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14 May 2021
Acting U.S. Attorney Clay Joyner Recognizes Police WeekRead the Press Release
Oxford, Miss.— In honor of National Police Week, Acting U.S. Attorney Clay Joyner recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said United States Attorney General Merrick B. Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Law enforcement officers are deserving of our gratitude and respect, particularly during this time when we honor those who have lost their lives in the line of duty,” remarked Acting United States Attorney Clay Joyner. “I am constantly humbled to be able to work with these men and women who run towards danger rather than away from it, and by the sacrifices that they and their families make in service to their communities and their country.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
Aberdeen Man Sentenced for Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Aberdeen, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on May 10, 2021, by U.S. District Judge Charles B. Kornmann.
Juan Smith, age 28, was sentenced to 37 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to forfeit a .380 caliber pistol, magazine clips, and .380 caliber ammunition.
The conviction stems from Smith, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Sturm, Ruger & Company Incorporated .380 caliber pistol in March 2020 in Aberdeen. At the time, Smith possessed the firearm, three pistol magazines, and some .380 caliber ammunition at his residence in Brown County when law enforcement officers conducted a state probation search because Smith had been using drugs.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Aberdeen Police Department, and the Brown County Sheriff’s Office. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Smith was immediately remanded to the custody of the U.S. Marshals Service.
13 May 2021
Woman Charged with Bringing More Than 5 Kilo of Cocaine on Flight from Puerto Rico to ConnecticutRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston, today announced that HECMARIELIZ CRUZ-ACEVEDO, 22, of Bayamon, Puerto Rico, has been charged in a federal criminal complaint with possession with intent to distribute five kilograms or more of cocaine.
As alleged in court documents, on May 9, 2021, HSI received information from U.S. Department of Agriculture inspectors at San Juan International Airport that Cruz-Acevedo had boarded a flight to Baltimore-Washington International Airport, with a final destination of Bradley International Airport, and had checked a piece of luggage that contained five rectangular-shaped objects consistent with narcotics packages. After the flight landed at Bradley Airport, a Connecticut State Police canine detected the presence of narcotics in the checked bag. Investigators stopped Cruz-Acevedo when she retrieved the bag at baggage claim. A search of the bag revealed five individual parcels, each containing slightly more than one kilogram of cocaine, located between articles of clothing.
Cruz-Acevedo, who has been detained since her arrest on May 9. She appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was released on a $100,000 bond.
The charge of possession with intent to distribute five kilograms or more of cocaine carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Alexander Cleveland King, of New Martinsville, West Virginia, was sentenced today to 30 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
King, also known as “Alex,” 35, pleaded guilty in March 2021 to one count of “Unlawful Possession of Firearm.” King, a person prohibited from having a firearm because of a conviction, admitted to having .45 caliber pistol in January 2021 in Wetzel County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Westford Man Agrees to Plead Guilty to Bank Fraud Conspiracy and National Firearms Act ViolationRead the Press Release
BOSTON – A Westford man has agreed to plead guilty to conspiring to commit bank fraud and possessing an unregistered firearm.
Bin Lu, 49, has agreed to plead guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. Lu was arrested and charged in January 2021 with conspiracy to violate provisions of the National Firearms Act (NFA).
According to the charging documents, Lu and a co-conspirator sought to build a large indoor shooting range, which would service both regional and international customers, as well as offer shooting clinics and other services. Lu and his co-conspirators brought in a Chinese investor, who contributed several million dollars to the project. However, in applying for loans from federally insured financial institutions, Lu and his co-conspirators hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.
Lu also knowingly possessed a firearm that had been modified by the addition of a folding stock, resulting in its classification as a short-barreled rifle (SBR) under the NFA. The SBR was not registered to Lu in the National Firearms Registration and Transfer Record as required by the NFA.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. 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; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waite Park Man Charged in St. Cloud Bank Robbery, Hostage SituationRead the Press Release
MINNEAPOLIS – A federal criminal complaint was filed yesterday charging a Waite Park man in connection to a St. Cloud bank robbery and hostage situation.
According to court documents, on May 6, 2021, Ray Reco McNeary, 35, entered a Wells Fargo Bank in St. Cloud and alleged that there was fraud on his bank account. After the bank manager was unable to locate any accounts belonging to McNeary, McNeary became enraged and demanded that $60,000 in cash be taken from the vault and placed in a bank bag. The bank manager activated the silent panic alarm, notifying law enforcement of a problem at the bank.
According to court documents, upon arrival, St. Cloud police officers learned that five employees of the bank were being held hostage by McNeary. Multiple times throughout the incident, McNeary held a pair of scissors against the bank manager’s neck and back. FBI hostage negotiators spoke with McNeary repeatedly during what turned out to be an eight-hour standoff. During the course of negotiations, four of the employees were allowed to leave the bank. The standoff ended at approximately 10:24 p.m. when the bank manager fled the bank and law enforcement moved into the bank and arrested McNeary.
McNeary is charged with one count of bank robbery. If convicted, McNeary faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney W. Anders Folk of the District of Minnesota; and Special Agent in Charge Michael Paul of the FBI’s Minneapolis Field Office made the announcement.
This case is the result of an investigation conducted by the FBI and the St. Cloud Police Department.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney's Office Cautions Taxpayers to Beware of Fraudulent Tax PreparersRead the Press Release
CHARLOTTE, N.C. – With this year’s tax filing deadline approaching quickly, Acting U.S. Attorney William T. Stetzer urges taxpayers to beware of fraudulent return preparers and warns dishonest preparers that violating federal tax laws can lead to criminal actions and stiff monetary penalties.
The IRS’s Dirty Dozen Tax Scams represents the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. Unscrupulous tax preparers are once again listed as one of the most common tax fraud schemes.
“Taxpayers rely on tax return preparers for their expertise and assistance with filing honest and accurate tax returns. When crooked preparers violate that trust, federal prosecutors will be there to hold them accountable,” said Acting U.S. Attorney Stetzer.
To highlight its message of deterrence to those who engage in the preparation of fraudulent tax returns, commit tax fraud and potentially expose their clients to serious consequences, the U.S. Attorney’s Office highlights the following criminal actions against tax preparers who have violated federal law:
On March 25, 2021, Aminta Smith, of Charlotte, was sentenced to 30 months in prison and one year of supervised release and ordered to pay $171,017 as restitution to the IRS. According to the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax & Insurance Group, LLC. Between 2011 to 2016, Smith prepared fraudulent income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2011 to 2015, and in some years failing to disclose that she was in engaged in the operation of a tax preparation business. In total, Smith caused more than $1 million in tax loss to the IRS.
On August 28, 2020, Elizabeth Pigatt, of Charlotte, was sentenced to four months in prison for filing false tax returns. According to court documents Pigatt owned and operated Pigatt Taxes Quick, a return preparation business in Charlotte. Beginning in at least 2012 and continuing through 2016, the defendant prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns also falsely claimed education credits and the incorrect filing status. The tax loss associated with the offense was more than $250,000 but less than $550,000.
In July 2020, Joseph Octave, Vonyeda Carson, Wendia Courtois, Melissa Greene, Natisha Holloman, Kimberly Joline, and Whitney Vargas-Medrano, all of Charlotte, were charged with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns. According to court documents, Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte. Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits. Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns. The training material provided to employees included scripts and cheat sheets. Furthermore, Carson and Courtois filed false personal tax returns. All seven defendants have pleaded guilty and are awaiting sentencing.
The U.S. Attorney’s Office reminds taxpayers to visit IRS’s website for tips on choosing a preparer, and to obtain information on how to avoid unethical tax preparers. The U.S. Attorney’s Office also urges taxpayers to protect themselves against a wide range of other tax schemes. In addition to tax preparer fraud, taxpayers are urged look out for and to avoid the following common schemes:
- Phishing
- Fake Charities
- Threatening Impersonator Phone Calls
- Social Media Scams
- EIP or Refund Theft
- Senior Fraud
- Scams Targeting Non-English Speakers
- Offer in Compromise Mills
- Fake Payments with Repayment Demands
- Payroll and HR Scams
- Ransomware
IRS Criminal Investigation works closely with the Department of Justice to shut down scams and to prosecute the criminals behind them. Education is the best way to avoid these common schemes.
To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax return preparer’s misconduct or improper tax preparation practices you can file a complaint here.
Two Maryland Men Facing Federal Indictment on Charges Related to the Illegal Importation of Iranian Currency and Fraudulent Wire Transfers to Purchase Foreign CurrencyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Richard Allan Boyd, age 58, and Lee Ryan Fondiller, age 50, both of Eldersburg, Maryland, for the federal charges of conspiracy to commit bank and wire fraud and wire fraud, in connection with a scheme to import foreign currencies, including the Iranian rial and Iraqi dinar, from suppliers outside the United States. Boyd is also charged with violation of the International Emergency Economic Powers Act, and making false statements under oath in a bankruptcy proceeding. The indictment was returned on April 29, 2021 and unsealed at Boyd’s initial appearance in U.S. District Court in Baltimore on May 10, 2021. Fondiller had his initial appearance on May 12, 2021. Both defendants were released pending trial.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Jamie Mazzone of the U.S. Department of Transportation-Office of Inspector General.
According to the 32-count indictment, from at least January 30, 2017 until at least October 17, 2018, Boyd, Fondiller, and others conspired to defraud financial institutions to effect transfers of funds in payment for foreign currency banknotes, while misrepresenting and concealing the true purpose of the payments.
Specifically, the indictment alleges that Boyd caused his business, Amoyeshua Enterprises, to market foreign currencies to customers in the United States and elsewhere and accepted orders for foreign currencies from customers through the Internet, telephone, and other means. Boyd allegedly arranged for shipments of foreign currencies into the United States by, in part, making payments to foreign suppliers of the currencies through wire transfers of funds. The indictment alleges that Boyd facilitated customers’ purchases of foreign currency by accepting funds from the purchasers via interstate wire transfers. Boyd and Fondiller allegedly made payments to foreign suppliers of the foreign currencies by submitting requests and orders to banks where they had business accounts for international wire transfers to the foreign sellers. According to the indictment, Boyd, Fondiller, and others concealed the true purpose of the international wire transfers to their banks by falsely representing that the wire transfers were for jewelry, watches, and/or other items. The indictment alleges that Boyd, Fondiller, and others caused fraudulent wire transfers totaling more than $300,000 to be sent to banks in Jordan.
As detailed in the indictment, in requesting and directing payment for foreign currencies, Boyd instructed customers by email, text message, and other means, not to indicate or note to any intermediary financial institution or payment processor that the customer's payment was made in exchange for currency. In addition, Boyd allegedly fabricated invoices reflecting purchases of watches and jewelry in order to disguise the true purpose of the payments to his foreign currency supplier via international wire transfer, and sent the invoices to the foreign supplier by email as false documentation of the payments.
The indictment also alleges that Boyd violated the trade embargo against The Islamic Republic of Iran (“Iran”) by importing Iranian rial banknotes between 2016 and 2018. The rial is the currency of Iran and is issued by the Central Bank of Iran, which is owned by the Government of Iran. The importation of Iranian rial banknotes ("rials") into the United States was prohibited by the International Emergency Economic Powers Act (“IEEPA”) and the Iran Transactions and Sanctions Regulations (“ITSR”). The indictment alleges that between 2015 and 2018, Boyd imported Iranian rials into the United States, marketed rials via the Internet and other means (including under trade names such as Amoyeshua Enterprises and BuyNewDinar.com), and distributed rials to customers in the United States and elsewhere.
In about February 2016, officers of United States Customs and Border Protection (“CBP”) stationed at the John F. Kennedy International Airport in New York examined several packages shipped from Amman, Jordan. Some of the packages were addressed to Boyd at his residence and others were addressed to customers, family members, and associates of Boyd. CBP officers found that the packages contained Iranian rials. After confirming with the Office of Foreign Assets Control (“OFAC”) that the importation of Iranian rials was prohibited by IEEPA and the ITSR, CBP officers seized the rials and packaging materials.
Between March and April 2016, Boyd, his customers, family members, and associates received letters from CBP notifying them of seizures of Iranian rials in February 2016 and stating that the importation of Iranian currency to the United States was prohibited by law. The indictment alleges that after being notified and acknowledging that the importation of Iranian rails weas illegal, Boyd continued to import Iranian rials into the United States, advertise the sale of Iranian rials on the Internet, accept orders and payments from customers for rials, and sell and distribute rials to customers in the United States, all without any license or authorization from OFAC.
Finally, the indictment alleges that on August 1, 2018, Boyd made false statements under oath during his bankruptcy proceeding. Specifically, Boyd allegedly stated that he had closed his currency selling business in July 2018, and had no intention of reopening the business. In addition, Boyd allegedly stated that he did not try to import any more Iranian currency after CBP seized the currency shipment in January 2016. In fact, Boyd caused Iranian rial to be brought into the United States in 2017 and 2018, and continued to direct and conduct transactions of foreign currencies after August 1, 2018.
If convicted, Boyd and Fondiller each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud and a maximum of 30 years in federal prison for each count of wire fraud affecting financial institutions. Boyd also faces a maximum of 20 years in federal prison for each of 10 counts of violation of the International Emergency Economic Powers Act; and a maximum of five years in federal prison for each of two counts of false oath in a bankruptcy proceeding. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI and DOT OIG for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting this case.
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Tomah Man Convicted of Producing & Possessing Child PornographyRead the Press Release
MADISON, WIS. – A federal jury in Madison, Wisconsin, has found Shannon R. Donoho, 44, Tomah, Wisconsin, guilty of child pornography crimes. The verdict was announced by Acting U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. The jury reached a verdict this afternoon after two hours of deliberation following two days of testimony.
The jury convicted Donoho of seven counts of producing child pornography, one count of attempting to produce child pornography, and one count of possessing child pornography. The jury found that Donoho produced child pornography on seven occasions between September 2015 and October 2017 and attempted to produce child pornography on June 28, 2018. The jury also found that on July 25, 2018, he possessed a hard drive containing images of child pornography, and that at least one image was of a minor who had not attained 12 years of age.
Evidence presented at the trial established that in 2016, Donoho hid Go Pro cameras in the bathroom at a residence of a family friend and made several recordings of a 9-year-old girl in the shower. Donoho was visible in several of the videos interacting with the girl while she was showering and after she exited the shower in the bathroom. Additionally, in June 2018, Donoho placed a Go Pro camera in the bathroom of the trailer where he resided in Tomah and recorded another young girl urinating. Videos and images of these two girls were discovered after law enforcement executed a search warrant at the trailer. Law enforcement also discovered Donoho had a substantial collection of other images and videos of child pornography that he had downloaded from the Internet.
U.S. District Judge William M. Conley scheduled Donoho’s sentencing for July 28, 2021. Donoho faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the production charges, and a maximum penalty of 20 years on the possession charge.
The charges against Donoho are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and the Tomah Police Department. The prosecution of the case is being handled by Assistant U.S. Attorneys Julie Pfluger and Taylor Kraus.
Texas Man Is 64th Defendant Charged in Nationwide Telemarketing SchemeRead the Press Release
MINNEAPOLIS – A Texas man was arraigned in federal court today on charges of wire fraud and violating the Senior Citizens Against Marketing Scams Act of 1994 (the “SCAMS Act”).
According to court documents, Jeremy Wade Wilson, 39, of Fort Worth, Texas, was the owner and operator of Publishers Elite, a Texas-based company involved in fraudulent magazine sales. Publishers Elite operated a telemarketing call center in Arlington, Texas, and from 2013 through 2019, Wilson provided his telemarketers with scripts containing fraudulent sales pitches for use in defrauding victim-consumers, many of whom were elderly or otherwise vulnerable, out of hundreds or even thousands of dollars. The fraudulent sales pitches were designed to induce consumers, through a series of lies and misrepresentations, into unwittingly signing up for expensive magazine subscriptions.
According to court documents, Wilson obtained lists of consumers who had active and ongoing magazine subscriptions through other companies. Wilson directed his telemarketers to claim—falsely—that they were calling from the victim-consumers’ existing magazine subscription company and about an existing magazine subscription. Wilson’s script directed the telemarketers to claim—again falsely—to be calling with an offer to renew the victim-consumer’s existing magazine subscription, often at a reduced cost. In reality, Wilson and his company had no existing relationship with most of the victim-consumers and his telemarketers were not calling about an existing magazine subscription. Instead they were calling to defraud them by tricking them into unwittingly signing up for entirely new magazine subscriptions.
According to court documents, Wilson and his company defrauded more than 14,000 victims across the United States, including more than 200 victims in Minnesota. Between 2013 and 2019, his company received more than $4.5 million from victims of his scheme.
Wilson is charged with six counts wire fraud and violating the Senior Citizens Against Marketing Scams Act of 1994 (the “SCAMS Act”). Wilson is the 64th defendant charged to date as part of a nationwide telemarketing scheme that targeted elderly and vulnerable victims. Wilson was arraigned today in U.S. District Court before Magistrate Judge Tony N. Leung. Acting U.S. Attorney W. Anders Folk of the District of Minnesota made the announcement.
This indictment is related to the cases United States v. Rahm, et al., 20-cr-232; United States v. Timmerman et al., 20-cr-233; United States v. Mathias et al., 20-cr-231; United States v. Olberg, 20-cr-285, United States v. Dahl, 18-cr-305 and United States v. Oelrich, 20-cr-128.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams 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.
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Tangipahoa Parish Sheriff’s Captain Charged with Defrauding Office by Receiving Unearned PayRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on May 11, 2021 KEVIN STIMAGE, age 44, has been charged by a Bill of Information with Theft from Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). If convicted, STIMAGE faces up to ten years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
According to the Bill of Information, in 2019 and 2020, STIMAGE was employed as a deputy assigned to the transportation division of the Tangipahoa Parish Sheriff’s Office (TPSO), an organization which received federal funds in excess of $10,000 annually during that time period. Although STIMAGE reported working 40 hours a week for TPSO during this time frame, in actuality STIMAGE was working another job for a different employer, a detail at an apartment complex in Tangipahoa Parish, while purportedly on-duty for TPSO. In 2020, STIMAGE was promoted to Captain.
STIMAGE subsequently submitted false and fraudulent payroll sheets to TPSO which fraudulently overstated his actual work hours. As a result, TPSO paid STIMAGE over $5,000 to which he was not entitled in both 2019 and 2020.
U. S. Attorney Evans stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation on this matter. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
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Stebbins Man Sentenced to Prison for Illegally Possessing a FirearmRead the Press Release
FAIRBANKS – Dwayne Thrasher, 33, from Stebbins, Alaska, was sentenced to 28 months in federal prison followed by three years of supervised release for illegally possessing a firearm.
According to court documents, Thrasher was intoxicated in his home on January 21, 2020, when he became angry at his domestic partner. After throwing a pot of boiling hot soup to the floor, he pulled out a .22-caliber handgun and fired it inside the home until it was empty. When he began to reload the firearm, his partner was able to grab the gun and hide it before fleeing the house in fear for her life.
Thrasher has a long history of assaulting multiple women stretching back over 13 years. As someone previously convicted of a felony offense, Thrasher is prohibited from possessing firearms or ammunition.
The Federal Bureau of Investigation (FBI) and the Alaska State Troopers investigated the case.
Assistant U.S. Attorney Daniel Doty prosecuted the case.
This case is part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative to increase engagement, coordination and action on public safety in Alaska Native communities. Led by the U.S. Attorney’s Office, it encourages extensive collaboration among law enforcement at all levels, rural communities, Alaska Native groups, victim service organizations and care providers.
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Statement of U.S. Attorney's Office for the District of Columbia Before D.C. Council Regarding Measures to Strengthen Protections for Victims-Survivors of Domestic ViolenceRead the Press Release
Chairman Allen and Members of the Council:
My name is Elana Suttenberg, and I am the Special Counsel for Legislative Affairs at the United States Attorney’s Office for the District of Columbia (USAO). I am accompanied today by my colleagues, Sharon Marcus-Kurn, Chief of the Sex Offense and Domestic Violence Section, and Ryan Creighton, a Senior Assistant United States Attorney in that Section who spearheads our Office’s Intimate Partner Violence Prevention Initiative, who are available to assist in answering the Committee’s questions. I thank you for the opportunity to appear at today’s public hearing on the proposed legislation.
Our Office is committed to protecting victims and survivors, providing support to these individuals and their families as they navigate the criminal justice process, and prosecuting those who harm others. We are committed to preventing intimate partner violence and, in 2019, our Office launched an Intimate Partner Violence Prevention Initiative, a focused effort within our Office to recognize intimate partner violence as a specific type of violence requiring unique tools to address, and increase the prosecutorial and advocacy resources devoted to the issue.[1]
Bill 24-0116, the “Victims’ Protection Amendment Act of 2021”
Consistent with this commitment, we are proud to support the Victims’ Protection Amendment Act of 2021, introduced by Mayor Muriel Bowser. This bill would create a felony offense of strangulation and create an offense for violating a post-conviction stay away or no contact order, both of which would protect victims—particularly victims of intimate partner violence.
Felony Strangulation
A felony offense of strangulation will enable the District of Columbia to combat and prosecute strangulation in a manner proportionate with the seriousness of the conduct. By enacting this important piece of legislation, the District will join the overwhelming majority of states—48 at present—in making this extremely dangerous—and potentially life-threatening—type of assault a felony.
Current law in the District creates three tiers of assault: felony aggravated assault that requires proof of serious bodily injury, punishable by a maximum of 10 years’ imprisonment;[2] felony assault that requires proof of significant bodily injury, punishable by a maximum of 3 years’ imprisonment;[3] and misdemeanor simple assault that requires no proof of any level of injury, punishable by a maximum of 180 days’ imprisonment.[4] Because injuries stemming from non-fatal strangulation rarely qualify as either “serious bodily injury” or “significant bodily injury,” virtually all non-fatal strangulation cases can be prosecuted only as misdemeanor simple assault.[5]
But strangulation is widely recognized as one of the most lethal forms of domestic violence, and categorizing that conduct as a misdemeanor does not adequately reflect that lethality. Strangulation is extremely dangerous: because it restricts the victim’s breathing and circulation of the blood, a victim can lose consciousness within 5-10 seconds and die within minutes.[6] A major strangulation study in San Diego made the following findings: “Most strangulation cases produce minor or no visible injury. Many victims suffer internal injuries, including permanent brain damage. Signs and symptoms do exist and can be documented even without visible injury… Most abusers do not strangle to kill. They strangle to show they can kill. Victims often suffer major long-term emotional and physical impacts. Surviving victims are much more likely to die later if their abuser has strangled them.”[7] The San Diego strangulation study also noted that “[o]ne study has shown that the odds of becoming a victim of attempted homicide increased by 700%, and the odds of becoming a homicide victim increased by 800%, for women who had been strangled by their partner.”[8]
The District is in the distinct minority of jurisdictions by not having either a separate felony offense of strangulation or a means of criminalizing strangulation as a felony offense. Twenty-one (21) states have separate laws criminalizing strangulation as a stand-alone felony offense.[9] Twenty-seven (27) other states have made strangulation a felony by including strangulation as a means of committing a felony-level offense, such as assault.[10] Aside from the District, Ohio and South Carolina are the only states that do not have a felony strangulation law.[11]
Creating a stand-alone felony offense of strangulation is preferable to categorizing strangulation-related injuries as a type of felony assault. A stand-alone offense of strangulation more appropriately captures and describes the conduct that is the subject of the offense. In addition, a stand-alone offense does not require proof of any level of injury, but rather focuses solely on the conduct. This recognizes that strangulation often results in no visible injuries, and should be classified as a felony regardless of the level of injury.[12]
Further, consistent with the bill as introduced, strangulation should be categorized as a “crime of violence” under D.C. Code § 23-1331(4). This reflects the seriousness and violent nature of the offense of strangulation. In addition, this would make strangulation eligible for pretrial preventative detention under D.C. Code § 23-1322(b)(1)(A). Allowing pretrial preventative detention will in turn help to protect victims who have been strangled. This is particularly important given the elevated lethality risk to the victim following strangulation.[13]
Creation of an Offense for Violating a Post-Conviction Stay Away or No Contact Order
To further protect victims of intimate partner violence, it is necessary to eliminate a legal loophole under current District law, and to create an offense for violating a post-conviction stay away or no contact order.
Under D.C. Code § 23-1329(c), contempt sanctions may be imposed if a person “intentionally violate[s] a condition of his release,” which would include a violation of a stay away/no contact order.[14] This contempt sanction, however, only applies to individuals who have been released prior to trial or sentencing.[15] Individuals who violate a condition of their release—including stay away provisions—while they are on probation, supervised release, or parole are not subject to contempt liability either under D.C. Code § 23-1329(c) or under the general contempt provision in D.C. Code § 11-944(a).[16]
This situation creates an illogical and potentially fatal loophole in the D.C. Code. Under current law, there is no meaningful immediate enforcement mechanism for violation of a condition of post-disposition release. If a defendant is alleged to have violated a condition of their probation, the defendant’s supervising officer at the Court Services and Offender Supervision Agency (CSOSA) may present an Alleged Violation Report (AVR) to the presiding judge. The presiding judge may issue a “show cause order,” which orders the defendant to appear in court and to show cause why their probation should not be revoked. This situation does not, however, permit law enforcement to make an immediate, on-the-scene arrest, which may be appropriate, if not essential. If a defendant is at that moment violating a stay away or no contact order, that violation directly implicates the safety of the community, and could impact the life or safety of the victim whom the order is intended to protect.[17] To permit an officer to make a warrantless arrest for this offense, a conforming amendment to D.C. Code § 23-581 is required.
The tragic and brutal murder of Paula Coles illustrates the serious flaws in the current system. On September 27, 2017, Paula Coles was murdered by her abusive former romantic partner. At the time of her murder, the defendant was on probation after being convicted of assaulting Ms. Coles and their 9-month-old son on July 5, 2017. A specific court-ordered condition of his probation was that he was to stay away from, and have no contact with, Ms. Coles.
On September 15, 2017, the defendant was released from custody after serving his sentence. Less than 12 hours before the murder, in the late hours of September 26, 2017, Ms. Coles called 911 to report an argument that had erupted between the defendant and Ms. Coles, and between the defendant and an individual with whom Ms. Coles was now romantically involved. The defendant fled the scene before police arrived.
Ms. Coles showed responding MPD officers a copy of the pretrial stay away order that had been previously imposed, as well as the judgment and commitment order in the criminal case that contained the stay away order. Police checked certain electronic records and were not able to locate a stay away order in the system against the defendant.[18] Critically, because a violation of a post-conviction stay away order is not a stand-alone offense, even if police had been able to confirm the presence of the properly issued probationary stay away order, they could not have immediately arrested the defendant for violating that order. Instead, their only remedy would be to return to their office, request that CSOSA file an AVR, and wait for the court to schedule a show cause hearing.
After police left, the defendant continued to call Ms. Coles throughout the night. Several people overheard the defendant telling Ms. Coles that he would kill her. The following morning, the defendant stabbed Ms. Coles to death. The defendant was later arrested and ultimately pled guilty and admitted to murdering Ms. Coles.
Bill 24-0075, the “Expanding Supports for Crime Victims Amendment Act of 2021”
As to the Expanding Supports for Crime Victims Amendment Act of 2021, we believe that victims, survivors, and their families should be supported as they navigate the aftermath of a traumatic experience. To that end, our Office’s Victim/Witness Assistance Unit—which includes 16 highly experienced victim advocates who work within the Office and have specialties that include working with child victims, domestic violence victims, and families of homicide victims—provides support to victims throughout the criminal justice process.
We support the bill’s expansion of access to Crime Victims Compensation Program funds, which will allow victims to receive financial assistance and reimbursement for necessary expenses such as funeral costs, medical and mental health expenses, and temporary shelter. We also support providing access to the Crime Victims Compensation Program for victims who are impacted by post-conviction litigation, including where motions have been filed under the Incarceration Reduction Amendment Act or for compassionate release. These motions—filed years after the original sentencing—may cause victims to reopen and relive a painful chapter in their lives, and these victims and their families deserve access to services such as therapy. In our written testimony, we have proposed redline changes to the relevant provisions.
As to the bill’s proposal to expand victim access to confidential advocates, we support some of the goals of this proposal, but have concerns about these provisions as drafted. First, as to the creation of a right to a confidential advocate for a victim who has suffered gunshot or stabbing wounds during any interview with law enforcement at the hospital, we are concerned that this may inadvertently hamper law enforcement when they have an immediate need to speak with the victim about what happened to resolve an ongoing emergency (such as ascertaining the whereabouts of a suspect), ascertain what happened and locate crucial evidence or witnesses, or conduct initial investigative steps (such as securing a crime scene). Second, as to the expansion of these advocacy services to be confidential, a victim’s initial statements to another person about what happened are often a crucial part of an investigation, and making that conversation confidential may, similarly, impede a time-sensitive criminal investigation. This could be equally true if that conversation included inculpatory information—such as a victim’s emotional accounting of the offense—or exculpatory information—such as a victim contradicting a statement later made to law enforcement. To be clear, USAO believes that victims should be supported throughout the criminal justice process, and community-based advocates can play an important role in that support. We believe, however, that support can exist without some of the proposed expansions.
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We appreciate the Committee holding this hearing today and recognizing the importance of these issues. We believe that the Victims’ Protection Amendment Act will save lives, and we look forward to continuing to work with the Council on ways to protect and support victims and prevent violence.
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The U.S. Attorney’s Office proposes the following additional modifications to D.C. Code § 4-506(a) to allow victims who are impacted by post-conviction litigation to access the Crime Victims’ Compensation Program:
§ 4–506. Eligibility for compensation.
(a) A victim or secondary victim is eligible to receive compensation under this chapter if he or she:
(1) Suffered personal injury as a result of a crime;
(2) Filed a claim under this chapter within 1 year after the crime occurred, or 1 year after learning of the Program with an adequate showing that the delay in learning of the Program was reasonable, 1 year after the filing of or during the pendency of an application for a sentence modification pursuant to D.C. Code § 24-403.03 or § 24-403.04 or any other post-conviction motion in a case in which he or she was a victim or secondary victim; and
(3) Reported the crime to a law enforcement office within 7 days of its occurrence. If the crime cannot be reasonably reported within that time period, the crime must be reported within 7 days from the time a report can reasonably be made.
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The U.S. Attorney’s Office proposes the following language for D.C. Code § 14-307(b)(4), which creates an exemption for elderly persons and vulnerable adults who are the victims of fraud or exploitation, whether prosecuted under D.C. Code § 22-933.01 or otherwise.
§ 14-307. Confidential information.
(b) . . .
(4) In a grand jury, criminal, delinquency, or civil proceeding where a person is alleged to have defrauded: (a) the District of Columbia or federal government in relation to receiving or providing services under the District of Columbia medical assistance program authorized by title 19 of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.); or (b) a health care benefit program; or (c) an elderly person or vulnerable adult, as those terms are defined in 203a of the Criminal Abuse and Neglect of Vulnerable Adults Act of 2000, effective June 8, 2001 (D.C. Law 13-301; D.C. Official Code § 22-932); or
[1] Mr. Creighton, who leads this Initiative, collaborates with community partners to address intimate partner violence and further develop our Office’s expertise in investigating and prosecuting domestic violence cases. As a result of this Initiative, we have conducted trainings and community outreach events focused on informing the public of the resources that are available to combat domestic violence and to meet the security, emotional, and other needs of the survivors. We believe that continued education is crucial to both recognizing the dangers of strangulation and preventing intimate partner violence. For example, in 2020, our Office’s Intimate Partner Violence Prevention Initiative organized a training focused on identifying, investigating, and prosecuting cases involving strangulation. This training was developed in partnership with the Training Institute on Strangulation Prevention and was mandatory for all prosecutors at the U.S. Attorney’s Office who focus on prosecuting crimes involving sex offenses and domestic violence. We have also partnered with DC Forensic Nurse Examiners to conduct training for prosecutors at the U.S. Attorney’s Office.
[2] See D.C. Code § 22-404.01. “Serious bodily injury” is an injury that involves a substantial risk of death, unconsciousness, extreme physical pain, protracted and obvious disfigurement, or protracted loss or impairment of the function of a bodily member, organ, or mental faculty. See Nixon v. United States, 730 A.2d 145, 150 (D.C. 1999) (adopting definition of “serious bodily injury” from D.C. Code § 22-3001(7) for purposes of aggravated assault statute). The D.C. Court of Appeals has held that, to qualify as “extreme physical pain” for purposes of the aggravated assault statute, “the level of pain necessary to constitute serious bodily injury must be exceptionally severe if not unbearable,” and has suggested “that a victim’s physical pain may have to be so severe as to be immobilizing to satisfy the serious bodily injury requirement.” Jackson v. United States, 940 A.2d 981, 987–88 (D.C. 2008) (internal citations omitted).
[3] See D.C. Code § 22-404(a)(2). “Significant bodily injury” is defined as “an injury that requires hospitalization or immediate medical attention.” Id. The D.C. Court of Appeals has interpreted “immediate medical attention” to refer to “treatment”; “in other words, the ‘attention’ required is not satisfied by mere diagnosis. This treatment, in turn, must be aimed at one of two ends—preventing long-term physical damage and other potentially permanent injuries or abating pain that is severe instead of lesser, short-term hurts. Such treatment must exceed first-aid remedies such as ice packs, bandages, and over-the-counter medications, even if administered by a medical professional. The standard is objective: the relevant inquiry is not whether a person in fact receives immediate medical attention but whether medical treatment beyond what one can administer himself is immediately required to prevent long-term physical damage, possible disability, disfigurement, or severe pain.” In re D.P., 122 A.3d 903, 911–12 (D.C. 2015) (internal citations omitted).
Further, even where strangulation results in loss of consciousness, the D.C. Court of Appeals has held that a brief loss of consciousness of approximately a minute or less does not qualify as a “significant bodily injury.” D.P., 122 A.3d at 913; see also Vaughn v. United States, 93 A.3d 1237, 1269 n.39 (D.C. 2014) (questioning but not deciding whether any loss of consciousness, however brief, could amount to the requisite serious bodily injury to sustain an aggravated assault conviction (cited in D.P., 122 A.3d at 913 n.10)). Moreover, if the victim is the only witness to the loss of consciousness, the victim may not be able to ascertain how long they were unconscious or be able to establish that the loss of consciousness lasted more than a “brief” time.
[4] See D.C. Code § 22-404(a)(1).
[5] If a person used a dangerous weapon to commit strangulation, that conduct could be prosecuted as felony assault with a dangerous weapon, punishable by a maximum of 10 years’ imprisonment. See D.C. Code § 22-402.
[6] See Training Institute on Strangulation Prevention, Strangulation in Intimate Partner Violence Fact Sheet (2017) (available at https://www.familyjusticecenter.org/resources/strangulation-intimate-partner-violence-fact-sheet/).
[7] Gael Strack and Casey Gwinn, Strangulation and Domestic Violence: The Edge of Homicide, Domestic Violence Report, at 90 (August/September 2014) (available at https://www.familyjusticecenter.org/wp-content/uploads/2019/05/DV-Report-8.2014.pdf) (emphasis in original; internal citations omitted).
[8] Id. at 93. Similarly, research conducted by Nancy Glass, PhD, MPH, RN at Johns Hopkins University found that “[w]omen who were the victims of completed or attempted homicide were far more likely to have a history of strangulation compared to the abused control women.” Nancy Glass et al., Non-Fatal Strangulation Is an Important Risk Factor for Homicide of Women, Journal of Emergency Medicine, 35(3) (2008) (available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2573025/). Glass’s research found that “strangulation is a relatively prevalent form of violence toward women who experience physical violence in an abusive relationship (a finding consistent with the sparse literature on the subject) and is a significant predictor for future lethal violence.” Id.
In her book No Visible Bruises: What We Don’t Know About Domestic Violence Can Kill Us, Rachel Louise Snyder also focuses on the dangers of strangulation: “Those strangled to the point of losing consciousness are at their highest risk of dying in the first twenty-four to forty-eight hours after the incident from strokes, blood clots, or aspiration (choking on their own vomit). Such incidents can cause brain injury—mild or traumatic—not only by cutting off oxygen to the brain, but because they are often accompanied by blunt force trauma to the head. Still, domestic violence victims are not routinely screened for strangulation or brain injury in emergency rooms, and the victims themselves, who tend to have poor recall of the incident, are often not even aware that they’ve lost consciousness.” Snyder at 65–66 (citations omitted).
[9] Those states are: Alabama, Ala. Crim. Code § 13A-6-138; Connecticut, Conn. Gen. Stat. § 53a-64aa; Delaware, Del. Code Ann. tit. 11, § 607; Florida, Fla. Stat. § 784.041; Idaho, Idaho Code § 18-923; Indiana, Ind. Code § 35-42-2-9; Kentucky, Ky. Rev. Stat. Ann. § 508; Massachusetts, Mass. Gen. Laws ch. 265, § 15D; Michigan, Mich. Comp. Laws. § 750.84; Minnesota, Minn. Stat. § 609.2247; Montana, Mont. Code Ann. § 45-5-215; Nebraska, Neb. Rev. Stat. § 28-310.01; New York, N.Y. Penal Law §§ 121.11 – 121.13; North Carolina, N.C. Gen. Stat. § 14-32.4; Oregon, Or. Rev. Stat. § 163.187; Pennsylvania, Pa. Cons. Stat. § 2718; Rhode Island, RI. Code R. § 11-5-2.3; Virginia, Va. Code Ann. § 18.2-51.6; West Virginia, W. Va. Code § 61-2-9d; Wisconsin, Wis. Stat. § 940.235; and Wyoming, Wyo. Stat. Ann. § 6-2-509.
[10] Those states are: Alaska, Alaska Stat. §§ 11.41.201 et seq.; 11.81.900 (including strangulation as a means of committing felony-level assault); Arizona, Ariz. Rev. Stat. § 13-1204 (same); Arkansas, Ark. Code § 5-13-204 (same); California, Cal. Penal Code § 273.5 (including strangulation-related injury in a domestic violence context as a means of committing felony-level offense); Colorado, Colo. Rev. Stat. § 18-3-202 (including strangulation-related serious bodily injury as a means of committing felony-level assault); Georgia, Ga. Code § 16-5-21 (including strangulation as a means of committing felony-level assault); Hawaii, Haw. Rev. Stat. § 709-906 (including strangulation in a domestic violence context as a means of committing felony-level offense); Illinois, Il. Comp. Stat. § 5/12-3.3 (same); Iowa, Iowa Code § 708.2A (including strangulation in a domestic violence context as a means of committing aggravated misdemeanor, or as a means of committing felony-level offense if strangulation resulted in bodily injury); Kansas, Kan. Stat. Ann. § 21-5414 (including strangulation in a domestic violence context as a means of committing felony-level offense); Louisiana, La. Stat. Ann. § 14:35.3 (same); Maine, Me. Rev. Stat. tit. 17-A, § 208 (including strangulation-related injury as a means of committing felony-level assault); Maryland, Md. Code Ann., Crim. Law § 3-202 (including strangulation as a means of committing felony-level offense); Mississippi, Miss. Code § 97-3-7 (including strangulation in a domestic violence context as a means of committing felony-level assault); Missouri, Mo. Rev. Stat. § 565.073 (including strangulation in a domestic violence context resulting in physical injury as a means of committing felony-level assault); Nevada, Nev. Rev. Stat. § 200.481 (including strangulation as a means of committing felony-level offense); New Hampshire, N.H. Rev. Stat. § 631:2 (including strangulation as a means of committing felony-level assault); New Jersey, N.J. Rev. Stat. § 2c:12-1 (including strangulation as a means of committing felony-level assault); New Mexico, N.M. Stat. § 30-3-16 (including strangulation in a domestic violence context as a means of committing felony-level offense); North Dakota, N.D. Cent. Code §§ 12.1-01-04(27), 12.1-17-02 (including strangulation-related injury as a mean of committing felony-level assault); Oklahoma, Okla. Stat. tit. 21, § 644 (including strangulation in a domestic violence context as a means of committing felony-level assault); South Dakota, S.D. Codified Laws § 22-18-1.1 (including strangulation as a means of committing felony-level assault); Tennessee, Tenn. Code § 39-13-102 (same); Texas, Tex. Penal Code Ann. § 22.01 (including strangulation in a domestic violence context as a means of committing felony-level assault); Utah, Utah Code § 76-5-103 (including strangulation as a means of committing felony-level assault); Vermont, Vt. Stat. tit. 13, § 1024 (same); Washington, Wash. Rev. Code Ann. § 9A.36.021 (same). Federal law also criminalizes strangulation as a felony, 18 U.S.C. § 113(a)(8), and U.S. Sentencing Commission Guidelines create an enhancement for an aggravated assault that involved the use of strangulation. U.S. Sentencing Guidelines Manual § 2A2.2(b)(4) (U.S. Sentencing Comm’n 2018). A survey of all state laws regarding strangulation can be found on the website of the Training Institute on Strangulation Prevention, located at https://www.strangulationtraininginstitute.com/resources/legislation-map.
[11] In their final recommendations to the Mayor and Council, the D.C. Criminal Code Reform Commission (CCRC) made strangulation-related injuries eligible for felony prosecution by defining “significant bodily injury” to include “a contusion, petechia, or other bodily injury to the neck or head sustained during strangulation or suffocation.” Report #70—Criminal Code Reform Commission (CCRC) Recommendations for the Council and Mayor (Voting Draft) at 57. “Bodily injury” is defined as “physical pain, physical injury, illness, or impairment of physical condition.” Id. at 44. “Strangulation or suffocation” is defined as “a restriction of normal breathing or circulation of the blood by applying pressure on the throat or neck or by blocking the nose or mouth.” Id. at 58. In recommending that strangulation-related injuries qualify as felony conduct, the CCRC’s Commentary states: “The including of a contusion (bruise) or other bodily injury to the neck or head sustained during ‘strangulation or suffocation,’ as defined in RCC § 22E-701, reflects the heightened seriousness of such injuries, particularly in light of research indicating such injuries are often linked to more serious patterns of violence.” Report #70 – CCRC Recommendations for the Council and Mayor, Commentary on Subtitle I. General Part, Chapter 7, at 647–48 (citing to Nancy Glass et al., Non-Fatal Strangulation Is an Important Risk Factor for Homicide of Women).
[12] As Dr. Glass found, “[n]on-fatal strangulation, as opposed to other severe forms of physical violence such as striking with fists or another object, frequently leaves little in the way of observable injury, yet can result in serious physical and mental health consequences.” Nancy Glass et al., Non-Fatal Strangulation Is an Important Risk Factor for Homicide of Women.
[13] In her book No Visible Bruises, Ms. Snyder stated that, according to Casey Gwinn, “every jurisdiction that has prosecuted strangulation as a felony with a multidisciplinary team has seen a drop in homicides.” Snyder at 68.
[14] This violation is punishable by up to 6 months’ imprisonment, and up to a $1,000 fine. D.C. Code § 23-1329(c).
[15] The applicability of this provision is limited to “[a] person who has been conditionally released pursuant to section 23-1321.” D.C. Code § 23-1329(a). As its heading indicates, D.C. Code § 23-1321 applies to those who are released “prior to trial.” D.C. Code § 23-1321 also applies to those who are on release awaiting sentencing. See D.C. Code § 23-1325(b).
[16] In Jones v. United States, the D.C. Court of Appeals held that the use of the general contempt power in D.C. Code § 11-944(a) was “inappropriate” to punish a violation of a condition of probation, and that “violation of a condition of probation may be sanctioned only through revocation of probation and imposition of all or part of the original sentence.” 560 A.2d 513, 517 (D.C. 1989).
[17] This is particularly true in the intimate partner violence context, where research has shown that victims of intimate partner violence experienced a greater percentage of repeat violence than victims of other types of criminal behavior. See Barbara A. Oudekerk and Jennifer L. Truman, U.S. Dep’t of Justice, Bureau of Justice Statistics, Repeat Violent Victimization, 2005–14, at 6 (2017), available at bjs.gov/content/ pub/pdf/rvv0514.pdf. In addition, research shows that, for domestic violence abusers who reoffend, a majority do so shortly after their release from incarceration. See U.S. Dep’t of Justice, National Institute of Justice, Practical Implications of Current Domestic Violence Research: For Law Enforcement, Prosecutors and Judges, at 21 (June 2009), available at https://www.ncjrs.gov/pdffiles1/nij/225722.pdf.
[18] At that time, the WALES law enforcement database only included stay away orders issued as part of civil protection orders pursuant to D.C. Code § 16-1001 et seq. The WALES database did not include stay away orders issued as part of a criminal case, either pre-trial or post-disposition, so these stay away orders would not have been visible to MPD through this database. In addition, all documents in connection with criminal cases whose parties meet the definition of “intrafamily offense,” as that term is defined in D.C. Code § 16-1001(9) (which this case would), are not included in the Superior Court’s public website called “CourtView,” although those documents are available in the JUSTIS database. Accordingly, it would have been difficult for the responding officers to locate the post-conviction judgment and commitment order (with the stay away as a condition of probation and the term of probation). To rectify this issue, USAO personnel (including Intimate Partner Violence Prevention Initiative Ryan Creighton and others) have been actively working with Superior Court and MPD to have all stay away orders put into WALES so that law enforcement can access these orders through that system.
State Street Corporation to Pay $115 Million Criminal Penalty and Enter into Deferred Prosecution Agreement in Connection with Scheme to Overcharge Custody CustomersRead the Press Release
BOSTON – Massachusetts-based global financial services company State Street Corporation entered into a deferred prosecution agreement and agreed to pay a $115 million criminal penalty to resolve charges that it engaged in a scheme to defraud a number of the bank’s clients by secretly overcharging for expenses related to the bank’s custody of client assets.
“State Street defrauded its own clients of hundreds of millions of dollars over decades in a most pedestrian way: they tacked on hidden markups to routine charges for out-of-pocket expenses,” said the Acting United States Attorney Nathaniel R. Mendell. “The resolution requires State Street to take responsibility for the damage it caused and is a signal from us that financial giants will be held accountable for fraudulent conduct.”
“With today’s settlement, State Street Corporation is finally acknowledging that it has defrauded its clients out of more than $290 million, through a deceitful scheme that was in practice for 17 years,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The consequences for companies who cheat the marketplace and American consumers are significant and clear. The FBI will aggressively investigate those who engage in illegal business practices while ensuring their activity is brought to a halt.”
According to State Street’s admissions, between 1998 and 2015, bank executives conspired to add secret markups to “out-of-pocket” (OOP) expenses charged to the bank’s clients while letting clients believe that State Street was billing OOP expenses as pass-through charges on which the bank was not earning a profit. These markups were charged on top of fees that the clients had agreed to pay the bank, and despite written agreements that caused clients to believe the expenses would be passed through to them without a mark-up. State Street executives also took steps to conceal the mark-ups from clients, including by not disclosing the details underlying OOP expenses on invoices and by misleading clients when they inquired about what they were being charged for OOP-related activities. Through this scheme, State Street defrauded its clients out of more than $290 million.
State Street entered into a deferred prosecution agreement in connection with a criminal information charging the company with one count of conspiracy to commit wire fraud. Pursuant to the agreement, State Street agreed to pay a criminal penalty of $115 million. State Street also agreed to continue to cooperate with the U.S. Attorney’s Office in any ongoing investigations and prosecutions relating to the conduct, to enhance its compliance program, and to retain an independent corporate compliance monitor for a period of two years.
This resolution is based on a number of factors, including that State Street voluntarily disclosed the misconduct, fully cooperated with the investigation, and agreed to fully reimburse the victims of the misconduct for amounts they were overcharged.
Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement today. Valuable assistance was provided by the U.S. Securities and Exchange Commission. Assistant U.S. Attorneys Justin D. O’Connell, of Mendell’s Securities, Financial & Cyber Fraud Unit, and Abraham George, of Mendell’s Affirmative Civil Enforcement Unit, are prosecuting the case.
St. Paul Man Sentenced to Prison, $12 Million in Restitution for Minneapolis Police Third Precinct ArsonRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced today to 36 months in prison for his role in the arsons at the Minneapolis Police Department’s Third Precinct building.
According to court documents, on the night of May 28, 2020, Davon De-Andre Turner, 25, went to the Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. Turner and an individual unknown to him at the time (later identified as co-defendant Bryce Michael Williams) worked together to light an incendiary device which they intended to be used to start or further accelerate a fire. The incendiary device was taken into the Third Precinct headquarters by Turner and was used to start a fire.
“Mr. Turner’s actions on the night of May 28, 2020 contributed to the near total destruction of the Minneapolis Police Department’s Third Precinct building,” said Acting U.S. Attorney Anders Folk. “Those actions were dangerous to community, to law enforcement, and to the many peaceful protestors exercising their first amendment rights. Today’s sentence underscores the seriousness of those actions.”
“ATF is committed to investigating the civil unrest arsons of 2020 that occurred throughout the Twin Cities,” said Special Agent in Charge Terry Henderson, of the ATF St. Paul Field Division. “Arson, being inherently violent, is a serious crime that puts our community members and first responders at risk, and it cannot be tolerated.”
“Today’s sentencing sends a clear message—when you are intent on conducting a violent act that breaks federal law, the FBI and our law enforcement partners will move with speed to hold you accountable,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “That behavior puts our entire community in danger, and we simply will not let it go unaddressed.”
On January 22, 2021, Turner pleaded guilty to one count of conspiracy to commit arson. As part of his sentencing, Turner was ordered to serve two years of supervised release and pay $12 million in restitution.
Co-conspirator Dylan Shakespeare Robinson, 23, was sentenced on April 28, 2021, to 48 months in prison. Co-conspirator Branden Michael Wolfe, 23, was sentenced on May 4, 2021, to 41 months in prison. Both Robinson and Wolfe, who had each previously pleaded guilty to one count of conspiracy to commit arson, were also ordered to serve two years of supervised release and pay $12 million in restitution for their roles in the conspiracy. Co-conspirator Bryce Michael Williams is currently scheduled to be sentenced on June 7, 2021 before District Court Judge Patrick J. Schiltz. Williams plead guilty to one count of conspiracy to commit arson on November 11, 2020.
This case was the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
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Skowhegan Man Indicted for COVID-19 Relief FraudRead the Press Release
BANGOR, Maine – A federal grand jury in Bangor returned an indictment today charging a Skowhegan man with filing fraudulent Paycheck Protection Program (PPP) loan applications and other offenses, Acting U.S. Attorney Donald E. Clark announced.
The indictment charges Nathan Reardon, 43, with five counts of bank fraud, three counts of attempted wire fraud, two counts of making false statements to financial institutions and one count of perjury.
According to the indictment, Reardon submitted several fraudulent applications for PPP loans that were guaranteed by the Small Business Administration (SBA). He also allegedly submitted fraudulent applications for direct loans from the SBA and provided false information in applications seeking disbursement of PPP loan funds.
The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and another $284 billion in December 2020.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use at least a certain percentage of the funds for payroll expenses.
The Treasury Inspector General for Tax Administration and the SBA Office of Inspector General are investigating the case.
An indictment is merely an allegation. Like all defendants, Reardon is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Shiprock man sentenced to eight years in federal prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Dieter D. Douglas, 35, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was sentenced on May 11 in federal court to eight years and 4 months in prison for assaulting his ex-girlfriend.
Douglas pleaded guilty to two counts of the offense on July 14, 2020. In his plea agreement, Douglas admitted to assaulting the victim, identified in court records as Jane Doe, on Oct. 3, 2018, and again on May 14, 2019, at a home in Shiprock on the Navajo Nation. During these incidents Douglas covered the victim’s mouth and strangled her with his hands. As a result, Douglas caused the victim to lose consciousness during both incidents.
Upon his release from prison, Douglas will be subject to three years of supervised release.
The FBI investigated this case with assistance from the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Romanian Nationals Sentenced to Federal Prison for ATM SkimmingRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that Ioan Georgel Cristian Flore, a Romanian national who is illegally present in the United States, was sentenced to 75 months in federal prison for his role in an ATM skimming fraud that resulted in $587,529.50 in losses to financial institutions located in Michigan, Nebraska, and Iowa.
Flore pled guilty to conspiracy to commit financial institution fraud and aggravated identity theft in November 2020. Flore admitted that, between September 2019 and May 2020, he engaged in a conspiracy to defraud financial institutions by stealing money from federally insured financial institution customer accounts in Michigan and elsewhere. The members of the conspiracy accomplished the fraud by obtaining devices and cameras that were designed to secretly record account data, including account numbers and personal identification numbers, from debit and credit cards that bank and credit union customers used to withdraw cash, make deposits, and conduct other transactions. The conspirators installed those devices on automated teller machines (ATMs), and then retrieved the devices after they had recorded account data of bank and credit union customers. These devices are commonly called ATM skimming devices. Thereafter, the conspirators, including the Defendant, used the stolen account data of the bank and credit union customers to unlawfully create and possess access devices, including re-encoded cards, and then used those access devices to fraudulently withdraw cash from the accounts of the bank and credit union customers. Flore was illegally present in the United States having overstayed a visa.
At the sentencing hearing in Lansing, Michigan, United States District Judge Hala Y. Jarbou also imposed two years of supervised release following imprisonment and a restitution order of $587,529.50. Additionally, Flore was ordered to forfeit $16,230 in U.S. currency that was seized from his vehicle during a traffic stop in Indiana when the two were found in possession of tools used to commit ATM skimming.
Flore’s co-conspirator, Marius Adrian Mastan, also a citizen of Romania and a legal resident of Illinois, was sentenced by the Court on March 25, 2021, to serve 53 months in prison for his role in the scheme, ordered to repay $587,529.50 to the 17 victims, and forfeit the $16,230 in seized currency.
U.S. Attorney Andrew Birge stated, “This is the third crew of ATM skimmers using the same modus operandi that my office has prosecuted in the last three years. We are relentless in our pursuit of lengthy prison sentences for anyone who steals and uses other people’s debit and credit card numbers and PIN numbers, which harms both the cardholder and the financial institution that ultimately suffers the loss. At the same time, residents who use ATMs and other debit and credit card readers should remain vigilant in detecting evidence of tampering or anything unusual about the machine. If you suspect tampering has occurred, do not use it and report it immediately.”
“Innocent people in this case had their personal information taken and their money stolen by criminals who believed there would be few consequences for their crimes. The lengthy sentences in this case send a message to anyone engaged in this type of theft that the FBI, along with our federal, state, and local partners will find them and hold them accountable,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “We encourage anyone who believes they may have been a victim of identity theft to report it to the FBI or their local law enforcement agency.”
The investigation was conducted by the Federal Bureau of Investigation in Kalamazoo and St. Joseph, Michigan; the Michigan State Police; the Hobart Indiana Police Department; and the U.S. Customs and Border Protection. The investigation of other co-conspirators is ongoing.
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Rockford Man Charged in Federal Court with Bank RobberyRead the Press Release
ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury for the robbery last month of a bank in Rockford.
DEMONTRION DESHAN PHILLIPS, 27, took approximately $5,930 from the Midland States Bank branch, 1700 N. Alpine Rd. in Rockford, on April 7, 2021.
Phillips is charged with one count of bank robbery, which is punishable by a maximum sentence of 20 years in federal prison. He pleaded not guilty Wednesday during his arraignment before U.S. District Judge Iain D. Johnston in Rockford. Judge Johnston ordered Phillips to remain in federal custody pending trial.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
The public is reminded that an indictment contains only charges and 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. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Rochester Man Arrested - Charged with Unlawfully Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Kendrick, 27, of Rochester, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that according to the complaint, on May 11, 2021, a Customs and Border Protection officer encountered the defendant traveling in an erratic manner at the Peace Bridge Port of Entry. The officer also smelled the odor of marijuana from inside the vehicle. During a search of the vehicle, another officer located a semi-automatic firearm. A records check revealed that in October 2011, Kendrick was convicted in Monroe County Court of the crime of Robbery in the 3rd degree, and as a result of such conviction, he is legally prohibited from possessing a firearm.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Raleigh Man Sentenced for Firearm Offense After Reoffending on State ProbationRead the Press Release
NEW BERN, N.C. – Tauheed Rochelle of Raleigh was sentenced today to 58 months in prison for possessing a firearm as a convicted felon. On December 21, 2020, Rochelle pled guilty to the charge. At the time of his arrest, Rochelle was on state probation for two felony drug offenses.
According to court documents and statements made in court, on December 5, 2019, Raleigh Police Department officers responded to a suspicious vehicle call on Tamarino Drive in Raleigh—a location where multiple recent breaking and entering crimes had been reported. As the officers approached, they recognized the car as a Dodge Charger belonging to Rochelle, who they were familiar with from prior encounters. As the officers walked to the car, they smelled marijuana and saw Rochelle throw marijuana from the driver’s side window. Officers instructed Rochelle to place his hands on the steering wheel and noticed a large bag of marijuana at the Defendant’s feet, as well as marijuana crumbs on his lap. When asked whether there was a gun in the car, Rochelle responded, “I don’t know.”
Officers searched the car. In Rochelle’s driver’s seat, they saw that he had been sitting on a black sweat suit jacket that matched the pants he was wearing. The right pocket was pushed between the seat and center console. In that pocket, officers found a .40 caliber handgun. Officers also recovered two digital scales, a marijuana blunt, and in the trunk, a large packaging envelope with marijuana residue.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00206-FL.
Quincy Man Convicted of Enticing A Minor to Engage in Sexual ActivityRead the Press Release
TALLAHASSEE, FLORIDA – This afternoon a federal jury in Tallahassee convicted Constantino Charrez, 27, of Quincy, on the sole count of coercing or enticing a minor to engage in sexual activity. The conviction, which followed a two-day trial that began on Wednesday, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“Child exploitation is horrendous and affects the most vulnerable members of our communities,” said Acting U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“The arrests in Operation Stolen Innocence were just the beginning of the process to get justice for the victims in this case,” said Tallahassee Police Chief Lawrence Revell. “I am grateful to see the judicial system work to prosecute those who prey on vulnerable people. When individuals are held accountable for their actions, it reiterates the message that there is no place for human trafficking in our community.”
“Operation Stolen Innocence continues to result in making our communities safer and serves as a premier example of the excellent work being done by HSI and law enforcement partners like the Tallahassee Police Department,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Charrez’s sentencing hearing is scheduled for August 24, 2021, at 1:00 pm, at the United States Courthouse in Tallahassee before the Honorable Allen Winsor. Charrez faces a mandatory minimum term of ten years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the U.S. Marshal Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of State Attorney, 2nd Judicial Circuit to combat human trafficking in the Tallahassee area. Assistant United States Attorney Michelle Spaven prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pittsburgh Teen Charged by Criminal Complaint with Violating Federal Drug LawsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been arrested in Pittsburgh on charges of possessing a mixture of fentanyl, as well as crack cocaine, Acting United States Attorney Stephen R. Kaufman announced today.
The criminal complaint named Tyrell Revis, 18, of Pittsburgh, as the sole defendant. Mr. Revis made an initial appearance today in federal court and will have a preliminary examination and a detention hearing on Wednesday May 19, 2021, at 11 a.m. before Chief Magistrate Judge Cynthia Eddy.
According to the complaint, on May 12, 2021 Mr. Revis was stopped by police for traffic violations including driving 60 to 65-mph in a 25-mph zone. As police approached, they saw Mr. Revis and a female passenger in the front seat making furtive movements. There was also a minor child in the backseat. After the two adults were directed to exit the vehicle, police saw on the front passenger seat five bricks (250 stamp bags) of a substance that field-tested positive for fentanyl. Mr. Revis admitted that he tossed those five bricks to the female passenger. Police also found another 30 bricks (1,500 stamp bags) that field-tested positive for fentanyl in the center console, a firearm under the diaper bag in the back seat, and around 18 grams of a substance inside the diaper that field-tested positive for crack cocaine.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1 million or both if Mr. Revis is convicted. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Mr. Revis is being detained pending a detention hearing.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the Munhall Police Department made the initial traffic stop and have been assisted by the Federal Bureau of Investigation in conducting the investigation leading to the arrest of Mr. Revis.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pensacola Compounding Pharmacy Owner Sentenced to Federal Prison for $4.8 Million Tricare Fraud and Money Laundering ConspiraciesRead the Press Release
PENSACOLA, FLORIDA – Andrew E. Fisher, 35, of Gulf Breeze, was sentenced yesterday to 24 months in federal prison after a jury found him guilty last year of conspiring to use his pharmacy to defraud TRICARE, a federal health care program for uniformed service members, retirees, and their families, and conspiring to launder the funds generated by the fraud. Fisher was also ordered to pay over $4.8 million in restitution to TRICARE and forfeit an over $3.8 million money judgment. The sentence was announced today by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Between October 2014 and December 2015, Fisher, the owner and operator of Physician Specialty Pharmacy (PSP) in Pensacola, conspired with sales representative Michael Scott Burton and others to defraud TRICARE out of more than $4.8 million in fraudulent claims for prescription compounded pain cream, scar cream, and wellness vitamins. Fisher agreed to fill prescriptions at PSP from a doctor’s office in Georgia whose beneficiary information was provided by Burton and individuals working for him, knowing that these particular beneficiaries had never seen that doctor and the prescriptions were not based on a legitimate doctor-patient relationship. In exchange for recruiting TRICARE beneficiaries to receive the prescriptions, Burton received approximately 50% of the amount paid to Fisher in insurance reimbursements. Those commission payments were laundered in the form of large wire transfers and direct deposits into Burton’s bank account in Georgia.
As part of the scheme, Fisher, who is not a licensed pharmacist, directed his pharmacist employees to use ingredient formulations for the drugs that would maximize the amount his pharmacy could bill to TRICARE – which was upwards of $10,000 to $17,000 per medication at the time – and other insurance companies without considering what was best for patient care. Fisher also directed Burton and his employees to tell beneficiaries not to worry about co-payments, in order to ensure that the beneficiaries would not decline receiving the medications over out-of-pocket cost. Because PSP was not a TRICARE network pharmacy, Fisher paid Burklow Pharmacy in Pace a commission of approximately 15% to allow PSP to bill TRICARE using Burklow’s network provider contract for prescriptions received, filled, and shipped at PSP, including ones Fisher knew were fraudulent.
During the conspiracy, Fisher also purchased Jay Pharmacy in Jay, Florida, and used its existing insurance contracts with TRICARE and others to bill for fraudulent PSP prescriptions.Assistant United States Attorney Alicia H. Forbes prosecuted the case following a joint investigation by the Federal Bureau of Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Florida Department of Financial Services-Bureau of Insurance Fraud, Florida Department of Health, Naval Criminal Investigative Service, and Army Criminal Investigative Command.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pekin Woman Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid today sentenced a Pekin, Ill., woman, Rachel Miller, 29, of the 1400 block of Summit Dr., to serve 30 years in federal prison for sexual exploitation of a child. In addition, Judge Shadid ordered that Miller remain on lifetime supervised release upon completion of her prison sentence and register as a sex offender.
Immediately prior to today’s hearing, Miller pleaded guilty to using a cell phone, in March 2019, to capture a video of herself engaging in sexual activity with a prepubescent male. This video was later distributed to the internet.
In a separate but related case, Miller’s boyfriend, Sebastian Sale, 30, is scheduled to be sentenced on Aug. 26, 2021. Sale pleaded guilty on April 8, 2021, to one count of sexual exploitation of a child.
Both Miller and Sale have remained in the custody of the U.S. Marshals Service since their arrests in March 2020.
The charges are the result of an investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the Washington, Ill., Police Department. Assistant U.S. Attorney Paul B. Morris represents the government in the prosecutions.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood please visit www.projectsafechildhood.gov.
Owners and manager of Ridgefield, Washington, automotive shop indicted for conspiracy to violate the Clean Air ActRead the Press Release
Seattle – A federal grand jury today charged three southwest Washington residents and two corporations with a conspiracy that involved removing federally-required pollution control hardware from diesel pick-up trucks and tampering with the trucks’ emissions monitoring systems, announced Acting U.S. Attorney Tessa M. Gorman. The owners and general manager of Racing Performance Maintenance Northwest and a related Woodland, Washington, company, RPM Motors and Sales NW, will appear in U.S. District Court in Tacoma on May 25, 2020.
The indictment charges company owners Sean Coiteux, 47, and his wife, Tracy Coiteux, 43, the service manager, Nick Akerill, 41, and the corporate entities they controlled with conspiracy to violate the Clean Air Act and eleven specific violations of the Clean Air Act for tampering with the emissions-monitoring system on vehicles when removing pollution control equipment between January 2018 and November 2020.
“By removing required pollution control devices, the defendants caused their customers’ diesel trucks to spew pollutants into the air at a rate of up to 300 times the pollution caused by compliant trucks,” said Acting U.S. Attorney Gorman. “These defendants increased toxins in our environment that are linked to cancer, as well as pulmonary, neurological, cardiovascular, and immune system damage. And they collected hundreds of thousands of dollars in fees for doing so.”
According to the indictment, between January 2018 and January 2021, the defendants charged their customers fees of about $2,000 per truck to remove emissions control systems required by federal law. They then modified legally-required software that works to ensure the vehicle’s pollution remains within legal limits. RPM Motors and Sales sometimes offered, as part of the sale of a truck, to remove the emissions control system after the customer purchased a truck. Email and other electronic records document the conspirators’ purchase of equipment and software kits to remove the pollution control and reprogram the monitoring systems. These modifications, which are known as “tunes” and “deletes,” are marketed to truck owners as improving vehicle power and performance.
Over the three years described in the indictment, the defendants took in more than $500,000 for the modifications that violate the Clean Air Act.
“The defendants intentionally violated the Clean Air Act by installing emissions defeat equipment in passenger vehicles, resulting in increased air pollution,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in the Pacific Northwest. “EPA and our law enforcement partners will continue to focus efforts on stopping the sale of these illegal devices.”
Conspiracy is punishable by up to five years in prison. Each violation of the Clean Air Act is punishable by up to two years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Environmental Protection Agency’s Criminal Investigation Division.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Environmental Protection Agency Special Assistant United States Attorney Karla Gebel Perrin.
Orlando Man Found Guilty of Armed Robbery of Cellphone StoreRead the Press Release
Orlando, Florida – A federal jury has found Tauri Benjamin Rivas Nunez (22, Orlando) guilty of robbery and aiding and abetting the brandishing of a firearm. Rivas Nunez faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for July 28, 2021.
Rivas Nunez had been indicted on January 7, 2021.
According to evidence presented at trial, on August 10, 2019, Rivas Nunez and two others entered a T-Mobile store located at 5420 Deep Lake Road in Oviedo. Rivas Nunez placed an employee in a chokehold, while a co-defendant took another employee into a back room at gunpoint and ordered the employee to empty a safe containing cellphones and merchandise. Rivas Nunez removed money for the cash register and the three individuals ran from the store with the stolen items. Rivas Nunez was located immediately after the robbery at a home in Orlando. The stolen merchandise was recovered from the residence, along with the firearm used during the robbery.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Daniel P. Jancha and Chauncey A. Bratt.
Ohio Man Convicted of Sex Offense Against a MinorRead the Press Release
HUNTINGTON, W.Va. – A federal jury convicted an Ohio man today of traveling in interstate commerce to engage in illicit sexual activity with a minor. Makel Elboghdady, 36, of Columbus, Ohio, was charged by a single-count Indictment in May 2020.
Evidence at trial revealed that Elboghdady traveled on February 28, 2020 from Columbus, Ohio to Huntington to meet a woman in order to engage in sexual activity with her purported minor daughters. Elboghdady believed the girls were 11 and 13 years old. When he arrived in Huntington and met with the person he believed to be the mother of the girls, Elboghdady was placed under arrest.
Elboghdady faces up to 30 years in prison when he is sentenced on August 16, 2021. He will also be required to register as a sex offender.
“Thanks to a proactive investigation in this case by the FBI Child Exploitation and Human Trafficking Task Force and our commitment to combatting child sexual exploitation, Elboghdady was charged and convicted of traveling in interstate commerce with the intent to engage in illicit sexual activity with a minor. This case should serve as a warning to offenders that the U.S. Attorney’s Office and our law enforcement partners will work together to hold you accountable and bring you to justice,” said Acting United States Attorney Lisa G. Johnston.
United States District Judge Robert C. Chambers presided over the trial. Assistant United States Attorneys Jennifer Rada Herrald and Julie White handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00069.
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Nokomis Man Sentenced to More Than 27 Years in Federal Prison for Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Robert Boehme (64, Nokomis) to 27 years and 3 months in federal prison for receiving and possessing materials depicting the sexual exploitation of children. Boehme was also ordered to serve a 10-year term of supervised release and to register as a sex offender.
Boehme had pleaded guilty on December 7, 2020.
According to court documents, FBI agents detected several online requests to download child exploitation material over the internet and traced these requests to Boehme’s residence. When agents executed a federal search warrant at Boehme’s home, they caught Boehme as he was actively downloading child exploitation material over the internet. A forensic examination of Boehme’s computer revealed that he had amassed a collection of tens of thousands of images and videos depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Colin McDonell and Frank Murray.
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.
Newton Man Pleads Guilty to Defrauding Federal Agency by Inflating Expenses and Submitting Fake BidsRead the Press Release
BOSTON – A Newton man pleaded guilty today in connection with defrauding the General Services Administration.
Benedetto Valente, 60, pleaded guilty to one count of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 8, 2021. Valente was charged on April 22, 2021.
Valente engaged in a scheme to defraud the U.S. General Services Administration (GSA), as well as the company he worked for, by causing expenses to be billed that neither GSA nor the company actually incurred. Valente did so by inflating payroll expenses and charging items he used in his personal business and then creating fake documents to make it appear that those items were intended for GSA. Valente arranged to award contracts for scaffolding and masonry repair to a family member, including by submitting fake bids so his family member could obtain the contracts, and by diverting a subcontract awarded to another contractor to his family member at an inflated price.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. 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 Joseph Dattoria, Special Agent in Charge of the General Services Administration, Office of Inspector General, Boston Field Investigations Office made the announcement. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN MARTIN, age 27, a resident of New Orleans, pleaded guilty on May 12, 2021 to being a felon in possession of a firearm before United States District Judge Carl J. Barbier, announced U.S. Attorney Duane A. Evans.
According to court paperwork, MARTIN was interviewed by ATF special agents who were assisting the New Orleans Police Department in arresting MARTIN on burglary charges. During the interview, MARTIN admitted that he had firearms in his residence and during a subsequent search of that residence police located firearms where MARTIN said they would be. MARTIN already had multiple prior felony convictions at that point.
MARTIN faces up to 10 years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment on the gun charge and payment of a mandatory $100 special assessment fee.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
New Britain Resident Charged with Fentanyl and Cocaine OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that on May 4, 2021, a federal grand jury in Hartford returned a four-count indictment charging JOSE MIGUEL VEGA-RIVERA, 49, a citizen of the Dominican Republic recently residing in New Britain, with fentanyl and cocaine offenses.
As alleged in court documents, on April 27, 2021, DEA Task Force investigators stopped a car Vega-Rivera was traveling in after he sold cocaine to an occupant of another vehicle. A subsequent search of a New Britain apartment connected to Vega-Rivera revealed approximately one kilogram of fentanyl, more than 500 grams of cocaine, two firearms, and approximately $55,000 in cash.
The indictment charges Vega-Rivera with one count of possession with intent to distribute, and distribution of, which carries a maximum term of imprisonment of 20 years; one count of possession with intent to distribute cocaine, which carries a maximum term of imprisonment of 20 years; one count of possession with intent to distribute 400 grams or more of fentanyl, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; and one count of possession with intent to distribute 500 grams or more of cocaine, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Vega, who has been detained since his arrest on April 27, appeared today via videoconference before U.S. Magistrate Judge S. Dave Vatti and entered a plea of not guilty to the charges.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Mexican National Pleads Guilty to Damaging Marijuana Cultivation Operation in Stanislaus National Forest in Tuolumne CountyRead the Press Release
FRESNO, Calif. — Eleno Fernandez-Garcia, 37, a citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced. He also agreed to pay $45,688 in restitution to the U.S. Forest Service for the damage that the cultivation operation had on public land.
According to court documents, the cultivation operation contained 9,654 marijuana plants and 200 pounds of processed marijuana and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones covered with marijuana debris. Three others fled from the area, which is near recreational activities and a natural spring used for bottled water.
The cultivation operation caused significant damage to the environment. Investigative agents found lethal restricted use chemicals (aluminum phosphide), fertilizer, and a dead raccoon at the grow site. Native vegetation was cut down to make room for the marijuana plants. Besides chemicals and fertilizer, there was a large amount of trash and irrigation tubing. The grow site was in a grazing permit area where cows roamed freely and had access to the plants and chemicals.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, and the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice. The Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Fernandez-Garcia is scheduled for sentencing on Aug. 6. He faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The actual sentence, however, will 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.
Methamphetamine Trafficking Organization Leader Sentenced to 17.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Vicente Velazquez was sentenced today to 17 and a half years in prison by U.S. District Judge Troy L. Nunley for conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Velazquez and nine others were indicted on drug trafficking charges in 2016 after a two-year wiretap investigation. Velazquez was the leader of the drug trafficking organization who ordered methamphetamine from a supplier in Mexico and then coordinated the distribution of methamphetamine through sub-distributors. Velazquez is the last of the 10 defendants to be sentenced. The following co-defendants were previously sentenced.
Roberto Aguilar Navarro, 11 years 3 months in prison on Nov. 15, 2019;
Pedro Fuentes, 10 years in prison on Jan. 24, 2019;
Luis Alberto Fernandez Contreras, 4 years and 4 months in prison, on Sept. 7, 2017;
Arnulfo Sanchez, 4 years in prison on Aug. 17, 2017;
Jorge Vega-Macias, 4 years in prison on June 13, 2019;
Ivan Alcaraz, 4 years in prison on July 13, 2017;
Edwin Arambulo, 4 years in prison on Jan. 11, 2018;
Leonel Villa Lopez, 3 years and 10 months in prison on Oct. 12, 2017; and
Victor Hernandez-Sosa, 2 years in prison on Oct. 27, 2016.
This case was the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Yuba-Sutter Narcotics Task Force, the Butte Interagency Narcotics Task Force, and the California Highway Patrol. Assistant U.S. Attorney Justin Lee prosecuted 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 www.justice.gov/OCDETF.
Man Pleads Guilty to Attempting to Provide Material Support and Resources to ISISRead the Press Release
Jacksonville, FL – A Florida man pleaded guilty today to attempting to provide material support and resources to the Islamic State of Iraq and al-Sham, also known as ISIS, a designated foreign terrorist organization since 2014.
According to court documents, Romeo Xavier Langhorne, 31, of St. Augustine, pledged his allegiance to ISIS at some point in 2014, knowing that ISIS was a designated foreign terrorist organization and that they engaged in acts of terrorism.
If convicted, Langhorne faces a maximum of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Throughout 2018 and 2019, Langhorne reaffirmed his support for ISIS on various social media accounts, as well as posted ISIS-produced videos to his YouTube account and participated in online chat rooms with like-minded individuals. In December 2018 and January 2019, Langhorne expressed in one of those chat rooms an interest in creating a video that would improve on existing videos demonstrating the making and use of a deadly explosive – triacetone triperoxide, also known as TATP.
In Feb. 2019, Langhorne began communicating with an undercover employee (UCE) with the FBI who was posing as someone working on behalf of ISIS. Langhorne told the UCE about his plans to create and disseminate an instructional video on making a TATP and sought the UCE’s assistance in creating the video. Langhorne told the UCE that, in order to ensure that the video was not removed from the internet by service providers, the video should include disclaimers advising that it was intended for educational purposes. However, Langhorne informed the UCE that his true purpose in making and distributing the video was to arm ISIS adherents and others with knowledge of how to make TATP and use it for terrorism-related purposes in support of ISIS.
The FBI produced a video in accordance with Langhorne’s instructions, but – unbeknownst to Langhorne – it featured an inert chemical formula for TATP that would not produce an explosion. In Nov. 2019, the UCE provided versions of the TATP video to Langhorne, and Langhorne distributed the video by uploading it to a video-sharing website.
Langhorne was arrested at his residence in Roanoke, Virginia, on Nov. 15, 2019, pursuant to a criminal complaint, and ordered detained pending trial. While in custody, Langhorne admitted that he had “probably at some point” pledged allegiance to ISIS and Abu Bakr al-Baghdadi, who was the leader of ISIS from 2014 until his death on Oct. 26, 2019. Langhorne admitted that he was the person who had communicated with the UCE and admitted that he had uploaded the TATP video to the internet.
The FBI Jacksonville Division and Northeast Florida Joint Terrorism Task Force are investigating the case, with support from the U.S. Customs and Border Protection, Border Patrol and the St. Johns County Sheriff’s Office.
Assistant U.S. Attorney Laura Cofer Taylor for the Middle District of Florida and Trial Attorney Andrew D. Sigler for the National Security Division’s Counterterrorism Section are prosecuting the case.
Malden Man Pleads Guilty to COVID-Relief Fraud and Identity TheftRead the Press Release
BOSTON – A Malden man pleaded guilty today to identity fraud charges in connection with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.
Wagner Sozi, 33, pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. U.S. District Judge George A. O’Toole Jr. scheduled sentencing for Sept. 22, 2021. Sozi was indicted by a federal grand jury in July 2020.
Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who worked for this realty company, and various files belonging to the company were found in the apartment. Numerous identity theft victims tied to Sozi had been clients of this realty company, including at least one person in whose name a fraudulent PUA claim was filed.
Sozi, along with a female accomplice, opened credit accounts at an office supply retailer under various fake identities and then used these accounts to purchase Visa gift cards. Sozi used another stolen identity to purchase a Rolex for more than $15,000. He also possessed a Maine driver’s license, bearing his photograph and the name of an identity theft victim, which was used to open a bank account and to make large purchases at an Apple Store.
Following his arrest on June 25, 2020, documents were recovered from Sozi’s apartment, including a PUA debit card in another individual’s name. Further investigation revealed that the PUA claim associated with the seized debit card listed Sozi’s address as the mailing address and that another fraudulent PUA claim had been submitted under Sozi’s own name but with another Social Security number.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. The false claim charge provides for a sentence of up to three 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; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Nick Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit, the Massachusetts State Police and the Malden, Medford and Braintree Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, is prosecuting the case.
Madison County Woman Indicted for Mail Fraud, Wire FraudRead the Press Release
CHARLOTTESVILLE, Va. – A federal grand jury returned an indictment yesterday charging a Madison, Virginia woman with nearly a dozen counts of fraud related to a scheme in which she took money from victims while purporting to have terminal cancer, vast wealth, and connections to celebrities.
According to court documents, starting in 2014, Christine Favara Anderson, 51, of Reva, Va., owned and operated the publishing companies known as Christine F. Anderson Publishing and Media (CFA) and Sage Wisdom. Anderson took money from book authors but later failed to pay the authors their royalties as owed and did not provide products and services as negotiated. In addition, Anderson often falsely claimed to have been diagnosed with cancer to delay payment to the book authors, while also purporting to maintain vast wealth.
In addition to the alleged book publishing scheme, Anderson is also charged with orchestrating a real estate scheme where she signed contracts for expensive real estate, provided false proof of funds, and then was unable to provide the earnest money deposits. Often, Anderson would sign bad checks for the earnest money deposits, which would never clear. While she was putting contracts on these properties, Anderson took money from individuals helping her in these real estate schemes, promising to pay these individuals back. Anderson used her false interest in the expensive real estate to prove to her victims that she was able to pay back the loans, but never did. Anderson’s excuses for her inability to pay the earnest money deposit and the loans included her false claims of a cancer diagnosis and freezes on her bank accounts.
Anderson is charged with eight counts of wire fraud, three counts of mail fraud, one count of making a false statement, and one count of concealing records in a federal investigation.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division made the announcement.
The Federal Bureau of Investigation and the Madison County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Kate Rumsey and Madison County Deputy Commonwealth’s Attorney Wade Gelbert are prosecuting the case.
If you believe you are a victim of fraud or have information about the allegations in this case, please contact the FBI in Charlottesville at 434-293-9663.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lodge Grass man admits assault crime in Crow Agency shootingRead the Press Release
BILLINGS – A Lodge Grass man accused of shooting and wounding a pedestrian from his vehicle in Crow Agency admitted to an assault crime today, Acting U.S. Attorney Leif M. Johnson said.
Fabian Cruz Dawes, 31, appeared for an arraignment and pleaded guilty to an information charging him with assault with a dangerous weapon. Dawes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Magistrate Judge Timothy J. Cavan presided. Dawes was detained pending further proceedings. A sentencing date has not yet been set.
In court documents filed in the case, the government alleged that on April 7, the victim, identified as John Doe, was walking with another person on Makawasha Avenue, toward the downtown area of Crow Agency, on the Crow Indian Reservation. At the same time, Dawes was parked in a blue vehicle near the Teepee Service, out of view of Doe. As Doe approached a laundromat near the Teepee Service, Dawes drove toward Doe and stopped near the victim. Doe approached the driver’s side door and engaged in a short conversation with Dawes. Dawes then fired a single 9mm bullet at Doe, striking him in the leg, then drove away at a high rate of speed. Doe was treated for injuries at the Indian Health Services. Video evidence and witnesses identified Dawes as the shooter to law enforcement.
Assistant U.S. Attorney Lori Harper Suek is prosecuting the case, which was investigated by the Bureau of Indian Affairs and FBI.
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Lackawanna County Man Convicted of Fraud, Identity Theft, and False Statement Offenses in Automobile Warranty SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 11, 2021, Brian Larry, age 59, of Clark’s Summit, Pennsylvania, was convicted following a seven-day jury trial held before United States District Court Judge Malachy E. Mannion of mail fraud, wire fraud, aggravated identity theft, and false statement offenses.
According to Acting United States Attorney Bruce D. Brandler, Larry was charged with defrauding his former employer, a Wilkes-Barre based automobile warranty company, from approximately January 2014 through October 2018. Larry was convicted of stealing the personal information of warranty policy owners and providing it to his coconspirators, who created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company, where Larry approved payment of the invoices. During the course of the scheme, Larry and his coconspirators obtained approximately $400,000 paid out by the warranty company pursuant to the false invoices, including thousands of dollars in repair work for Larry’s personal vehicle that he charged to other policy owners. The evidence at trial showed that Larry then falsified internal warranty company documents in an attempt to conceal his crimes.
The jury returned a guilty verdict after approximately two hours of deliberation. Larry was convicted of every count in his indictment: one count of conspiring to commit mail fraud and wire fraud; four counts of wire fraud, two counts of mail fraud; five counts of aggravated identity theft; and one count of making a false statement to the FBI when he denied receiving cash kickbacks in exchange for his participation in the scheme.
Three of Larry’s coconspirators previously pleaded guilty in connection with the scheme, and are awaiting sentencing:
- Matthew Gershkoff, age 64, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and to aggravated identity theft, and is awaiting sentencing. Gershkoff was convicted of preparing false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts, and for forging policy owners’ signatures. Gershkoff pleaded guilty on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
- Jason Pannone, age 39, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud and mail fraud, and to aggravated identity theft, and is awaiting sentencing. Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through a North Attleboro, Massachusetts automobile repair shop, Ultra Auto Services. Pannone pleaded guilty on March 23, 2021, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $128,000 in restitution.
- Herman Cabral, age 62, of Cranston, Rhode Island, pleaded guilty to conspiring to commit wire fraud. Cabral was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile repair shop, A Plus Collision Center. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $211,000 in restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted 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 the fraud offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry a mandatory, consecutive two-year minimum. 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; and 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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Kalispell meth trafficker sentenced to three years in prisonRead the Press Release
MISSOULA – A Kalispell man who admitted to conspiring with others to obtain large quantities of methamphetamine for distribution was sentenced today to three years in prison and to three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Scott Michael George Daniels, 31, pleaded guilty on Jan. 21 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement learned from several sources that Daniels was distributing meth and that he and others transported stolen vehicles from Kalispell to Spokane and traded them for illegal drugs. The government further alleged that Leon Kavis supplied Daniels with about 12 pounds of meth, which is the equivalent of 43,488 individual doses, in mid-August 2020. Kavis, of Missoula, is awaiting sentencing for a meth conspiracy conviction in a separate case.
The government also alleged that a confidential source saw Daniels with three pounds of meth in his garage and saw him distribute the drug to others. Law enforcement served a search warrant on Daniels’ residence and recovered six rifles, body armor, small quantities of meth and heroin and drug paraphernalia. Daniels admitted to distributing between 49 ounces and 60 ounces of meth between the spring and fall of 2020.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Montana Regional Violent Crime Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Flathead County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Justice Department Seeks to Shut Down San Diego Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Southern District of California seeking to bar a San Diego tax return preparer from owning or operating a tax return preparation business and preparing federal income tax returns for others.
The civil complaint was filed against Archibald W. Smith Jr., also known as Archie Smith, and alleges that he operated a tax preparation business in San Diego, California, under his own name and the names “Ablizzia Bookkeeping and Production” and “ABPC Inc.” According to the complaint, Smith prepared and filed tax returns that falsely understated his customers’ federal income tax liabilities by fabricating businesses and related business expenses; fabricating deductions for unreimbursed employee business expenses and charitable contributions; and overstating tax credits for solar-panel installation.
According to the complaint, the defendant prepared over 3,500 tax returns in aggregate for tax years 2013 through 2020. The complaint alleges that an IRS review of 80 income tax returns for tax years 2013 through 2017 resulted in deficiencies totally nearly $1 million. As a result, the complaint alleges, the defendant has cost the United States lost tax revenue. The complaint further alleges that the defendant harmed his customers, who could potentially face large income tax debts and may be liable for penalties and interest.
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.
Jury finds St. Louis man guilty on conspiracy and distribution of cocaine base “crack”Read the Press Release
ST. LOUIS – A jury found Bryan Kimble, 32, of St. Louis, Missouri guilty, Wednesday, of conspiracy to possess with intent to distribute cocaine base and three counts of distribution of cocaine base following a three-day jury trial. United States District Judge Stephen R. Clark presided over the trial.
The evidence during the trial proved Kimble distributed cocaine base to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent on three separate dates. Kimble also conspired with others to distribute cocaine base. In October 2019, ATF Special Agents received information from a confidential informant that Kimble was selling cocaine base. On October 11, 19, and 22, 2019, ATF successfully conducted controlled purchases of cocaine base from Kimble using an undercover agent. Kimble would drive to a location to meet the undercover agent on each date and use a female passenger to complete the drug transactions. In all, Kimble sold more than 30 grams of cocaine base to the undercover agent.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorney Rodney H. Holmes and Special Assistant United States Attorney Ashley M. Walker handled the case.
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Judges sentences St. Louis man for carjacking four people and brandishing a firearmRead the Press Release
ST. LOUIS – United States District Judge Stephen R. Clark sentenced Brandon Shell to 155 months in prison today. The 22-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of armed carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
On October 12, 2019, Shell approached four people who had just exited a Kia Optima near the 3700 block of Juniata in St. Louis. Shell brandished a handgun and demanded the four victims give him all their money. The victims complied. After they did so, Shell further demanded “That’s not all you have, give me the keys!” One of the victims handed Shell the keys to the Optima. Another victim threw several items back in the Optima.
Shell then drove away in the Optima. St. Louis Metropolitan Police Department detectives were able to locate Shell driving the Optima shortly after the carjacking. Shell pulled over in the 5300 block of Oriole in St. Louis. When Shell saw detectives, he ran away from them, but was eventually taken into custody.
Detectives found a loaded .380 caliber Kel-Tec semiautomatic pistol on Shell’s person. He was then arrested and charged.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case.
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Judges sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Judge Sarah E. Pitlyk sentenced Andre McIntosh to 72 months in prison today. The 48-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of being a felon in possession of a firearm.
Just before midnight on January 7, 2020, St. Louis Metropolitan Police Department officers patrolling the Jeff Vander Lou neighborhood discovered the license plate of an unoccupied vehicle was registered to McIntosh, who was a non-compliant sex offender on parole from the Missouri Department of Corrections. McIntosh also had several outstanding traffic warrants.
Officers canvassed the area and, after locating McIntosh, asked McIntosh to stop. McIntosh refused the officers’ requests for him to stop, and instead ran from the officers as they approached him. While running away from officers, McIntosh pulled a loaded .40 caliber Smith & Wesson firearm from his pocket and threw it. McIntosh was ultimately detained by police. A post-arrest computer inquiry of the Smith & Wesson firearm thrown by McIntosh revealed it had been reported stolen. A post-arrest search of McIntosh’s person revealed him to be in possession of fentanyl and methamphetamine.
Prior to January 7, 2020, McIntosh had been convicted of one or more felony crimes punishable by a term of imprisonment exceeding one year.
The St. Louis Metropolitan Police Department and Missouri Department of Public Safety investigated this case.
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Johnson Man Charged with Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Joshua Preston, 32, of Johnson, Vermont, was arrested yesterday on a Criminal Complaint alleging that he possessed with intent to distribute heroin, fentanyl, cocaine, and cocaine base in March of 2020. At the time of his arrest, Preston possessed additional controlled substances he intended to distribute. Preston’s initial appearance in federal court has not yet been scheduled.
According to court records, in late February of 2020, a Drug Enforcement Administration Special Agent observed Preston conducting what appeared to be a drug transaction in a parking lot in Williston, Vermont. In early March of 2020, DEA agents conducted surveillance in the same parking lot, and confronted Preston during a suspected drug transaction. A search of Preston’s vehicle resulted in the seizure of approximately 32 grams of suspected cocaine base, approximately 32 grams of suspected cocaine, over 60 grams of suspected fentanyl, and a digital scale. Yesterday, DEA agents conducted surveillance on Preston’s residence in Johnson, Vermont. Agents observed Preston conduct what appeared to be a drug transaction. Preston was subsequently arrested, and a search of his residence resulted in the seizure of nearly 5,000 bags of suspected fentanyl and approximately 140 grams of powder cocaine.
The United States Attorney emphasizes that the charge against Preston is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, Preston could face up to twenty years in prison, up to a $1,000,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Preston’s personal history and characteristics.
This case is being investigated by the Drug Enforcement Administration.
Acting United States Attorney Jonathan A. Ophardt is prosecuting the case for the government. Preston has not yet retained or been appointed counsel.
Illegal Firearms Trafficker from Philadelphia Sentenced to 15 Years After Being Convicted at TrialRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kenneth Eugene Cherry, Jr., 33, of Philadelphia, PA, was sentenced to fifteen years in prison and three years of supervised release by United States District Judge Harvey Bartle III, for 27 counts of firearms trafficking offenses.
In August 2019, following a jury trial, Cherry was convicted of dealing in firearms without a license, possession and transfer of a machine gun, possession of an unregistered firearm, possession of a firearm with an obliterated serial number, and multiple counts of possession of a firearm by a convicted felon.
Utilizing a confidential source during a year-long investigation, federal agents conducted controlled purchases of a total of 45 firearms – 24 from Cherry and 21 from his co-defendant. The firearms purchased from Cherry included two Glock “Auto Sear” conversion devices that are classified as machineguns, an unregistered short-barreled rifle, and six additional assault-style rifles. Cherry also provided a large amount of ammunition with the firearms he sold, which were trafficked from Virginia up to Philadelphia to be sold on the street for profit.
“The defendant put large-capacity, semiautomatic weapons on the streets of Philadelphia, significantly contributing to the violent crime problem in our city,” said Acting U.S. Attorney Williams. “Less than one week ago, I stood with our partners at ATF and the Philadelphia Police Department to discuss how the ATF’s NIBIN Van will be a critical resource to expedite ballistics testing of crime guns like the ones this defendant was trafficking. We are working around the clock and are ‘All Hands On Deck’ to put criminals like Cherry behind bars for a long time.”
“Knowingly selling firearms without a license is a violation of federal law, and by doing so, Cherry circumvented the very laws which are designed to protect communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Public safety is ATF’s top priority, and we are committed to working alongside our law enforcement partners to seek justice above anything.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
IRS Criminal Investigation and the U.S. Attorney Remind Taxpayers of Upcoming Tax Filing DeadlineRead the Press Release
SACRAMENTO, Calif. — The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of California reminded taxpayers of the May 17 filing and payment deadline.
Due to COVID-19, the original filing deadline and tax payment due date for 2020 was postponed from April 15 to May 17. Taxpayers filing Form 1040 series returns must file Form 4868 by May 17 to obtain the automatic extension to Oct. 15.
“Every person in this country is obligated to abide by our tax laws,” said Acting U.S. Attorney Phillip A. Talbert. “It hurts everyone who follows the rules when people submit fraudulent returns and claim taxpayer money to which they aren’t entitled. It is vital that everyone meets their responsibilities to pay taxes and that they have confidence in the government agencies that enforce those rules.”
“With the May 17 tax deadline fast approaching, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Michael Daniels, Acting Special Agent in Charge of the IRS Criminal Investigation in Northern California. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the May 17 deadline.”
For the most up-to-date information about the tax filing deadline taxpayers can visit IRS.gov.
Hobart Man Sentenced to 168 Months in PrisonRead the Press Release
HAMMOND-Charles Gould, 37, of Hobart, Indiana, was sentenced by United States District Court Judge Philip P. Simon to 168 months of imprisonment and 5 years of supervised release following his conviction at trial for conspiracy to distribute 280 grams or more of crack cocaine, announced Acting U.S. Attorney Bell.
According to documents in this case, during 2016 Gould conspired with other individuals in Gary, Indiana, to distribute crack cocaine. As part of the conspiracy, cocaine was cooked into crack cocaine, packaged for sale, and distributed by members of the conspiracy in Gary’s Glen Park neighborhood. During the investigation, law enforcement executed search warrants at five locations and recovered approximately 300 grams of crack cocaine packaged for sale, packaging materials, money, and a 33-page drug ledger. Gould has a prior felony conviction for aggravated battery in Lake County, Indiana.
Eighteen other charged members of the conspiracy were convicted of drug-related offenses in this case.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary, Hobart, and Lake County Police Departments. This case was prosecuted by Assistant United States Attorneys Thomas R. Mahoney and Alexandra McTague.
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Hip-Hop Producer Sentenced for Unlawfully Operating A Prostitution Business Guised as Escort BusinessesRead the Press Release
LAS VEGAS, Nev. – A hip-hop producer was sentenced today to two years and nine months in prison for unlawfully operating a prostitution business over a 12 year period, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
According to court documents, Jamal Rashid, 45, of Las Vegas, known as hip-hop producer “Mally Mall,” owned and operated several escort businesses between April 2002 and September 2014 that served as fronts for a prostitution business. Rashid operated a high-end prostitution business that transported victims across the United States, using various paid websites — such as Backpage and Eros — to advertise the victims for prostitution purposes.
Rashid exploited hundreds of victims as: (a) “independent contractors” who turned over to Rashid a portion of what they earned through prostitution; and (b) “priority girls” who turned over nearly all of the proceeds from prostitution to Rashid. He admitted to manipulating the victims, imposing rules and threatening them so that they would prostitute for him. Further, Rashid encouraged victims to get tattoos of him to demonstrate their loyalty, and led many of them to believe he would advance their careers in show business.
Rashid pleaded guilty in October 2019 to one count of use of an interstate facility in aid of unlawful activity. In addition to imprisonment, U.S. District Judge Gloria M. Navarro sentenced Rashid to three years of supervised release.
This case was investigated by the FBI. Assistant U.S. Attorney Nicholas Dickinson prosecuted the case.
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Hancock County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Gavin Collins, of Newell, West Virginia, has admitted to a child pornography charge, Acting U.S. Attorney Randolph J. Bernard announced.
Collins, 30, pleaded guilty today to one count of “Production of Child Pornography by Person Having Custody or Control.” Collins admitted to producing child pornography with a minor in his custody from September 2018 to July 2020 in Hancock.
Collins faces at least 15 years and up to 30 years of incarceration and a fine of up to $250,000. 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 Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. Magistrate Judge James P. Mazzone presided.