Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 May 2021
Federal Jury Convicts Former Florida State University C.A.R.E. Students of Conspiracy, Bank Fraud, and Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, today announced the convictions of Kh’lajuwon Amari Murat, 21, of Miramar, Florida, and Ariel Apperlyn Smith, 22, of Coral Springs, Florida. The convictions came today after a four-day federal jury trial.
The jury heard evidence that Murat and Smith, along with other students who enrolled at Florida State University (“FSU”) in the Center for Academic Retention and Enhancement (“C.A.R.E.”) and Kadeem Telfort, a former student and football player at the University of Florida, conspired to defraud federally insured financial institutions between July 1, 2017, and October 31, 2017. The jury heard from thirteen witnesses – many of whom were former FSU students – and received over 300 exhibits in evidence. The evidence presented proved that Murat and Telfort used the Internet and text messaging to unlawfully obtain credit card and debit card account numbers belonging to third parties, and that they used those account numbers to fraudulently deposit funds into the student accounts of multiple FSU students, including accounts belonging to Murat and Smith.
The evidence demonstrated that the group communicated by cell phone and text messaging to plan the execution of the scheme. Specifically, the jury heard that Murat requested the student account numbers from FSU students and also requested that the FSU students purchase merchandise from the FSU Bookstore using funds that he and Telfort had fraudulently deposited or would later fraudulently deposit into those students’ accounts. The FSU students then gave the purchased merchandise to Murat and others and were permitted to keep any remaining balance of the funds that Murat and Telfort fraudulently deposited into their student accounts for their own personal use. The evidence proved that in total, the group fraudulently obtained and attempted to obtain approximately $53,000 in funds to which they were not entitled, and that FSU was victimized from chargebacks being issued by banks as a result of the fraudulent charges being disputed by the third-party debit and credit card accountholders.
The jury found Murat and Smith guilty of all counts as charged in the indictment. Murat was found guilty of conspiracy to commit bank and wire fraud, 16 counts of bank fraud, and six counts of aggravated identity theft. Smith was found guilty of conspiracy to commit bank and wire fraud and two counts of bank fraud.
Sentencing hearings for both defendants are scheduled for August 5, 2021, at 10:00 a.m., before the Honorable Judge Robert Hinkle at the United States Courthouse in Tallahassee. Both defendants face a potential maximum penalty of 20 years in prison for each conspiracy to commit bank fraud and bank fraud count, and Murat faces an additional 2-year mandatory minimum prison sentence, consecutive to any other sentence imposed, for each aggravated identity theft count.
These convictions were the result of a collaborative investigation by the Florida State University Police Department and the United States Secret Service. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fargo Man Sentenced to Federal Prison for His Involvement in a Violent RobberyRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced today that U.S. District Court Chief Judge Peter D. Welte sentenced Teon Tyrik Berry, age 20, of Fargo, ND, to 57 months in federal prison for the charge of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery. Judge Welte also sentenced Berry to three years of supervised released and $100 in special assessment fees.
On June 6, 2019, Berry and a group of young males and one female robbed a customer of commercial sex. Berry’s co-defendants posted an advertisement on "Skip the Games" promoting prostitution with adult women. The victim arranged to meet an individual for the purpose of commercial sex at an apartment building in Fargo. Using dangerous weapons, Berry and his co-defendants robbed the commercial sex customer by threats of force and actual force after he arrived at the apartment building just after midnight. Berry sought to take advantage of a customer of commercial sex whom he believed would be unwilling to go to law enforcement if he was robbed, but fortunately the victim called 911 immediately following the robbery.
This case was investigated by the Department of Homeland Security Investigation and the Fargo Police Department, and Assistant United States Attorney Jennifer Puhl prosecuted the case.
######
Florida Man Acquitted on Charges of Kidnapping and Abusive Sexual ContactRead the Press Release
Acting United States Attorney Bob Murray announced today that CODY DONAVAN SMITH, age 21 of Naples, Florida was acquitted by a federal jury on one count of kidnapping and one count of abusive sexual contact.
Smith was originally indicted on March 18, 2020 by a federal grand jury. The trial took place in front of U.S. District Court Judge Nancy J. Freudenthal and lasted 4 days.
The incident was investigated by the National Park Service Investigative Services Branch, the Federal Bureau of Investigation, and the Rexburg Police Department. The case was prosecuted by Assistant United States Attorney Christyne Martens and Assistant United States Attorney Nicole Romine.
Essex County Man Admits Possession of MachinegunRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man with a prior felony conviction today admitted illegally possessing a machinegun, Acting U.S. Attorney Rachael A. Honig announced.
Anthony Reynolds, 26, of Newark, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of possession of a machinegun, one count of possession of a firearm and ammunition by a convicted felon, and one count of possession of a machinegun not registered to him in the National Firearms Registration and Transfer Record.
According to documents filed in this case and statements made in court:
On May 2, 2020, at approximately 8:40 p.m., Newark Police officers were conducting surveillance in marked patrol cars in the area of Summer Avenue and May Street in Newark, with the specific purpose of minimizing social gathering of citizens in order to prevent the spread of the COVID-19 virus.
As they traveled north on Summer Avenue, one of the officers observed several individuals congregating on the sidewalk within close proximity to each other. The officers stopped their patrol cars and exited their vehicles. One of the officers observed Reynolds remove a black handgun from the front of his waistband and place it underneath a parked vehicle. The officer then advised one of the other officers of his observations, at which point the other officer looked underneath the vehicle and observed a .40 caliber Glock 23 semiautomatic handgun which was loaded with 11 rounds of ammunition.
Law enforcement determined that the firearm was fitted with a Glock conversion device commonly referred to as “Glock Switch,” which has the effect of converting a semiautomatic Glock pistol into a machinegun.
A search incident to arrest revealed that Reynolds was also in possession of a small clear sandwich bag containing suspected marijuana and $655 in cash.
For each of the three counts, Reynolds faces a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 22, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai; and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
El Departamento de Justicia Resuelve Una Acusación de Discriminación Presentada Contra Aerojet Rocketdyne, Inc.Read the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Aerojet Rocketdyne, Inc. (Aerojet Rocketdyne), un fabricante de propulsión de misiles y cohetes. El acuerdo resuelve una acusación presentada por un residente permanente legal a quien Aerojet Rocketdyne se negó a considerar para un puesto de mecánico debido a su estatus migratorio. La investigación del Departamento concluyó que Aerojet Rocketdyne vulneró la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al considerar solamente a ciudadanos estadounidenses para 12 puestos de mecánico en Jupiter, Florida, sin contar con el fundamento legal necesario para lo mismo.
«Los empleadores no pueden restringir los puestos a ciudadanos de los EE. UU. al menos que sean requeridos por ley a hacerlo», afirmó la Fiscal General Auxiliar Adjunta Principal Pamela S. Karlan de la División de Derechos Civiles. «El Departamento felicita a Aerojet Rocketdyne por haber cambiado rápidamente sus prácticas al enterarse del problema y por su cooperación durante la investigación del Departamento».
Aerojet Rocketdyne construye y vende sistemas avanzados de propulsión y energética a clientes, entre ellos el gobierno estadounidense y empresas privadas. La investigación del Departamento determinó que Aerojet Rocketdyne no permitió a la Parte Demandante y a otros individuos no ciudadanos de los EE. UU. que solicitaran 12 puestos de mecánico, por motivos de su estatus de ciudadanía. Por otra parte, la investigación concluyó que la compañía malinterpretó las obligaciones que le incumben en virtud de los reglamentos federales, tales como los Reglamentos del Tráfico de Armas Internacionales de los Estados Unidos (ITAR, por sus siglas en inglés), por creer erróneamente que impusieron restricciones en la posibilidad de la compañía de contratar a personas no ciudadanas de los EE. UU., y no es así. La investigación también determinó que la compañía creó equivocadamente que algunos de sus contratos gubernamentales requerían que cubriesen los 12 puestos de mecánico con ciudadanos estadounidenses. Al enterarse de la investigación, Aerojet Rocketdyne fue comunicativo y rápidamente cambió sus prácticas para evitar futura discriminación.
La INA protege a ciudadanos estadounidenses, nacionales no ciudadanos, refugiados, asilados y residentes permanentes legales de la discriminación por motivos de su estatus de ciudadanía. La ley tiene una excepción para empleadores o reclutadores que, en virtud de una ley, regla u orden ejecutiva, están obligadas a restringir los puestos.
El acuerdo de hoy le obliga a Aerojet Rocketdyne a tomar unas medidas para garantizar su cumplimiento con la ley, lo que incluye capacitar a sus empleados de contratación en su sucursal en Jupiter, Florida. Asimismo, la compañía debe pagar una sanción civil que asciende a 37.008 $. Al igual que con otros acuerdos, la IER también supervisará a la compañía para garantizar que esté cumpliendo con el acuerdo.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación. Aprenda más sobre la discriminación por motivos de estatus de ciudadanía aquí.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dover Man Pleads Guilty to Bank Fraud and Violating Supervised ReleaseRead the Press Release
CONCORD - Daniel Desrochers, 48, of Dover, pleaded guilty in federal court to committing bank fraud and violating his supervised release conditions, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, from December of 2019 until August of 2020, Desrochers maintained personal checking accounts at two separate banks in New Hampshire. In July of 2020, Desrochers registered his catering business, Legacy Hospitality, L.L.C. (Legacy) with the New Hampshire Secretary of State. He then opened a business bank account for Legacy at a third bank.
From July 27 through September of 2020, Desrochers defrauded the banks by engaging in a check-kiting scheme. He would make fraudulent check deposits into the Legacy business account and one of his personal accounts using checks written on the other personal account in amounts that exceeded the amount of money in that account. This would artificially inflate the apparent available balance in the receiving accounts. Desrochers would then withdraw funds through ATM withdrawals, debit card transactions and other electronic transfers before the financial institutions received notice that the checks were unpaid for insufficient funds.
In addition to pleading guilty to bank fraud, Desrochers also admitted that his actions violated the conditions of his supervised release for a previous felony wire fraud conviction.
Desrochers is scheduled to be sentenced on August 24, 2021.
“When defendants are placed on supervised release after serving a prison sentence, they have an opportunity to demonstrate that they can comply with the law and become productive members of society,” said Acting U.S. Attorney Farley. “Rather than take advantage of this opportunity, this defendant chose to engage in additional fraud crimes. As this case demonstrates, those who commit crimes after being released from prison will be caught and held accountable for their additional criminal conduct.”
This matter was investigated by the Federal Bureau of Investigation and the United States Probation Office. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
###
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pleaded guilty today to a federal drug crime.
According to court documents, Brandon William Jones, 42, admitted that on October 29, 2020, a confidential informant working with law enforcement conducted a controlled purchase of approximately 10.8 grams of suspected heroin for $1000 from Jones in the parking lot of 3090 16th Street Road in Huntington. After meeting the confidential informant, officers followed Jones to the area of 1584 Hal Greer Boulevard and arrested him. Officers found additional suspected heroin on Jones and the $1000 used in the controlled purchase. Jones also admitted that he was responsible for selling at least 20 kilograms of heroin in the Huntington area.
Jones pleaded guilty to distribution of heroin and faces up to 20 years in prison when sentenced on August 16, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Greg McVey is handling the prosecution.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers 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. 3:21-cr-00029.
###
Convicted Felon Sentenced to 110 Months in Prison for Violent Incident During A Funeral ServiceRead the Press Release
MINNEAPOLIS – A Fond Du Lac man was sentenced today to 110 months in prison followed by three years of supervised release for illegally possessing and discharging a firearm in a school zone.
According to court documents, on October 18, 2019, Shelby Gene Boswell, 29, ran into a funeral service with a rifle and shot a person in the back of the head. The shooting victim was transported to the hospital and survived their injuries. The shooting took place on the grounds of Fond du Lac Head Start which is within a distance of 1,000 feet of the grounds of Fond du Lac Ojibwe High School. Because he has prior felony convictions in Beltrami County, Carlton County, and in U.S. District Court for the District of Minnesota, BOSWELL is prohibited under federal law from possessing firearms or ammunition at any time.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Chief U.S. District Judge John R. Tunheim sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota Bureau of Criminal Apprehension, the Carlton County Sheriff’s Office, and the Fond du Lac Police Department.
Assistant U.S. Attorneys Andrew R. Winter and Bradley M. Endicott prosecuted the case.
Charlotte Man Is Sentenced to Nearly Five Years for Orchestrating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Joseph Maurice Deberry, a/k/a Joseph Maurice Dewberry, 57, of Charlotte, was sentenced by U.S. District Judge Max O. Cogburn Jr. to serve 57 months in prison for orchestrating an investment scheme that defrauded victims of hundreds of thousands of dollars. Deberry was also ordered to serve three years under court supervision and to pay full restitution to his victims.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed plea documents and today’s sentencing hearing, from 2016 to June 2019, Deberry fraudulently obtained hundreds of thousands of dollars from more than a dozen investors. As part of the scheme, Deberry induced victims, many of whom he met through online dating platforms, to invest in entities with which he was affiliated, such as Pinnacle Investment Properties LLC and Place Capital Group LLC among others. Deberry typically represented to investors that their money would be used to further projects related to the construction of student housing at certain colleges in the Carolinas and other ventures.
To further promote the fraudulent scheme and to induce his victims to part with their money, Deberry lied about his education, employment background, and involvement in prior lawsuits and regulatory actions. He also lied about his previous success in student housing projects, and about how he would invest the victims’ money. For example, court documents show that Deberry lied about his studies at the London School of Economics even though he never attended, and falsely claimed that he had a successful career as an investment banker at Goldman Sachs, though he never worked there.
According to court documents, instead of using the victims’ money as he had represented, Deberry spent a significant portion of the victims’ funds to pay for personal expenses like rent, entertainment and travel. Deberry also actively concealed from his victims the fact that he was under a Cease and Desist Order from the state of North Carolina, which prohibited him from offering for sale, soliciting offers to purchase, or selling any securities in North Carolina. Deberry concealed this information from victims by, among other things, using the false name Maurice Dewberry.
On June 11, 2020, Deberry pleaded guilty to wire fraud.
In imposing the sentence today, the Court highlighted, among other things, the need to protect the public from further crimes of Deberry, who had defrauded a new victim even after he signed his plea agreement. The Court also took into account that Deberry had filed with the Court a fraudulent character letter on his behalf that purported to be from a former NFL player, when in reality the letter was a complete fabrication.
Deberry will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
The FBI’s Charlotte Field Office and the USPIS handled the investigation.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Canadian National Sentenced for Human Smuggling ConspiracyRead the Press Release
A Canadian national was sentenced to 32 months in prison for conspiracy to bring undocumented immigrants to the United States for private financial gain in connection with his role in a scheme to smuggle undocumented immigrants from Sri Lanka through the Caribbean and into the United States.
Sri Kajamukam Chelliah, aka Mohan, aka Richie, 55, of Sri Lanka, pleaded guilty on Feb. 24, to conspiracy to bring aliens to the United States for private financial gain. Chelliah admitted to conspiring with others to facilitate the travel of undocumented immigrants from Sri Lanka through Haiti, Turks and Caicos Islands, and the Bahamas to the United States from on or about July 1, 2019, through on or about Oct. 10, 2019. During the course of the conspiracy, Chelliah worked with other human smugglers, arranging housing and transport for undocumented immigrants en route to Canada through the United States. Chelliah arranged for the individuals to be transported from the airport in Port Au Prince, Haiti, to a hotel where Chelliah housed and provided them with food. Chelliah then arranged for transportation by boat from Haiti to Turks and Caicos Islands, then to the Bahamas, and then by boat to Miami, Florida. Chelliah accompanied the individuals, including traveling with them by boat during their journey. The actions undertaken by Chelliah and co-conspirators in furtherance of their smuggling activities were done in exchange for payment.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami made the announcement.
HSI Miami investigated the case with assistance from the HSI Human Smuggling Unit and U.S. Customs and Border Protection. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys Rami S. Badawy and John Alex-Romano of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case with support from HRSP Trial Attorney Jim Hepburn. The Justice Department’s Office of International Affairs provided significant assistance in the investigation and in securing the defendant’s extradition to the United States. The Department of Justice gratefully acknowledges the government of Turks and Caicos Islands for their valuable assistance.
Cameroon man sentenced for wire fraud conspiracyRead the Press Release
HOUSTON - The leader and manager of an eight-man conspiracy has been ordered to federal prison for his role in a scheme to steal over $726,000 from a South Korean company, announced Acting U.S. Attorney Jennifer B. Lowery.
Frankline Bate Okpu, 35, is a legal permanent resident of Houston and pleaded guilty Jan. 25.
Today, U.S. District Judge Lynn N. Hughes ordered him to serve 36 months in prison. He was also ordered to pay $350,938 in restitution. Not a U.S. citizen, he may face removal proceedings following his prison term.
Okpu had orchestrated a scheme to steal money from Daesang Corporation, a producer of consumer foods based in Seoul, South Korea.
In the summer of 2017, Daesang sought to import frozen pork and chicken products from the United States for the upcoming Moon festival in South Korea. They contacted Trinity Food – a company who had held itself out to be a legitimate supplier of frozen food products.
Daesang communicated with Trinity via e-mail and whatsapp, ultimately entering into a contract with them. Daesang wired $726,000 into an account at a Bank of America in Houston that belonged to Okpu. Between September and December 2017, Okpu and his co-conspirators transferred the money to other accounts and converted it for their own use.
Okpu recruited others to set up bank accounts and cash checks at various banks in Houston; Miami, Florida; and Los Angeles, California, for a share in the stolen money.
Daesang never received the product they paid for and sought help from U.S. authorities.
Previously released on bond, Okpu was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Seven others have pleaded guilty for their roles in the scheme. A final man - Pascal Ayuk Ayuketta, 39, a citizen of Cameroon, is a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the nearest U.S. Marshal’s office at 1-877-WANTED-2.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Edward Gallagher prosecuted the case.
Casper Man Sentenced to 10 Years on Child Pornography ChargesRead the Press Release
Acting United States Attorney Bob Murray announced today that LIAM VAN DAMME, age 21 of Casper, Wyoming was sentenced to 120 months of imprisonment, followed by 60 months of supervised release by U.S. District Court Judge Nancy J. Freudenthal. Van Damme was also ordered to pay a $200 special assessment fee and may be ordered to pay restitution through a separate court order.
Van Damme came to the attention of law enforcement when he uploaded child pornography using a Google account and a Smug-Flickr account. The Wyoming Division of Criminal Investigation Internet Crimes Against Children (ICAC) Task Force investigated the related Cybertip Reports from the National Center for Missing and Exploited Children. The investigation showed that Van Damme had images of children as young as toddlers being violently sexually abused. Additionally, he had surreptitiously recorded a young child he had access to while the child changed clothes. Van Damme then edited the video down to focus on the child’s genitalia.
The United States Attorney’s Office requested a prison sentence of 150 months but ultimately the court decided on 120 months. “The sexual exploitation of innocent children has to be the most heinous crime imaginable,” said Acting United State Attorney Bob Murray. “Predators like Van Damme create a demand that only leads to more kids being abused. It must stop. We will investigate, prosecute, and lock up anyone in possession of child pornography so we can put an end to this disgusting practice.”
The case was investigated by the ICAC, and the United States Immigration and Customs Enforcement under the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney Christyne Martens.
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.
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Buffalo Man Going to Prison for More Than 14 Years on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Dijon Harris, 54, of Buffalo, NY, who was convicted of possessing with intent to distribute 28 grams or more of crack cocaine, and possessing a firearm in furtherance of drug trafficking activity, was sentenced to serve 175 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on September 5, 2014, law enforcement officers executed a search warrant at the defendant’s residence on Hewitt Avenue in Buffalo. They recovered crack cocaine; heroin; $120,485.00 in United States currency; four firearms; ammunition; and assorted drug paraphernalia including a grinder, two digital scales, razors, scissors, spoons, plastic straws, and packaging materials. The cash, firearms, ammunition, and a 2011 Lincoln MKX SUV were forfeited to the United States.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
# # # #
Brooklyn Doctor Pleads Guilty to Illegal Distribution of NarcoticsRead the Press Release
Earlier today, in federal court in Brooklyn, Kesler Dalmacy, a medical doctor, pleaded guilty to illegal distribution of controlled substances. Dalmacy, who operated his medical practice out of an office in East Flatbush, prescribed narcotics to patients outside the course of his professional practice that lacked a legitimate medical purpose in exchange for cash payments. The proceeding was held before United States District Judge Ann M. Donnelly.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Acting Superintendent, New York State Police (NYSP), announced the guilty plea.
“The defendant, a medical doctor who swore an oath to do no harm, spread the scourge of addiction in our communities by writing bogus prescriptions for personal profit,” stated Acting United States Attorney Lesko. “This Office, in partnership with the DEA, HSI, NYPD and NYSP, will spare no effort in combatting the illegal distribution of addictive drugs, and in holding medical professionals like the defendant accountable to the fullest extent of the law.” Mr. Lesko also thanked the U.S. Department of Health and Human Services (HHS) and the New York State Department of Health’s Bureau of Narcotic Enforcement for their assistance during the investigation.
“Another day, another doctor disguised as a drug dealer. The defendant not only prescribed highly addictive controlled substances without a legitimate medical need, but also went out of his way to attempt to evade law enforcement. Today’s plea demonstrates that the defendant is taking responsibility for betraying the trust of his patients, his community, and his oath,” stated DEA Special Agent-in-Charge Donovan. “I commend the New York Division, Organized Crime Drug Enforcement Strike Force, Tactical Diversion Squad, the U.S Attorney’s Office for the Eastern District of New York, and our many law enforcement partners for their dedication, hard-work, and attention to the investigation and prosecution of this defendant.”
“The opioid epidemic our country continues to battle is exacerbated when unscrupulous individuals seek to profit from those struggling with addiction,” stated HSI Special Agent-in-Charge Fitzhugh. “The defendant exploited the weaknesses of fellow human beings in order to line his own pockets. HSI and our law enforcement partners remain steadfast in our pursuit to safeguard the public and hold individuals like Dr. Dalmacy accountable.”
“The primary work of a medical practitioner is to help patients. The work of this doctor did nothing but harm his victims, with no regard for their health. By taking payment for prescriptions, Dr. Dalmacy put his patients and the community he served at risk. I thank our law enforcement partners involved in this investigation, and together we will work to keep drugs off our streets, prevent prescription drug abuse and senseless deaths,” stated NYSP Acting Superintendent Bruen.
As set forth in the criminal complaint and court filings, between January 2014 and February 2020, Dr. Dalmacy illegally prescribed to patients thousands of pills of highly addictive controlled substances, including Adderall and Vicodin, in exchange for cash payments. Dr. Dalmacy wrote these prescriptions outside the course of his professional practice and without a legitimate medical purpose. To conceal the unauthorized prescriptions from law enforcement and oversight agencies, Dr. Dalmacy postdated prescriptions and provided multiple prescriptions to the same individual under different or fictitious names.
The arrest of Dr. Dalmacy is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the NYPD and the New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to what the HHS Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors; and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorneys Julia Nestor and Dylan A. Stern.
The Defendant:
DR. KESLER DALMACY
Age: 70
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-258 (AMD)
Attorney General Announces Task Force to Combat COVID-19 FraudRead the Press Release
U.S. Attorney General Merrick B. Garland today directed the establishment of the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance enforcement efforts against COVID-19 related fraud.
“The Department of Justice will use every available federal tool—including criminal, civil, and administrative actions—to combat and prevent COVID-19 related fraud. We look forward to working with our federal government colleagues to bring to justice those who seek to profit unlawfully from the pandemic,” wrote Attorney General Garland in a memo announcing the Task Force.
The federal government responded to the far-reaching economic impacts of the COVID-19 pandemic with critical COVID-19 relief to workers and businesses affected by the pandemic. There has already been extraordinary vigilance, across the federal government, to help ensure that those much-needed public funds make it to Americans who are depending on them to feed their families and keep their businesses open. While it is impossible to keep all those intent on carrying out illegal COVID fraud schemes from doing so, the Department of Justice and its partner agencies have already been working to hold hundreds of bad actors accountable.
The Task Force will augment and incorporate the existing coordination mechanisms within the Department and will continue to work in close coordination with other efforts underway throughout the federal government. It will work closely with the Department’s interagency partners to share information and insights gained from prior enforcement experience, in order to reduce the potential threat to the American people and COVID-19 relief, and will help agencies tasked with administering these significant relief programs increase their fraud prevention efforts by providing any appropriate information law enforcement learns about fraud trends and illicit tactics. Additionally, it will also bolster efforts to investigate and prosecute the most culpable domestic and international criminals, prevent the exploitation of government assistance for personal and financial gain, and recover stolen funds.
Organized and led by the Deputy Attorney General, the Task Force includes several entities within the Department of Justice, including the Criminal and Civil Divisions, the Executive Office for United States Attorneys, and the Federal Bureau of Investigation. Key interagency partners, such as the Department of Labor, the Department of the Treasury, the Department of Homeland Security, the Small Business Administration, the Special Inspector General for Pandemic Relief (SIGPR), the Pandemic Response Accountability Committee (PRAC), and others, have been invited to be part of the Task Force.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
Armed Gang Member Sentenced to 121 Months in Federal PrisonRead the Press Release
RALEIGH, N.C. – Mikal Huff, 19, of High Point, was sentenced on Friday May 14, to 121 months in prison for: 1) Conspiracy to Distribute and Possess With Intent to Distribute a Quantity of Heroin; 2) Distribution of a Quantity of Heroin and Aiding and Abetting; 3) Possession of a Firearm by a Convicted Felon. On December 16, 2020, Huff pled guilty to these charges.
According to court documents and evidence presented in court, on November 14, 2019, the New Hanover County Sheriff’s Office Narcotics Unit in an undercover capacity ordered a quantity of heroin from Shyreek Thatch. Thatch and Huff left an apartment on Park Avenue in Wilmington, North Carolina and arrived at a meeting location. Law enforcement attempted to arrest Thatch and Huff when they arrived. Both fled on foot. Thatch was arrested after he threw down the heroin. Huff slipped near a park car and lost his shoe and a loaded .40 caliber handgun. Huff was arrested shortly after thereafter.
The Sheriff’s Office served a search warrant on the Park Avenue apartment following the arrest of Thatch and Huff. Law enforcement found more than half a kilogram of a fentanyl/heroin mixture, almost two ounces of methamphetamine, and a quantity of crack cocaine, more than $4,000.00 (including money from a prior controlled purchase by law enforcement) and a loaded .40 caliber handgun. Two other persons were arrested at the residence.
The investigation uncovered that Thatch and Huff had transported drugs from the High Point area for distribution in New Hanover County. Huff, a validated gang member, was responsible for providing armed protection for the drugs while they were transported and sold. Huff was on probation for Discharging a Firearm into an Occupied Property at the time of his arrest.
Shyreek Thatch was sentenced previously for his role in this drug trafficking organization and received a prison sentence of 108 months in prison.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of heroin, fentanyl, and methamphetamine throughout the United States.
G. Norman Acker, III, acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge James C. Dever III. The Drug Enforcement Administration, Federal Bureau of Investigation, Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00105-D.
Alleged ‘straw purchaser’ indicted for gun crimesRead the Press Release
Seattle – A 24-year-old Seattle man was arrested Friday May 14, 2021 on an indictment for making false statements to purchase firearms, announced Acting U.S. Attorney Tessa M. Gorman. Quandre Reshawn Cranshaw is charged with two counts of making false statements on a firearms transaction record and one count of making a materially false statement during a firearms purchase. Cranshaw made his initial appearance on the indictment today in U.S. District Court in Seattle.
“The background check system is based on the principle that the person who passes the background check is the actual buyer of the firearm,” said Acting U.S. Attorney Gorman. “It is a federal felony to pretend that you are buying a firearm for yourself when you are really buying the firearm for someone else who cannot pass a background check. The Department of Justice is committed to stopping ‘straw buyers’ from purchasing firearms for felons who cannot buy firearms legally.”
According to the indictment, on three different days in March 2021, Cranshaw made false statements on forms he filled out at a federally licensed firearms dealer to purchase guns. On March 10 and March 30, 2021, he provided a false address when he filled out paperwork to purchase handguns. On March 19, 2021, Cranshaw purchased 11 guns and falsely stated that he was the actual buyer of the firearms when he was actually purchasing firearms for other people. Three of the firearms that he purchased were seized less than 12 hours after the purchase, during a traffic stop of a convicted felon.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Making false statements on a firearms transaction records punishable by up to five years in prison. Making a materially false statement during a firearms purchase is punishable by up to ten years in prison.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Jessica Manca.
Alleged Fraudsters Charged with Bribing Patients and Fraudulently Billing Medicaid for Psychosocial Rehabilitation ServicesRead the Press Release
Miami, Fl. – A federal grand jury returned an indictment last week charging Miami residents Lorena Osella, 43, and Juan Luis Matos, 58, with running a mental health care fraud scheme that bilked Medicaid out of almost $1 million.
According to the indictment, Osella owned Lighthouse Community Center LLC, a clinic in Doral, Florida that claimed to offer psychosocial rehabilitation (PSR) services, a type of mental health counseling designed to help people with depression, anxiety, and other mental disorders cope with their conditions and improve their ability to perform job tasks and daily life activities. Osella and Matos used bribes to generate business for the clinic, says the indictment: They offered and paid kickbacks to Medicaid beneficiaries. In exchange, the beneficiaries registered as patients with the clinic and agreed to receive PSR services via telemedicine that they either did not need or that were not billed as provided. During the time they fraudulently billed Medicaid, Osella and Matos are charged with illegally receiving Florida unemployment benefits as well.
The indictment charges Osella and Matos with conspiring to defraud the United States and to pay health care kickbacks, paying kickbacks in connection with a federal health care program, and theft of government property. In addition, the indictment charges Osella with conspiring to, and committing, health care fraud and wire fraud. The count charging conspiracy to commit health care fraud and wire fraud count is punishable by a maximum potential penalty of 20 years in prison. The counts charging health care fraud, anti-kickback violations, and theft of government funds are each punishable by a maximum potential penalty of 10 years in prison. Finally, the conspiracy to pay kickbacks is punishable by a maximum potential penalty of five years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez and Special Agent in Charge Omar Pérez Aybar, Health and Human Services – Office of Inspector General (HHS-OIG) announced the charges.
HHS-OIG investigated the case. Assistant United States Attorney Timothy Abraham is prosecuting the case. AUSA Emily Stone is handling asset forfeiture.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find court documents and other information at http://pacer.flsd.uscourts.gov, under case number 21-cr-20299.
###
15 May 2021
Two Jefferson County Men Arrested on Drug and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – Richard Desormeau, age 22, of Watertown, and Adam Cook, age 30, of Clayton, New York, were arrested and charged with federal firearms and/or drug charges, announced Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Adam Clark is charged in a criminal complaint alleging that he manufactured, possessed, and transferred an illegally short-barreled rifle. He is also charged with possession with intent to distribute and distributing cocaine, as well as possessing a firearm in furtherance of a drug trafficking crime. For his alleged manufacturing, possessing, and transferring an illegally short-barreled rifle, he faces up to ten-years imprisonment and a fine of up to $10,000. For his alleged possession with intent to distribute and distribution of cocaine, he faces a maximum sentence of up to 20-years imprisonment, a fine of up to $1,000,000, and period of supervised release of at least three years and up to life. For his alleged possession of a firearm in connection with a drug trafficking crime, he faces a mandatory consecutive sentence of at least 5-years and up to life.
Richard Desormeau is charged in a criminal complaint alleging that he possessed and transferred an illegally short-barreled rifle. For his alleged possessing and transferring an illegally short-barreled rifle, he faces up to ten-years imprisonment, a fine of up to $10,000, and a period of supervised release of up to three years.
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.
Richard Desormeau and Adam Cook were arraigned in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter and detained pending a bail hearing. The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Metro-Jefferson Drug Task Force, consisting of Investigators from the Jefferson County District Attorney’s Office, Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, and Special Agents from the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
14 May 2021
大学研究员为帮助中国发展科学水平，在申请经费时说谎被判入狱Read the Press Release
华盛顿 — 俄亥俄一名与中国关系密切的风湿病学教授和研究员因向联邦政府作虚假陈述而入狱 37 个月。这是其在免疫学研究实施欺诈计划的一部分。作为判决的一部分，郑也被勒令向国立卫生研究院（NIH）支付 340 多万美元的赔偿金以及向俄亥俄州立大学支付约 41.3 万美元的赔偿金。
来自希里厄德现年 58 岁的郑颂国在 2020 年 5 月 22 日星期五乘坐包机抵达阿拉斯加州安克雷奇后，在准备登上另一架飞往中国的包机时被捕。被捕时，郑随身携带三个大包、一个小手提箱和一个公文包，其中包括两台笔记本电脑、三部手机、数个 USB 驱动器、几根银条、其家人的过期中国护照、在中国的房产契约和其他物品。他被带回俄亥俄州南区并于 2020 年 7 月 7 日首次在哥伦布市出庭。
郑于2020 年11 月认罪，并承认他在申请中说谎，以便利用NIH 提供的约410 万美元资金发展中国在风湿病学和免疫学领域的专业水平。
这是又一起涉及中国政府千人计划的案件。郑选择说谎并向美国研究资助机构隐瞒自己参与这项计划，他将在联邦监狱中度过未来的 25 个月。” 负责国家安全事务的助理司法部长约翰•德梅斯（John C. Demers）还表示： "联邦研究经费是由美国纳税人为美国社会的利益提供的，而不是送给中国政府的非法礼物。”“当联邦资金用于研究时，因向美国人民做到完全透明，我们将继续追究那些选择谎报外国政府关系，以欺诈为目的获取资金的人的责任。”
联邦调查局反情报司助理主任艾伦·科勒（Alan E. Kohler Jr.）表示: “多年来，被告隐瞒参与中国政府人才招聘计划，避而不谈自己与中国至少五家研究机构的关系。郑贪婪地占用联邦研究经费，导致他人无法获得关键且对医学进步有支持作用的研究资助。联邦调查
局将继续追捕这些人，无论天涯海角，即便是在午夜阿拉斯加的飞机上。”“我们希望对郑的判决能阻止其他人与中国所谓的 ‘千人计划 ’或任何相关项目有任何联系。”美国代理联邦检察官俄亥俄州南区, 维帕尔·帕特尔（Vipal J. Patel）表示：“盗亦有道，但应外国政府要求齐力窃取我国的创新和技术而实行盗窃，闻所未闻，无以复加。”
联邦调查局辛辛那提探员主管克里斯·霍夫曼 (Chris Hoffman) 说：“郑今天判决实锤来自中国政府的持续威胁即窃取美国纳税人资助的研究。郑未能披露其外国资金和支持，破坏了信任原则，损害了美国人民赋予我们研究机构的信誉，同时也触碰了美国学术体系的核心价值底线即公开性和透明化。此次判刑应起到威慑作用，也凸显出联邦调查局保护我国的研究和技术的决心。 美国联邦调查局承诺将继续长期与伙伴合作，对那些不守诚信的人进行调查，因为他们使美国大学正在从事的高端工作陷入阴霾。”
美国卫生与公众服务部芝加哥地区监察长办公室的探员主管拉蒙特·普格三世（Lamont Pugh III）表示：“在寻求国立卫生研究院的拨款资金时，报告潜在的利益冲突对于确保公众对所开展的研究及其利用方式的信任至关重要。”“作出虚假陈述以掩盖潜在的利益冲突违反了这种信任和法律。”监察长办公室致力于查明和调查个人蓄意不报或伪造有关其研究支持来源的信息以确保纳税人的钱用之得当。
据法庭文件显示，郑曾是一名内科教授，曾经领导俄亥俄州立大学和宾夕法尼亚州立大学的小组进行自体免疫研究。根据他的认罪，郑为隐瞒其参与中国人才计划，以及他与中国政府控制的中国大学的联系和合作，在 NIH 的赠款申请中提供了虚假和误导性陈述。
法庭文件也显示，自 2013 年以来，郑一直在参与一项中国人才计划，该计划由中国政府设立，旨在招募具备知识或外国技术知识产权的个人。从那时起，郑就开始利用在美国进行的研究为中国谋利。郑即没有向其美国雇主也没有向国立卫生研究院披露利益冲突或他对外国的承诺。
美国代理联邦检察官帕特尔感谢了联邦调查局安克雷奇分局的协助。他们逮捕并问询了郑，在郑被拘留期间执行了多次法院命令。帕特尔也感谢了美国阿拉斯加地区检察官办公室的帮助。
该案由联邦调查局与卫生和公共服务部监察长办公室调查。美国助理检察官道格拉斯·斯奎尔斯（Douglas W. Squires）和 S.费特·希米尔 (S. Courter Shimeall) 、美国特别助理检察官克里斯托弗·圣皮埃尔和国家安全司反情报和出口管制科庭审律师马修·麦肯齐代表美国处理此案。美国地区首席法官阿尔格农·马布尔利 Algenon L. Marbley 于今日宣判
Yankton Man Charged with Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Yankton, South Dakota, man has been indicted by a federal grand jury for Possession of Child Pornography.
Matthew Carter, age 31, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 29, 2020, and January 14, 2021, Carter knowingly possessed and attempted to possess materials which contained images of child pornography.
The charge is merely an accusation and Carter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Homeland Security Investigations, the South Dakota Division of Criminal Investigation, and the Yankton Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Carter was returned to state custody pending trial. A trial date has not been set.
Window Rock Man indicted for violating Migratory Bird Treaty Act and Bald and Golden Eagle Protection ActRead the Press Release
ALBUQUERQUE, N.M. –Fred J. Federici, Acting U.S. Attorney for the District of New Mexico, and Phillip Land, Special Agent in Charge (SAC) of the Southwest Region, U.S. Fish and Wildlife Service, Office of Law Enforcement, announced the indictment of George Tom Skeet, 35, of Window Rock, Arizona, for violating the Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act.
Skeet made an initial appearance in federal court on May 10. He was indicted by a federal grand jury on April 23.
The two-count indictment alleges that on Jan. 18, 2019, and Feb. 5, 2019, in Bernalillo County, New Mexico, Skeet sold and offered for sale red-tailed hawk, bald eagle and golden eagle feathers. The birds are protected under the Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act. To help ensure that hawk, eagle, and other bird populations remain healthy and sustainable, these laws prohibit the possession, use, and sale of the feathers or other parts of federally-protected birds, as well as the unauthorized killing of these birds.
“One of our highest priorities is to combat wildlife trafficking and investigate individuals who are involved in the unlawful commercialization of our nation's fish and wildlife," said SAC Land. "This successful indictment was the result of working together with the Navajo Nation Department of Fish and Wildlife and the U.S. Attorney's Office for the District of New Mexico. We will continue to work closely with all our law enforcement partners to root out those individuals who exploit protected wildlife species for their own financial gain.”
If convicted, Skeet faces a maximum penalty of two years in prison, three years of supervised release, a $2,000 fine, and a $100 special penalty assessment. An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty.
The U.S. Fish and Wildlife Service investigated the case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
The U.S. Fish and Wildlife Service is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges, thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The agency enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands and helps foreign and Native American tribal governments with their conservation efforts.
Wheeling woman sentenced for failing to registerRead the Press Release
WHEELING, WEST VIRGINIA – Bobbi Jo Starry, of Wheeling, West Virginia, was sentenced today to 30 months of incarceration for a sex offender registry charge, Acting United States Attorney Randolph J. Bernard announced.
Starry, 55, pleaded guilty in April 2021 to one count of “Failure to Register.” Starry, who is required to register as a sex offender, admitted to failing to update her registry from January to August 2020 in the Northern District of West Virginia and elsewhere.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. District Judge John Preston Bailey presided.
University researcher sentenced to prison for lying on grant applications to develop scientific expertise for ChinaRead the Press Release
COLUMBUS, Ohio – A rheumatology professor and researcher with strong ties to China was sentenced to 37 months in prison for making false statements to federal authorities as part of an immunology research fraud scheme.
As part of his sentence, Song Guo Zheng, 58, of Hilliard, was also ordered to pay more than $3.4 million in restitution to the National Institute of Health (NIH) and approximately $413,000 to The Ohio State University.
Zheng was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight to China.
When he was arrested, Zheng was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cell phones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items.
He was transported to the Southern District of Ohio and made his first federal court appearance in Columbus on July 7, 2020.
Zheng pleaded guilty in November 2020 and admitted he lied on applications in order to use approximately $4.1 million in grants from NIH to develop China’s expertise in the areas of rheumatology and immunology.
Zheng was a professor of internal medicine who led a team conducting autoimmune research at The Ohio State University and Pennsylvania State University. According to his plea, Zheng caused materially false and misleading statements on NIH grant applications, seeking to hide his participation in Chinese Talent Plans and his affiliation and collaboration with a Chinese university controlled by the Chinese government.
“In yet another case involving the Chinese Government’s Thousand Talents program, Song Guo Zheng will spend the next 37 months in a federal prison because he chose to lie and hide his involvement in this program from U.S. research funding agencies,” said Assistant Attorney General for National Security John C. Demers. “American research funding is provided by the American taxpayer for the benefit of American society—not as an illicit gift to the Chinese Government. The American people deserve total transparency when federal dollars are being provided for research, and we will continue to hold accountable those who choose to lie about their foreign government affiliations in an attempt to fraudulently gain access to these funds.”
“For years the defendant concealed his participation in Chinese government talent recruitment programs, hiding his affiliations with at least five research institutions in China," said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. "Zheng greedily took federal research dollars and prevented others from receiving funding for critical research in support of medical advances. The FBI will continue to pursue people wherever they may be, even on a plane, in Alaska, in the middle of the night.”
“We hope Zheng’s prison sentence deters others from having anything to do with China’s so-called ‘1000 Talents Plan’ or any of its variations, said Acting U.S. Attorney Vipal J. Patel. “Stealing is stealing, but stealing at the behest of a foreign government’s concerted effort to pilfer our nation’s innovations and technology takes things to a new and significantly worse level.”
“Zheng’s sentencing today is a recognition of the constant threat posed by the Chinese government to steal research funded by American taxpayers,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “Zheng’s failure to disclose his foreign funding and support damages the trust and undermines the credibility the American people place in U.S. research, while abusing the openness and transparency that is a core value of U.S. academia. This sentence should serve as a deterrent and underscores the FBI’s commitment to work with our partners to investigate individual’s whose actions throw a cloud over the cutting-edge work being done at U.S. universities.”
“Reporting potential conflicts of interest when seeking grant funding from the National Institutes of Health is imperative in ensuring the public’s trust in the research being conducted and how it is utilized,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Making false statements to conceal potential conflicts violates that trust and the law. The OIG is committed to identifying and investigating instances where individuals intentionally fail to report or falsify information regarding their sources of research support in order to ensure the proper use of taxpayer dollars.”
According to court documents, since 2013, Zheng had been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since that time, Zheng used research conducted in the United States to benefit the People’s Republic of China. Zheng failed to disclose conflicts of interest or his foreign commitments to his American employers or to the NIH.
Acting U.S. Attorney Patel acknowledged the assistance of the Anchorage FBI Division who arrested Zheng, interviewed him and executed multiple warrants while he was detained, and the assistance provided by the U.S. Attorney's Office for the District of Alaska.
This case was investigated by the FBI and Health and Human Services Office of the Inspector General. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, Special Assistant United States Attorney Christopher N. St. Pierre, and Trial Attorney Matthew J. McKenzie with the Department of Justice’s National Security Division are representing the United States in this case. Chief U.S. District Judge Algenon L. Marbley imposed the sentence today.
# # #
Press release translation
University Researcher Sentenced to Prison for Lying on Grant Applications to Develop Scientific Expertise for ChinaRead the Press Release
WASHINGTON – An Ohio man and rheumatology professor and researcher with strong ties to China was sentenced to 37 months in prison for making false statements to federal authorities as part of an immunology research fraud scheme. As part of his sentence, Zheng was also ordered to pay more than $3.4 million in restitution to the National Institute of Health (NIH) and approximately $413,000 to The Ohio State University.
Song Guo Zheng, 58, of Hilliard, was arrested Friday, May 22, 2020, after he arrived in Anchorage, Alaska, aboard a charter flight and as he prepared to board another charter flight in order to flee to China. He was carrying three large bags, one small suitcase and a briefcase containing two laptops, three cell phones, several USB drives, several silver bars, expired Chinese passports for his family, deeds for property in China and other items. He was transported to the Southern District of Ohio and made his first federal court appearance in Columbus last July.
Zheng pleaded guilty last November and admitted he lied on applications in order to use approximately $4.1 million in grants from NIH to develop China’s expertise in the areas of rheumatology and immunology.
“In yet another case involving the Chinese government’s Thousand Talents program, Song Guo Zheng will spend the next 37 months in a federal prison because he chose to lie and hide his involvement in this program from U.S. research funding agencies,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “American research funding is provided by the American taxpayer for the benefit of American society — not as an illicit gift to the Chinese government. The American people deserve total transparency when federal dollars are being provided for research, and we will continue to hold accountable those who choose to lie about their foreign government affiliations in an attempt to fraudulently gain access to these funds.”
“For years the defendant concealed his participation in Chinese government talent recruitment programs, hiding his affiliations with at least five research institutions in China,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “Zheng greedily took federal research dollars and prevented others from receiving funding for critical research in support of medical advances. The FBI will continue to pursue people wherever they may be, even on a plane, in Alaska, in the middle of the night.”
“We hope Zheng’s prison sentence deters others from having anything to do with China’s so-called ‘1000 Talents Plan’ or any of its variations,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “Stealing is stealing but stealing at the behest of a foreign government’s concerted effort to pilfer our nation’s innovations and technology takes things to a new and significantly worse level.”
“Zheng’s sentencing today is a recognition of the constant threat posed by the Chinese government to steal research funded by American taxpayers,” said Special Agent in Charge Chris Hoffman for the FBI’s Cincinnati Field Office. “Zheng’s failure to disclose his foreign funding and support damages the trust and undermines the credibility the American people place in U.S. research, while abusing the openness and transparency that is a core value of U.S. academia. This sentence should serve as a deterrent and underscores the FBI’s commitment to work with our partners to investigate individual’s whose actions throw a cloud over the cutting-edge work being done at U.S. universities.”
“Reporting potential conflicts of interest when seeking grant funding from the National Institutes of Health is imperative in ensuring the public’s trust in the research being conducted and how it is utilized,” said Special Agent in Charge Lamont Pugh III for the U.S. Department of Health & Human Services’ Office of Inspector General, Chicago Region. “Making false statements to conceal potential conflicts violates that trust and the law. The OIG is committed to identifying and investigating instances where individuals intentionally fail to report or falsify information regarding their sources of research support in order to ensure the proper use of taxpayer dollars.”
According to court documents, Zheng was a professor of internal medicine who led a team conducting autoimmune research at The Ohio State University and Pennsylvania State University. According to his plea, Zheng caused materially false and misleading statements on NIH grant applications, seeking to hide his participation in Chinese Talent Plans and his affiliation and collaboration with a Chinese university controlled by the Chinese government.
According to court documents, since 2013, Zheng had been participating in a Chinese Talent Plan, a program established by the Chinese government to recruit individuals with knowledge or access to foreign technology intellectual property. Since that time, Zheng used research conducted in the United States to benefit the People’s Republic of China. Zheng failed to disclose conflicts of interest or his foreign commitments to his American employers or to the NIH.
Acting U.S. Attorney Patel acknowledged the assistance of the Anchorage FBI Division who arrested Zheng, interviewed him and executed multiple warrants while he was detained, and the assistance provided by the U.S. Attorney's Office for the District of Alaska.
This case was investigated by the FBI and Health and Human Services Office of the Inspector General. Assistant U.S. Attorneys Douglas W. Squires and S. Courter Shimeall, Special Assistant U.S. Attorney Christopher N. St. Pierre, and Trial Attorney Matthew J. McKenzie with NSD’s Counterintelligence and Export Control Section are representing the United States in this case. Chief U.S. District Judge Algenon L. Marbley imposed the sentence today.
View this press release in Mandarin
here.U.S. Attorney Presents Law Enforcement “Awards of Excellence”Read the Press Release
On Friday, Acting U.S. Attorney Prerak Shah presented the 2021 United States Attorney’s Awards of Excellence, honoring law enforcement officers and agents who exceed the call of duty to keep their communities safe.
“It’s hard to believe that COVID-19 has been raging here in north Texas for more than 14 months. But while much of the rest of the country sheltered at home, you all continued to risk your health and safety in the pursuit of justice,” Acting. U.S. Attorney Shah said at a socially distanced ceremony at the Belo in Dallas. “You all are invaluable assets to our offices, and true heroes to our communities. You represent the best of the best in law enforcement.”
Awardees worked the following cases:
United States v. Sean DeAndrea Lewis
Federal Bureau of Investigation and United States Marshals Service
This investigation led to the prosecution of aa federal inmate who fabricated a murder-for-hire plot in order to receive potential credit towards his sentence.United States v. John Cooper
Defense Criminal Investigative Service
This investigation revealed a network of illegal kickbacks and a conspiracy to defraud TTRICARE of over $65 million. The leader of the pharmaceutical marketing company was convicted at trial and two of the marketers plead guilty to recruiting more than 2,300 patients, many of whom were on active duty at Fort Hood. More here.United States v. Bo Jack Kelly
Texas Department of Public Safety
This investigation led to the prosecuting of a Shallowater, Texas man for using a variety of social media accounts to coerce a 14-year-old minor into sending him sexually explicit videos of herself.United States v. Cynthia Carrasco
Drug Enforcement Administration with Amarillo Police Department
This investigation led to the prosecution of a drug dealer who sold a fatal dose of heroin killing an Amarillo woman. More here.Operation Double Eagle
Drug Enforcement Administration
This investigation led to the prosecution of cocaine dealers connected to Car Del Noreste and the seizure of more than 55 kilograms of cocaine, 92 kilograms of methamphetamine, and 374 kilograms of marijuana.Forest Park Medical Center
IRS-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Department of Labor Office of Inspector General, Defense Criminal Investigative Service, and U.S. Office of Personnel Management Office of Inspector General
This multi-year investigation resulted in the prosecution of 21 defendants in a $40 million dollar healthcare kickback scheme which caused half-a-billion dollars in tainted claims to be submitted to government and private insurances causing $80 million in losses. More here.United States v. Marcus Anthony Braziel
Bureau of Alcohol, Tobacco, Firearms, & Explosives, Federal Bureau of Investigation, and IRS-Criminal Investigation Division
This investigation led to charges against a Lubbock Man who unlawfully sold the AR-15 style rifle used by the Midland-Odessa mass shooter in August 2019. More here.United States v. Broussard, et al.
Federal Bureau of Investigation
This multi-year investigation resulted in the prosecution of 13 members of a violent criminal enterprise who routinely robbed customers leaving banks. More here.United States v. Jose Linares
Federal Bureau of Investigation
This investigation led to the prosecution of a Honduran man who operated a $2.3 million Ponzi-link scheme. More here.United States v. Jose Daniel Flores
Drug Enforcement Administration
This investigation led to the prosecution members of the Texas Syndicate gang. As a result, 11 defendants plead guilty resulting in a combined 1,114 months in federal prison. More here.United States v. Yaser Said
United States v. Yassein and Islam Said
Federal Bureau of Investigation
This investigation led to the prosecution of the brother and nephew of Yaser Said, FBI’s “10 Most Wanted suspect,” for helping him evade capture for more than 12 years. More here and here.The staff of the United States Attorney’s Office is grateful for law enforcement officers’ sacrifices, dedication, and skill.
The U.S. Attorney and Chief U.S. District Judge Barbara M.G. Lynna also presented the “Administration of Justice” award, recognizing a staff member who consistently provides outstanding support, to Information Technology Specialist Eric Umbarger and the “Barefoot Sanders Prosecutor of the Year” award to Assistant U.S. Attorney Tiffany Eggers, Deputy Chief of NDTX’s National Security & Cyber Division.
Troy Businessman Pleads Guilty to Payroll Tax FraudeRead the Press Release
TROY, Ill. – A Troy, Illinois businessman has entered a guilty plea on a charge that he willfully failed to pay millions in federal payroll taxes. Gary Hunsche, 54, admitted in federal court today that he committed the offense while serving as the owner-operator of a Troy-based staffing company called Unique Personnel Consultants.
“Business owners have a responsibility to withhold federal income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Investigations of employment tax fraud is one of the priorities for IRS CI special agents, and those individuals who cheat their employees and other honest taxpayers will be investigated and prosecuted to the fullest extent of the law.”According to court records, from 2014-2016, Hunsche properly withheld over $8 million in federal taxes from the paychecks of roughly 3,000 to 5,000 employees, most of whom were hired out to clients as temporary workers. But rather than paying the full amount to the IRS, Hunsche kept over
$4 million of it for himself. As part of his plea, Hunsche acknowledged using a portion of the unpaid taxes on his own residence, including landscaping work, a barn with a full-size indoor basketball court, and partial construction of a new home.Hunsche is scheduled to be sentenced on Aug. 17, 2021 and faces up to five years in prison. United
States District Judge Staci M. Yandle will determine the sentence after considering the U.S.
Sentencing Guidelines and other statutory factors.IRS Criminal Investigation agents conducted the investigation.
Assistant U.S. Attorneys Norman R. Smith and Luke Weissler are prosecuting the case.
If you suspect or know of an individual or company that is not complying with the tax laws, please contact the local IRS Criminal Investigation Office at (618) 622-2160 or visit this website: https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity.
Todd County Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Todd County, South Dakota, woman convicted of Assault With a Dangerous Weapon was sentenced by Chief Judge Roberto A. Lange, U.S. District Court.
Julia Swift Hawk, age 26, was sentenced on May 11, 2021, to time served through May 18, 2021, equal to three months incarceration, followed by two years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that occurred outside the Rosebud Casino, in Todd County, on January 14, 2020. Swift Hawk unlawfully assaulted an individual with a utility knife with the intent to do bodily harm to the individual.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Swift Hawk was immediately remanded to the custody of the U.S. Marshals Service.
Todd Bussino Pleads Not Guilty to Multiple Convenience Store Robbery ChargesRead the Press Release
The Acting United States Attorney for the District of Vermont, Jonathan Ophardt, announced that Todd Bussino, 37, of Rutland, pled not guilty today in United States District Court in Burlington to charges that he robbed four Rutland-area convenience stores between November 2020 and March 2021. U.S. Magistrate Judge Kevin Doyle ordered that Bussino be held without bail pending trial.
According to court records, federal, state and local law enforcement officials in the Rutland area have been investigating a series of robberies that took place between early November 2020 and April 2021 in Rutland and surrounding towns. In each of the robberies, a single male entered the store, waited until other customers had left and then demanded money from the clerk. In almost all the incidents, the robber brandished a knife. Bussino was arrested after the ninth such robbery, on March 7, but released on bail. He was rearrested after a tenth, attempted robbery on April 13. On April 21, a federal grand jury in Rutland charged Bussino with four of those robberies.
The Acting United States Attorney emphasizes that the charges in the indictment are merely accusations and that Bussino is presumed innocent unless and until he is proven guilty.
If convicted, Bussino faces up to 20 years of imprisonment for each robbery and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case has been investigated by the Federal Bureau of Investigation, the Rutland Police Department, the State Police and the Rutland County Sheriff’s Department.
Bussino is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Three Peruvian Nationals Plead Guilty to Conspiring to Defraud Thousands of Spanish-Speaking U.S. ResidentsRead the Press Release
Three Peruvian nationals pleaded guilty to operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by threatening, among other things, arrest and deportation.
According to court documents, Omar Cuzcano Marroquin, 32, Jerson Renteria Gonzales, 37, and Evelyng Milla Campuzano, 35, each of Lima, Peru, conspired to commit mail fraud and wire fraud through a series of Peruvian call centers that used fraud and extortion to obtain money from Spanish-speaking individuals in the United States. The defendants and their employees falsely told victims that they were required to accept and pay for English language courses and other educational products. Victims who at first refused to make payments were threatened with serious adverse consequences, including supposed criminal court proceedings, arrest and deportation. Between April 2011 and July 2019, thousands of victims made payments based on calls from their call centers.
“The Department of Justice’s Consumer Protection Branch will steadfastly pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division. “Those who impersonate U.S. government officials and use threats to prey on our recent immigrant communities will be brought to justice and held accountable in U.S. courts.”
All three defendants were arrested on July 2, 2019, by Peruvian authorities based on a U.S. extradition request, and each has remained incarcerated since that time. The defendants were extradited to the Southern District of Florida on Oct. 23, 2020.
As part of their guilty pleas, the defendants admitted that they managed and operated the Latinos en Accion, Accion Latino, and Bienestar Hispano call centers in Lima, Peru. The defendants admitted that they and their employees in Peru used internet-based telephone calls to contact Spanish-speaking residents of the United States, many of whom were recent immigrants from Central America, Mexico and other Spanish-speaking countries. The callers falsely told the victims they had won raffles for free products, including computer tablets with English language courses. Many consumers expressed interest in receiving the supposedly free products and the chance to improve their English language abilities. In later calls, victims were told they were required to make large payments to receive the products. When victims objected, the callers misrepresented that the victims had unlawfully failed to pay for or receive delivery of products.
In pleading guilty, the defendants admitted that they and their employees falsely claimed to be lawyers, court officials, federal agents and representatives of a supposed “minor crimes court.” The defendants and their co-conspirators falsely told the victims that they had a contractual obligation to pay for and receive products and had caused legal problems for themselves and others by allegedly failing to do so. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims paid because of these baseless threats, and the defendants and their co-conspirators fraudulently collected millions of dollars from thousands of vulnerable victims.
“With today’s technology, fraudsters can target victims living thousands of miles away as easily as they can target next-door neighbors,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “This office, together with its domestic and international law enforcement partners, will continue to aggressively investigate and prosecute criminals who prey on vulnerable victims within our district, no matter where those criminals are located.”
“We seek justice for victims by working collaboratively with foreign governments when investigating criminal misuse of the U.S. mail, such as these fraud and extortion schemes,” said Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service will continue to aggressively pursue transnational criminal enterprises targeting U.S. consumers.”
Cuzcano, Renteria and Milla each pleaded guilty to conspiracy to commit mail and wire fraud. Cuzcano is scheduled to be sentenced on July 9 and faces a maximum penalty of 20 years in prison. Renteria and Milla are scheduled to be sentenced on Aug. 6 and face a maximum penalty of 20 years in prison. U.S. District Judge Robert N. Scola Jr. will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Two co-defendants in this case are scheduled to go to trial in January 2022.
The U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case. Trial Attorney Phil Toomajian of the Consumer Protection Branch is prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the Diplomatic Security Service and the Peruvian National Police provided critical assistance.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Switzerland’s Largest Insurance Company and Three Subsidiaries Admit to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
The Department of Justice today filed a criminal information charging Swiss Life Holding AG (Swiss Life Holding), Swiss Life (Liechtenstein) AG (Swiss Life Liechtenstein), Swiss Life (Singapore) Pte. Ltd. (Swiss Life Singapore), and Swiss Life (Luxembourg) S.A. (Swiss Life Luxembourg), collectively, the “Swiss Life Entities,” with conspiring with U.S. taxpayers and others to conceal from the IRS assets held in offshore insurance policies, including more than 1,600 insurance wrapper policies, and related policy investment accounts in banks around the world and the income generated in these accounts.
The Justice Department also announced a deferred prosecution agreement with the Swiss Life Entities (“the Agreement”) under which they agreed to accept responsibility for their criminal conduct by stipulating to the accuracy of the Statement of Facts attached to the Agreement. The Agreement requires the Swiss Life Entities to refrain from all future criminal conduct, enhance remedial measures, and continue to cooperate fully with further investigations into hidden insurance policies and related policy investment accounts. Further, as part of today’s resolution, the Swiss Life Entities agreed to pay approximately $77.3 million to the U.S. Treasury, which includes restitution, forfeiture of all gross fees, and a penalty component. If the Swiss Life Entities abide by all of the terms of the Agreement, the government will defer prosecution on the information for three years and then seek to dismiss the charge.
“Swiss Life today is held responsible for creating and marketing specially designed insurance products to U.S. tax evaders seeking a new way to hide their offshore assets, in light of heightened Justice Department and IRS tax enforcement efforts,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Financial enablers here and abroad – and the taxpayers seeking their services – should know that we will continue to identify and unmask such schemes.”
“As they admit, Swiss Life and its subsidiaries sought out and offered their services to U.S. taxpayers to help them become U.S. tax evaders,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “The Swiss Life Entities offered private placement life insurance policies and related investment accounts to U.S. customers, and provided services that concealed the policies and other assets from the IRS. Indeed, the Swiss Life Entities saw U.S. authorities’ stepped-up offshore tax enforcement as an opportunity to pitch themselves to tax-evading U.S. customers as an alternative to Swiss banks. Under the terms of today’s agreement, Swiss Life will turn over more than $77 million and be required to continue to cooperate with the United States in identifying U.S. tax evaders.”
“The successful resolution of this investigation is an important victory for the American taxpayer for two primary reasons,” said Chief James C. Lee of the IRS Criminal Investigation. “First, the recovery of more $77 million owed to the U.S. government sends an unequivocal message that offshore evasion is still a high priority of IRS Criminal Investigation. Secondly, this agreement further requires Swiss Life Entities to continue to cooperate with the government and does not shield them from future civil or criminal sanctions, which should put every entity engaged in offshore evasion on notice.”
According to documents filed today in Manhattan federal court:
Swiss Life Holding is the ultimate parent company of the Swiss Life group of companies (Swiss Life), a Switzerland-based provider of comprehensive life insurance and pension products for individuals and corporations, as well as asset management and financial planning services. From 2005 to 2014, Swiss Life through affiliated insurance carriers in Liechtenstein (Swiss Life Liechtenstein), Luxembourg (Swiss Life Luxembourg), and Singapore (Swiss Life Singapore), (collectively, the PPLI Carriers) maintained approximately 1,608 Private Placement Life Insurance (PPLI) policies. The PPLI Carriers’ issuance and administration of those policies (colloquially known as “insurance wrappers”) and the related investment accounts were often done in a manner to assist U.S. taxpayers in evading U.S. taxes and reporting requirements and concealing the ownership of offshore assets.
Moreover, beginning as early as the summer of 2008, the PPLI Carriers were aware that UBS and other Swiss banks were terminating or reevaluating their business relationships with U.S. clients in response to increasing offshore tax enforcement efforts by U.S. authorities. Certain management and sales personnel within the Swiss Life PPLI Business Unit viewed these developments as a business opportunity to expand the PPLI Business by onboarding U.S. clients who were fleeing UBS and other Swiss banks. Such clients with undeclared assets were typically referred within Swiss Life as “non-comprehensive advice seeking,” which was frequently abbreviated to “NCAS.” Because Swiss Life would be identified as the owner of the policy investment accounts, rather than the U.S. policyholder and/or ultimate beneficial owner of the assets, the insurance wrapper policies could be and were used by unscrupulous U.S. taxpayers to hide undeclared assets and income and to evade taxes. In turn, Swiss Life grew its PPLI business and earned fees on those policies. Members of management of the PPLI Business Unit knew about and authorized the onboarding of U.S. clients without regard to whether they were declared or undeclared.
Swiss Life engaged in other misconduct with respect to U.S.-related policies:
- U.S.-related PPLI Policies were funded or terminated through asset transfers from/to an account maintained by a third party associated with the policyholder, such as an offshore law firm or intermediary.
- Swiss Life PPLI personnel assisted U.S. taxpayers in establishing and maintaining Swiss Life PPLI policies in the name of a foreign relative with the effect of obscuring the U.S. nexus of the assets used to fund the policy or to repatriate the U.S. taxpayer’s undeclared assets through a sham death payout.
- Certain U.S.-related PPLI Policies issued by Swiss Life Liechtenstein involved transfers of physical gold, other precious metals, or precious gemstones into or out of the policy investment account, presumably for the purpose of avoiding detection by U.S. authorities.
- The PPLI Carriers allowed policyholders to designate an authorized recipient – typically the policyholder’s asset manager or other foreign representative – to receive policy documents and custodian investment account statements, rather than having those documents sent directly to the policyholder.
- Certain Swiss Life Liechtenstein personnel promoted the use of Swiss Life products to turn U.S. taxpayers’ undeclared or so-called “black” money into so-called “white” money by parking the funds in a Swiss Life insurance policy until the clock had run on the perceived statute of limitations for tax offenses.
- Corporate premium bank accounts were also misused as a transitory account to help conceal the movement of U.S. clients’ funds.
Under today’s resolution, the Swiss Life Entities are required to continue to cooperate fully with ongoing investigations and affirmatively disclose any information they may later uncover regarding U.S.-related insurance policies and related policy investment accounts. The Swiss Life Entities are also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2019. The Agreement provides no protection from criminal or civil prosecution for any individuals.
Swiss Life Holding will pay a total of $77,374,337, which has three parts. First, Swiss Life Holding has agreed to pay $16,345,454 in restitution to the IRS, which represents the approximate unpaid taxes resulting from the Swiss Life Entities’ participation in the conspiracy. Second, Swiss Life Holding has agreed to forfeit $35,782,375 to the United States, which represents the approximate gross fees (not profits) that the Swiss Life Entities earned on the penalized insurance policies and related policy investment accounts between 2005 and 2014. Finally, Swiss Life Holding has agreed to pay a penalty of $25,246,508.
The penalty amount takes into consideration that Swiss Life conducted a robust internal investigation, supplied client-related data, facilitated the acquisition by the Justice Department of information relating to custodian banks, asset managers, and other entities and individuals related to Switzerland, Liechtenstein, and Singapore, and otherwise meaningfully assisted the department’s cross-border tax enforcement efforts. In addition, Swiss Life conducted extensive outreach to current and former U.S. clients to confirm historical tax compliance, and to encourage disclosure to the IRS when policyholders’ historical tax compliance issues had not yet been resolved. Swiss Life further implemented remedial measures to protect against the use of its services for tax evasion in the future.
The IRS Criminal Investigation is investigating this case.
This prosecution is being handled by the Department of Justice’s Tax Division and the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York. Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division and Assistant U.S. Attorneys Nicholas Folly and Olga I. Zverovich of the U.S. Attorney’s Office for the Southern District of New York are in charge of the prosecution.
Switzerland’s Largest Insurance Company and Three Subsidiaries Admit to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of a criminal Information charging Swiss Life Holding AG (“Swiss Life Holding”), Swiss Life (Liechtenstein) AG (“Swiss Life Liechtenstein”), Swiss Life (Singapore) Pte. Ltd. (“Swiss Life Singapore”), and Swiss Life (Luxembourg) S.A. (“Swiss Life Luxembourg”) (collectively, the “Swiss Life Entities”) with conspiring with U.S. taxpayers and others to conceal from the Internal Revenue Service (the “IRS”) more than $1.452 billion in offshore insurance policies, including more than 1,600 insurance wrapper policies, and related policy investment accounts in banks around the world and the income generated in these accounts.
Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced a deferred prosecution agreement with the Swiss Life Entities (“the Agreement”) under which they agreed to accept responsibility for their criminal conduct by stipulating to the accuracy of the Statement of Facts attached to the Agreement. The Agreement requires the Swiss Life Entities to refrain from all future criminal conduct, enhance remedial measures, and continue to cooperate fully with further investigations into hidden insurance policies and related policy investment accounts. Further, as part of today’s resolution, the Swiss Life Entities agreed to pay approximately $77.3 million to the U.S. Treasury, which includes restitution, forfeiture of all gross fees, and a penalty component. If the Swiss Life Entities abide by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charge.
Manhattan U.S. Attorney Audrey Strauss said: “As they admit, Swiss Life and its subsidiaries sought out and offered their services to U.S. taxpayers to help them become U.S. tax evaders. The Swiss Life Entities offered private placement life insurance policies and related policy investment accounts to U.S. customers, and provided services that concealed the policies and other assets from the IRS. Indeed, the Swiss Life Entities saw U.S. authorities’ stepped-up offshore tax enforcement as an opportunity to pitch themselves to tax-evading U.S. customers as an alternative to Swiss banks. Under the terms of today’s agreement, Swiss Life will turn over more than $77 million and be required to continue to cooperate with the United States in identifying U.S. tax evaders.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Swiss Life today is held responsible for creating and marketing specially designed insurance products to U.S. tax evaders seeking a new way to hide their offshore assets, in light of heightened Justice Department and IRS tax enforcement efforts. Financial enablers here and abroad – and the taxpayers seeking their services – should know that we will continue to identify and unmask such schemes.”
IRS-CI Chief James C. Lee said: “The successful resolution of this investigation is an important victory for the American taxpayer for two primary reasons. First, the recovery of more $77 million owed to the U.S. government sends an unequivocal message that offshore evasion is still a high priority of IRS Criminal Investigation. Secondly, this agreement further requires Swiss Life Entities to continue to cooperate with the government and does not shield them from future civil or criminal sanctions, which should put every entity engaged in offshore evasion on notice.”
According to documents filed today in Manhattan federal court:
Swiss Life Holding is the ultimate parent company of the Swiss Life group of companies (“Swiss Life”), a Switzerland-based provider of comprehensive life insurance and pension products for individuals and corporations, as well as asset management and financial planning services. From 2005 to 2014, Swiss Life through affiliated insurance carriers in Liechtenstein (Swiss Life Liechtenstein), Luxembourg (Swiss Life Luxembourg), and Singapore (Swiss Life Singapore) (collectively, the “PPLI Carriers”) maintained approximately 1,608 Private Placement Life Insurance (“PPLI”) policies. The PPLI Carriers’ issuance and administration of those policies (colloquially known as “insurance wrappers”) and the related investment accounts were often done in a manner to assist U.S. taxpayers in evading U.S. taxes and reporting requirements and concealing the ownership of offshore assets.
Moreover, beginning as early as the summer of 2008, the PPLI Carriers were aware that UBS and other Swiss banks were terminating or reevaluating their business relationships with U.S. clients in response to increasing offshore tax enforcement efforts by U.S. authorities. Certain management and sales personnel within the Swiss Life PPLI Business Unit viewed these developments as a business opportunity to expand the PPLI Business by onboarding U.S. clients who were fleeing UBS and other Swiss banks. Such clients with undeclared assets were typically referred within Swiss Life as “non-comprehensive advice seeking,” which was frequently abbreviated to “NCAS.” Because Swiss Life would be identified as the owner of the policy investment accounts, rather than the U.S. policyholder and/or ultimate beneficial owner of the assets, the insurance wrapper policies could be and were used by unscrupulous U.S. taxpayers to hide undeclared assets and income and to evade taxes. In turn, Swiss Life grew its PPLI business and earned fees on those policies. Members of management of the PPLI Business Unit knew about and authorized the onboarding of U.S. clients without regard to whether they were declared or undeclared.
Swiss Life engaged in other misconduct with respect to U.S.-related policies:
• U.S.-related PPLI Policies were funded or terminated through asset transfers from/to an account maintained by a third party associated with the policyholder, such as an offshore law firm or intermediary.
• Swiss Life PPLI personnel assisted U.S. taxpayers in establishing and maintaining Swiss Life PPLI policies in the name of a foreign relative with the effect of obscuring the U.S. nexus of the assets used to fund the policy or to repatriate the U.S. taxpayer’s undeclared assets through a sham death payout.
• Certain U.S.-related PPLI Policies issued by Swiss Life Liechtenstein involved transfers of physical gold, other precious metals, or precious gemstones into or out of the policy investment account, presumably for the purpose of avoiding detection by U.S. authorities.
• The PPLI Carriers allowed policyholders to designate an authorized recipient – typically the policyholder’s asset manager or other foreign representative – to receive policy documents and custodian investment account statements, rather than having those documents sent directly to the policyholder.
• Certain Swiss Life Liechtenstein personnel promoted the use of Swiss Life products to turn U.S. taxpayers’ undeclared or so-called “black” money into so-called “white” money by parking the funds in a Swiss Life insurance policy until the clock had run on the perceived statute of limitations for tax offenses.
• Corporate premium bank accounts were also misused as a transitory account to help conceal the movement of U.S. clients’ funds.
Under today’s resolution, the Swiss Life Entities are required to continue to cooperate fully with ongoing investigations and affirmatively disclose any information they may later uncover regarding U.S.-related insurance policies and related policy investment accounts. The Swiss Life Entities are also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2019. The Agreement provides no protection from criminal or civil prosecution for any individuals.
Swiss Life Holding will pay a total of $77,374,337, which has three parts. First, Swiss Life Holding has agreed to pay $16,345,454 in restitution to the IRS, which represents the approximate unpaid taxes resulting from the Swiss Life Entities’ participation in the conspiracy. Second, Swiss Life Holding has agreed to forfeit $35,782,375 to the United States, which represents the approximate gross fees (not profits) that the Swiss Life Entities earned on the penalized insurance policies and related policy investment accounts between 2005 and 2014. Finally, Swiss Life Holding has agreed to pay a penalty of $25,246,508.
The penalty amount takes into consideration that Swiss Life conducted a robust internal investigation, supplied client-related data, facilitated the acquisition by the Justice Department of information relating to custodian banks, asset managers, and other entities and individuals related to Switzerland, Liechtenstein, and Singapore, and otherwise meaningfully assisted the Department’s cross-border tax enforcement efforts. In addition, Swiss Life conducted extensive outreach to current and former U.S. clients to confirm historical tax compliance, and to encourage disclosure to the IRS when policyholders’ historical tax compliance issues had not yet been resolved. Swiss Life further implemented remedial measures to protect against the use of its services for tax evasion in the future.
* * *
Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI. Ms. Strauss also thanked the Department of Justice’s Tax Division for their partnership on this case.
This prosecution is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorneys Nicholas Folly and Olga I. Zverovich of the United States Attorney’s Office for the Southern District of New York and Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division are in charge of the prosecution.
Statement of Acting U.S. Attorney Boyle in Recognition of National Police Week and Peace Officers Memorial DayRead the Press Release
This is National Police Week, a time our nation sets aside each year to recognize the significant contributions and extraordinary work of local, state, federal and Tribal law enforcement in keeping our communities and those in them safe.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
According to national statistics, 285 law enforcement officers were killed in the line-of-duty in 2020. Approximately 60 percent of these officers lost their lives to COVID-19, which was contracted during their on-duty service in their communities. Additionally, the Law Enforcement Officer Killed and Assaulted (LEOKA) Program reports that 46 law enforcement officers died as a result of felonious acts and 47 died in accidents.
Although Connecticut is fortunate to have avoided a law enforcement line-of-duty death this past year, throughout our history 152 officers have died while on duty and serving those living in Connecticut.
Each one of these deaths is a stark reminder of the level of dedication and good work members of law enforcement selflessly perform every day. The dangers of this important profession are present in our state and remain constant to our law enforcement officers. They see it in a variety of ways when responding to situations involving domestic violence, shootings, assaults, homicides, drug related violence, robberies and other calls for help. This deserves our gratitude and support.
National Police Week and Peace Officers Memorial Day also remind us about the need for officer wellness. Law enforcement is a deeply stressful profession, a stress that is compounded when their many good works become overshadowed by reports of those officers who unlawfully choose to abuse their authority and betray their peacekeeper oath. Constant, multiple pressures can take a toll and have a cumulating effect over time. As a result, officers suffer increased heart disease, stress disorders, post-traumatic stress (PTSD), depression, and alcohol abuse, to name a few. Stigma and job loss can create barriers and cause officers to avoid seeking help. In 2020, 172 officers across our nation died by suicide. In 2021, 56 officers have already taken their own life. We support and encourage officers to seek the help they need and have earned.
Please join me in honoring these officers who have sacrificed their lives for our safety, and remembering their families and loved ones who continue to endure their loss.
Leonard C Boyle
Acting United States Attorney
District of Connecticut
May 14, 2021Starkville Man Charged with more than $6 million in COVID-Relief Fraud, False Statements and Money LaunderingRead the Press Release
STARKVILLE, Miss. – A Starkville man was arrested Thursday by FBI Special Agents after being indicted by a federal grand jury on criminal charges related to his alleged fraud scheme exceeding $6 million in federal COVID-19 Paycheck Protection Program loans.
According to court documents, Christopher Paul Lick, 45, of Starkville devised a scheme to defraud, and to obtain PPP funds, by filing false and fraudulent loan applications with banks providing loans as part of the Paycheck Protection Program, including Customers Bank and Cross River Bank. Lick is alleged to have overstated the number of employees and payroll expenses of his purported businesses to receive the funds.
Rather than use the PPP funds for his businesses, Lick is alleged to have purchased a variety of luxury items for personal use, including a home valued at more than $1 million and a Tesla valued at nearly $100,000. Lick also is alleged to have used the PPP funds to invest in the stock market.
Lick is charged with four counts of wire fraud, one count of false statements to a financial institution, and eleven counts of money laundering. He is scheduled for an initial court appearance today before U.S. Magistrate Judge David A. Sanders of the U.S. District Court for the Northern District of Mississippi. If convicted, he faces up to 30 years in federal prison.
The FBI’s Oxford Resident Agency is investigating the case. Assistant U.S. Attorney Philip Levy is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Slidell Man Pleads Guilty to Failure to Account for and Pay TaxesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SCOTT PELLISSIER (“PELLISSIER”), age 55, of Slidell, Louisiana, pleaded guilty on May 13, 2021 to one count of failing to account for and pay federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.
According to documents filed in federal court, PELLISSIER was the sole owner of two companies located in Slidell, Louisiana: Paint and Body Experts of Slidell, Inc. (“Paint and Body Experts”), a corporation that repairs and refinishes cars, and Pellissier Autoplex, LLC, d/b/a The Radiator Shop of Slidell (“Radiator Shop”). During the third quarter of the year 2016, PELLISSIER collected federal income taxes and FICA taxes in the approximate sum of $43,205.83 from employees of Paint and Body Experts, but willfully did not pay any of that money to the Internal Revenue Service. According to court documents, PELLISSIER failed to account for and pay additional FICA and other taxes associated with Paint and Body Experts and the Radiator Shop, resulting in a total loss amount between $550,000 and $1.5 million.
PELLISSIER faces a maximum sentence of five (5) years. Upon release from prison, PELLISSIER also faces a $100 mandatory special assessment fee and a term of supervised release of up to (3) three years, and/or a fine of $10,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. United States District Court Judge Carl J. Barbier set sentencing in this matter for August 19, 2021.
The U.S. Attorney’s Office would also like to acknowledge the work of the Internal Revenue Service on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
* * *
Sioux Falls Woman Pleads Guilty in Federal Court to Making a Materially False StatementRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Tami Haug-Davis, age 63, of Sioux Falls, South Dakota, appeared before U.S. District Judge Karen E. Schreier on May 11, 2021, and pled guilty to an Information that charged her with Making a Materially False Statement.
The maximum penalties upon conviction are as follows: five years in federal custody and/or a $250,000 fine; a period of supervised release of three years; a $100 special assessment to the Federal Crime Victims Fund; and restitution may be ordered.
Beginning on or about September 2016 until February 2019, Tami Haug-Davis was the Director of the Missouri Valley Crisis Center (MVCC) in Chamberlain, South Dakota. During this time, MVCC was funded in large part by state and federal grants, awarded by the South Dakota Department of Social Services. MVCC received funds from the following federal grants: Family Violence Prevention Services, Department of Health and Human Services, Administration for Children and Families and Crime Victims Assistance, and Department of Justice, Office of Victims of Crime.
In the fall of 2018, the South Dakota Department of Public Safety Victim Services Program (DPS) conducted a review of MVCC pursuant to their receipt of federal and state grants. DPS later issued MVCC a Corrective Action Plan dated October 11, 2018. The plan listed 17 items for which MVCC needed to provide supporting documentation to DPS, including a corrective action that MVCC must provide detailed board meeting minutes from the last three meetings and a complete list of the Board of Directors.
MVCC provided a response to DPS’s directive for more information. Following receipt of MVCC’s response, a complaint was issued by the State of South Dakota’s Division of Criminal Investigation. On March 28, 2019, the Department of Justice – Office of the Inspector General opened an investigation regarding the management of MVCC as it had provided federal grant monies to MVCC. The Department of Health and Human Services – Office of the Inspector General joined the investigation, as it had also provided federal grant monies to MVCC.
As part of the joint investigation, federal agents with each agency interviewed Haug-Davis. On August 30, 2019, and July 14, 2020, during interviews with federal agents, Haug-Davis knowingly and intentionally made materially false statements regarding the creation, submission, and veracity of board meeting minutes and documents provided to DPS in response to the October 11, 2018, corrective action plan. Her statements were made about a matter within the jurisdiction of the U.S. Departments of Justice and Health and Human Services, and she knew her statements were untrue when she made the statements to investigators.
The investigation was conducted by the Department of Justice – Office of the Inspector General, the Department of Health and Human Services – Office of the Inspector General, and the State of South Dakota’s Division of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Jeremy Jehangiri.
A presentence investigation was ordered, and a sentencing date has been set for August 2, 2021. The defendant was released on bond.
Sioux Falls Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 10, 2021, by U.S. District Judge Karen E. Schreier.
Senthong Phiengsai, a/k/a “Chino,” a/k/a “Noy,” age 42, was sentenced to 151 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Phiengsai was indicted by a federal grand jury on September 1, 2020. He pled guilty on February 19, 2021.
The conviction stemmed from incident beginning on an unknown date and continuing until on or about September 2020, when Phiengsai, along with others, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Phiengsai was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Theophile Jesse Taken Alive, age 38, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Taken Alive, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between March 19, 2020, and November 3, 2020.
The charge is merely an accusation and Taken Alive is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Taken Alive was returned to state custody pending trial. A trial date has not been set.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Chester Dennis Marshall, age 55, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 10, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Marshall, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between January 2, 2021, and May 4, 2021.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Marshall was released on bond pending trial. A trial date has not been set.
Sand Springs Man Pleads Guilty to Kidnapping a Former GirlfriendRead the Press Release
A Sand Springs man who kidnapped and threatened to kill a former dating partner pleaded guilty today in federal court, announced Acting U.S. Attorney Clint Johnson.
Michael Joseph Pointer, 42, pleaded guilty to carjacking; kidnapping in Indian Country; and carrying, using, and discharging a firearm during and in relation to a crime of violence.
“Michael Pointer has a history of threats and acts of violence. In this case, he threatened to kill the victim in a ‘bloodbath’ and fired his shotgun at the victim, narrowly missing her head. Because of her quick thinking, she was eventually able to escape her captor,” said Acting U.S. Attorney Clint Johnson. “Assistant U.S. Attorney Chantelle Dial and our partners at the FBI and Tulsa Police Department ensured Pointer’s conviction today in federal court. I am proud of their work to protect victims of abuse.”
Pointer admitted that on April 3, 2020, he kidnapped a former dating partner using force and intimidation. Pointer threatened to kill the victim and her family and discharged a shotgun at her. At that time, Pointer knew he was prohibited from possessing a firearm because of his previous felony conviction. He then took the victim and her Mercury minivan, driving her around Tulsa against her will. At one point, the victim was able to break away from Pointer and run into a convenience store where she hid in a bathroom. A store employee called authorities. Tulsa Police officers responded to the call, located the vehicle, and conducted a high-risk traffic stop. Officers discovered a 12-gauge shot gun and ammunition in the vehicle.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Chantelle Dial is prosecuting the case. Ms.Dial is a prosecutor from the U.S. Attorney’s Office in the Western District of Washington. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
Raleigh County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BECKLEY, W.Va. – A Raleigh County man pleaded guilty today to a federal drug charge.
According to court documents, on December 18, 2020, law enforcement officers executed a search warrant at the Beaver residence of Frederick Van-Horn, 42, and found a 9mm handgun, ammunition, $1,697 in U.S. currency and cocaine base. Van-Horn admitted that he possessed more than 23 grams of “crack” cocaine and to having sold fentanyl to confidential informants.
Van-Horn pleaded guilty to possession with intent to distribute a quantity of cocaine base and faces up to 20 years in prison when he is sentenced on August 27, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh County Drug Task Force conducted the investigation. Assistant United States Attorney L. Alexander Hamner is prosecuting the case.
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. 5:21-cr-00052.
###
Pittsburgh Felon Sentenced to 3½ Years for Illegally Possessing Guns and AmmunitionRead the Press Release
PITTSBURGH, PA-- A resident of Pittsburgh, PA, has been sentenced in federal court to 40 months’ imprisonment on his convictions of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Nicholas J. Ranjan imposed the sentence on Clayton Sowell, age 28.
In connection with the sentencing, the court was advised that in the early evening of December 19, 2019, Pittsburgh Police conducted a traffic stop of a vehicle driven by Clayton Sowell. During the traffic stop, officers recovered a loaded handgun with an extended pistol magazine containing 17 rounds of ammunition in the driver’s side door. Law enforcement determined that this firearm was previously reported stolen.
The court was further advised that in the late morning of April 28, 2020, an officer of the Penn Hills Police Department conducted a separate traffic stop of a vehicle driven by Mr. Sowell. During the traffic stop, law enforcement recovered a loaded handgun with an extended pistol magazine containing 18 rounds of ammunition in Mr. Sowell’s front waistband.
Finally, the Court was advised that Mr. Sowell has two prior felony convictions. On May 21, 2012, Mr. Sowell pled guilty to Fleeing or Attempting to Elude Officer in the Court of Common Pleas, County of Allegheny, Commonwealth of Pennsylvania. On June 20, 2016, Mr. Sowell pled guilty to Firearms Not to be Carried Without a License in the Court of Common Pleas, County of Allegheny, Commonwealth of Pennsylvania.
Assistant United States Attorney Brendan J. Mckenna prosecuted this case on behalf of the government.
Acting U.S. Attorney Kaufman commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Pittsburgh Bureau of Police, and Penn Hills Police Department for the investigation leading to the successful prosecution of Sowell.
Owner of Oil Chem Inc. Sentenced for Clean Water Act ViolationRead the Press Release
The president and owner of Oil Chem Inc. was sentenced today to 12 months in prison for violating the Clean Water Act stemming from illegal discharges of landfill leachate — totaling more than 47 million gallons — into the city of Flint sanitary sewer system over an eight and a half year period.
Robert J. Massey, 70, of Brighton, Michigan, pleaded guilty on Jan. 14, to a criminal charge of violating the Clean Water Act. According to court records, Oil Chem, located in Flint, Michigan, processed and discharged industrial wastewaters to Flint’s sewer system. The company held a Clean Water Act permit issued by the city of Flint, which allowed it to discharge certain industrial wastes within permit limitations. The city’s sanitary sewers flow to its municipal wastewater treatment plant, where treatment takes place before the wastewater is discharged to the Flint River. The treatment plant’s discharge point for the treated wastewater was downstream of the location where drinking water was taken from the Flint River in 2014 to 2015.
According to the plea agreement filed in federal court, Oil Chem’s permit prohibited the discharge of landfill leachate waste. Landfill leachate is formed when water filters downward through a landfill, picking up dissolved materials from decomposing trash. Massey signed and certified Oil Chem’s 2008 permit application and did not disclose that his company had been and planned to continue to receive landfill leachate, which it discharged to the sewers untreated. Nor did Massey disclose to the city when Oil Chem started to discharge this new waste stream, which the permit also required. Massey directed employees of Oil Chem to begin discharging the leachate at the close of business each day, which allowed the waste to flow from a storage tank to the sanitary sewer overnight.
From January 2007 through October 2015, Massey arranged for Oil Chem to receive 47,824,293 gallons of landfill leachate from eight different landfills located in Michigan. One of the landfills was found to have polychlorinated biphenyls (PCBs) in its leachate. PCBs are known to be hazardous to human health and the environment.
Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD) and Acting U.S. Attorney Saima Mohsin of the Eastern District of Michigan thanked the U.S. Environmental Protection Agency Criminal Investigation Division as well as the Michigan Department of Natural Resources-Law Enforcement Division-Environmental Investigations Section and Coast Guard Investigative Service for their work in this investigation.
The case is being prosecuted by Assistant U.S. Attorneys Ann Nee and Jules DePorre of the U.S. Attorney’s Office for the Eastern District of Michigan and ENRD Senior Counsel Kris Dighe.
Orange Park Man Pleads Guilty to Offering Child Sex Abuse Photos for Sale on the InternetRead the Press Release
Jacksonville, Florida – Antony Eugene Woody (33, Orange Park) has pleaded guilty to a federal charge of advertising images depicting the sexual abuse of children for sale using the internet. Woody faces a mandatory minimum penalty of 15 years, and up to, 30 years in federal prison, and a potential life term of supervised release.
According to court documents, in February 2019, the FBI discovered that an online user named “imsoofreakyy” was using a particular social media application to offer child sex abuse images for sale on the internet. Meanwhile, the Clay County Sheriff’s Office (CCSO) received a Cybertip from the National Center for Missing and Exploited Children that the same user “imsoofreakyy” was using a particular email address to advertise images of children being sexually assaulted. CCSO detectives were able to identify this individual as Antony Eugene Woody, who resided in Orange Park.
On March 22, 2019, CCSO officers and FBI agents executed a search warrant at Woody’s residence and made contact with him. During an interview with law enforcement, Woody admitted that he downloaded child sex abuse images from the internet, labeled these images with titles, prices, and his online contact information, and then re-posted them for sale using a social media app. Woody also admitted that online customers responded to his advertisements, that he would receive money for these sales using Venmo, and that he defrauded some of these customers by taking their money but refusing to send them the contraband images that they had purchased. Woody received at least $995 in profits from these sales through the Venmo app. A search of Woody’s cellular telephone revealed 33 videos and 40 images depicting the sexual abuse of children. Two of these images bore superimposed advertising language that was created and placed on them by Woody.
This case was investigated by the Clay County Sheriff’s Office, the Westbrook (Maine) Police Department, the Broward County (Florida) Sheriff’s Office, and the Federal Bureau of Investigation (Boston and Jacksonville), with the assistance of the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Olean Man Going to Prison for Receiving Naked Pictures of Young Girls on Social MediaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shane Guay, 30, of Olean, NY, who was convicted of receipt of child pornography, was sentenced to serve 144 months in prison and 10 years supervised release by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Meghan A. Tokash and Laura A. Higgins, who handled the case, stated that in November 2016, the defendant solicited minor victims through the Instagram application to produce images of child pornography. On November 6, 2016, the defendant received an image of Victim 1, who was 12 years old at the time. On November 8, 2016, Guay received two images of Victim 2, who was 13 years old at the time.
During the investigation, law enforcement officers recovered 154 images and five videos of child pornography on electronic devices seized from the defendant. Some of the images included prepubescent children, as well as depictions of violence.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the HSI Office of International Affairs in S. Africa; the New York State Police, under the direction of Major James Hall; the Olean Police Department, under the direction of Chief Jeff Rowley; the Harris County, GA Sheriff’s Office, under the direction of Sheriff Mike Jolley; and the Ayer, Massachusetts Police Department, under the direction of Chief William A. Murray.
# # # #
North Carolina Risk Consultant Sentenced to Prison for Tax Fraud and Illegally Possessing a FirearmRead the Press Release
A North Carolina businessman was sentenced today to three years in prison for tax fraud and illegal possession of a firearm.
According to court documents and statements made in court, Charles Agee Atkins, of Chapel Hill, controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management LLC, Risk Assessment & Management LLC, and Ram Omni LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the IRS. Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several prior years. In total Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12-gauge shotgun, which Atkins could not legally possess because of his prior conviction.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Atkins to serve three years of supervised release and to pay approximately $809,115 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
The IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Tanner Kroeger of the Middle District of North Carolina and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
North Carolina Risk Consultant Sentenced to Prison for Tax Fraud and Illegally Possessing a FirearmRead the Press Release
GREENSBORO, N.C. - A North Carolina businessman was sentenced today to 36 months in prison for tax fraud and illegal possession of a firearm.
According to court documents and statements made in court, Charles Agee Atkins, of Chapel Hill, controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management LLC, Risk Assessment & Management LLC, and Ram Omni LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the IRS. Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several prior years. In total Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12-gauge shotgun, which Atkins could not legally possess because of his prior conviction.
In addition to the term of imprisonment, United States District Judge Catherine C. Eagles ordered Atkins to serve three years of supervised release and to pay approximately $809,115 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
The IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Tanner Kroeger of the Middle District of North Carolina and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
###
Norfolk Man Responsible for Fatal Overdose Pleads Guilty to Fentanyl, Heroin, and Firearm ChargesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to conspiring to distribute fentanyl and heroin, and to possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, Christopher McKinley Barnes, 36, sold heroin and fentanyl from late 2016 until he was arrested on April 16, 2019. During that time, Barnes sold a total of over a kilogram of heroin in the Hampton Roads area and to users from the Outer Banks region of North Carolina. In July 2018, he sold a mixture of heroin and fentanyl that led to the fatal overdose of a victim in Nags Head. During a search of the defendant’s residence, officers recovered heroin and a loaded handgun, among other items.
Barnes is the fourth and final member of the conspiracy to plead guilty. Deshawn Jones, 29, of Portsmouth; James Boone, 48, of Eure, North Carolina; and Grey Miller, 32, of Kill Devil Hills, North Carolina, pleaded guilty and were sentenced to prison in the Eastern District of Virginia. The group was responsible for selling fentanyl and heroin to individuals in Portsmouth, Norfolk, and the Outer Banks. At least two fatal overdoses and several non-fatal overdoses have been linked to the group.
Barnes is scheduled to be sentenced on Oct. 8. He faces a mandatory minimum sentence of 15 years in prison and a maximum of life. 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Col. K.L. Wright, Chief of Chesapeake Police; and Phil Webster, Chief of the Nags Head Police Department, made the announcement after U.S. District Judge John A. Gibney accepted the plea.
Assistant U.S. Attorneys Andrew Bosse and William B. Jackson are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-163.
New Jersey Man Sentenced for BriberyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Atlantic City, New Jersey, man convicted of Bribery Concerning Programs Receiving Federal Funds was sentenced on May 10, 2021, by U.S. District Judge Charles B. Kornmann.
Anthony Bertino, age 60, was sentenced to 20 months in federal prison, followed by three years of supervised release. Bertino must pay a fine in the amount of $95,000 and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bertino was indicted by a federal grand jury on April 2, 2019. He was found guilty as a result of a federal jury trial in Aberdeen on October 30, 2020.
The conviction stemmed from incidents between May 7, 2014, and August 4, 2014, when Bertino, who was an agent of the Dakota Nation Gaming Enterprise (DNGE), corruptly accepted something of value from another person, intending to be influenced and rewarded in connection with a transaction and series of transactions of the DNGE.
The Sisseton-Wahpeton Oyate Tribe (SWO) operates the DNGE, which oversees the tribally-run gaming establishments. Bertino was employed as the Corporate Marketing Officer for the DNGE. Bertino’s employment agreement included provisions stating that self-dealing is cause for termination, that he was not to engage in actions motivated by self-interest, and that he was not to work in any other capacity without first obtaining written consent from the DNGE.
In 2014, Bertino negotiated the DNGE’s purchase of equipment from a 66,000 square foot sprung casino facility in Indiana. On May 21, 2014, the DNGE Advisory Committee approved the purchase for $900,000. After the DNGE wired the money to the seller, Bertino received three kickbacks from the seller totaling $104,909.78.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
This case was investigated by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Bertino has been allowed to self-report to the custody of the U.S. Marshals Service by July 3, 2021.
Nebraska Man Sentenced for Assault with a Dangerous Weapon and Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Lincoln, Nebraska, man convicted of Assault With a Dangerous Weapon and Failure to Register as a Sex Offender was sentenced by Chief Judge Roberto A. Lange, U.S. District Court.
Dwaine Walter Little Elk, age 36, was sentenced on May 11, 2021, to 46 months in federal prison, followed by 5 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The conviction stems from an assault in St. Francis, South Dakota, on June 21, 2020. Little Elk assaulted an individual with a knife, with the intent to do bodily harm to the individual. Little Elk was also a sex offender by reason of a conviction under federal law, and knowingly failed to register and update his registration from June 17, 2020, to August 11, 2020.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Little Elk was immediately remanded to the custody of the U.S. Marshals Service.