advertise, distribute, and/or receive child pornography. Twelve of the defendants pleaded guilty prior to trial, and two went to trial in January 2018. The defendants were sentenced to between six and a half years and 60 years. One defendant died after pleading guilty but before sentencing, and another defendant died before trial.
Lane pleaded guilty to six counts of child pornography crimes on Jan. 11, 2018, including conspiracy to produce and production of child pornography. In addition to the prison sentence, he was ordered to serve 15 years of supervised release and to pay $50,000 of restitution to the then-6-year-old victim as well as $476.95 to another victim.
HSI Philadelphia, the Toronto Police Service, the Kentucky Attorney General’s Office, and the North Middleton Police Department investigated the case, with assistance from the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Technology Investigative Unit.
CEOS Trial Attorney Austin M. Berry and Assistant U.S. Attorney Scott Ford of the Middle District of Pennsylvania 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 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 http://www.justice.gov/psc.
Man Charged with Shooting with Intent to KillRead the Press Release
A man has been charged in federal court for shooting a woman Saturday near Sheridan Road and Interstate 244, announced Acting U.S. Attorney Clint Johnson.
Isaiah Matthew Drywater, 23, was charged by criminal complaint with shooting with intent to kill in Indian Country and with being an unlawful user of controlled substances in possession of a firearm. He is scheduled to make an initial appearance today in federal court at 2 pm.
On March 27, 2021, just after 7 pm, Tulsa police officers responded to the shooting. Officers observed two individuals lying on the ground, including a female victim who had sustained four gunshot wounds. The victim was transported to a hospital for care. Drywater, whose clothing matched the description reported to authorities, was also lying on the ground with a Smith & Wesson 9 mm pistol a few feet away. Officers ran a records check on the firearm and discovered it was reported stolen in October 2020.
According to the charging document, officers spoke to four witnesses during their investigation. One heard the shots and looked in the direction of the crime, seeing a man and woman. He stated that it looked like the male shot the victim and recognized the man as a person called “Happy.” He said he saw “Happy” pulled the trigger then empty his handgun’s magazine. He then saw the man lie on the ground and throw the gun away from himself.
During an interview, officers explained to Drywater they were investigating a shooting and that he was a suspect. The defendant denied shooting anyone but said he thought his friend and her dog had been shot. He said the two had met through a mutual acquaintance. According to court documents, Drywater stated that he had used methamphetamine and PCP that day and that he had a Smith & Wesson 9 mm firearm and almost a full magazine that he carried in his waistband or backpack to conceal it. The defendant explained that he traded drugs and money for the gun. He also allegedly told officers that he remembered hanging out with an acquaintance and the victim and the next thing he remembered was being in a police car. Officers terminated the interview when the defendant asked for an attorney.
This matter will proceed in U.S. District Court in Tulsa, where the criminal complaint is currently pending. A complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal grand jury within 30 days. Once a grand jury returns an indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The Tulsa Police Department is the investigative agency. Assistant U.S. Attorney Ryan Heatherman is prosecuting the case.
Leader of Drug Trafficking Organization Pleads Guilty to Federal Drug Trafficking Charges and BriberyRead the Press Release
Greenbelt, Maryland – Russell Stanley III, age 40, of Bowie, Maryland, pleaded guilty on March 31, 2021 to the federal charges of conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery of a government official.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General, Assistant and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to Stanley’s guilty plea, in August 2018 the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA) began a joint investigation regarding the importation of cocaine into Maryland through the United States mail. Investigators identified Stanley as the leader of the drug trafficking organization (DTO) in Maryland. Stanley admitted that he conspired with others to distribute and possess with the intent to distribute cocaine in Maryland. Stanley further admitted that he had others assisting him with facilitating his distribution of cocaine in Maryland. Among those Stanley DTO members was Jovan Kirk Louis Savage, age 35, of Bowie, who picked up cocaine parcels in exchange for $500 per parcel from Stanley and assisted with delivering proceeds of the drug sales to pay off Stanley’s drug debt.
The investigation revealed that two U.S. Postal Service (USPS) letter carriers, Zakiyya Holloman, age 37, of Middle River, Maryland and Maurice Vaughn, age 34, of Washington, D.C. agreed to divert U.S. Priority Mail parcels, containing cocaine, sent to addresses on their routes, to Stanley or a member of the Stanley DTO in exchange for money. Holloman serviced a route in Bowie from April 2017 to October 2019, and Vaughn serviced a route in Bowie from July 2018 to October 2019. As USPS letter carriers, Vaughn and Holloman were public officials and were expected, among other things, to deliver each package to the addressee at the proper address and to keep an accurate record of their deliveries. Holloman began diverting packages containing cocaine to Stanley in approximately April 2018, after being introduced to Stanley by a mutual acquaintance. Holloman received $500 from Stanley for each parcel diverted. Hollman diverted cocaine parcels on at least six occasions, receiving a total of at least $3,000 from Stanley. In an effort to conceal the scheme, Holloman scanned the parcels as delivered to the addressees, despite delivering those parcels to Stanley.
As detailed in the plea agreement, at least once a month from December 2018 until October 2019, Vaughn diverted a U.S. Priority Mail parcel containing two kilograms of cocaine to the Stanley DTO. Specifically, on February 15, 2019, Vaughn delivered to Stanley’s vehicle, a U.S. Priority Mail parcel containing two kilograms of cocaine addressed to a Bowie address on Vaughn’s postal route. After Vaughn delivered the parcel to Stanley’s vehicle, Vaughn was paid $200 via Cash App. Similarly, Vaughn delivered U.S. Priority Mail parcels containing two kilograms of cocaine each on August 29, 2019, and October 2, 2019. Savage picked up each of the parcels, conducting counter-surveillance to make sure that law enforcement was not in the area. Vaughn was paid $200 in exchange for diverting each of those cocaine parcels to the Stanley DTO. In an effort to conceal the scheme, Vaughn scanned the United States Priority Mail parcels as delivered to the addressees, despite delivering those parcels to the Stanley DTO or to particular locations for pick-up by the Stanley DTO.
To help ensure that the letter carriers would not report their criminal activity, Stanley and a co-defendant required letter carriers to provide them with the letter carriers’ home addresses. Stanley discussed with a co-defendant that they should also tell the letter carriers that they knew the location of the letter carriers’ children's daycares.
In October 2019, Postal Inspectors intercepted a United States Priority Mail parcel destined for an Upper Marlboro address that contained the same contents as previous parcels including, edible peanuts, blue-and-white drinking straws, styrofoam plates and cups, and two kilograms of cocaine inside a Tupperware container. Law enforcement executed a search and seizure warrant, seizing the two kilograms of cocaine from the package. On October 9, 2019, Stanley and Savage worked together to pick up the parcel, not knowing that the cocaine had already been seized by law enforcement. They conducted counter-surveillance to make sure that law enforcement was not in the area, but before they could pick up the package, they detected the presence of law enforcement who were conducting surveillance of the Upper Marlboro package’s delivery. Stanley fled the scene in his vehicle, but Savage was arrested.
On October 9, 2019 investigators executed a search warrant at the shared residence of Stanley, Savage, and another member of the DTO. Among the items that investigators found and seized were approximately 15 grams of cocaine in a clear baggie and two digital scales from a kitchen cabinet as well as a money counter. Investigators searched Stanley upon his arrest, seizing $3,196 from his person. Stanley admitted that during the course of the conspiracy at least 40 kilograms of cocaine were attributable to him.
Jovan Kirk Louis Savage, age 35, of Bowie, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and faces a maximum sentence of life in federal prison. Maurice Vaughn and Zakiyya Holloman each pleaded guilty to conspiracy to commit an offense against the United States and to bribery. They face a maximum sentence of five years in federal prison for the conspiracy charge and a maximum of 15 years in federal prison for bribery. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Paula Xinis will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Judge Xinis has not yet scheduled sentencing dates for Savage, Vaughn, or Holloman.
Co-defendant Barrington Albert Edwards, Jr. age 37, of Bowie, Maryland, is charged with conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery. Co-defendant Delonte Andre Gomez, a/k/a Turk, age 39, also of Bowie, is charged with conspiracy to distribute and possess with intent to distribute cocaine and with possession with intent to distribute cocaine and cocaine base. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Stanley and the government have agreed that, if the Court accepts the plea agreement, Stanley will be sentenced to 11 years in federal prison. U.S. District Judge Paula Xinis has scheduled sentencing for Stanley on June 29, 2021 at 10:00 a.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS, the DEA, the U.S. Postal Service OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Samika N. Boyd and Jason D. Medinger, who are prosecuting the case.
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Lawrence Woman Arrested for Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Lawrence woman was arrested today in connection with her alleged involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Raquel Pena, 40, was charged in a criminal complaint with wire fraud, conspiracy to commit wire fraud and aggravated identity theft. Pena was released on conditions after an initial appearance in federal court in Boston.
According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers). As alleged in the complaint, Pena and others conspired to file fraudulent claims for PUA using others’ personally identifiable information. Pena recruited acquaintances to receive the proceeds of the fraudulent claims into their bank accounts, withdraw all or a portion of those funds and give the cash to Pena. The investigation allegedly connected Pena and her co-conspirators to more than $300,000 in unemployment claims between May 2020 and March 2021.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the FBI’s Boston Field Office; and Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the announcement today. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kansas City Man Sentenced to 144 Months Imprisonment for Distributing HeroinRead the Press Release
KANSAS CITY, KAN. – A Kansas City man has been sentenced on federal charges of distribution of heroin, Acting U.S. Attorney Duston Slinkard said today.
TITUS SANDERS, 24, of Kansas City, Missouri, was sentenced on April 1, 2021 to 144 months in federal prison, followed by 5 years of supervised release. Sanders entered a guilty plea on October 19, 2020. According to court records, this investigation began when Westwood, Kansas police responded to a Walmart and found a man suffering from a drug overdose. The victim later died as result of the overdose. Information contained on the victim’s cell phone led police to Sanders as the source of the heroin purchase.
This case was investigated by the Drug Enforcement Administration, Westwood, Kansas Police Department, Fairway, Kansas Police Department, Kansas City, Kansas Police Department, Overland Park Police Department, Lee’s Summit, Missouri Police Department and Johnson County Sheriff’s Office. Assistant United States Attorneys Trent Krug and Kim Flannigan prosecuted the case.
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Inmate at USP Lee Sentenced for Unlawfully Possessing WeaponsRead the Press Release
ABINGDON, Va. – Daniel Lee Wade, an inmate at the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 48 months in prison for unlawfully possessing weapons inside the prison, Acting United States Attorney Daniel P. Bubar announced today.
Wade, 26, of Greenville, North Carolina, pleaded guilty on October 28, 2020 to one count of possessing contraband inside a prison.
According to court documents, Wade possessed two prison made knives on March 28, 2020. One weapon measured 6-and one-half inches in length and 1-inch in width and was made from grey metal sharpened to a knife edge point. The other weapon measured 6-inches long and came to a sharpened point. Both had cloth handles and one had a black boot string attached as a lanyard.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Individual Indicted for Two Armed Robberies and A Carjacking in Bayamón and Toa BajaRead the Press Release
SAN JUAN, Puerto Rico – On March 30, 2021, a federal grand jury returned a five-count indictment charging Jesús Abdiel Feliciano-Candelario with offenses related to two robberies and a carjacking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. On April 1, the U.S. Marshals took Feliciano-Candelario into federal custody.
According to the Government’s allegations:
- In July 2019, at around 11:00AM, a man parked in front of an auto parts store in Bayamón with his 13-year old son. In the back of his car, the father had auto batteries that were going to be sold to the auto parts store as part of his business. While the father was in the store, Jesús Abdiel Feliciano-Candelario approached the 13-year-old boy and told him that he was going to take the batteries. When the father attempted to intervene, Mr. Feliciano-Candelario brandished a gun. Mr. Feliciano-Candelario and his accomplice then stole several car batteries from the victim’s vehicle.
- In August 2019, a couple arrived at their home in Bayamón around 8:30PM. While they were parking their car in the driveway, Mr. Feliciano-Candelario approached the wife, drew a knife, took her purse and demanded the keys to their van. When the husband refused to provide the keys, Mr. Feliciano-Candelario threatened to kill him. Mr. Feliciano-Candelario then drove off in the car, which contained over $1,700 in cash from the couple’s business.
- In September 2020, at around 11:20PM, Mr. Feliciano-Candelario and two accomplices robbed at gun point a To Go Store gas station in Toa Baja. They stole over $300 and merchandise.
The five-count indictment charges carjacking, violations of the Hobbs Act, and related firearm offenses.
Assistant U.S. Attorney Jeanette Collazo of the Violent Crimes Section is in charge of the prosecution of the case. The FBI is in charge of the investigation. If convicted, the defendant faces a sentence of up to fifteen years for the carjacking, up to 20 years for the Hobbs Act robberies, and not less than fourteen years in prison for the firearm offenses.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Fresno Man Sentenced to 3 Years in Prison for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — Joel Jose Rueda, 28, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to 37 months in prison for illegally possessing a firearm after being convicted of a felony offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 29, 2019, law enforcement officers conducted a traffic stop on a car that Rueda was driving. Because Rueda was on parole, the officers conducted a parole-compliance check and searched him and the car. Inside the engine compartment, behind the driver’s side headlight, officers located several rolled-up t-shirts concealing a loaded handgun with an obliterated serial number. Rueda is prohibited from possessing firearms because of multiple felony convictions for drug and firearm offenses. He was charged with one count of being a felon in possession of a firearm and pleaded guilty on Jan. 13, 2020.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kerman Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Fort Myers Felon Sentenced to Prison for Possessing Loaded AR-15 PistolRead the Press Release
Fort Myers, FL – U.S. District Judge Thomas P. Barber has sentenced Kwameaine Rashad Brown (28, Fort Myers) to 6 years and 11 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Brown to forfeit the firearm and 87 rounds of ammunition involved in the offense.
Brown had pleaded guilty on December 21, 2020.
According to court documents, on the night of December 31, 2019, officers from the Fort Myers Police Department (FMPD) observed Brown on city surveillance cameras openly carrying a firearm and placing it in the trunk of a vehicle. Brown later entered the vehicle, which was subsequently stopped by FMPD officers patrolling the area. The firearm Brown had been holding was identified as a Springfield Armory Saint 5.56 mm AR-15 pistol, which was equipped with a high-capacity drum-style magazine and loaded with more than 80 rounds of ammunition. At the time, Brown was a convicted felon and therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Former State Department Employee Indicted for Concealing Information in Background InvestigationRead the Press Release
WASHINGTON – Paul Michael Guertin (“Guertin”), 40, of Arizona and former resident of Washington, DC, was indicted on March 29, 2021 by a federal grand jury in the District of Columbia for wire fraud and obstructing an official proceeding. The indictment was announced by Acting U.S. Attorney Channing D. Phillips and Special Agent in Charge Elisabeth Heller, of the U.S. Department of State, Office of Inspector General.
Guertin was a Foreign Service Officer who served on multiple State Department assignments, including overseas postings to U.S. diplomatic missions in Shanghai, China and Islamabad, Pakistan, and a posting to the Bureau of Intelligence and Research at State Department headquarters in Washington, DC. As a condition of his employment, Guertin was required to apply for and maintain a Top Secret security clearance. According to the indictment, Guertin intentionally concealed information on his SF-86 background investigation questionnaires and in interviews with State Department background investigators. He withheld information about several categories of conduct, including an undisclosed sexual relationship with a Chinese national, whose U.S. visa application was adjudicated by Guertin while he was serving as a consular officer in Shanghai, China; undisclosed gambling debts; and an undisclosed $225,000 loan from two Chinese nationals, who were directed by Guertin to provide $45,000 of the initial disbursement in the form of cash in $100 bills.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
This matter was investigated by the U.S. Department of State, Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys Christopher Brown and Thomas Gillice, with assistance from Paralegal Specialist Chad Byron.
Former Sioux City Wastewater Treatment Plant Superintendent Sentenced to Federal Prison for Violating the Clean Water ActRead the Press Release
The former Superintendent of the Sioux City Wastewater Treatment Plant, who conspired to cheat on environmental testing at the plant, was sentenced on April 1, 2021, to three months in federal prison.
Jay Earnest Niday, age 63, from Sergeant Bluff, Iowa, received the prison term after a October 6, 2020 guilty plea to one count of conspiracy and one count of knowingly falsifying, tampering with, and rendering inaccurate a monitoring device or method required to be maintained under the Clean Water Act.
The evidence at Niday’s guilty plea and sentencing hearings showed that Niday was employed as the Superintendent of the Sioux City Wastewater Treatment Plant (WWTP). The WWTP is a large regional sewage treatment plant for wastewater from industrial, commercial, and residential sources throughout Siouxland, including Sergeant Bluff, Iowa, South Sioux City, Nebraska, North Sioux City, South Dakota, and Dakota Dunes, South Dakota. The WWTP’s more than 20 industrial users produce a large volume of high-strength wastewater. Under a Clean Water Act (CWA) permit, the WWTP was required to treat wastewater before discharging it into the Missouri River, which has heavy local recreational use. Between March 15 and November 15 each year, when public use of the Missouri River was at its highest levels, the WWTP was also required to disinfect its wastewater to remove potentially dangerous human pathogens, including fecal coliform bacteria or E. coli.
The WWTP treated its wastewater with liquid chlorine, which kills bacteria but is potentially toxic to aquatic life. The WWTP’s permit required the WWTP to periodically test its wastewater not only for the presence of fecal coliform bacteria or E. coli, but also total residual chlorine (TRC) levels, to ensure that the Missouri River was not polluted.
Beginning no later than 2011, and continuing until at least June 2015, Niday and others knowingly withheld from the Iowa Department of Natural Resources (IDNR) serious problems with the WWTP’s new treatment process, known as “the MLE process.” Niday and others concealed this fundamental problem with the MLE process from the IDNR.
Niday and others knew that the WWTP did not work properly and could not consistently disinfect the millions of gallons of wastewater that the WWTP was discharging into the Missouri River each day. In March 2013, an engineering firm prepared a “draft master plan” contemplated under a $1 million contract with the City and provided it to Niday and another person. The draft master plan discussed the disinfection problems at the WWTP at length and concluded the WWTP’s treatment process could not provide adequate disinfection of the WWTP’s influent given the apparently high toxicity in its significant industrial users’ effluent. Instead of following the recommendations in the draft master plan, Niday instructed the engineering firm to not finalize the report.
Niday and his coconspirators employed a fraudulent testing procedure that ensured the WWTP would always pass its effluent tests for fecal coliform, E. coli, and TRC. Specifically, early in the morning on testing days for bacteria, Niday and a subordinate manager, Shift Supervisor Patrick Schwarte, instructed first‑shift operators at the WWTP to increase the rate of liquid chlorine supplied to the wastewater. After an hour or two passed, and an artificially high level of chlorine was fully mixed into wastewater, they ordered the WWTP’s first-shift operators to use hand-held colorimeters to gauge the levels of chlorine. Only when the colorimeter “maxed out” would the Superintendent take a sample for fecal coliform or E. coli. This fraudulent procedure allowed for the chlorine in the wastewater to reach sufficient concentrations to avoid showing elevated levels of fecal coliform or E. coli, which would violate the WWTP’s CWA permits. The WWTP never reported any exceedances of its CWA permit limits for bacteria or residual chlorine after July 2012.
The liquid chlorine rate was increased from about 2.5 gallons per hour, to somewhere between 70 to 120 gallons per hour, for up to two hours. On non-testing days, WWTP employees maintained the chlorine feed rate at minimal levels, well below the designed feed rate of the WWTP and at a rate clearly insufficient to ensure the WWTP consistently and adequately disinfected its wastewater, as the WWTP’s CWA permits required. Then, in the afternoon on fecal coliform or E. coli testing days, well after the high amounts of chlorine had dissipated from the WWTP’s chlorine contact basin, and when an insufficiently low rate of liquid chlorine was supplied to the basin, Niday and Schwarte would test again for TRC. In the afternoon, they were certain the TRC would pass, because only a minimal rate of liquid chlorine was supplied to the chlorine contact basin at that time. Again, this minimal rate was clearly insufficient to ensure the WWTP consistently and adequately disinfected its wastewater, as required.
Niday was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Niday was sentenced to three months’ imprisonment and fined $6,000. He must also repay $2,500 in court-appointed attorney fees and serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
“Jay Niday deliberately worked with others to cheat on environmental tests, knowing he was polluting the Missouri River,” said Acting United States Attorney Sean R. Berry. “His actions not only put recreational users of the river at risk, but also endangered the river’s aquatic life. Niday’s blatant disregard for the law, the safety of the community, and his reprehensible treatment of a vital waterway was outrageous.”
“By intentionally tampering with the disinfection processes at the Sioux City Wastewater Treatment Plant, Jay Niday placed the community and its natural resources in jeopardy of sustaining significant environmental damage,” said Special Agent in Charge Lance Ehrig of EPA’s Criminal Investigation Division for Iowa. “Today’s sentencing demonstrates that such violations will be vigorously prosecuted.”
“Jay Niday knowingly manipulated data at a wastewater treatment plant that received millions of dollars in U.S. Environmental Protection Agency state revolving funds,” said Daniel Hawthorne, Special Agent in Charge of the EPA Office of Inspector General’s Western Region Field Office. “This sentencing fulfills the
OIG’s commitment with our law enforcement partners to ensure that falsifying data and undermining the integrity of taxpayer dollars will not be tolerated.”
Niday was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Timothy L. Vavricek and Matthew J. Cole and investigated by the Environmental Protection Agency, Criminal Investigation Division, the Environmental Protection Agency, Office of Inspector General, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4081-LTS.
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Former Nursing Home Employee and Home Health Aide Arrested in Two Separate Cases Involving Financial Exploitation of Elderly and Vulnerable AdultsRead the Press Release
WASHINGTON – Valerie Nicole Williams, 31, was arrested on March 22, 2021 and charged via criminal complaint with felony Financial Exploitation of an Elderly Person and Financial Exploitation of a Vulnerable Adult, in violation of D.C. Code § 22-933.01. On March 23, 2021, Mechille R. Akinkuotu (a.k.a. Mechille R. Tate), 53, was arrested and charged via criminal complaint with felony Financial Exploitation of an Elderly Person, in violation of the same code provision.
The announcement was made by Acting U.S. Attorney Channing D. Phillips; Karl Racine, Attorney General for the District of Columbia; and Daniel W. Lucas, Inspector General for the District of Columbia.
According to Court records, Williams was the Business Officer Coordinator at Transitions Healthcare Capital City, a skilled nursing facility in the District. Between October 2018 and August 2019, she used her position to steal $7,421 from seven elderly residents and four vulnerable adult residents at the facility. Williams forged the signatures of these residents to withdraw funds from the residents’ accounts managed by the facility. In two instances she also redirected money orders intended for residents into her own account.
Also according to Court records, Akinkuotu was the home health aide for an elderly man with limited mobility. Between January and April 2020, she stole $8,076.78 from the victim by using his debit card for unauthorized transactions including purchases at Target, Mary Kaye Cosmetics, and nail salons, as well as ATM withdrawals. Status hearings for both Williams and Akinkuotu have been scheduled for late August 2021.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In announcing the relevant charges on March 22 and 23, 2021, Acting U.S. Attorney Phillips, Attorney General Racine, and Inspector General Lucas commended the work of those who investigated the cases from the District of Columbia’s Office of the Attorney General and Office of the Inspector General. They also cited the efforts of Special Assistant United States Attorney Jennifer C. Mika, on detail from the Office of the Attorney General to handle financial crimes cases involving elderly victims, who investigated and is prosecuting both cases for the U.S. Attorney’s Office for the District of Columbia.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors and vulnerable adults. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the Office of the Attorney General to prosecute cases of this kind.
Former Airport Employee Sentenced to 24 Months in Prison on Drug ChargeRead the Press Release
St. Croix, USVI – Lamech Matthew, age 28, of St. Croix, was sentenced in the St. Croix District Court on April 1, 2021, after pleading previously guilty to one count of Conspiracy to Possess a Controlled Substance With Intent to Distribute, United States Attorney Gretchen C.F. Shappert announced. Matthew originally entered his guilty plea on January 22, 2019.
Chief Judge Wilma A. Lewis sentenced Matthew to a federal prison term of 24 months, followed by 3 years of supervised release, a $3,500 fine, and a $100 special assessment.
According to court documents, on November 2, 2016, while investigating a passenger found with cocaine in his carry-on luggage, Homeland Security Investigations (HSI) agents reviewed surveillance footage from the Henry E. Rohlsen Airport on St. Croix. They were able to determine that Matthew, a Worldwide Flight Services employee, was involved with the passenger. After Matthew was advised of his rights, he admitted that he brought the cocaine into the restroom in the pre-departure area and left the cocaine in a stall to be retrieved by the passenger. Laboratory analysis confirmed the substance was cocaine hydrochloride (cocaine powder) with a net weight of 5,132.4 grams, or over 5 kilograms.
The case was investigated by Customs and Boarder Protection and Homeland Security Investigations. The Drug Enforcement Administration (DEA) Southeast Laboratory in Miami analyzed the cocaine. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Federal and Local Law Enforcement Agencies Announce Operation ScarecrowRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the York County District Attorney’s Office, and the York City Police Department announced a joint initiative (Operation Scarecrow) that targets individuals who illegally purchase and possess firearms in York County. Operation Scarecrow will focus on individuals who are prohibited from possessing firearms due to a prior felony conviction who use third parties (“straw parties”) to purchase firearms on their behalf. Under federal and state law, such transactions are illegal and both the prohibited person and the straw party are subject to criminal prosecution for engaging in this type of behavior.
Operation Scarecrow began on January 20, 2021 and has thus far resulted in 19 firearms being recovered. As a result of the operation, the U.S. Attorney's Office has charged the following individuals:
- Jahzaire Jahzaire Gilliam, age 19, York, PA, charged with conspiring to make a false statement during the purchase of a firearm; two counts of receipt of firearm by person under indictment; possession of firearm by unlawful user of controlled substance; distribution of marijuana; possession with intent to distribute marijuana; and possession of a firearm in furtherance of drug trafficking;
- Hannah Lapham, age 22, York, PA, charged with conspiring to make and making a false statement during the purchase of a firearm;
- Donte Christian, age 45, of Baltimore, MD, charged with four counts of making a false statement during the purchase of a firearm; and
- Nijee Baskins, age 21, York, PA, charged with two counts of making a false statement during the purchase of a firearm.
The investigations are continuing, and numerous other individuals are expected to be charged in both federal and state court in the near future.
“Taking illegal guns off the streets is a high priority of the Department of Justice,” stated Acting United States Attorney Bruce D. Brandler. “Illegal guns fuel the epidemic of violence we see too often in York, and around the nation. We will work with all our state and local partners to reduce gun violence and investigate any and all suspicious straw party transactions that result in felons or other prohibited persons illegally possessing firearms.”
“When a person chooses to purchase a firearm under false pretenses, these firearms more often than not end up on the streets and into the hands of criminals,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Successful investigations like these, exemplifies ATF’s dedication to our local, state and federal partners in working together to keep our streets safe from gun violence. I would like to thank the York City Police Department, the York County Drug Task Force, the York County District Attorney’s Office and the United States Attorney’s Office for their continued support in our important mission to protect the public.”
The indictments are the result of an investigation by ATF, York City Police Department, the York County Drug Task Force, and the York County District Attorney’s Office.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Farson Man Indicted for Tax FraudRead the Press Release
Acting United States Attorney Bob Murray announced today that SEAN D THOMAS, age 49, of Farson, Wyoming, was indicted on April 2, 2021, under U.S. District Court Docket Number 21-CR-45-NDF, charged with multiple counts of tax evasion and failure to file federal income tax returns. Thomas had his initial appearance today via videoconference before U.S. District Court Magistrate Judge Honorable Mark L. Carman.
According to the charges outlined in the indictment, it is alleged that between June 2014 through at least 2018, Thomas was employed and filed a Form W-4 falsely claiming withholding allowances which caused his employer to not withhold federal income taxes from Thomas’ wages. Thomas then failed to file an Internal Revenue Service Form 1040 tax return reporting his income for each of the years alleged in the indictment.
Each count of tax evasion carries a penalty of up to 5 years, up to three years of supervised release, and a fine of up to $250,000. Each count of failure to file tax returns carries a penalty of up to 1 year in prison, up to one year of supervised release, and a fine of up to $100,000. Thomas is scheduled to appear for an arraignment hearing on April 8, 2021, in front of Chief U.S. Magistrate Judge Kelly H. Rankin. A jury trial will be scheduled at the arraignment.
This case was investigated by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorney Eric Heimann.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Davenport Couple Charged with $5.8 Million COVID Relief FraudRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the filing of a criminal complaint charging Julio Lugo (44) and Rosenide Venant (37), both of Davenport, with conspiracy and making false statements to a financial institution. Lugo has also been charged with an illegal monetary transaction relating to the illegal use of coronavirus relief funds to pay off a note on a luxury car purchased during the conspiracy. If convicted, Lugo faces a maximum penalty of 45 years in federal prison; Venant faces up to 35 years’ imprisonment.
According to the complaint, beginning in or about March 2020, Lugo and Venant conspired to defraud the Small Business Administration (“SBA”) out of millions of dollars in coronavirus relief funds. Lugo and Venant used their home IP-address to submit at least 70 false and fraudulent loan applications seeking funds from the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program. The fraudulent loan applications requested more than $5.8 million, including for shell companies established by Lugo, Venant, and their relatives. The conspirators also secured coronavirus relief funds for a defunct tax-preparation company that Lugo had previously used to perpetrate a tax fraud in or around 2015. Once the emergency loans were secured, the conspirators misused the PPP and EIDL funds by paying off a luxury vehicle, spending more than $62,000 at casinos, and for other personal purposes. Additionally, the conspirators withdrew at least $320,000 in cash. Lugo publicized the misuse of the SBA funds in a Facebook video featuring a hotel room littered with $100 bills and at least $5,000 in merchandise from Louis Vuitton.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories were also authorized to apply for loans and grants through the COVID-19 EIDL program.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It will be prosecuted by Assistant United States Attorneys Kristen A. Fiore and Suzanne Nebesky.
Cohoes Man Sentenced for Interstate ThreatsRead the Press Release
ALBANY, NEW YORK – Patris Derville, age 22, of Cohoes, New York, was sentenced yesterday to 13 months in prison for transmitting an interstate threat to injure another person, announced Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Derville admitted that on January 15, 2020, he used his Facebook account to transmit a Facebook Live video over the internet during which Derville threatened to shoot another person, and that he posted the video for the purpose of communicating that threat to that person.
Chief United States District Judge Glenn T. Suddaby also sentenced Derville to a 3-year term of supervised release, which will commence after Derville is released from prison.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Troy Police Department. This case was prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Alicia Suarez.
Carjacking conviction sends Savannah man to federal prisonRead the Press Release
SAVANNAH, GA: A Savannah man will spend nearly eight years in federal prison after admitting to a carjacking that left the vehicle crashed and the defendant in the hospital.
Jaquan Shakur Singleton, 26, of Savannah, was sentenced to 94 months in federal prison after pleading guilty to Interstate Transportation of a Stolen Vehicle, and Using and Carrying a Firearm During and in Relation to a Crime of Violence, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge William T. Moore also ordered Singleton to pay $9,652.82 in restitution, and to serve five years of supervised release after completion of his prison term. There is no parole in the federal system.
“Two of Jaquan Singleton’s siblings died as a result of gun violence, yet that knowledge didn’t deter him from committing violent gun crime on his own,” said Acting U.S. Attorney Estes. “The community will now be a safer place while he is behind bars, contemplating the bad choices that put him there.”
As described in court documents and testimony, Singleton pointed a handgun at a motorist in a Savannah parking lot in February 2018, stealing the victim’s car and driving away. A short time later, Singleton crashed the vehicle in Hardeeville, S.C., and after being treated at a hospital was taken into custody.
“This kind of threat to any citizen is unacceptable and will be investigated and prosecuted,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “With the help of the Savannah Police Department and the U.S. Attorney’s Office Southern District of Georgia, Singleton will be punished to the fullest extent of our laws.”
The case was investigated by the FBI and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Canton Man Pleads Guilty to Sexual Exploitation of a Child, and Distribution and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Jacob Leonard, age 30, of Canton, New York, pled guilty today to one count of sexual exploitation of a child, one count of distribution of child pornography, and one count of possession of child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith Corlett.
Leonard, who remains detained pending his sentencing scheduled for August 5, 2021, faces at least 15 years and up to 70 years in prison. Chief United States District Judge Glenn T. Suddaby will also impose a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Leonard would also have to register as a sex offender upon his release from prison.
As part of his guilty plea, Leonard admitted that while using a social media messaging application on his phone, he sent an image of child pornography – which he created – to another individual over the internet. A subsequent search of Leonard’s phone revealed that he was in possession of 33 images and 18 video files depicting child pornography.
Leonard’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators from the New York State Police, Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU). The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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 https://www.justice.gov/psc.
Brothers Sentenced for Smuggling Disaster that Resulted in Tragic Deaths of Three SistersRead the Press Release
NEWS RELEASE SUMMARY – April 2, 2021
SAN DIEGO – Two brothers from Chihuahua, Mexico, were sentenced in federal court today to 66 months in prison and a $500 special assessment for smuggling three sisters across treacherous terrain along the U.S.-Mexico border in an ill-fated trek that resulted in the tragic deaths of the young women - Juana Santos Arce (age 35), Margarita Santos Arce (age 32) and Paula Santos Arce (age 29) of Oaxaca, Mexico.
Cecilio and Ricardo Rios-Quinones pleaded guilty in August 2020 to Transportation of Aliens Resulting in Death, Bringing in Aliens for Financial Gain and Conspiracy.
Calling this one of the worst human smuggling scenarios she has seen in 15 years as a judge, U.S. District Judge Cathy Ann Bencivengo stated that “three women froze to death because defendants sought to benefit from their need to come here. It is tragic that someone wants to come here to work and dies, but it is more tragic that there are people who benefit from this, who treat them like cargo.”
Judge Bencivengo found it significant that when events turned horrific, defendants did not immediately seek help and turn around. She recognized the presence at the sentencing hearing of several agents who engaged in the rescue operation, noting that they put their own lives at risk only to find two women dead and one barely alive, and despite their best efforts they could not get off the mountain in time to save her.
“The smugglers with whom individuals entrust their lives care only about money and not safety,” said Acting U.S. Attorney Randy Grossman. “We pledge to fervently seek justice for victims following these calamities, but we cannot bring back those who were lost or end the suffering of grieving families. I implore others not to entrust their lives or the lives of their loved ones to these smugglers.” Grossman praised the efforts of Assistant U.S. Attorney Charlotte Kaiser, Homeland Security Investigations and U.S. Border Patrol in prosecuting this case as well as all the agents and first responders who worked tirelessly and at risk to themselves to locate and rescue the sisters.
“Human smugglers prey on the desperation of people hoping for a better life in the United States,” said Cardell T. Morant, special agent in charge of HSI San Diego. “This case exemplifies the ruthlessness of smugglers, and should serve as a warning to people considering putting their lives in their hands. HSI will continue to work tirelessly to hold unscrupulous smugglers accountable and bring them to justice.”
“We are pleased that justice was served and that these criminals will be placed behind bars,” stated United States Border Patrol San Diego Sector Chief Patrol Agent Aaron Heitke. “May this sentencing serve as a strong message to others contemplating smuggling that this activity will not be tolerated.”
According to the government’s sentencing memorandum, the women occasionally came to the U.S. for work. According to family members, Paula, the youngest of the three sisters, was married and had an 18-month-old daughter at the time of her death.
As part of their plea agreements, the defendants admitted that they conspired with others to serve as foot guides in order to smuggle individuals illegally into the United States, and that they were ill-prepared when they guided the three sisters through a remote, mountainous region during a snow storm.
According to the plea agreements, the defendants guided the three sisters across the border from Mexico through the boundary fence in a remote area within the Southern District of California. They encountered cold, windy and rainy weather. It then began to snow. They lacked proper clothing, shoes, shelter, and other food and equipment to remain or hike in this cold, remote, mountainous environment.
According to reports, agents from the Border Patrol, Search, Trauma and Rescue (BORSTAR) unit initiated a rescue operation due to a distress call in the Boulevard Border Patrol Station’s area of operation on February 10, 2020, at approximately 1:50 p.m. The call concerned five individuals who were lost and experiencing hypothermia. BORSTAR agents initially encountered the two defendants in a snowy area approximately 20.5 miles east of the Tecate, California port of entry, more than 12 miles north of the border. The defendants pointed agents to the direction of the three sisters. Agents subsequently found the three sisters lying on the ground on a ridge.
Two of the sisters were already dead. The third sister was responsive but suffering from severe hypothermia. She later died despite gallant efforts of members of BORSTAR, Border Patrol Agents from the Campo/Boulevard area and the City of San Diego Fire & Rescue Department, who placed their own lives at risk while trying to keep the distressed sister alive as temperatures dropped and winds accelerated. Autopsies confirmed the three sisters died due to environmental hypothermia.
DEFENDANTS Case Number 20cr0868-CAB
Cecilio Rios-Quinones Age: 38 Chihuahua, Mexico
Ricardo Rios-Quinones Age: 23 Chihuahua, Mexico
SUMMARY OF CHARGES
Transportation of Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (B)(iv)
Maximum penalty: Life in prison or death and $250,000 fine.
Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Three years mandatory minimum, 10 years maximum, and $250,000 fine.
Conspiracy – Title 18, U.S.C., Section 371
Maximum Penalty: Five years in prison and $250,000 fine.
AGENCIES
Homeland Security Investigations
U.S. Border Patrol, Intelligence Unit
Bristow Man Sentenced for Assaulting his Domestic PartnerRead the Press Release
A Bristow man was sentenced today for assaulting his former girlfriend and causing substantial bodily injury, announced Acting U.S. Attorney Clint Johnson.
“The fear and control domestic abusers exert on their victims is terrifying. Bobby Thompson threatened the victim and her family, beat her, and attempted to strangle her,” said Acting U.S. Attorney Clint Johnson. “Thompson will spend the next 24 months in prison where he will no longer be able to intimidate and harm this victim or her family.”
U.S. District Judge John F. Heil III sentenced Bobby Brian Thompson, 39, to 24 months in federal prison followed by three years supervised release.
Thompson pleaded guilty to assault resulting in substantial bodily injury to a spouse, intimate partner, dating partner in Indian Country in December. In his plea agreement, Thompson admitted that on or about June 11, 2020, in Bristow, Oklahoma, he assaulted his dating partner. Specifically, he admitted to striking the victim with his fists and strangling her. The victim suffered substantial bodily injury as a result of his assault upon her.
The FBI and Bristow Police Department conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to distributing cocaine base in Raleigh County. Eric Ledon Brown, 53, was indicted by a federal grand jury in November 2020.
Pursuant to the plea agreement and statements made in court, Brown sold cocaine base to a confidential informant on August 25, 2020. Brown admitted to selling the drugs from his residence on South Heber Street in Beckley. Brown also admitted to selling cocaine base on two other occasions within the Southern District of West Virginia. As further part of the plea, Brown admitted that a search warrant was executed at his residence on September 30, 2020. During the execution of the search warrant, law enforcement officers found a quantity of cocaine base that Brown admitted that he intended to distribute and two firearms that Brown was prohibited from possessing due to a prior felony conviction in the state of Ohio.
Brown faces up to 20 years in federal prison when he is sentenced on August 6, 2021.
The Federal Bureau of Investigation (FBI) and the Beckley/Raleigh County Drug and Violent Crime Unit, which is comprised of officers from the Raleigh County Sheriff’s Department, the Beckley Police Department and the West Virginia State Police, conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge Frank W. Volk presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00192.
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Attorney General Merrick B. Garland Issues Statement on Death and Injury of Capitol Police OfficersRead the Press Release
U.S. Attorney General Merrick B. Garland today issued the following statement:
“The entire Department of Justice mourns with the U.S. Capitol Police and the family of Officer William Evans. Our thoughts are also with the other brave officer injured in the attack.
“As the members of the U.S. Capitol Police have demonstrated this year, they will give their all to defend the seat of our democracy. The Washington Field Office of the FBI is assisting the Metropolitan Police Department with their investigation of this tragic attack.”
Albany Felon Arrested for Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Roderick Jones, age 41, of Albany, was ordered detained today on a federal complaint charging him with two separate instances of unlawful possession of firearms.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Chief Eric Hawkins of the Albany Police Department.
The complaint alleges that on January 17, 2019, Jones possessed a loaded .380 caliber handgun in his vehicle when he was arrested on impaired driving charges. The complaint further alleges that on September 29, 2019, Jones possessed a 9mm pistol that he discharged four times at an occupied residence. On both occasions, Jones was a felon who was prohibited from possessing firearms.
Jones was arrested on the complaint on Wednesday, and appeared for a detention hearing today in Albany before United States Magistrate Judge Daniel J. Stewart. Following a detention hearing, Jones was ordered detained pending trial.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Jones was previously convicted of unlawful possession of the .380 pistol in Albany County Court, but that conviction was overturned in July 2020, by the New York Supreme Court Appellate Division’s Third Department. The court ruled that the search of Jones’s vehicle, leading to the recovery of the .380 pistol, was not a valid inventory search. At time of his arrest on the federal complaint, Jones was facing charges in Albany County Court related to the possession and discharge of the 9mm pistol in September 2019. Those charges will be dismissed by the Albany County District Attorney’s Office in light of the federal complaint.
The charges filed against Jones carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a maximum 3-year term of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Albany Police Department and ATF. It is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Akwesasne Man Sentenced for Fleeing Port of EntryRead the Press Release
ALBANY, NEW YORK - Brennan J. Thompson, age 43, of Cornwall Island, Ontario, was sentenced today to time served (approximately 2 months in jail) for driving away from the Massena Port of Entry while Customs and Border Protection (CBP) Officers attempted to search his vehicle.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Robert Dwyer, CBP Director of the Massena Port of Entry.
As part of his earlier guilty plea, Thompson admitted that on May 13, 2020, he was operating a silver Lincoln sedan when he approached the Massena Port of Entry, seeking to enter the United States from Canada. When asked to open the vehicle’s trunk for inspection, Thompson quickly accelerated away from the inspection booth, made a U-turn and sped back into Canada. Thompson was arrested on June 28, 2020.
Chief United States District Judge Glenn T. Suddaby also sentenced Thompson to a 3-year term of supervised release.
The case was investigated by CBP and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Thursday 1 April 2021
Woman from Santa Fe pleads guilty to assaulting a minor in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Brittany Huizar, 20, of Santa Fe, New Mexico, pleaded guilty in federal court on March 31 to a charge of assault resulting in substantial bodily injury in Indian Country.
A grand jury indicted Huizar on Nov. 4, 2020. According to the indictment, on Dec. 31, 2019, Huizar and eight other individuals assaulted a child, who is an enrolled member of the Nambe Pueblo, multiple times before the child was able to escape. The assault began at Valdez Park on the Santa Clara Pueblo.
Huizar faces up to 5 years in prison.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the New Mexico State Police and the Espanola Police Department. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Woman Pleads Guilty to Embezzling Money from D.C. Law FirmRead the Press Release
WASHINGTON – Katherine Emma Ross, 29, formerly of Washington, D.C., pled guilty today to embezzling hundreds of thousands of dollars from a D.C. law firm. The guilty plea was announced by Acting U.S. Attorney Channing D. Phillips, Matthew S. Miller, Special Agent in Charge of the United States Secret Service’s Washington Field Office, and Metropolitan Police Department Acting Chief Robert J. Contee III.
According to the Statement of Facts filed in conjunction with Ross’ guilty plea, Ross was employed by the Victim-Law-Firm as an hourly employee in a non-lawyer capacity. Without permission of the Victim-Law-Firm or its owner, Ross wrote checks to herself in amounts that she was not owed, forged signatures on those checks, and cashed the checks at bank branches in the District of Columbia, Virginia, and Maryland. She acknowledged that she stole at least $320,000 from the Victim-Law-Firm and its owner through her scheme.
Ross pled guilty to one count of bank fraud, in violation of 18 U.S.C. § 1344. The maximum sentence for bank fraud is thirty years of imprisonment. Under federal sentencing guidelines, however, she faces a likely recommended sentence of between 30 and 41 months in prison. The Honorable Reggie B. Walton, who accepted Ross’ guilty plea, scheduled sentencing for June 29, 2021.
In announcing the guilty plea, Acting U.S. Attorney Phillips, Special Agent in Charge Miller, and Acting Chief Contee commended the work of those who investigated the case from the Secret Service’s Washington Field Office and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Michon Tart, Forensic Accountant Bryan Snitselaar, and Assistant United States Attorney Kondi Kleinman.
Two Miami Residents Arrested for Their Alleged Role in $8 Million Scheme to Defraud Prescription Drug Coupon ProgramsRead the Press Release
Miami, Florida -- William Clero, 44 and Cesar Armando Perez Amador, 51, residents of Miami, Florida, were arrested today for their alleged participation in a scheme to defraud prescription drug cost savings (coupon) programs offered by pharmaceutical manufacturers to reduce the cost of prescription drugs for consumers.
On February 25, 2021, Clero and Perez were indicted by a Grand Jury in the Southern District of Florida and charged with participating in a conspiracy to commit wire fraud and mail fraud, conspiracy to commit money laundering offenses, and six counts of money laundering.
According to court documents, Clero and Perez were the beneficial owners of 15 retail pharmacies located in Miami, Florida, and concealed their ownership and control of the pharmacies by enlisting “nominee” owners. It is alleged that from approximately December 2014 through February 2021, Clero and Perez submitted and caused the submission of fraudulent claims for reimbursement to prescription drug coupon programs that falsely and fraudulently represented that prescription drugs had been prescribed by physicians and were being dispensed to patients by the pharmacies. As a result of the scheme, prescription drug coupon programs paid more than $8 million to the pharmacies. Further, Clero and Perez conspired with each other and with others to launder the proceeds of the scheme through shell companies and to engage in monetary transactions to spend the fraud proceeds on themselves and others, according to the allegations.
Both defendants had their initial appearances today in federal magistrate court. Clero’s arraignment and a pretrial detention hearing are set for April 7, 2021. Perez’s arraignment is set for April 12, 2021. These hearings will take place in federal magistrate court in Miami.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations, (HSI) Miami Field Office, made the announcement.
This case is being investigated by HSI Miami. The case is being prosecuted by Assistant U.S. Attorney Aimee Jimenez of the Southern District of Florida.
An indictment and criminal complaint are charging instruments containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
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 21-cr-20112.
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