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Wednesday 31 March 2021
Maryland U.S. Attorney’s Office and FBI Baltimore Field Office Condemn Acts of Violence and Discrimination Against Asian Americans and Pacific Islanders, Urge Reporting of Hate CrimesRead the Press Release
Baltimore, Maryland – Today, Acting United States Attorney Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office today condemned bigotry and hatred against the Asian American and Pacific Islander community, and encouraged members of the public to report to law enforcement incidents of violence, threats and harassment.
Acting United States Attorney Lenzner stated: “Unfortunately, Asian Americans and Pacific Islanders throughout the United States continue to be targeted because of their race or ethnicity. No one should fear or be subjected to violence, discrimination, or harassment because of who they are, their appearance or their origin. Attacks and discrimination against our AAPI residents and neighbors are affronts to all of us. Through the leadership of our Civil Rights Unit and working with the FBI and our other partners, the United States Attorney’s Office is committed to addressing violations of federal law that undermine the civil rights of any residents of Maryland.”
“Acts of hate have no place in our community,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “If a crime is shown to be motivated by bias, it will be investigated by the FBI and the perpetrators held responsible for their actions. Today, in partnership with the United States Attorney’s Office, we are reminding the public to report information regarding any hate crime to the FBI.”
Through the U.S. Attorney’s Office’s prioritization and strengthened partnerships, civil rights violations in Maryland will be investigated and, as appropriate, prosecuted by federal or state prosecutors. To report suspected violations of civil or criminal civil rights statutes, please contact the FBI at 410-265-8080 or [email protected].
The United States Attorney’s Office for Maryland on March 10, 2021, launched its Civil Rights Unit to ensure that the full spectrum of criminal and civil statutes are employed in addressing hate crimes and discrimination; to conduct outreach to government, not-for-profit and private entities in Maryland; and to help provide training and resources to local and state law enforcement in Maryland. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md; information on the Civil Rights Unit can be found here: https://www.justice.gov/usao-md/civil-rights.
The most recent statistics on hate crimes are available here 2019 Hate Crime Statistics from the FBI’s Uniform Crime Report.
Additional resources regarding hate crimes and bias incidents can be found by visiting these links: civilrights.justice.gov/#your-rights and fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources.
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Martinsburg woman admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Misty Rose Jackson, of Martinsburg West Virginia, has admitted to her role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Jackson, 33, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute 28 Grams or More of Cocaine Base.” Jackson admitted to working with another to distribute cocaine base in April 2020 in Berkeley and Jefferson Counties.Jackson faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case 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.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Marshalltown, Minnesota, and Kansas City Residents Sentenced to Prison for Methamphetamine OffenseRead the Press Release
DES MOINES, Iowa — On Wednesday, March 25, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced Rachel Ann Danielson, age 42, of St. Paul, Minnesota, to 144 months in prison for conspiracy to distribute 50 grams or more of actual methamphetamine announced acting United States Attorney Richard D. Westphal. Following her prison term, Danielson was ordered to serve five years of supervised release, as well as pay $100 to the Crime Victims’ Assistance Fund. At the time Danielson committed the offense, she was serving a term of federal supervised release for a prior drug conviction in the District of North Dakota. Judge Ebinger sentenced Danielson to two years in prison for the violation of supervised release, to be served consecutively to her 144 month sentence.
Danielson was the last individual to be sentenced of the five defendants charged in the methamphetamine conspiracy. In November 2021, Judge Ebinger sentenced Michael Roy Marsh, age 43, of St. Paul, Minnesota, to 150 months in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. Judge Ebinger also sentenced Jeremy Travis Beason, age 28, to 240 months of prison, and Tiffany Carol Wagner, age 26, to 96 months of prison, for the same offense. Both Beason and Wagner are from Marshalltown. Following their prison terms, Marsh and Beason were ordered to serve five years of supervised release and Wagner was ordered to serve three years of supervised release. Marsh, Beason, Wagner were also ordered to pay $100 each to the Crime Victims’ Assistance Fund.
In November 2021, Judge Ebinger sentenced Marco Antonio Hernandez Lopez, age 35, of Kansas City, Missouri, who was charged in a separate indictment, to 198 months in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. Following his prison term, Hernandez Lopez was ordered to surrender to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings. Hernandez Lopez was ordered to serve five years of supervised release, as well as pay $100 to the Crime Victims’ Assistance Fund.
The 2019 investigation of this drug conspiracy revealed Hernandez Lopez was supplying Marsh and Danielson with kilogram quantities of methamphetamine for distribution. Hernandez Lopez was receiving this methamphetamine from Mexico. Marsh and Danielson drove to Kansas City to obtain methamphetamine from Hernandez Lopez. Marsh and Danielson met Beason and Wagner on multiple occasions in Iowa to deliver kilogram quantities of methamphetamine. Beason and Wagner distributed the methamphetamine in Marshalltown and elsewhere. In total, Hernandez Lopez is responsible for the distribution of 45 kilograms of methamphetamine.
This matter was investigated by the Mid-Iowa Drug Task Force and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office in the Southern District of Iowa.
Marion Man Sentenced to 324 Months in Prison for Coercing Minors via SnapchatRead the Press Release
ABINGDON, Va.- Hunter Royal, a Marion, Virginia man who used Snapchat to contact numerous underage girls and coerce them into sending him sexually explicit photos, was sentenced yesterday in U.S. District Court in Abingdon to 324 months in federal prison, Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office announced.
Royal, 23, previously pleaded guilty to one count of persuading, inducing, enticing, and coercing minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
“Royal exploited these minor victims, meeting them online, and is a parent’s worst nightmare. This lengthy sentence ought to send a clear message to would-be online predators: your behavior will not be tolerated, and you will be brought to justice,” Acting U.S. Attorney Bubar said. “These cases are some of the most important that we do, and I am grateful for the hard work of Homeland Security and our other federal and local law enforcement partners, who will continue to work tirelessly to vindicate the interests of vulnerable victims and protect them from harm.”
“This individual preyed upon minors, using fear and shame to extort exploitative material. The sentence handed down today reflects the seriousness of this crime,” said Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office. “HSI is committed to investigating and seeking prosecution for those who seek to exploit children online.”
Royal admitted to using several different Snapchat accounts to contact minor females. His general pattern was to pretend to be a young female on Snapchat and initiate contact with other, actual young females. Royal would then exchange messages with his victims to gain their trust, sometimes by sending the victim photos of a young girl he was claiming to be. Royal would steer the conversation toward sexual issues and convince his victim to take and send sexually explicit photos of herself. He would then use blackmail threats or other coercive tactics to obtain more sexually explicit images from his victim. While carrying out this scheme, Royal also distributed some of the images.
Some of the victims Royal targeted were as young as 12-years-old.
After he was first arrested and jailed, Royal asked a family member to buy a “burner” phone, log in to his Snapchat accounts using public wi-fi, and delete the contents of his Snapchat accounts. Ultimately, however, Royal’s attempt to obstruct justice failed.
The investigation of the case was conducted by Homeland Security Investigations, with assistance from the U.S. Marshals Service, the Marion Police Department, and the Port St. Lucie Police Department. Assistant United States Attorney Whit Pierce prosecuted the case for the United States.
Luzerne County Restaurant Owners Plead Guilty to Failing to Pay Required Federal Payroll TaxesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrea Tomasino, age 70, and Guiseppe Tomasino, age 44, co-owners of Tomasino’s Restaurante Italiano, located in Dallas, Pennsylvania, pled guilty today before U.S. District Court Judge Robert D. Mariani, to failing to collect and pay required federal payroll taxes.
According to Acting United States Attorney Bruce D. Brandler, Andrea and Guiseppe Tomasino, who were responsible, as co-owners of Tomasino’s Restaurant Italiano, for collecting and paying to the Internal Revenue Service federal payroll taxes, including Federal Insurance Contribution Act (FICA) taxes, willfully failed to pay to the IRS these required taxes for a period from the first quarter of 2014 through the first quarter of 2019, in the total amount of $95,710.
These charges stem from an investigation by IRS Criminal Investigations. Assistant U.S. Attorney Jeffery St John is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lexington Man Pleads Guilty to Conspiracy to Commit Bank Fraud and Filing False Tax ReturnsRead the Press Release
LEXINGTON, Ky. — A Lexington man pled guilty Tuesday, to charges of conspiracy to commit bank fraud and filing false tax returns.
Ricky L. Meek, 63, pled guilty to an information charging him with one count of conspiracy to commit bank fraud and one count of filing false tax returns.
The information charged that Meek conspired with J.M., the daughter of H.W., to receive and spend funds, that were deposited in a federally insured financial institution, under false pretenses. In his guilty plea agreement, Meek admitted that he and J.M. failed to notify the Kentucky Teachers Retirement System (KTRS) of H.W.’s death, back in 2014. Then, for a period of nearly five years, Meek and J.M. took H.W.’s pension benefits, which were continuing to be deposited in H.W.’s bank account, even though H.W. was only entitled to those benefits for her lifetime. Meek admitted that he and J.M. purported to act as H.W. (or H.W.’s power of attorney) when withdrawing and spending the money. As a result of his actions, Meek admitted to causing KTRS to pay out $256,253.13 in retirement benefits improperly. He also admitted to failing to report those funds on his tax returns.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; and Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division, jointly announced the guilty plea.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation and United States Postal Inspection Service. The United States was represented by Assistant U.S. Attorney Kathryn Anderson.
Meek is scheduled to appear on July 15, 2021, for sentencing at 1:00 p.m. He faces up to 30 years in prison and a maximum fine of $1,000,000 on the bank fraud charges and up to three years in prison and a maximum fine of $250,00 on the false tax return charges. Any sentence, however, will be set by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable sentencing statutes. Meek has agreed to provide restitution in this case.
Lebanon Man Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
CONCORD - James Jackson, 35, of Lebanon, pleaded guilty in federal court to possession of ammunition by a prohibited person, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 29, 2020, law enforcement officers executed a search warrant at Jackson’s residence. Officers seized over 20 rounds of ammunition. Jackson admitted to officers that he knew he was not allowed to possess ammunition due to his status as a convicted felon. Jackson is prohibited from possession of firearms and ammunition by virtue of a prior conviction incurred in October of 2016.
Jackson is scheduled to be sentenced on July 12, 2021.
“In order to keep our communities safe, it is important to keep dangerous weapons out of the hands of criminals,” said Acting U.S. Attorney Farley. “When convicted felons possess guns or ammunition, they pose a threat to public safety. To prevent violent crime, we will continue to work closely with our law enforcement partners to identify and prosecute those who violate federal gun laws in the Granite State.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lebanon Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Lebanese-Nigerian Billionaire and Two Associates Resolve Federal Probe into Alleged Violations of Campaign Finance LawsRead the Press Release
Chagoury DPA
Arsan DPA
Baaklini DPA
LaHood NPALOS ANGELES – A Lebanese-Nigerian billionaire has resolved and two of his associates have agreed to resolve a federal investigation that they conspired to violate federal election laws by scheming to make illegal campaign contributions to U.S. presidential and congressional candidates, the Department of Justice announced today.
Gilbert Chagoury, 75, who presently resides in Paris, France, paid $1.8 million to resolve allegations that he, with the assistance of others, provided approximately $180,000 to individuals in the United States that was used to make contributions to four different federal political candidates in U.S. elections.
Chagoury, a foreign national prohibited by federal law from contributing to any U.S. elections, admitted he intended these funds to be used to make contributions to these candidates. He further admitted to making illegal conduit contributions – causing campaign contributions to be made in the name of another individual.
According to a deferred prosecution agreement with the government, Chagoury accepted responsibility for his role and conduct that resulted in violations of federal election contribution laws between June 2012 and March 2016 and agreed to cooperate with the government’s investigation. Chagoury entered into the agreement on October 19, 2019, and he paid the fine in December 2019.
Federal prosecutors entered into the deferred prosecution agreement considering, among other factors, Chagoury’s unique assistance to the U.S. government, his payment of a fine, Chagoury’s acceptance of responsibility for his actions, and his residence outside the United States.
Relatedly, two Chagoury associates – Joseph Arsan, 68, also of Paris, and Toufic Joseph Baaklini, 58, of Washington, D.C. – agreed to resolve allegations that they violated campaign contribution laws by assisting Chagoury in his illegal contributions. Arsan, a physician who worked as an assistant to Chagoury, admitted helping Chagoury reimburse others for contributions to political candidates. In 2014, Arsan – at Chagoury’s direction – wired $30,000 to a third party and indicated on the wire information form that the funds were for a “wedding gift,” when he knew or should have known that the funds were reimbursement for making a political contribution to a campaign fund for a federal elected official.
Arsan’s deferred prosecution agreement, which took effect in November 2020, also resolves a criminal investigation into his alleged tax violations in the years 2012 to 2016 stemming from his failure to report money he held in foreign bank accounts. Arsan agreed to pay $1.7 million in penalties to resolve the tax probe and to cooperate in the government’s investigation.
In his deferred prosecution agreement signed on March 1, 2021, Baaklini admitted to giving $30,000 in cash provided by Chagoury to an individual at a restaurant in Los Angeles who, along with others, later made campaign contributions to the 2016 campaign of a U.S. congressman. Baaklini also agreed to pay a $90,000 fine as part of his agreement and agreed to cooperate with the government’s investigation.
In a separate and unrelated matter, Ray LaHood, 75, who served as U.S. Secretary of Transportation from 2009 to 2013, paid a $40,000 fine to resolve a federal criminal investigation into LaHood’s conduct related to a $50,000 financial transaction between LaHood and Baaklini in June 2012.
LaHood, who at the time was suffering financial difficulties, admitted that in 2012 he accepted a $50,000 personal check from Baaklini – with the word “Loan” written in the check’s memo portion – and understood at the time that the money came from Chagoury. LaHood failed to disclose the $50,000 check on two government ethics forms as required because LaHood did not want to be associated with Chagoury. Later, LaHood also made misleading statements to FBI agents investigating Chagoury about the check and its source. As part of his non-prosecution agreement signed in December 2019, LaHood also agreed to cooperate with the government’s investigation and repaid the $50,000 to Baaklini.
This matter was investigated by the FBI, IRS Criminal Investigation, and Department of Transportation’s Office of Inspector General.
These cases were prosecuted by Assistant United States Attorneys Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Aron Ketchel, also of the Public Corruption and Civil Rights Section.
Leader of Darknet Drug Distribution Conspiracy Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—The leader of and final defendant in a darknet drug distribution conspiracy was sentenced to federal prison today for his role in operating a narcotic vendor site that facilitated thousands of purchases of MDMA and generated nearly $200,000 in drug trafficking revenue, announced Acting U.S. Attorney Scott Erik Asphaug.
James Campbell Cardwell, 28, of Tigard, Oregon, was sentenced to 46 months in federal prison and three years’ supervised release.
According to court documents, Cardwell operated a large MDMA darknet vendor site called “The Collective.” Cardwell, through The Collective, distributed nearly six kilograms of MDMA in one and ten-gram quantities. Cardwell oversaw and ran the operation from his Tigard residence. Cardwell’s three co-conspirators, Gordon Filemu Cady, 35, of Portland; Heidi Gravier, 31, of Portland; and Ruth Lacy Gloe, 38, of Salem, Oregon, conspired to import and possess with intent to distribute MDMA, ketamine and cocaine.
During a search of Cardwell’s residence in May 2018, investigators located drug packaging paraphernalia, numerous pills, digital scales, mailing envelopes, an unknown white powder, a grinder containing an unknown white powder, 11 baggies containing 21 grams of MDMA, $1,670 in cash, several cell phones and computers, and a loaded 9mm firearm. Based on a review of records seized, Cardwell was involved in more than 3,000 transactions generating more than $197,000.
In August 2018, following Cardwell’s arrest and while he was on pretrial supervision, federal agents learned he was attempting to sell the login credentials for two darknet vendor accounts that he had operated during the charged offense. Later, in November 2018, Cardwell arranged to purchase a counterfeit Canadian passport and British Columbia driver’s license so he could leave the country.
On June 26, 2018, Cardwell, Cady, Gravier, and Gloe were all indicted on drug trafficking offenses. By February 2021, all of Cardwell’s co-conspirators had pleaded guilty and been sentenced to time served in federal prison and three years’ supervised release.
This case was investigated by a HIDTA Interdiction Task Force comprised of Homeland Security Investigations and the Portland Police Bureau. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. The Oregon HIDTA program was established by the White House Office of National Drug Control Policy (ONDCP) in June of 1999. In 2015, the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 14 counties and the Warm Springs Indian Reservation. Counties in the HIDTA include Oregon’s Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock and Canyon counties.
Justice Department Warns About Fake Post-Vaccine Survey ScamsRead the Press Release
The Department of Justice has received reports that fraudsters are creating fraudulent COVID-19 vaccine surveys for consumers to fill out with the promise of a prize or cash at the conclusion of the survey. In reality, the surveys are used to steal money from consumers and unlawfully capture consumers’ personal information.
Consumers receive the surveys via email and text message, and are told that, as a gift for filling out the survey, they can choose from various free prizes, such as an iPad Pro. The messages claim that the consumers need only pay shipping and handling fees to receive their prize. Victims provide their credit card information and are charged for shipping and handling fees, but never receive the promised prize. Victims also are exposing their personally identifiable information (PII) to scammers, thereby increasing the probability of identity theft.
Unless from a known and verified source, consumers should never click on links in text messages or emails claiming to be a vaccine survey.
Schemes that use links embedded in unsolicited text messages and emails in attempts to obtain personally identifiable information are commonly referred to as phishing schemes. Phishing messages may look like they come from government agencies, financial intuitions, shipping companies, and social media companies, among many others. Carefully examine any message purporting to be from a company and do not click on a link in an unsolicited email or text message. Remember that companies generally do not contact you to ask for your username or password. When in doubt, contact the entity purportedly sending you the message, but do not rely on any contact information in the potentially fraudulent message.
If you receive a text message or email claiming to be a COVID-19 vaccine survey and containing a link or other contact information, please report the communication to the National Center for Disaster Fraud (NCDF) by calling 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud. Intellectual property crimes such as these also may be reported to federal law enforcement at the National Intellectual Property Rights Coordination Center (IPR Center) at http://www.IPRCenter.gov.
If you believe you may have entered information into a fraudulent website, you can find resources on how to protect your information at: www.identitytheft.gov.
To learn more about identifying and protecting yourself from phishing attempts, visit https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams or https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/spoofing-and-phishing.
Further information about major scams targeting American consumers can be found at the Justice Department’s Transnational Elder Fraud Strike Force website: https://www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
This alert is provided by the IPR Center and the Consumer Protection Branch of the department’s Civil Division.
For more information about the Consumer Protection Branch, visit http://www.justice.gov/civil/consumer-protection-branch.
Justice Department Settles with Moving and Storage Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with Spike Inc., a moving and storage company doing business as Olympia Moving and Storage.
The settlement resolves the department’s claims that Spike violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by failing to consider four U.S. workers for employment opportunities that it instead filled with H-2B visa workers at two of its locations in the Philadelphia, PA and Washington, DC metropolitan areas.
“Employers should hire workers based on their qualifications, not their citizenship or immigration status,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from this type of discrimination.”
The department’s investigation determined that from at least Feb. 1, 2019, to March 11, 2019, Spike discriminated against four U.S. workers by failing to consider them for temporary mover positions. Despite receiving applications from these available workers, Spike filled the positions with H-2B visa workers, claiming that it could not find qualified and available U.S. workers. The INA prohibits employers from refusing to recruit or hire U.S. workers – i.e., U.S. citizens and nationals, asylees, refugees, and recent lawful permanent residents – because of their citizenship or immigration status.
Under the settlement, Spike will pay $12,000 in civil penalties to the United States, pay up to an amount of $70,000 in back pay to the affected U.S. workers, and conduct enhanced U.S. worker recruitment and advertising for future positions. The settlement also requires Spike to train employees on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. More information on how employers can avoid citizenship status discrimination is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Settles Immigration-Related Discrimination Claim Against Security Services CompanyRead the Press Release
The Justice Department today announced that it reached a settlement agreement with G4S Secure Solutions, Inc. (G4S), a private security services company based in Jupiter, Florida. The settlement resolves a claim that the company discriminated against a worker by requiring him to provide unnecessary documentation to prove his immigration status because the worker was not a U.S. citizen, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA).
“Employers are not allowed to ask workers for additional, unnecessary documents because of their citizenship or immigration status,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department looks forward to working with G4S to ensure its compliance with the INA’s anti-discrimination requirements in the future.”
The department initiated its investigation after a lawful permanent resident filed a charge alleging that G4S required him to provide additional employment eligibility documentation before assigning him to a worksite, even though he had already presented sufficient documents to prove his identity and legal right to work in the United States, which is all that workers are required to demonstrate. The investigation determined that a G4S Human Resources manager declined to place the newly hired security guard at a worksite because he had presented a Permanent Resident Card along with a notice showing that the card had been extended for one year past the expiration date listed on the card, and because the guard did not yet have his new Permanent Resident Card. Lawful permanent residents are authorized to work permanently.
In addition to showing his extended Permanent Resident Card, the investigation also revealed that the security guard had already provided G4S his unrestricted Social Security card, which alone is sufficient to establish indefinite employment authorization. The INA’s anti-discrimination provision generally prohibits employers from asking workers for more or different documents than are required by law for the employment eligibility verification process based on a worker’s citizenship status or national origin.
Under the terms of the settlement agreement, G4S will, among other things, pay more than $13,000 in back pay to the former employee and $1,400 to the U.S. Treasury; train its workers; and be subject to departmental monitoring for a two-year period.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation. Learn more about how to avoid discrimination in verifying employment eligibility here.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Settles Discrimination Claim Against Virginia Recruitment FirmRead the Press Release
The Justice Department today announced that it reached a settlement with Adaequare Inc. (Adaequare), a company that recruits workers for other companies. The settlement resolves the department’s claim that Adaequare only considered applicants who were U.S. citizens and lawful permanent residents when filling a job for a client. Based on its investigation, the department concluded that by only considering applicants who are U.S. citizens and permanent residents, Adaequare discriminated against refugees, asylees, and non-citizen nationals, based on their citizenship or immigration status.
“Recruiters cannot illegally exclude applicants based on their citizenship or immigration status,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department's Civil Rights Division. “We applaud Adaequare for immediately taking steps to ensure that this discrimination does not happen again.”
The department’s investigation determined that when a client asked Adaequare to only recruit U.S. citizens or lawful permanent residents for a job, the company did not first check to make sure that the client was legally allowed to limit jobs to those statuses. Instead, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) determined, the company unlawfully screened out applicants based on their citizenship or immigration status.
The Immigration and Nationality Act (INA) protects U.S. citizens, non-citizen nationals, refugees, asylees, and recent lawful permanent residents from this type of discrimination. The law has an exception if an employer or recruiter is required to limit jobs due to a law, regulation, executive order, or government contract. The department’s investigation determined that Adaequare did not have a legal justification for screening out these workers based on their citizenship or immigration status. To help prevent future discrimination, Adaequare now asks clients for a legal justification if a client requests the company to limit candidates for a job to certain citizenship or immigration statuses.
Today’s settlement agreement requires Adaequare to take several steps to ensure it follows the law in the future, including training its employees who recruit to fill positions. The company also must pay a civil penalty. As with its other settlements, IER will also monitor Adaequare to make sure the company is complying with the agreement.
IER is responsible for enforcing discrimination protections under the INA. The law prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation. Learn more about citizenship status discrimination under the INA here.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Seeks to Shut Down Georgia Tax Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Middle District of Georgia seeking to bar a Tifton, Georgia, tax return preparer from preparing tax returns for others.
The civil suit against Alicia Coarsey, aka Meredith Coarsey, and Tax Xpress of Tifton LLC, alleges that Coarsey owns Tax Xpress and prepares federal individual income tax returns claiming fabricated medical expenses and charitable contributions. In addition, according to the complaint, Coarsey fabricates claimed business losses, in some cases for non-existent businesses, in order to claim improper earned income tax credits. As one example, the complaint alleges that she claimed over $19,000 in medical deductions for tax year 2019 for one customer, who has since stated that he did not have significant medical expenses in that year. The complaint further alleges that returns prepared by Coarsey use these bogus claims to falsely understate her customers’ tax liabilities and inflate their refund claims. According to the complaint, the United States has likely lost millions of dollars in tax revenue as a result of her activities.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Requires Republic Services to Divest Assets to Proceed with Santek AcquisitionRead the Press Release
The Department of Justice announced today that Republic Services Inc. (Republic) will be required to divest waste collection and disposal assets in five states in order to proceed with its acquisition of Santek Waste Services LLC (Santek). The department said that without the divestiture, the proposed acquisition would substantially lessen competition for small container commercial waste collection and municipal solid waste disposal services in six local markets across the southeastern United States.
The department’s Antitrust Division — along with the Alabama Attorney General — filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the department’s complaint.
“The waste collection and disposal services provided by Republic and Santek are essential services for businesses, municipalities, and towns,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Today’s settlement, which requires Republic and Santek to divest numerous facilities and assets in five states, will ensure that these customers continue to benefit from competition for these critical services.”
According to the complaint, Republic and Santek both provide small container commercial waste collection and municipal solid waste disposal services. In each of the local markets alleged in the complaint, Republic and Santek compete vigorously against each other and are two of only a few significant providers of one or both of these essential services. The combination of the two companies would eliminate head-to-head competition between them and threaten the lower prices and better service that customers have realized from that competition.
The complaint further alleges that, in the Chattanooga, Tennessee, and northern Georgia area, the proposed acquisition would limit the ability of collection rivals to compete with the merged company’s collection operations. The combination of these two vertically-integrated companies that are both strong in collection and disposal in this market would give the merged company an increased incentive and ability to weaken its collection competitors by raising the price of disposal, a key input for collection services. With limited alternative disposal options left in the market, collection rivals would have to incur higher disposal costs or cease their operations, thereby reducing competition in the collection market.
Under the terms of the proposed settlement, Republic and Santek must divest landfills, transfer stations, hauling locations, and waste collection routes in Alabama, Georgia, Tennessee, and Mississippi to Kinderhook Industries LLC (Kinderhook), or to an alternate acquirer approved by the United States. Kinderhook, based in New York, New York, is a private investment firm whose portfolio companies include Capital Waste Services LLC and EcoSouth Services of Mobile LLC, two providers of waste management services in the United States.
The proposed settlement also requires that Republic and Santek divest waste collection routes and associated assets in Texas to Waste Connections Inc. (WCN), or to an alternate acquirer approved by the United States. WCN, based in Ontario, Canada, is a provider of small container commercial waste collection and municipal solid waste disposal services in local markets in Canada and the United States.
Republic, a Delaware corporation headquartered in Phoenix, Arizona, generated total revenues of approximately $10.2 billion in 2020.
Santek, a Tennessee limited liability company headquartered in Cleveland, Tennessee, generated total revenues of approximately $140 million in 2019, the last year for which information is publicly available.
As required by the Tunney Act, the proposed consent decree, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Katrina Rouse, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon a finding that it serves the public interest.
Judge sentences former Missouri State Representative for using campaign funds for his own personal use and expensesRead the Press Release
ST. LOUIS – United States District Judge Stephen R. Clark sentenced Courtney Curtis, today, to 21 months in prison and ordered him to pay restitution in the amount of $47,867.69 to the victims. The 39-year-old Ferguson, Missouri resident pleaded guilty to three counts of wire fraud relative to his theft of funds from his “Curtis for MO” campaign account. Curtis served as Representative of Missouri District 73 from 2013 until 2019. Most recently, Curtis served as an assistant to St. Louis County Councilwoman Rita Heard Days.
Beginning on or about January 1, 2016 and continuing through or about December 31, 2017, Curtis misled donors by falsely representing that money contributions to the “Curtis for MO” campaign committee would be used for campaign and reelection purposes, when, in fact, he used a substantial portion of the money contributed by donors to the “Curtis for MO” campaign committee for his own personal use and expenses.
After fraudulently convincing constituents to donate money to the “Curtis for MO” campaign committee, Curtis knowingly used monies in the “Curtis for MO” campaign committee bank account for his own personal benefit, unrelated to any legitimate campaign or re-election purpose in various ways, including but not limited to: using money in the account to pay for his apartment rental and utility bills; paying for hotel, airfare and travel expenses for himself and companions; paying for restaurant and bar bills; withdrawing funds from the account through substantial cash withdrawals, including at area casinos; and, using money in the account to purchase retail items for his personal use.
Additionally, from time to time, Curtis deposited campaign donation checks into his personal bank account and used those funds to pay for personal living expenses unrelated to any legitimate campaign or re-election purpose. Curtis acted to conceal his scheme by failing to file required reports with the Missouri Ethics Commission, or by filing false reports with the Missouri Ethics Commission, which failed to identify his cash withdrawals from the “Curtis for MO” campaign committee bank account, failed to identify payments made directly from the “Curtis for MO” campaign committee bank account which were made for his own personal use, unrelated to any campaign or re-election purpose, and failed to identify campaign donation checks received and deposited to his personal bank account. Curtis wire transferred funds from the “Curtis for MO” campaign account to pay for personal expenses and to make cash withdrawals.
Total funds obtained by Curtis through his scheme to defraud his donors was approximately $47,867.69.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case.
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Joplin Man Sentenced for Illegally Possessing Stolen FirearmRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Missouri, man was sentenced in federal court today for illegally possessing the firearm stolen from a vehicle in the parking lot at the U.S. Medical Center for Federal Prisoners in Springfield, Mo.
Jeffrey Ray Dean Ford, 28, was sentenced by U.S. District Judge M. Douglas Harpool to five years in federal prison without parole. The court ordered Ford’s federal sentence to be served consecutively to his undischarged terms of imprisonment in two separate state cases.
On Nov. 20, 2020, Ford pleaded guilty to being a felon in possession of a firearm.
According to court documents, the investigation began on Oct. 15, 2019, after two vehicles were burglarized at the U.S. Medical Center for Federal Prisoners. A Smith and Wesson semi-automatic .40-caliber firearm was stolen from one of the vehicles. FBI agents identified a suspect vehicle from surveillance cameras. Later the same day, Republic, Mo., police officers reported attempted automobile burglaries in which witnesses identified the same vehicle.
Agents contacted Ford at his workplace as he arrived, driving the borrowed vehicle that had been identified in surveillance video. Agents found the stolen firearm in the vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ford has 11 prior felony convictions, including possession of methamphetamine, burglary, tampering with a motor vehicle, possession of a stolen vehicle, several instances of felony theft, and several instances of receiving stolen property. Ford also has 23 misdemeanor convictions.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the Springfield, Mo., Police Department, the Republic, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Joint Statement on Hate Crimes and Acts of Bias against Asian Americans and Pacific IslandersRead the Press Release
New Haven – Acting U.S. Attorney Leonard C Boyle, Chief State’s Attorney Richard J. Colangelo, Jr., of the Connecticut Division of Criminal Justice, and Special Agent in Charge David Sundberg of the New Haven Division of the Federal Bureau of Investigation today announced efforts to address an increase in hate crimes and bias incidents targeting Asian Americans and Pacific Islanders.
“All Americans should be proud of our nation’s diversity and share a commitment to tolerance and respect for our fellow citizens, no matter their race, religion, ethnicity or sexual orientation,” said Acting U.S. Attorney Boyle. “We in Connecticut are fortunate that we have not experienced a significant rise in reporting of violence and instances of hatred, intolerance and bigotry against Asian Americans and Pacific Islanders similar to what has occurred in other parts of our country this past year. However, we know these crimes exist, we will not be blind to them, and we want to know about them. The Connecticut U.S Attorney’s Office, together with the FBI and our other federal, state and local law enforcement partners, is committed to enforcing hate crimes laws that protect all communities.”
“The Division of Criminal Justice is committed to establishing and maintaining a culture of trust and open communication between residents and the State’s Attorney’s Offices in each of the state’s 13 Judicial Districts to improve public safety and to strengthen our community partnerships,” said Chief State’s Attorney Colangelo. “The Division of Criminal Justice, in partnership with the Connecticut U.S. Attorney’s Office, federal authorities and police departments across the state, stand ready to address all hate-based crimes that have no place in our communities.”
“I want to remind residents of Connecticut communities that any violent criminal act against any person because of their race, color, religion or national origin is a hate crime,” said FBI Special Agent in Charge Sundberg. “This includes violence toward Asian Americans, Pacific Islanders or individuals from East Asian countries. The FBI will use all authority granted to us by federal law to investigate and hold those who commit violent acts accountable for their actions. Anyone with knowledge of crimes against Asian community members is asked to report the incident to local police and/or the FBI. We remain committed to our mission to protect all American people and uphold the Constitution.”
The U.S. Attorney’s Office and FBI receive and review complaints of potential hate crimes and provide assistance to state and local law enforcement investigations of hate crimes. Individuals who believe they are the victim of a hate crime or have witnessed a hate crime are encouraged to call their local police department, or the FBI in New Haven at 203-777-6311. To submit an online tip, visit http://tips.fbi.gov.
Acting U.S. Attorney Boyle noted that the U.S. Attorney’s Office and FBI, which for several years have trained state and local law enforcement officers on hate crimes laws and cultural competency so that officers are better equipped to assess situations they may encounter, are expanding outreach to Asian communities. In addition, Assistant U.S. Attorneys are being certified to provide training specific to hate crimes against Asian and Pacific Islander communities at the Connecticut State Police Officer Standards and Training Council (POST).
The Division of Criminal Justice is currently working to establish designated Hate Crimes points of contact in State’s Attorney’s offices across the state in an effort to immediately address any reports of violence based on bigotry and bias toward people of all races.
Today at 5:00 p.m., Assistant U.S. Attorneys who handle criminal and civil rights matters will be participating in a Zoom presentation sponsored by the Connecticut Asian Pacific American Bar Association titled “Stand Up, Speak Out, Be Seen: Moving from Violence to Equity & Inclusion for Asian and Pacific Islander Americans.” (Send an e-mail to [email protected] to request the Zoom link.)
More information about the Justice Department’s Hate Crimes program can be found here: https://www.justice.gov/hatecrimes.
To access the most recent statistics on hate crimes from the FBI’s Uniform Crime Report, visit https://www.justice.gov/hatecrimes/hate-crime-statistics.
Indiana Man Pleads Guilty to Interstate Stalking Resulting in DeathRead the Press Release
Orlando, Florida – Jarvis Wayne Madison (62, New Albany, IN) has pleaded guilty to one count of interstate stalking resulting in death of R.M. Madison faces a maximum penalty of life in federal prison. A sentencing date is scheduled for June 14, 2021.
Madison had been indicted on January 12, 2017.
According to court documents, Madison and R.M. were married but estranged. On November 15, 2016, in Indiana, Madison held R.M. against her will, threatened to kill her, and shot at her with a firearm. R.M. was able to escape from Madison and, with the help of a relative, relocate to Ormond Beach, Florida. From November 15, 2016, to November 27, 2016, Madison left multiple voicemails on and sent multiple text messages to the cellphone of R.M.’s relative, attempting to get R.M. to speak to him.
During at least a portion of that period, Madison stayed with Belenda Sandy at her West Virginia residence, eventually leaving there and driving to Florida with a firearm and binoculars, intending to harass R.M. In Florida, Madison disguised himself and used the binoculars to conduct surveillance on R.M. After watching her leave her relative’s residence in Ormond Beach alone to go for a jog, Madison made contact with R.M. on November 27, 2016. Madison and R.M. then left the area in his SUV. A short time thereafter Madison pointed a firearm at R.M. and shot her three times, killing her. Madison then left Florida with the R.M.’s body in his SUV and traveled back to Sandy’s residence in West Virginia. After spending the night there, Madison bought a shovel and a tarp and drove to Tennessee, where he buried R.M.’s body in a shallow grave.
Following R.M.’s disappearance on November 27, 2016, authorities began an investigation that resulted in Madison’s arrest on December 2, 2016, in Kentucky. During a subsequent search of Madison’s SUV, law enforcement recovered the firearm used in the homicide, as well as the binoculars he used to stalk R.M. Law enforcement also observed blood stains on the front passenger seat of the SUV. When interviewed, Madison admitted he shot R.M. and later directed authorities where to find her body.
Sandy (60, Buckhannon, West Virginia) previously pleaded guilty and was sentenced to 87 months in federal prison for obstruction of justice related to this case.
This case was investigated by the Federal Bureau of Investigation (Jacksonville, Knoxville, and Louisville Field Offices), with assistance from the Volusia County Sheriff’s Office, the United States Marshals Service, the Indiana State Police, and the Clarksville (Indiana) Police Department. It is being prosecuted by Assistant United States Attorneys Shawn P. Napier and Daniel P. Jancha.
If you are a victim of domestic violence, or know someone who is, remember that you are not alone. For assistance and resources in your area, call the Domestic Violence Hotline at 1-800-799-SAFE (7233) or visit the Office on Violence Against Women at https://www.justice.gov/ovw/domestic-violence. Assistance is also available from local law enforcement.
Indictment: Kansas Man Indicted for Tampering with a Public Water SystemRead the Press Release
TOPEKA, KAN. – A Kansas man has been indicted on a federal charge accusing him of tampering with a public water system, Acting U.S. Attorney Duston Slinkard said today.
WYATT A. TRAVNICHEK, 22, of Ellsworth County, Kansas is charged with one count of tampering with a public water system and one count of reckless damage to a protected computer during unauthorized access.
“Our office is committed to maintaining and improving its partnership with the state of Kansas in the administration and implementation of the Safe Drinking Water Act of 1974,” said Acting U.S. Attorney Duston Slinkard. “Drinking water that is considered safe is essential to the protection of the public’s health.”
The indictment alleges that on or about March 27, 2019, in the District of Kansas, Travnichek knowingly accessed the Ellsworth County Rural Water District’s protected computer system without authorization. During this unauthorized access, it is alleged Travnichek performed activities that shut down the processes at the facility which affect the facilities cleaning and disinfecting procedures with the intention of harming the Ellsworth Rural Water District No. 1, also known as Post Rock Rural Water District.
“By illegally tampering with a public drinking water system, the defendant threatened the safety and health of an entire community,” said Lance Ehrig, Special Agent in Charge of EPA’s Criminal Investigation Division in Kansas. “EPA and its law enforcement partners are committed to upholding the laws designed to protect our drinking water systems from harm or threat of harm. Today’s indictment sends a clear message that individuals who intentionally violate these laws will be vigorously prosecuted.”
Upon conviction, the alleged crimes carry the following penalties:
Tampering with a Public Water System: Up to 20 years in federal prison and a fine up to $250,000.
Reckless Damage to a Protected Computer During Unauthorized Access: Up to 5 years in federal prison and a fine up to $250,000.The Environmental Protection Agency, Kansas Bureau of Investigation and Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Christine E. Kenney is prosecuting the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Hull Man Indicted on Fraud Charge Arising from Fraudulent CARES Act Small Business LoansRead the Press Release
BOSTON – A Hull man was indicted by a federal grand jury yesterday in connection with submitting fraudulent documentation in order to receive CARES Act small business loans.
Shane Spierdowis, 30, was indicted on one count of wire fraud. Spierdowis was charged by criminal complaint and arrested on March 5, 2021.
According to charging documents, Spierdowis used false Social Security numbers and fraudulent documentation to apply for federally funded Small Business Administration (SBA) loans issued in connection with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Spierdowis obtained an SBA Paycheck Protection Program (PPP) loan of $101,517 in the name of a Limited Liability Company (LLC), the funds for which were wired to a bank in Massachusetts. In connection with this loan, Spierdowis provided a fraudulent corporate bank statement reflecting a balance exceeding $220,000; in fact, this statement was dated before the pertinent bank account was ever opened.
It is alleged that Spierdowis also obtained an SBA Economic Injury Disaster loan (EIDL) of $89,900 in connection with a separate LLC. In connection with both loans, Spierdowis allegedly used Social Security numbers that differ from his actual Social Security number. Spierdowis also submitted fraudulent federal tax forms for both of these LLCs. These tax forms reflect the signature of Spierdowis, as president of each LLC, and reflect the payment of hundreds of thousands of dollars in wages to LLC employees during each quarter in 2019. In fact, for part of Q1 2019 and all of Q2 – Q4 2019, Spierdowis was in federal custody after violating his probation arising from a conviction for conspiracy to commit securities fraud. Federal court records reveal that Spierdowis informed the Court of his efforts to obtain work in early 2019 without mentioning anything about his supposed presidency of either LLC.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. The Hull Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Heroin Trafficker Sentenced to Ten Years in PrisonRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Jorge Elizondo, 31, of Houston, Texas, was sentenced today in federal court for Conspiracy to Possess with Intent to Distribute Heroin.
Elizondo pled guilty to the charge in November of 2020. As part of his plea agreement, Elizondo admitted he and his co-defendant, Charles Jefferson, made an agreement with a source in Mobile, Alabama to sell to the source approximately one kilogram of heroin for $49,000. On June 8, 2020, Elizondo and Jefferson arrived in Tillman’s Corner with one kilogram of heroin to make the sale. They were arrested that day.
United States District Court Chief Judge Kristi DuBose imposed a mandatory sentence of 120 months imprisonment. The judge also ordered Elizondo to serve a five-year term of supervised release upon his discharge from prison. Judge DuBose ordered that Elizondo pay $100 in special assessments. Jefferson received the same sentence on February 11, 2021.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Kacey Chappelear and Justin Kopf.
Hazelton Man Sentenced to 24 Months’ Imprisonment for Aggravated Identity Theft in Connection with A Scheme to Unlawfully Obtain Government BenefitsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andres Santos, age 39, of Hazelton, Pennsylvania, was sentenced on March 30, 2021, by United States District Court Judge Robert D. Mariani to 24 months’ imprisonment for aggravated identity theft in connection with a scheme to unlawfully obtain various government benefits.
According to Acting United States Attorney Bruce D. Brandler, on February 21, 2019, Santos used the name, social security number, and birth date of the victim, and misrepresented his citizenship status, in order to obtain social welfare benefits to which he was not entitled, specifically, Medicaid Medical Assistance benefits and Supplemental Nutrition Assistance Program (SNAP) benefits, in a total amount of approximately $11,000.00.
The case was investigated by Department of Homeland Security Investigations and the Pennsylvania Office of the State Inspector General. Assistant United States Attorney Jeffery St John prosecuted the case.
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Harrison County Meth Dealer Sentenced to Decade in Federal PrisonRead the Press Release
MARSHALL, Texas – A Marshall, Texas, man was sentenced to federal prison today for drug trafficking crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Fernie Moreno, 35, pleaded guilty on Nov. 23, 2020, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Rodney Gilstrap.
“Drug traffickers who ply their deadly wares in our communities will be met with harsh consequences,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX, along with its law enforcement partners, will do whatever it takes to ensure that Harrison County is kept safe and drug free.”
According to information presented in court, Moreno was a member of a criminal organization responsible for selling large quantities of methamphetamine in Marshall. Moreno and eight others were indicted by a federal grand jury on Feb. 19, 2020, with five of these co-defendants already having been sentenced for their roles in the criminal conspiracy. Danny Brian Hernandez was sentenced to 17 years in federal prison, while Ronald Charles Parker received 14 years, Armando Ivan De La Torre received 16 years, Daniel Ramirez received 10 years, and Martin Lopez received 10 years. Pursuant to Operation Pine Curtain, numerous other co-conspirators have been arrested and are awaiting dispositions in their respective cases.
Operation Pine Curtain is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case was prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Guatemalan Man Convicted of Causing Misuse of a Social Security NumberRead the Press Release
Hattiesburg, Miss. – Angel Perez-Valezquez, a citizen of Guatemala, pled guilty today before U.S. District Judge Taylor B. McNeel to the crime of causing misuse of a social security number, announced Acting U.S. Attorney Darren LaMarca and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans.
Perez-Valezquez will be sentenced by Judge McNeel on July 7, 2021, and faces a maximum penalty of 5 years in prison, up to a $250,000 fine, and up to 3 years of supervised release. He also faces Homeland Security removal proceedings to remove him from the U.S. to Guatemala.
On August 25, 2020, the Department of Homeland Security, Border Enforcement Security Task Force in Gulfport, received information from the Hattiesburg Police Department regarding the arrest of Perez-Valezqez who had been working at the Mar-Jac Poultry Plant, under an assumed identity. A victim of the identity theft had contacted the Hattiesburg Police Department and reported the victim had received an Internal Revenue Service W-2 Form for 2019 from Mar-Jac Poultry. The victim said he had never been to Hattiesburg and had never worked for Mar-Jac Poultry.
Homeland Security Investigations agents determined that Perez-Valezquez worked at Mar-Jac Poultry under the victim’s name and social security number. Each time Perez-Valezquez was paid, he caused his employer, Mar-Jac Poultry, to report false information to the Social Security Administration, using the victim’s name and Social Security Number.
Acting U.S. Attorney LaMarca praised the coordination of Homeland Security Investigations and the Hattiesburg Police. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Former Southern University Band Director Sentenced to Federal Prison for Embezzlement ChargesRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge Brian A. Jackson sentenced Nathan Haymer, age 43, of Houston, Texas, to 13 months in federal prison following his conviction for federal program theft. The Court further sentenced Haymer to serve three years of supervised release following his term of imprisonment and ordered him to pay restitution in the amount of $78,690.16, as well as a money judgment for the same amount.
According to admissions made as part of his guilty plea, Haymer served as Director of Bands at Southern University A&M College (“Southern University”) and, in that role, was responsible for leading Southern University’s marching band, which performed at Southern University athletic events and a wide variety of other events both within Louisiana and across the United States. Haymer’s duties included making purchases and paying expenses during the band’s trips.
According to the Bill of Information containing the charges, from November 2016 through March 2018, Haymer intentionally misapplied more than $30,000 that Southern University had provided to him to be used for official band expenses. Specifically, according to the Bill, on more than a dozen occasions, Haymer submitted false documents, such as fictitious and forged invoices from purported vendors, knowing that he had not incurred the expenses reflected on the documents.
Acting U.S. Attorney Travis stated, “The conviction and sentence of Mr. Haymer reaffirms our commitment to investigating, arresting, and prosecuting individuals who betray the trust of taxpayers. Great credit goes to our partnership with local authorities for this result. I want to thank our prosecutor, the FBI, the Louisiana Legislative Auditor, and Louisiana State Police for their work on this case.”
“Mr. Haymer willfully stole money that was intended to support the students and their nationally acclaimed band program at Southern University. We hope that this sentencing brings a level of comfort and satisfaction that justice has prevailed for the students and the taxpayers that Mr. Haymer attempted to defraud," said Bryan Vorndran, FBI New Orleans Special Agent in Charge. “I would like to thank the efforts put forth by our partners at the Louisiana Legislative Auditor, Louisiana State Police, and the U.S. Attorney’s Office, Middle District of Louisiana for helping the FBI disrupt fraud like this.”
“It is disappointing when seemingly trustworthy employees misuse public funds. We will continue to aggressively investigate such complaints to ensure public funds are used for their intended purposes,” states Roger Harris, Director of Investigative Audit for the Legislative Auditor’s Office.
This matter was investigated by the Federal Bureau of Investigation, the Louisiana Legislative Auditor, and Louisiana State Police, and prosecuted by Assistant United States Attorney Alan Stevens, who also serves as Senior Litigation Counsel.
Former Member of North Shore Latin Kings Chapter Sentenced for Drug Distribution ChargesRead the Press Release
BOSTON – A former member of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on drug distribution charges.
Jesus Diaz, a/k/a “King Kiko,” 37, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 72 months in prison and three years of supervised release. In December 2020, Diaz pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine base, also known as “crack” cocaine.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Diaz admitted to selling a cooperating witness over 70 grams of cocaine base, or “crack” cocaine, in a series of audio/video recorded sales that took place between January and March of 2015.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Diaz is the 21st defendant sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering and drug charges.
Michael Marrero, a/k/a “King Clumsy,” 40, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 1, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
According to court documents, Marrero served as the Inca, or leader, of the Springfield Chapter of the Latin Kings until 2019, when he was appointed as Enforcer for the State of Massachusetts. In these leadership roles, Marrero attended meetings of the gang and state leadership where the business of the gang was discussed and decisions concerning members and operation of the gang were decided. In August 2019, Marrero was captured on a recording in the basement of a Latin Kings controlled trap house in New Bedford bagging and preparing 62 grams of cocaine base for distribution.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Marrero is the 42nd defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Intelligence Analyst Pleads Guilty to Disclosing Classified InformationRead the Press Release
A former intelligence analyst and former military servicemember pleaded guilty today to illegally obtaining classified national defense information and disclosing it to a reporter.
According to court records, Daniel Everette Hale, 31, of Nashville, Tennessee, served as an enlisted airman in the U.S. Air Force from July 2009 to July 2013. After receiving language and intelligence training, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the Air Force in July 2013, Hale was employed by a defense contractor and assigned to the NGA, where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret // Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
“Hale has now admitted what the evidence at trial would have conclusively shown: that he took classified documents from his work at the National Geospatial Intelligence Agency (NGA), documents he had no right to retain, and that he sent them to a reporter, knowing all along that what he was doing was against the law,” said Assistant Attorney General John C. Demers for the Justice Department's National Security Division. “This conduct undermined the efforts of our Intelligence Community to keep us safe. Hale’s plea is another step in the Department’s ongoing efforts to prosecute and deter leaks of classified information.”
“Those who are entrusted with classified information have a duty to safeguard that information in order to protect our Nation’s security,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As an analyst for the Intelligence Community, Daniel Hale knowingly took highly classified documents and disclosed them without authorization, thereby violating his solemn obligations to our country. We are firmly committed to seeking equal justice under the law and holding accountable those who betray their oath to safeguard national security information.”
According to court records, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and communicated with the reporter via phone, text message, email, and, at times, an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA.
Hale pleaded guilty to retention and transmission of national defense information, and he faces a maximum penalty of 10 years in prison when sentenced on July 13, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
John C. Demers, Assistant Attorney General for National Security, Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office made the announcement after the plea was accepted by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case
Former Intelligence Analyst Pleads Guilty to Disclosing Classified InformationRead the Press Release
ALEXANDRIA, Va. – A former intelligence analyst and former military servicemember pleaded guilty today to illegally obtaining classified national defense information and disclosing it to a reporter.
“Those who are entrusted with classified information have a duty to safeguard that information in order to protect our Nation’s security,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As an analyst for the Intelligence Community, Daniel Hale knowingly took highly classified documents and disclosed them without authorization, thereby violating his solemn obligations to our country. We are firmly committed to seeking equal justice under the law and holding accountable those who betray their oath to safeguard national security information.”
According to court records, Daniel Everette Hale, 31, of Nashville, Tennessee, served as an enlisted airman in the U.S. Air Force from July 2009 to July 2013. After receiving language and intelligence training, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the Air Force in July 2013, Hale was employed by a defense contractor and assigned to the National Geospatial-Intelligence Agency (NGA), where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret // Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
According to court records, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and communicated with the reporter via phone, text message, email, and, at times, an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA.
Hale pleaded guilty to retention and transmission of national defense information, and he faces a maximum penalty of 10 years in prison when sentenced on July 13, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; John C. Demers, Assistant Attorney General for National Security; and Jennifer C. Boone, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-59.
Former CEO of Melrose Credit Union Convicted of Bribery Schemes in Manhattan Federal CourtRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of ALAN KAUFMAN for participating in a scheme in which KAUFMAN, who was then the Chief Executive Officer of Melrose Credit Union (“Melrose CU”), accepted rent-free housing and financing for the purchase of his personal residence from Tony Georgiton as a reward for the approval of millions of dollars in loans to Georgiton’s companies at favorable terms. KAUFMAN was also convicted for accepting lavish vacations, including to Paris and Hawaii, from a media company and other vendors, as a reward for Melrose CU purchasing increased advertising from those companies. The jury convicted KAUFMAN today following a two-week trial before U.S. District Judge Lewis A. Kaplan. Georgiton pleaded guilty before Judge Kaplan on September 9, 2020.
U.S. Attorney Audrey Strauss said: “A unanimous Manhattan jury has found that Alan Kaufman, the former CEO of Melrose Credit Union, accepted luxurious gifts from Georgiton as a reward for favorable loan rates for his companies. In doing so, Kaufman shirked his fiduciary obligation to act in the best interests of Melrose to instead exploit his control of union funds for his own personal gain. Melrose’s members certainly deserved better representation than Alan Kaufman, who placed his own selfish needs above theirs – and thanks to the work of the FBI, Kaufman and Georgiton both stand convicted of federal crimes.”
According to the Indictment, documents previously filed in the case, and evidence introduced at trial:
In 2010, Georgiton purchased a home in Jericho, New York (the “Jericho Residence”) and permitted KAUFMAN to live in that home rent-free for over two years. While KAUFMAN was living rent-free at the Jericho Residence, KAUFMAN personally approved the refinancing of over $100 million worth of loans at Melrose CU held by a company owned by Georgiton with favorable terms. The head of Melrose CU’s loan department did not sign off on the loans given to Georgiton because, among other things, he believed that the terms were too favorable and did not comply with Melrose CU’s loan policy.
In 2011, KAUFMAN sought approval from Melrose CU’s Board of Directors for Melrose CU to purchase the naming rights to a ballroom under construction in Astoria, Queens (the “Melrose Ballroom”). That ballroom was owned by a company owned by Georgiton. KAUFMAN did not disclose to the Melrose Board that he was living rent-free in a house owned by Georgiton at the time he sought Board approval for the naming rights acquisition. Over the next five years, Melrose CU paid $2 million to Georgiton’s company for the naming rights to the Melrose Ballroom. KAUFMAN also directed that payment for the naming rights be paid a year in advance of the Melrose Ballroom’s actual opening for operations.
In 2013, KAUFMAN purchased the Jericho Residence from Georgiton, with financing that largely came from Georgiton. To purchase the Jericho Residence, KAUFMAN took out a $200,000 loan from Melrose CU co-signed by Georgiton and secured by Georgiton’s shares in Melrose CU. Georgiton also gave KAUFMAN a $240,000 unsecured personal loan. Georgiton has never made a demand for payment on that personal loan and KAUFMAN has never made a payment on that personal loan. Rather than repay the loan, the following year, KAUFMAN purchased a used Maserati sports car for his wife, valued at over $100,000.
In addition, from in or about 2010 through in or about 2015, KAUFMAN solicited and accepted lavish vacations and other gifts worth tens of thousands of dollars from a media company (“Media Company-1”) and other media vendors, as a reward for KAUFMAN’s approval of advertising spending by Melrose CU. For example, in 2010, Media Company-1 paid for KAUFMAN and his wife, who also worked at Melrose CU, to fly to Paris, France, and stay at the Four Seasons George V Paris. In 2012, Media Company-1 paid for KAUFMAN and his wife to fly to Maui, Hawaii and stay at the Four Seasons in Wailea. In 2013, Media Company-1 paid for KAUFMAN and his wife to attend the Super Bowl in New Orleans.
KAUFMAN did not seek approval for these vendor-paid trips from the Melrose CU Board, nor did he disclose these vendor-paid trips to the Melrose CU Board, in violation of Melrose CU’s anti-bribery policy.
* * *
KAUFMAN was found guilty of two counts of bribery of a financial institution officer, which each carry a maximum sentence of 30 years in prison. KAUFMAN was found not guilty of one count of conspiracy to commit bribery of a financial institution officer. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. KAUFMAN is scheduled to appear for sentencing before Judge Kaplan on June 23, 2021.
Ms. Strauss praised the outstanding work of the FBI. She also thanked the National Credit Union Administration for their efforts and ongoing support and assistance with the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Dina McLeod, Michael McGinnis, and Nicholas Chiuchiolo are in charge of the prosecution.
Five Men and One Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that six defendants convicted of Conspiracy to Distribute a Controlled Substance, have been sentenced to federal prison terms by U.S. District Judge Karen E. Schreier.
Robert Henry Heyer, Jr., a/k/a Bobby Heyer, age 49, from Peoria, Arizona, was sentenced on March 8, 2021, to 280 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Andrew Charles Anderson, a/k/a Andy Anderson, age 44, from Sioux Falls, South Dakota, was sentenced on December 14, 2020, to 60 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rex Leon Burtis, age 57, from Coleman, South Dakota, was sentenced on October 26, 2020, to 144 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jacquelyn Ann Muhs, age 45, from Dimock, South Dakota, was sentenced on May 18, 2020, to 120 months of federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Alex Geoffery Lang, age 26, from Sioux Falls, South Dakota, was sentenced on May 11, 2020, to 114 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Christopher F. Vonwille, age 58, from Sioux Falls, South Dakota, was sentenced on October 21, 2019, to 180 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Vonwille was indicted on March 5, 2019; Muhs and Burtis were indicted on May 8, 2019; Lang was indicted on June 6, 2019; and Anderson and Heyer were indicated on January 7, 2020.
Vonwille pled guilty on August 2, 2019; Lang pled guilty on January 28, 2020; Muhs pled guilty on February 24, 2020; Anderson pled guilty on September 23, 2020; and Heyer pled guilty on October 5, 2020.
Burtis was found guilty as a result of a federal jury trial in Sioux Falls, South Dakota, on July 28, 2020.
Beginning at an unknown date and continuing until on or about January 7, 2020, in the District of South Dakota and elsewhere, Defendants knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to knowingly and intentionally distribute a mixture and substance containing 500 grams or more of methamphetamine, which is a Scheduled II controlled substance.
This case was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, and the Department of Criminal Investigation. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
All Defendants were turned over to the custody of the U.S. Marshals Service following their sentencings.
Fifth St. Croix Woman Sentenced to Federal Incarceration, Ordered to Pay Restitution in Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Sheba Young, age 44, from St. Croix, was sentenced yesterday in federal court to ten months of incarceration, followed by three years of supervised release after pleading guilty to Conspiracy to Defraud the United States. She was also ordered to pay restitution in the amount of $37,086 to the Internal Revenue Service.
According to the plea agreement filed with the court, from January 2011 to July 2012, Sheba Young and nine others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of individuals (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds, spent them using a debit card or transferred them to other accounts, all for personal use.
As a result of the scheme, approximately $40,695 of falsely claimed returns was designated for deposit into Defendant’s bank account, of which approximately $37,086 was actually deposited therein.Of ten defendants charged in the tax fraud scheme, eight others have entered guilty pleas, four of whom have been sentenced in federal court by District Court Chief Judge Wilma Lewis. The remaining two defendants are scheduled for trial on June 7, 2021.
The prosecution of this fraud scheme is the result of years of investigative work by the
Internal Revenue Service-Criminal Investigations, which identified and dismantled a massive
stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.The case was investigated by the Internal Revenue Service, Criminal Investigations, and is
being prosecuted by Assistant U.S. Attorney Melissa Ortiz.Felon Charged with Illegal Firearms Possession in Stanislaus CountyRead the Press Release
FRESNO, Calif. — A two-count indictment was unsealed today charging Raymond Matthew Vance, 29, of Fresno, with two counts of being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Vance was in possession of two firearms on February 4, 2020, and an additional firearm on February 6, 2020. Vance committed the offenses in Stanislaus County. Vance was previously convicted of being a felon in possession of a firearm in the Eastern District of California in 2019, and was serving a probationary sentence for that offense at the time that he possessed the firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Turlock Police Department, the Modesto Police Department, the Tracy Police Department, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Vance faces a maximum statutory penalty of ten years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Forrest Fenn Treasure Hunter Digs Himself into a Federal SentenceRead the Press Release
Acting United States Attorney Bob Murray announced today that RODRICK DOW CRAYTHORN, 52, of Syracuse, Utah, was sentenced by Chief Federal District Court Judge Scott W. Skavdahl, for excavating and damaging archeological resources in the cemetery of the Fort Yellowstone National Historic Landmark in Yellowstone National Park. Craythorn received a sentence of six months of imprisonment plus six months of home detention, to be followed by two years of supervised release. He was also ordered to pay $31,566 in restitution.
Craythorn was found digging in Fort Yellowstone’s cemetery in late 2019 and early 2020, while looking for a treasure believed to be worth millions. Rangers and special agents of the National Park Service discovered seventeen sites of illegal excavation, including damage to an historic grave. The cemetery is a multicomponent archeological site with historical human burials. The cemetery is included in the National Register of Historic Places and more specifically designated on July 31, 2003, as a National Historic Landmark. Yellowstone National Park was established in 1872 as the nation’s first national park, and the U.S. Army was dispatched to the park in 1886 to protect its natural features and wildlife. Originally established as Camp Sheridan in 1891, it evolved into Fort Yellowstone and served as the Army headquarters until their departure in 1918. The Army began internments in the cemetery in 1888. At least 54 people were buried in the cemetery between 1888 and 1916, most of them civilian employees of the Army and relatives of military personnel.
A Santa Fe, New Mexico, art dealer named Forrest Fenn buried a chest of gold, silver, and gems in the western United States and then left a clue-filled poem to solve its location. The investigation into this matter revealed that Craythorn had done extensive research on the Forest Fenn treasure and documented his efforts to family and friends. Craythorn did not find the treasure during his criminal adventure. It was found later in Wyoming by another person.
"Yellowstone is one of the country’s most popular national parks and we must do everything in our power to investigate and prosecute those who damage and destroy its natural and cultural resources. A national park is no place to stage an adult treasure hunt motivated by greed. The harmful actions of Mr. Craythorn, no matter the reason or intent, destroyed valuable archaeological resources that cannot be undone", stated Acting United States Attorney Bob Murray. "I am pleased with the results of this case. The teamwork between Assistant United States Attorney Stephanie Hambrick and the rangers and special agents with our National Park Service resulted in the successful prosecution of a crime that a sentence of imprisonment is rarely imposed. Craythorn deserves time in a federal prison, no matter the length. Yet this case really serves to remind those enjoying our national parks the importance of respecting and preserving it for the whole of America", Murray said.
"This is the most significant investigation of damage to archaeological resources in Yellowstone National Park’s recent history," said Superintendent Cam Sholly. "I want to sincerely thank law enforcement officers, special agents, archaeological staff, the Department of Justice District of Wyoming and the U.S. District Court Judge for their outstanding work on this complex case."
"This is an example of a highly egregious resource violation stemming from the Forrest Fenn treasure hunt saga," said Yellowstone National Park Chief Ranger Sarah Davis. "Today’s action by the DOJ sends a clear message that these types of transgressions will be aggressively investigated and prosecuted."
-END-
Additional Information and Resources:
Website: Fort Yellowstone Cemetery (U.S. National Park Service) (nps.gov)
Images: News Media | Flickr
Dewitt Man Sentenced to 30 Years in Prison for Attempted Coercion and Enticement of a Child and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Derek Indivero, age 28, of Dewitt, New York, was sentenced today to serve 30 years in prison for attempted coercion and enticement of a child and possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon, Special Agent-in-Charge Thomas Relford of the Albany Division of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
As part of his earlier guilty plea, Indivero admitted that in February of 2018 he began communicating with a middle school student using the on-line messaging application Snapchat. Indivero offered the student $50 in exchange for sexual contact, and then met with the minor, engaged in the sexual contact, and paid the child $49.
Later that same month, law enforcement officials took over the middle school student’s Snapchat identity and, posing as the child, continued messaging Indivero. During the course of a Snapchat conversation, Indivero offered to pay the child $50 in exchange for oral sexual conduct, and then drove to a location to meet with the child for that purpose. Instead of finding the child, Indivero encountered law enforcement officials, and was arrested.
As part of his guilty plea, Indivero also admitted that at the time of his arrest he possessed 37 child pornography videos he obtained from the Internet using his cellular telephone.
Chief United States District Judge Glenn T. Suddaby also imposed a 30-year term of supervised release, which will start after Indivero is released from prison, and ordered Indivero to pay $6,000 in restitution and a $200 special assessment. As a result of his conviction, Indivero will be required to register as a sex offender upon his release from prison.
Indivero’s case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police in coordination with the Onondaga County Sheriff’s Office and the Onondaga County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Deltona Man Federally Charged with Using A Minor to Produce Child Sex Abuse ImagesRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Wayne Joseph Cavins (62, Deltona) with four counts of producing child exploitation materials. If convicted, he faces a minimum mandatory penalty of 15, and up to 30 years, in federal prison on each count. Cavins was arrested at his home on March 30, 2021, and has been ordered detained pending trial.
According to the indictment, between January 8 and January 21, 2021, Cavins enticed and used a minor to engage in sexually explicit conduct for the purpose of having the minor produce images depicting the sexual abuse of the minor.
An indictment is merely a formal charge that a defendant has violated one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by St. Johns County Sheriff’s Office and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
DeepDotWeb Administrator Pleads Guilty to Money Laundering ConspiracyRead the Press Release
WASHINGTON – An Israeli national pleaded guilty today for his role in operating DeepDotWeb (DDW), a website that connected Internet users with Darknet marketplaces, where they purchased illegal firearms, malware and hacking tools, stolen financial data, heroin and fentanyl, and other contraband.
According to court documents, Tal Prihar, 37, an Israeli citizen residing in Brazil, owned and operated DDW along with co-defendant Michael Phan, 34, of Israel, beginning in October 2013. In addition to providing general information about the Darknet, DDW provided users with direct links to illegal Darknet marketplaces, which are not accessible through traditional search engines. For providing these links, Prihar and Phan received kickback payments from the marketplaces in the form of virtual currency, including approximately 8,155 bitcoins (worth approximately $8.4 million based on the bitcoin trading value at the time of the transactions). To conceal the nature and source of these illegal kickback payments, Prihar transferred the payments from his DDW bitcoin wallet to other bitcoin accounts and to bank accounts he controlled in the names of shell companies. DDW was seized by federal authorities in April 2019, and Prihar has agreed to forfeit $8,414,173.
"Tal Prihar served as a broker for illegal Darknet marketplaces — helping such marketplaces find customers for fentanyl, firearms, and other dangerous contraband — and profited from the illegal business that ensued," said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. "This prosecution, seizure of the broker website, and forfeiture send a clear message that we are not only prosecuting the administrators of Darknet marketplaces offering illegal goods and services, but we will also bring to justice those that aim to facilitate and profit from them."
"Tal Prihar today acknowledged his leadership role in operating a web site that served as a gateway to numerous dark web marketplaces selling fentanyl, heroin, firearms, hacking tools and other illegal goods," said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. "Mr. Prihar and his codefendant extracted a fee from each customer routed to these illegal sites, profiting in the millions of dollars."
"For six years, DeepDotWeb was a gateway to facilitate the illegal purchase of items to include dangerous drugs, weapons, and malicious software," said Acting Special Agent in Charge Carlton Peeples of the FBI’s Pittsburgh Field Office. "Prihar profited as a byproduct from other people’s dangerous transactions and today’s guilty plea sends a message to other cyber actors across the globe who think the dark web is a safe haven. The FBI works with our local, state, federal and international partners regularly to dismantle illicit websites and go after those responsible for them."
Prihar pleaded guilty to conspiracy to commit money laundering. He is scheduled to be sentenced on Aug. 2, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Pittsburgh Field Office is investigating the case.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania and Trial Attorneys C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The department thanks the French authorities as well as its law enforcement colleagues at the U.S. Postal Inspection Service, IRS, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and National Crime Agency in the United Kingdom. Significant assistance was provided by the Justice Department’s Office of International Affairs.
This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and more. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
This prosecution also is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DeepDotWeb Administrator Pleads Guilty to Money Laundering ConspiracyRead the Press Release
An Israeli national pleaded guilty today for his role in operating DeepDotWeb (DDW), a website that connected internet users with Darknet marketplaces, where they purchased illegal firearms, malware and hacking tools, stolen financial data, heroin and fentanyl, and other contraband.
According to court documents, Tal Prihar, 37, an Israeli citizen residing in Brazil, owned and operated DDW along with co-defendant Michael Phan, 34, of Israel, beginning in October 2013. In addition to providing general information about the Darknet, DDW provided users with direct links to illegal Darknet marketplaces, which are not accessible through traditional search engines. For providing these links, Prihar and Phan received kickback payments from the marketplaces in the form of virtual currency, including approximately 8,155 bitcoins (worth approximately $8.4 million based on the bitcoin trading value at the time of the transactions). To conceal the nature and source of these illegal kickback payments, Prihar transferred the payments from his DDW bitcoin wallet to other bitcoin accounts and to bank accounts he controlled in the names of shell companies. DDW was seized by federal authorities in April 2019, and Prihar has agreed to forfeit $8,414,173.
“Tal Prihar served as a broker for illegal Darknet marketplaces — helping such marketplaces find customers for fentanyl, firearms, and other dangerous contraband — and profited from the illegal business that ensued,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution, seizure of the broker website, and forfeiture send a clear message that we are not only prosecuting the administrators of Darknet marketplaces offering illegal goods and services, but we will also bring to justice those that aim to facilitate and profit from them.”
“Tal Prihar today acknowledged his leadership role in operating a web site that served as a gateway to numerous dark web marketplaces selling fentanyl, heroin, firearms, hacking tools and other illegal goods,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “Mr. Prihar and his codefendant extracted a fee from each customer routed to these illegal sites, profiting in the millions of dollars.”
“For six years, DeepDotWeb was a gateway to facilitate the illegal purchase of items to include dangerous drugs, weapons, and malicious software,” said Acting Special Agent in Charge Carlton Peeples of the FBI’s Pittsburgh Field Office. “Prihar profited as a byproduct from other people’s dangerous transactions and today’s guilty plea sends a message to other cyber actors across the globe who think the dark web is a safe haven. The FBI works with our local, state, federal and international partners regularly to dismantle illicit websites and go after those responsible for them.”
Prihar pleaded guilty to conspiracy to commit money laundering. He is scheduled to be sentenced on Aug. 2, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Pittsburgh Field Office is investigating the case.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania and Trial Attorneys C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The department thanks the French authorities as well as its law enforcement colleagues at the U.S. Postal Inspection Service, IRS, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and National Crime Agency in the United Kingdom. Significant assistance was provided by the Justice Department’s Office of International Affairs.
This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and more. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
This prosecution also is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DeWitt Man Sentenced to 40 Years in Prison for Threats Made to Federal Law Enforcement Agents and a Former United States AttorneyRead the Press Release
LITTLE ROCK—Multiple death threats, including repeated threats to FBI agents and a former United States Attorney, earned a Dewitt man 40 years in federal prison. Clayton Jackson, 35, whose legal address is in Minnesota but who was living in Dewitt when the original threats were made, received the 480-month sentence from United States District Court Judge Susan Webber Wright on Wednesday.
Jackson originally pleaded guilty on November 2, 2020, to all five counts of an indictment that charged him with three counts of threatening to assault and murder a federal official and two counts of mailing threatening communications. Each of the five counts carried a maximum 10-year sentence. On Wednesday, Judge Wright sentenced Jackson to the maximum 10 years on each count, and then ran the sentences for counts 1 through 4 consecutively, and count 5 concurrently, to arrive at the 40-year sentence. There is no parole in the federal system.
At his change of plea hearing, Jackson admitted that he mailed two letters to the FBI headquarters in Little Rock, one in February 2020 and one in March 2020, which threatened to kill multiple FBI employees who he believed were involved in an unrelated criminal matter. Both letters were signed by Jackson. After the FBI received and reviewed the correspondences, an FBI special agent not named in the letters interviewed Jackson. During the interview Jackson admitted that he sent the letters and reiterated his intention to kill the people named in the letters. During the interview, Jackson said that the letters were “not a threat, but a promise,” and acknowledged that he knew it was a crime to send those letters, but said “I can’t be sentenced forever” when emphasizing his desire to kill the FBI employees. Jackson was indicted by a federal grand jury on June 4, 2020.
At the sentencing hearing on Wednesday, an FBI special agent testified that after indictment, Jackson continued to write letters threatening to kill the same people named in the original letters, as well as additional civilians not originally named. The FBI received three letters that Jackson wrote while in custody, which stated his intention to escape from prison and kill additional people, including former United States Attorney for the Eastern District of Arkansas Cody Hiland. According to testimony on Wednesday, the most recent letter, in which Jackson stated there was a “price tag” on two civilians, was dated March 11, 2021, and addressed to the “White Knights of the Ku Klux Klan.” Additional testimony Wednesday detailed an unsuccessful escape attempt by Jackson from Prairie County jail on March 7, 2021, in which Jackson assaulted a local prison guard.
“This defendant’s repeated threats against law enforcement were a failed attempt to intimidate those who have sworn to protect and serve,” said Acting United States Attorney Jonathan D. Ross. “This lengthy sentence should serve as a warning: threats like these will not be tolerated and will not prevent law enforcement from doing their important work of protecting our communities.”
“We are pleased with the Court’s decision regarding Clayton Jackson today,” said FBI Little Rock Acting Special Agent in Charge Jason Van Goor. “We take any threat against law enforcement seriously, and we believe Mr. Jackson’s 40-year sentence will serve as a warning to anyone thinking about threatening federal agents and officers. As always, we are grateful to our partners at the US Attorney’s Office for the Eastern District of Arkansas for their tremendous work on this case.”
In explaining her sentence, Judge Wright highlighted Jackson’s continued criminal conduct after indictment and his lack of remorse.
The investigation was conducted by the FBI and prosecuted by Assistant United States Attorney Chris Givens.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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Columbus Area Drug Trafficking Organization DisruptedRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that an extensive drug trafficking organization that was responsible for selling large quantities of illegal drugs in the Columbus area has been dismantled. Thirty-six individuals were indicted by a grand jury on various federal charges, including possession of methamphetamine with intent to distribute and felon in possession of a firearm. Twenty-four have already been convicted and sentenced to federal prison.
“The large drug trafficking organizations not only saturate our communities with illegal drugs, they bring gun violence and contribute to the addiction problems facing the Hoosier state and nation,” said Childress. “Federal law enforcement will continue to work with state and local law enforcement to eliminate these organizations and assure the citizens who live in the Southern District of Indiana that we are committed and determined to keep the communities where they live safe.”
Bartholomew County Chief Deputy Prosecutor, Gregory E. Long said, “We have a good working relationship with our federal partners, and I look forward to continuing to work together as a team to help stop the flow of illegal drugs from entering our community.”
In 2018, federal agents and officers assigned to the Bartholomew County Joint Narcotics Enforcement Team (JNET) initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Columbus Day.
During the investigation, agents and officers identified members of a Mexican based drug trafficking organization who were sending large quantities of methamphetamine, heroin, and marijuana to the Columbus, and Seymour, Indiana area. What followed was a multi-year investigation that targeted the Chavez family. The Chavez family lived and operated out of the Columbus area, where multiple family members and their close associates used a variety of methods to traffic drugs (primarily, methamphetamine). Throughout the investigation, agents and officers intercepted multiple parcels, conducted numerous controlled purchases, and conducted approximately 15 search warrants in the Bartholomew County area.
Operation Columbus Day netted approximately 114 pounds of methamphetamine, 4 pounds of heroin/fentanyl and 28 pounds of marijuana. In addition to drug seizures, approximately $224,124 in U.S. currency was seized as drug proceeds. Agents and officers also recovered approximately 115 firearms.
Following the investigation, 36 individuals were indicted federally through the United States Attorney’s Office and 23 additional individuals were prosecuted through the Bartholomew County Prosecutor’s Office on charges ranging from possession with intent to distribute methamphetamine to felon in possession of a firearm. Of the 36 individuals indicted, 25 have been convicted, and sentences ranged from 12 months to 270 months in federal prison.
The below individuals are just five of the 24 defendants thus far that have been prosecuted and sentenced for federal firearm, drug, and/or immigration charges.
- Jorge Chavez – sentenced to 270 months
- Ivan Chavez-Lozoya – sentenced to 69 months
- Jacklyn Munoz – sentenced to 108 months
- Bryan Miranda-Alvidrez – sentenced to 120 months
- Fernando Lopez-Mendez – sentenced to 120 months (and subject to deportation)
This investigation was a collaborative effort between the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Postal Inspection Service, Bartholomew County Joint Narcotics Enforcement Team (JNET), Seymour Police Department, U.S. Marshal Service, and Homeland Security Investigations.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Columbus Day was a huge success for the fine citizens of Bartholomew County and fellow Hoosiers. Based on the exceptional work conducted by DEA and our partner’s approximately 60 individuals were arrested. In addition, over 100 pounds of methamphetamine and over 100 firearms were seized. This investigation was a perfect example of law enforcement collaborating at the highest levels. Any time we can remove large amounts of debilitating drugs such as methamphetamine, heroin, fentanyl, and illegally possessed firearms from the streets, it is a big win. DEA remains committed to working hand in hand with the Bartholomew County Joint Narcotics Enforcement Team to keep our communities safe.”
“Drugs and firearms violence unfortunately go hand in hand,” stated Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “ATF is committed to making our communities safer for everyone, and the conviction of those involved in this violent drug trafficking scheme is a step toward that goal. My thanks go out to all of our local, state, and federal partners in this investigation for their tireless work and commitment.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service stated, “This investigation is another example of a successful crack down on those seeking to abuse the Postal Service by shipping drugs and illegal proceeds through the U.S. Mail. Preventing illegal drugs from entering the U.S. Mail system is one of the highest priorities for the U.S. Postal Inspection Service. As this case illustrates, we utilize enhanced investigative techniques and leverage strategic partnerships with other federal, state and local law enforcement agencies in an effort to prevent these dangerous drugs from harming our communities.”
“Bartholomew County’s Joint Narcotics Enforcement Team is a well-coordinated initiative that is providing an entirely different approach and attack on dealing with drugs,” said Bartholomew County Sheriff Matthew A. Myers. “JNET was taken to the “next level” when a Bartholomew County Sheriff’s deputy was assigned to the DEA Task Force. “Our greatest focus and number one priority is on drug eradication, particularly targeting people who provide illegal narcotics to our residents. Having local, state and federal agencies working together, sends a huge message,” added Sheriff Myers.
“Eliminating dangerous drugs from Columbus and holding those persons responsible who transport and distribute narcotics into our community is one of law enforcements most critical roles,” said Columbus Police Chief Michael Richardson. “These arrests spotlight the hard work that was done by our JNET detectives in collaboration with a number of law enforcement agencies. This investigation should serve as a wake-up call to anyone who is considering selling drugs in Columbus and Bartholomew County. I am extremely proud of every officer involved in this lengthy investigation and would like to commend them for their exceptional work.”
According to Assistant U.S. Attorneys M. Kendra Klump and Lawrence Hilton, who prosecuted this case for the government, this case was part of an Organized Crime Drug Enforcement Task Force (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.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting organizations that supply and distribute methamphetamine and or heroin in the district. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1.
Chicago Consultant Charged with Federal Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant was indicted today on tax offenses for allegedly underreporting and failing to file federal income taxes.
ANNAZETTE COLLINS, also known as “Annazette Collins-Langston” and “Annazette Collins-Momon-Langston,” 58, of Chicago, is charged with two counts of willfully filing a false individual income tax return, two counts of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return. The indictment was returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Sarah E. Streicker, Diane MacArthur, Michelle Kramer, Matthew L. Kutcher, Timothy J. Chapman, and Julia Schwartz.
According to the indictment, Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. The indictment also accuses Collins of willfully failing to file a corporate income tax return for the calendar years 2015 and 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each felony count of filing a false individual income tax return is punishable by up to three years in federal prison. The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum prison sentence of one year. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Central Falls Man Sentenced to Thirty-Five Years in Prison for Creating and Possessing Child PornographyRead the Press Release
PROVIDENCE – A Central Falls man who admitted to repeatedly abusing a toddler that he photographed and filmed in various stages of undress, displaying her genitalia, and of him engaged in sexually explicit conduct with her, was sentenced today to 35 years in federal prison.
According to court documents, Jose A. Cortes, 41, had regular access to a female toddler and used that relationship with her to sexually abuse her multiple times. He memorialized the abuse by filming and taking photographs of his actions.
In addition to creating a library of photographs and video of his abuse of the toddler beginning when she was approximately two-and-a-half years old, Cortes admitted to amassing a sizeable collection of thousands of images of child pornography, including a video of a prepubescent child in bondage being raped.
According to court documents, Cortes criminal conduct first came to the attention of the Central Falls Police Department when an acquaintance of Cortes told police that Cortes showed him images on a tablet of teenaged girls and images of babies being molested. While showing off the images, Cortes came upon images of the known victim and said, “That’s me with [redacted] daughter.”
According to court documents, Cortes told the induvial he would place the toddler’s sibling in another room with video games and treats so he could “do what he does to her.” He added, “If you’re gonna do this, you gotta get the children that don’t talk, they’re babies.”
Jose Cortes, detained since his arrest on April 19, 2018, pleaded guilty on June 15, 2020, to two counts of sexual exploitation of a minor and one count of possession of child pornography.
Cortes was sentenced today by U.S. District Court Judge William E. Smith to 35 years in federal prison to be followed by lifetime federal supervised release, announced Acting United States Attorney Richard B. Myrus and Central Falls Police Chief Colonel Anthony Roberson.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
Acting United States Attorney Richard B. Myrus acknowledges and thanks the Rhode Island State Police and Homeland Security Investigations for their assistance in the investigation, and the Rhode Island Department of the Attorney General for their assistance preparing the case for prosecution in U.S. District Court.
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Brother and Sister Charged in Scheme to Thwart IRS Tax CollectionRead the Press Release
A federal grand jury in Houston, Texas, returned an indictment on March 17, 2021, charging Michael Andrew McCann with conspiring to defraud the United States, endeavoring to obstruct the IRS, failing to file tax returns, and making false bankruptcy declarations.
The grand jury also returned an indictment charging Toni Gale Engeling with conspiring to defraud the United States and obstructing the grand jury. The defendants made their initial court appearance today before U.S. Magistrate Judge Sam Sheldon of the U.S. District Court for the Southern District of Texas.
According to the indictment, McCann is a dentist in Brazoria and Engeling is a bookkeeper and McCann’s sister. From 2010 to 2015, McCann and Engeling allegedly employed a variety of methods to prevent the IRS from assessing and collecting McCann’s individual income taxes, including using nominee entities, commingling personal and business finances, and lying to the IRS. The indictment further alleges that McCann corruptly endeavored to obstruct IRS collection efforts as early as 2002; that McCann made false declarations on schedules he filed in connection with multiple bankruptcy cases; and that McCann willfully failed to file tax returns for the years 2014 through 2018. The indictment further alleges that in September 2019, Engeling obstructed the grand jury’s investigation into McCann by making false and misleading statements.
If convicted, McCann faces a maximum sentence of five years in prison for the conspiracy charge; five years in prison for each charge of bankruptcy fraud; three years in prison for the IRS obstruction charge; and one year for each charge of willful failure to file. If convicted, Engeling faces a maximum sentence of five years in prison for the conspiracy charge and ten years in prison for the grand jury obstruction charge.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Jen Ihlo and Trial Attorneys Mitchell Galloway and William Guappone of the Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CHAZ DEAR, 23, of Bridgeport, pleaded guilty today to possession of a firearm by a felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According court documents and statements made in court, in late 2019, law enforcement received information that Dear, who was on state parole, was selling marijuana. Investigators subsequently made a controlled purchase of marijuana from Dear. On January 30, 2020, Dear was arrested after a court-authorized search of his residence revealed a Glock 27, .40 caliber handgun with an extended magazine loaded with 23 rounds of ammunition, as well as small quantities of heroin and crack cocaine.
Dear’s criminal history includes state felony convictions for narcotics, weapon and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Dear is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 30, 2021, at which time he faces a maximum term of imprisonment of 10 years.
Dear has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Branson Man Indicted for Threatening Sheriff’s DepartmentRead the Press Release
SPRINGFIELD, Mo. – A Branson, Missouri, man has been indicted for threatening on the internet to injure employees of the Los Angeles County, California, Sheriff’s Department.
Joshua L. Bippert, 26, was charged in a single-count indictment returned under seal by a federal grand jury in Springfield, Mo., on March 23, 2021. The indictment was unsealed and made public on Tuesday, March 30, following Bippert’s arrest and initial court appearance.
The federal indictment alleges that Bippert communicated the threat over the internet to the Sheriff’s Department between Sept. 20 and 21, 2020.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI and the Los Angeles County, Calif., Sheriff’s Department.
Boston Man Pleads Guilty to Armed Robbery of Brockton Cell Phone StoreRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston in connection with the March 2019 robbery of a T-Mobile store in Brockton and shooting at police officers as he and his co-defendants fled the scene.
Darius Carter, 28, pleaded guilty to interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being a felon in possession of firearms and ammunition. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 20, 2021.
Darius Carter and co-defendants Diovanni Carter and Stephan Rosser-Stewart were charged in March 2019. Diovanni Carter was convicted by a federal jury and sentenced to 270 months in prison in September 2020. Rosser-Stewart has pleaded not guilty and is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
According to the charging documents, on the evening of Jan. 2019, Darius Carter and Rosser-Stewart entered a T-Mobile store in Brockton. It is alleged the men were carrying a semi-automatic firearm, which they pointed at the store manager as they demanded cash and electronics. Carter struck the store manager in the head with a firearm as he demanded that the manager open the door to a rear room with a large safe containing cell phones and cash. The men allegedly stole approximately $25,000 in cash and electronics, left the store, and fled in a getaway vehicle driven by Diovanni Carter.
Police responded and located the getaway vehicle. A high-speed chase ensued that reached over 70 mph in residential neighborhoods. During the chase, Darius Carter and, allegedly, Rosser-Stewart fired eight rounds at the pursuing police cruisers.
Law enforcement apprehended Darius Carter and Rosser-Stewart and recovered the stolen phones, cash and the three firearms used in robbery. Diovanni Carter was apprehended in March 2019.
Carter and his co-defendants were prohibited from possessing firearms and ammunition due to prior criminal convictions.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of a firearm during the commission of a crime of violence provides for a sentence of up to life in prison, and a mandatory consecutive term of imprisonment ranging from five years for the possession of a firearm, seven years for the brandishing of a firearm to 10 years for the discharge of a firearm. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal of the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief Emanual Gomes made the announcement today. Assistant U.S. Attorney Glenn MacKinlay, Chief of Mendell’s Organized Crime & Gang Unit, and Assistant U.S. Attorney Philip A. Mallard, a member of the unit, are prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Auto Body Shop Owner Sentenced for Tax FraudRead the Press Release
BOSTON – The owner of Everett and Worcester auto body shops was sentenced today in federal court in Worcester in connection with a payroll tax scheme resulting in a tax loss to the IRS of more than $290,000.
Adam Haddad, 43, of Shrewsbury, was sentenced by U.S District Court Judge Timothy S. Hillman to eight months in prison, one year of supervised release and ordered to pay restitution in the amount of $292,231. In September 2020, Haddad pleaded guilty to three counts of aiding the preparation of false tax returns.
For tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Armed Drug Courier Sentenced in Methamphetamine, Heroin CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Jose Alberto Seguy, 24, of Brownsville, Texas, was sentenced today for his participation in the transportation of approximately 32 kilograms of methamphetamine ice and five kilograms of heroin from Texas to Atlanta, Georgia during January of 2020. Seguy pled guilty to federal charges of possession with intent to distribute methamphetamine and heroin, and possession of a firearm in relation to a drug trafficking felony in May of 2020.
According to documents filed in connection with his guilty plea, Seguy was the passenger in a truck stopped northbound on I-65 on January 9, 2020 by the Saraland Police Department. Seguy told officers he had a pistol in the car but no valid permit to carry it. A drug dog alerted on the rear of the truck for the presence of narcotics. Further investigation and a search of the truck revealed three large fire extinguishers and two vehicle batteries which appeared to have after-market seams and welds. Inside one of the batteries officers found five kilograms of heroin, and inside the fire extinguishers, officers found approximately 30 kilograms of methamphetamine.
United States District Court Judge William H. Steele imposed a ten-year sentence in Seguy’s case this morning, consisting of 60 months on each charge, to run consecutive to each other. Judge Steele also ordered that Seguy would serve a five-year term of supervised release when he is released from custody. Seguy was also ordered to pay a mandatory special assessment of $200. No fine was imposed. The judge further entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Jeremy Lewis, 23, of Ripley, Tennessee, has been sentenced to 180 months in federal prison for illegally possessing a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on April 11, 2019, the Ripley Police Department responded to an aggravated assault complaint where Lewis threatened to shoot his stepfather with an AR-15. Ripley Police quickly located Lewis and the assault rifle. Lewis admitted to possessing the weapon. He had previously been found guilty of other violent felonies such as aggravated assault and robbery.
On September 22, 2020, Lewis pled guilty to being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1). As a result of his felony convictions, Lewis is prohibited by federal law from possessing firearms or ammunition and was determined to be an armed career criminal under the federal sentencing guidelines and subject to a mandatory minimum sentence of 180 months.
On March 22, 2021, U.S. District Judge Sheryl H. Lipman sentenced Lewis to 180 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ripley Police Department, and the Brownsville Police Department investigated this case.
Special Assistant U.S. Attorney Sean G. Hord prosecuted this case on behalf of the government. SAUSA Hord is currently assigned from the 25th Judicial District Attorney’s Office.
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