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Tuesday 30 March 2021
Judges sentences St. Louis man who brandished weapon during robbery of beauty supply storeRead the Press Release
ST. LOUIS – United States District Judge Ronnie L. White sentenced Dominic Young to 90 months in prison Monday. The 27-year-old St. Louis, Missouri resident pleaded guilty to one count of armed robbery and one count of brandishing a firearm.
On December 10, 2019, Young robbed T.K. Beauty Supply located in the 8500 block of Airport Road in Berkeley. As a T.K. Beauty Supply employee was on the way back inside the store, from taking out the store’s trash, Young tried to have a conversation with the employee. The employee re-entered the store, but Young brandished a firearm by pointing it at the employee and another employee. Young demanded one of the employees give him the money from two cash registers.
Young ordered both employees on the ground before taking more money from one of the employee’s purse. Young left the store, got into a vehicle and left the area. Young’s actions were captured on security surveillance footage inside of the store.
The Federal Bureau of Investigation and St. Louis County Police Department investigated the case. Assistant United States Attorney Geoff Ogden is handling the case.
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Judge Sentences Turtle Creek Drug Dealer to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former Allegheny County resident has been sentenced in federal court to 120 months’ imprisonment and eight years’ supervised release on his conviction of narcotics trafficking, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jerry Coker, age 30, formerly of Turtle Creek, Pennsylvania.
According to information presented to the court at the time Coker pleaded guilty, City of Pittsburgh police officers investigating Coker’s drug trafficking activity observed Coker’s sister and codefendant, Marleka Robinson, on September 11, 2016, obtain a large quantity of fentanyl from a distributor in the Knoxville section of Pittsburgh at Coker’s request. Robinson returned the drugs to the residence she shared with Coker and their other sister, codefendant Monique Robinson. A search warrant executed at the Coker residence the following day resulted in the seizure of more than 285 grams of fentanyl and small quantities of heroin, cocaine, and marijuana. Drug packaging, weighing, and distributing materials were found strewn throughout the house, along with two Smith & Wesson pistols and $8,900 in cash, all of which was ordered by the court to be forfeited.
Prior to imposing sentence, Judge Bissoon noted that given Coker’s prior felony drug trafficking conviction, the law required that she impose a sentence of 10 years’ imprisonment.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Drug Enforcement Administration and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Coker.
Jerriod Sivels Sentenced for Conspiracy to Distribute Cocaine and Money LaunderingRead the Press Release
Chattanooga, Tennessee – On March 26, 2021, Jerriod Sivels, also known as Jerriod Lee, 31, of Chattanooga, was sentenced to 142 months in prison by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Sivels previously pleaded guilty to one count of conspiracy to distribute 5 kilograms or more of cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), and one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(A).
The conviction was the result of an investigation into a drug trafficking organization responsible for distributing multiple kilograms of cocaine in the Eastdale and Brainerd communities of Chattanooga. Sivels was identified as a leader of the organization.
“This prosecution, which has made our community safer, provides an excellent example of the law enforcement successes that can be achieved through federal, state, and local collaboration,” said Acting United States Attorney Francis M. Hamilton III. “The U.S. Attorney’s Office values the coordinated law enforcement response that dismantled the drug trafficking organization in this case.”
“Today’s announcement should serve as a warning to anyone who seeks to poison our communities with dangerous and illegal drugs,” said Special Agent in Charge J. Todd Scott, who oversees DEA operations in Tennessee, Kentucky, and West Virginia. “The Drug Enforcement Administration works very closely with our law enforcement partners, like the Chattanooga Police Department, to ensure that criminal drug activity is shut down and those responsible are brought to justice. We are very grateful to CPD for their on-going cooperation and assistance.”
Chattanooga Chief of Police David Roddy said, "the Chattanooga Police Department is thankful for the partnership we have in the Federal system. The cooperative impact of our investigators and our Federal Partners has resulted in a prosecution that dismantled an organization, will keep Sivels from continuing to harm our community via drug trafficking, and has made our neighborhoods safer."
This prosecution is the result of an investigation by the United States Drug Enforcement Administration (“DEA”), the Chattanooga Police Department (“CPD”), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). The DEA Chattanooga Resident Office High Intensity Drug Trafficking Area (“HIDTA”) Task Force led the investigation. THE HIDTA Task Force includes Task Force Officers from CPD, the Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Franklin County Sheriff’s Office, Red Bank Police Department, and the Tennessee Highway Patrol.
The investigation was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Special Assistant United States Attorney Kevin Brown represented the United States. Brown is a Special Assistant City Attorney with the Chattanooga Police Department designated to the United States Attorney’s Office to prosecute violations of federal firearm and drug laws.
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Jackson Man Pleads Guilty to Federal Firearms CrimeRead the Press Release
Jackson, Miss. – Jarvis Kendal Haynes, 30, of Jackson, pled guilty today to an Indictment charging him with False Statement During Purchase of a Firearm, announced Acting United States Attorney Darren J. LaMarca and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations, New Orleans Field Office.
“Honest compliance with federal firearms laws helps to preserve the rights of innocent gun owners while allowing law enforcement to focus on illicit gun trafficking,” said Acting U.S. Attorney Darren LaMarca. “These arrests affirm the Department of Justice’s commitment to prosecuting those who willfully violate our federal firearms laws.”
An original indictment, returned by a federal grand jury on August 11, 2020, charged Haynes with unlawful possession of a firearm by a controlled substance user, and false statement during purchase of a firearm.
According to the indictment and testimony in court, on April 16, 2020, Haynes purchased a 9mm handgun from a Jackson pawnshop. In completing the necessary paperwork for the sale, Haynes claimed that he was not an unlawful user or addicted to marijuana or other controlled substances. Following a waiting period, Haynes returned on April 22, 2020, to the pawnshop to pick up the firearm, and also signed the federal form certifying that his answers remained true and correct.
On August 11, 2020, Haynes testified under oath in the United States District Court on a separate matter. Haynes then admitted that he had regularly used marijuana for years prior, and that specifically in April 2020, he lied when he claimed on the paperwork to buy the firearm, that Haynes had not been an unlawful user or addicted to marijuana when he bought the handgun.
On March 30, 2021, Haynes appeared before United States District Judge Kristi H. Johnson in Jackson, Mississippi. Haynes entered a plea of guilty to Count 2 of the Indictment: false statement during purchase of a firearm, in that he admitted to being an unlawful user of marijuana at the time he falsely claimed the opposite on the federal firearms purchase form.
Sentencing is scheduled for July 14, 2021 at 1:30 p.m. at the Thad Cochran U.S. Courthouse in Jackson, before U.S. District Judge Kristi H. Johnson. Haynes faces maximum penalties of 5 years in prison and a fine of up to $250,000.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with HSI’s Jackson Division who investigated the case, and United States Marshals Service who assisted with the arrest of the defendant. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Independence Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TIFFANY WALLACE, age 34, of Independence, Louisiana, pled guilty today to theft of government funds in connection with false applications for disaster assistance.
According to court documents, WALLACE submitted falsified applications to the Federal Emergency Management Administration (“FEMA”) for disaster assistance. The applications sought disaster assistance for vehicles that WALLACE claimed were damaged following the March and August 2016 storms and flooding in Tangipahoa Parish. In the application, WALLACE submitted fraudulent repair invoices for $13,935 of vehicle damage from the March 2016 flood and $13,368 for the August 2016 flood, when in fact WALLACE created the fraudulent invoices using fictitious automotive repair shops. As a result of false statements in the applications, FEMA paid disaster benefits of $6,000 and $11,902 for the two floods to WALLACE.
WALLACE faces up to ten years in prison, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and a special assessment of $100. Judge Jay C. Zainey set the sentencing hearing for June 29, 2021.
U.S. Attorney Evans praised the work of the Department of Homeland Security’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Hudson Man Sentenced to 276 Months for Sexual Exploitation of a MinorRead the Press Release
CONCORD - Robert Corleto, 43, of Hudson, was sentenced to 276 months in federal prison on Friday for sexual exploitation of a minor, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Corleto used a social media account on KIK Messenger to entice and coerce a minor to take images of herself engaging in sexually explicit conduct. Corleto sent at least one of those images to an undercover officer over KIK Messenger on March 18, 2019. During the course of the investigation, officers obtained a warrant to search Corleto’s cell phone. A forensic extraction of the device revealed that Corleto had between 10 and 150 images depicting the victim, as well as other minor children.
Corleto previously pleaded guilty on December 18, 2020.
“This case demonstrates the dangers that lurk on the internet,” said Acting U.S. Attorney Farley. “Sadly, there are predators who use the internet to exploit children for their own sexual gratification. The law enforcement community is working to identify these predators, but parents and the community must also make sure that children understand that they must be careful when using social media. Thanks to this substantial prison sentence, children will be protected from Mr. Corleto for a long time.”
“Today’s sentence effectively ends Robert Corleto’s ability to sexually exploit children and underscores our collective commitment to keep our children safe by going after those who seek to exploit their innocence online,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case illustrates how easy it is for a child to be victimized in the safety of their own home, and the need to talk to them about the steps they should take to safeguard their safety.”
This matter was investigated by the Federal Bureau of Investigation and the Hudson Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Houston man gets 25 years for trafficking 14-year old for sexRead the Press Release
HOUSTON – A 26-year-old Houston man has been ordered to prison following his convictions of sex trafficking of a minor and conspiracy to do so, announced Acting U.S. Attorney Jennifer B. Lowery.
Trevien Thomas aka Triggah pleaded guilty Jan. 6.
Today, U.S. District Judge Nancy F. Atlas handed Thomas a 300-month sentence. At the hearing, the court heard a statement from the victim’s mother and sister as well as letters from the victim and others detailing the emotional, physical and financial impact of what Thomas did. In handing down the sentence, the court noted the aggravating factor that Thomas lured an obviously emotionally-injured girl to Houston to engage in prostitution. The court further noted the victim suffered substantially during the time Thomas held her. He was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with requirements restricting his access to children and the internet. Thomas will also be ordered to register as a sex offender.
On March 23, 2016, Thomas picked up a 14-year-old girl in Dallas and brought her to Houston. After pistol whipping her when she tried to leave the first day, Thomas held the victim at several motels in the Houston area against her will and created commercial sex advertisements of her. He then forced the minor to engage in commercial sex acts with multiple adult men over the course of five days.
Thomas collected and kept all the proceeds.
He consistently watched her or had others do so. However, on March 28, 2016, he left her alone in a motel room, at which time she was able to escape.
Thomas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department conducted the investigation with assistance from the FBI Organized Crime Task Force. The Dallas Police Department also assisted with the investigative effort.
Assistant U.S. Attorneys Sebastian Edwards and Eun Kate Suh prosecuted this case.
Health Care Staffing Company and Executive Indicted for Colluding to Suppress Wages of School NursesRead the Press Release
A federal grand jury in Las Vegas, Nevada, returned an indictment today charging VDA OC LLC (formerly Advantage On Call LLC), a health care staffing company, and Ryan Hee, a former manager of the company, with entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses, in violation of the Sherman Act.
According to the one-count felony indictment filed today in the U.S. District Court for the District of Nevada, Hee, a resident of Las Vegas, along with a co-conspirator, agreed not to recruit or hire nurses staffed by their respective companies at Clark County School District facilities and to refrain from raising the wages of those nurses. During the alleged conspiracy, from about October 2016 until July 2017, Advantage was one of two primary providers of contract nursing services to the school district and employed Hee as a regional manager in its Las Vegas office. Advantage changed its name to VDA OC LLC after its assets were acquired by another company in July 2017.
“When employers conspire to allocate employees and fix wages, it robs American workers of higher pay and the ability to bargain for better, higher-paying jobs,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “Ensuring that American workers receive the benefits of free and fair competition is a top priority, so we will use every investigative tool at our disposal to investigate these crimes and prosecute perpetrators to the full extent of the law.”
“Our office is committed to investigating and prosecuting employers that harm the livelihood of American workers by conspiring to suppress wages,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working closely with the Antitrust Division, we will continue protecting the integrity of Nevada’s labor market against illegal wage-fixing and no-poach agreements.”
“The FBI is committed to investigating potential corruption that impedes our economy,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “The FBI works daily to disrupt illegal activity, like wage-fixing in this case, protecting honest American workers from those who would unfairly enrich themselves. We work hand-in-hand with our partners at the Department of Justice to stop this type of alleged activity and ensure Justice is served.”
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the International Corruption Unit of the FBI, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Health Care Staffing Company and Executive Indicted for Colluding to Suppress Wages of School NursesRead the Press Release
LAS VEGAS, Nev. – A federal grand jury in Las Vegas, Nevada, returned an indictment today charging VDA OC LLC (formerly Advantage On Call LLC), a health care staffing company, and Ryan Hee, a former manager of the company, with entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses, in violation of the Sherman Act.
According to the one-count felony indictment filed today in the U.S. District Court for the District of Nevada, Hee, a resident of Las Vegas, along with a co-conspirator, agreed not to recruit or hire nurses staffed by their respective companies at Clark County School District facilities and to refrain from raising the wages of those nurses. During the alleged conspiracy, from about October 2016 until July 2017, Advantage was one of two primary providers of contract nursing services to the school district and employed Hee as a regional manager in its Las Vegas office. Advantage changed its name to VDA OC LLC after its assets were acquired by another company in July 2017.
“When employers conspire to allocate employees and fix wages, it robs American workers of higher pay and the ability to bargain for better, higher-paying jobs,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “Ensuring that American workers receive the benefits of free and fair competition is a top priority, so we will use every investigative tool at our disposal to investigate these crimes and prosecute perpetrators to the full extent of the law.”
“Our office is committed to investigating and prosecuting employers that harm the livelihood of American workers by conspiring to suppress wages,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working closely with the Antitrust Division, we will continue protecting the integrity of Nevada’s labor market against illegal wage-fixing and no-poach agreements.”
“The FBI is committed to investigating potential corruption that impedes our economy,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “The FBI works daily to disrupt illegal activity, like wage-fixing in this case, protecting honest American workers from those who would unfairly enrich themselves. We work hand-in-hand with our partners at the Department of Justice to stop this type of alleged activity and ensure Justice is served.”
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the International Corruption Unit of the FBI, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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Gulfport Man Pleads Guilty under Project EJECT to Firearms OffenseRead the Press Release
Gulfport, Mississippi – Charles Jerrell Brown, 41, of Gulfport, Mississippi, pleaded guilty today before Senior U.S. District Judge Louis Guirola to being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (“DEA”).
On November 4, 2020, law enforcement officers conducted an operation in Gulfport, Mississippi. During the operation, Charles Jerrell Brown was taken into custody. As he was taken into custody, law enforcement officers found a handgun on the chair were Brown had been sitting.
Law enforcement officers were able to determine that Brown had a prior felony conviction for Possession of a Controlled Substance with Intent to Distribute. Brown admitted to possessing the firearm and being a prior convicted felon.
Brown was indicted on November 17, 2020. He will be sentenced on June 29, 2021, at 1:30 p.m. and faces a maximum sentence of 10 years in prison, unless the Court determines that he is an Armed Career Criminal, in which case he faces a maximum sentence of life in prison.
This case was investigated by the DEA and the Gulfport Police Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Gregg County Man Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A Kilgore, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Christopher Marcell Mumphrey, 43, pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
“As evidenced by this plea and a co-defendant's plea last week, local and state law enforcement, partnering with the FBI, are making a difference in shutting down the flow of illegal drugs in our communities,” said Acting U.S. Attorney Nicholas J. Ganjei.
According to information presented in court, on Feb. 5, 2020, Mumphrey was a passenger in a vehicle which was used to transport and distribute methamphetamine in Smith County, Texas. Mumphrey exited the vehicle and signaled to the buyer to approach the vehicle to complete the transaction.
A federal grand jury returned an indictment charging Mumphrey with federal drug trafficking crimes on Nov. 6, 2020. Under federal statutes, Mumphrey faces up to 40 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, the Smith County Sheriff’s Office, and the Texas Department of Public Safety-CID and prosecuted by Assistant U.S. Attorney Alan Jackson.
Former Probation Official Pleads Guilty to Child Pornography OffensesRead the Press Release
A Pennsylvania man pleaded guilty today to multiple counts of receiving child pornography, accessing with intent to view child pornography, and possessing child pornography depicting prepubescent minors and minors under the age of 12.
According to court documents, Robert Costello, 53, of Bethlehem, who was employed by the New York City Department of Probation as an assistant commissioner at the time of the offenses in 2020, used an online app to discuss the sexual abuse of children and to receive images of child sexual abuse, and stored images and videos of child sexual abuse on his electronic devices.
Costello is scheduled to be sentenced on July 15, and faces a mandatory minimum of five years in prison and a statutory maximum of 90 years in prison. He also faces mandatory restitution. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas M. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania; and Special Agent in Charge Brian A. Michael of Homeland Security Investigations (HSI) in Philadelphia made the announcement.
HSI Philadelphia is investigating the case and received assistance from the Bethlehem Township Police Department.
Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Francis Weber and Kelly Harrell of the Eastern District of Pennsylvania are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Princeton Resident Charged in Connection with Multimillion-Dollar Schemes Involving Securities Fraud, Credit Card Fraud, and Business E-Mail Compromise FraudRead the Press Release
TRENTON, N.J. – A former Princeton resident was arrested today and charged with engaging in multiple fraudulent schemes intended to steal millions of dollars from individual and institutional victims, Acting U.S. Attorney Rachael A. Honig announced.
Ford Graham, 57, formerly of Princeton, New Jersey, was arrested today in Nellysford, Virginia, and charged by criminal complaint with two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of securities fraud, three counts of aggravated identity theft, and one count of engaging in unlawful money transactions. Graham made his initial appearance before U.S. Magistrate Judge Joel Hoppe in Harrisonburg, Virginia, federal court. Graham will make his initial appearance in U.S. District Court for the District of New Jersey on a date to be determined.
According to documents filed in this case and statements made in court:
From December 2012 to September 2013, Graham represented himself as the owner, chief executive, chairman, manager, and principal member of dozens of corporate entities purporting to do business under an umbrella organization, Vulcan Capital Corp. (Vulcan). Graham held himself out as a highly successful financier who had vast experience sponsoring complex energy and natural resource projects and other investment deals. In connection with one such investment that Graham and a Vulcan entity sponsored, one victim (Victim-1) invested more than $2 million with Graham, relying on Graham’s misrepresentations and omissions regarding the investment. The investigation revealed that Graham misappropriated substantial amounts of Victim-1’s investment money and used it for his own personal benefit and enrichment – including international vacations, private school tuition for his children, and other personal amenities – instead of the investment purpose that Graham had marketed. Graham caused multiple victims to lose more than $2.6 million.
Graham also participated in a scheme to defraud merchant processing institutions through fraudulent credit card transactions. From December 2017 to February 2018, Graham used at least one payment processing platform to process fraudulent charges on stolen credit card numbers that he obtained. After the payment processing platform credited Graham’s account with the payments requested, Graham quickly transferred or caused to be transferred the fraudulently obtained money to other accounts before the victim institutions could act. When requested by the victim payment processing company to provide supporting documentation, Graham submitted false documentation, including fabricated invoices and credit card authorization forms, fabricated e-mails, forged signatures, altered bank statements, and other false and fraudulent information. This scheme resulted in tens of thousands of dollars of losses and the misappropriation of multiple victims’ personal identification information.
From February 2017 to June 2018, Graham conspired with others to defraud victim institutions and individuals of millions of dollars through a business email compromise scheme. Members of the conspiracy sent fraudulent e-mail communications to victims who were scheduled to make substantial outgoing wire transfers to third parties. These fraudulent e-mails created the appearance that they had been sent by the intended third-party recipients of the scheduled payments when, in fact, they were sent by members of the conspiracy. The fraudulent emails requested the victims to reroute the scheduled payments to different bank accounts, which Graham and his conspirators controlled. In one instance, a fraudulent email successfully induced one victim unknowingly to reroute a payment of more than $650,000 to a bank account that Graham controlled. Upon receiving the funds, Graham transferred or caused to be transferred substantial portions of those funds to other accounts that he controlled, and which he used and intended to use for his own personal benefit. Graham and his conspirators attempted to defraud multiple victims of at least $6 million.
The wire fraud and wire fraud conspiracy counts each carry a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum potential penalty of 20 years in prison and a $5 million fine. Each count of aggravated identity theft is punishable by a statutory mandatory consecutive sentence of two years, which must run consecutive to any other sentence. The charge of engaging in unlawful monetary transactions carries a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s charges. Acting U.S. Attorney Honig also thanked investigators with the New Jersey Bureau of Securities, under the direction of Chief Christopher W. Gerold, for their assistance in connection with the investigation.
The government is represented by Assistant U.S. Attorneys J. Brendan Day, Attorney-in-Charge of the Trenton Branch Office, and Martha K. Nye, of the Criminal Division in Trenton.
Former Honduran Congressman Tony Hernández Sentenced to Life in Prison and Ordered to Forfeit $138.5 Million for Distributing 185 Tons of Cocaine and Related Firearms and False Statements OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Wendy C. Woolcock, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that JUAN ANTONIO HERNÁNDEZ ALVARADO, a/k/a “Tony Hernández” (“HERNÁNDEZ”) was sentenced to life in prison for cocaine-importation, weapons, and false-statements offenses. HERNÁNDEZ is a former Honduran congressman and the brother of Juan Orlando Hernández, the current president of Honduras. HERNÁNDEZ was convicted on October 18, 2019, following a jury trial before U.S. District Judge P. Kevin Castel, who also imposed today’s sentence.
Manhattan U.S. Attorney Audrey Strauss said: “Former Honduran congressman Juan Antonio Hernández Alvarado was involved in all stages of the trafficking through Honduras of multi-ton loads of cocaine destined for the U.S. Hernández bribed law enforcement officials to protect drug shipments, arranged for heavily armed security for cocaine shipments, and brokered large bribes from major drug traffickers to powerful political figures, including the former and current presidents of Honduras. Hernández was complicit in at least two murders. Today, Tony Hernández was rightly sentenced to life in prison.”
Special Agent in Charge Wendy C. Woolcock said: “Exploiting a high-ranking position in government to wield the power of the state to support drug trafficking is as nefarious as it comes. The conviction and sentencing of Tony Hernandez is a reminder there is no position powerful enough to shield you from facing justice when you violate U.S. drug laws by sending tons of cocaine to our country. As important as this conviction is to the people of the United States, it is also important to the citizens of Honduras who Hernandez purposely put in harm’s way for his own personal gain. Today’s sentencing is a victory for the rule of law and we are grateful to our federal and international partners who made this possible.”
As reflected in the Superseding Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:
HERNÁNDEZ played a leadership role in a violent, state-sponsored drug trafficking conspiracy. Over a 15-year period, HERNÁNDEZ manufactured and distributed at least 185,000 kilograms of cocaine that was imported into the United States. HERNÁNDEZ commanded heavily armed members of the Honduran military and Honduran National Police; he sold machineguns and ammunition to drug traffickers, some of which he obtained from the Honduran military; he controlled cocaine laboratories in Colombia and Honduras; he secured millions of dollars of drug proceeds for Honduras’s National Party campaigns in connection with presidential elections in 2009, 2013, and 2017; and he helped cause at least two murders. HERNÁNDEZ made at least $138.5 million through his drug trafficking activities, money he was ordered to forfeit in connection with today’s sentencing.
Hernández’s Drug Trafficking Conduct
HERNÁNDEZ’s drug trafficking career started in about 2004 when he began providing sensitive law enforcement and military information to major Honduran drug traffickers Victor Hugo Diaz Morales, a/k/a “El Rojo,” and Hector Emilio Fernandez Rosa, a/k/a “Don H.” HERNÁNDEZ provided Diaz Morales with information about, among other things, operations of the Honduran Navy; efforts by the United States to train Honduran Air Force pilots to fly at night to conduct anti-narcotics operations; military radar capabilities so that cocaine plane shipments could avoid detection; and interdiction efforts by certain Honduran National Police officials. Over the course of their relationship, HERNÁNDEZ helped Fernandez Rosa and Diaz Morales distribute approximately 140,000 kilograms of cocaine.
By 2008, HERNÁNDEZ’s narcotics trafficking had expanded, and he was also manufacturing his own cocaine in a laboratory he controlled near El Aceitico, Colombia. HERNÁNDEZ told his co-conspirators that some of the cocaine manufactured at his laboratory was stamped with his initials “TH,” and a photograph of a kilogram of “TH” stamped cocaine was intercepted during the course of the investigation. HERNÁNDEZ supplied his co-conspirators with tons of cocaine that was produced at his laboratory.
Beginning in about 2008, HERNÁNDEZ partnered with Amilcar Alexander Ardon Soriano, a former Honduran drug trafficker and mayor, under the protection of members of the National Party leadership. Testimony at trial established that HERNÁNDEZ and Ardon Soriano secured protection from investigation, arrest, and extradition through massive bribes paid to high-ranking politicians, including, among others, Porfirio “Pepe” Lobo Sosa and Juan Orlando Hernández. In connection with the 2009 national elections, drug proceed bribes paid in exchange for protection included: (i) Ardon Soriano paying $2 million to support Lobo Sosa’s campaign for presidency and Juan Orlando Hernández’s reelection campaign for a position in the Honduran congress; (ii) Diaz Morales paying $100,000 to HERNÁNDEZ to support National Party campaigns; and (iii) Ardon Soriano bribing three congressmen at the direction of Juan Orlando Hernández so that the congressmen would support Juan Orlando Hernández’s efforts to become president of the congress.
Juan Orlando Hernandez was named president of the congress in early 2010. HERNÁNDEZ, Ardon Soriano, and their co-conspirators, including co-defendant Mario Jose Calix Hernández, a Honduran deputy mayor, and codefendant Mauricio Hernández Pineda, a then-member of the Honduran National Police and HERNÁNDEZ’s cousin, took advantage of National Party protection to continue transporting huge quantities of cocaine. Once or twice a month in 2010, HERNÁNDEZ sent Ardon Soriano cocaine shipments consisting of approximately 300 kilograms; and once a month in 2011 and 2012, HERNÁNDEZ sent Ardon Soriano maritime cocaine shipments ranging in size from 700 to 1,600 kilograms.
In 2013, HERNÁNDEZ was campaigning to become a congressman and Juan Orlando Hernández was campaigning to become president. Around this time, according to testimony at trial, Juan Orlando Hernández solicited $1.6 million in drug proceeds from Ardon Soriano to support himself and National Party campaigns. Also during the 2013 campaign, HERNÁNDEZ accepted $1 million from former Sinaloa Cartel leader Joaquín Archivaldo Guzmán Loera, a/k/a “Chapo,” to support Juan Orlando Hernández’s presidential campaign. During meetings with Chapo in Honduras, HERNÁNDEZ promised to provide protection for members of their conspiracy and their cocaine shipments through Honduran territory if Juan Orlando Hernández was elected president.
In November 2013, HERNÁNDEZ was elected to the Honduran congress and Juan Orlando Hernández was elected president. Between 2015 and 2017, per trial testimony, HERNÁNDEZ and Juan Orlando Hernández continued to secure large sums of drug proceeds for National Party campaigns in exchange for protecting drug traffickers. For example, there was testimony at trial that approximately six months before the November 2017 national elections, HERNÁNDEZ and Juan Orlando Hernández met with Ardon Soriano in Copán, Honduras. During that meeting, HERNÁNDEZ and Juan Orlando Hernández solicited $500,000 and 1.6 million Lempira in drug proceeds from Ardon Soriano to “finance” the National Party’s campaign in the Copán and Lempira Departments.
In 2018, HERNÁNDEZ continued to engage in large cocaine shipments with Nery López Sanabria, another significant Honduran drug trafficker. Honduran authorities arrested and detained López Sanabria in connection with a traffic incident and recovered, among other things, several drug ledgers in a secret compartment of his car. One of the ledgers was labeled “Hard Work” 2018, and reflected a 650-kilogram cocaine shipment with HERNÁNDEZ. At least one of the other ledgers seized by Honduran law enforcement in 2018 contained references to “JOH,” initials used by Juan Orlando Hernández. López Sanabria was murdered in a Honduran prison, as described below, shortly after his drug ledgers were introduced at HERNÁNDEZ’s trial.
Hernández’s Weapons Possession and Acts of Violence
HERNÁNDEZ used firearms throughout his drug trafficking. HERNÁNDEZ’s personal weapons included a modified AR-15, an Uzi inscribed with the name of Juan Orlando Hernández, “Presidente de la República,” and an M60 belt-fed machinegun. HERNÁNDEZ also sold machineguns and ammunition to drug traffickers. In 2010, Diaz Morales obtained between 4,000 and 6,000 rounds of assault rifle ammunition from a member of the Honduran National Police who told Diaz Morales he obtained the ammunition from HERNÁNDEZ. In 2012, HERNÁNDEZ supplied 40 M16s to another drug trafficker.
HERNÁNDEZ also coordinated at least two drug-related murders. In 2011, HERNÁNDEZ and Ardon Soriano caused the murder of a rival drug trafficker named Franklin Arita in the Copán Department. HERNÁNDEZ directed Juan Carlos “Tigre” Bonilla Valladares, the regional Honduran National Police chief responsible for the Copán Department at the time, to arrange for Arita’s murder, which was executed by assassins using two 40-millimeter grenade launchers, M16s, and Israeli-made Galil assault rifles. In 2013, HERNÁNDEZ worked with other drug traffickers, including Ardon Soriano, to murder a drug trafficker named Chino because HERNÁNDEZ was concerned that Chino might cooperate with law enforcement.
Hernández’s Obstruction and Other Efforts to Influence the Investigation
HERNÁNDEZ made false statements to law enforcement and the Court during the course of this investigation and prosecution, and he obstructed justice. HERNÁNDEZ (i) traveled to the United States in 2016 and made false statements to law enforcement about his drug trafficking activities; (ii) made false statements about his assets during a January 2019 bail hearing; (iii) caused sensitive witness information to be disclosed in Honduras in violation of a protective order in October 2019; and (iv) made false statements about his assets during an application for appointed counsel in February 2020.
Eight days after the jury found HERNÁNDEZ guilty, on October 26, 2019, López Sanabria – the drug trafficker from whom were seized the ledgers bearing HERNÁNDEZ’s name and Juan Orlando Hernández’s initials – was murdered at a maximum security prison in Honduras. López Sanabria’s attorneys confirmed to the media that: one of HERNÁNDEZ’s family members and an investigator hired by HERNÁNDEZ’s family had made unauthorized visits to López Sanabria prior to HERNÁNDEZ’s trial; López Sanabria had rejected their efforts to obtain information about whether he was cooperating with the DEA; and López Sanabria had planned to cooperate with the DEA against Juan Orlando Hernández and HERNÁNDEZ. Leaked surveillance video of the murder shows López Sanabria talking to the warden of the facility, Pedro Ildefonso Armas, while a masked man walks past and unlocks a nearby door. Several individuals who are believed to be prisoners then storm through the door and shoot and stab López Sanabria to death. On December 9, 2019, a group of unknown assailants murdered Jose Luis Pinto, a lawyer who represented López Sanabria. Three days later, on December 12, 2019, a group of unknown gunmen on motorcycles murdered Ildefenso Armas, the warden of the facility in which López Sanabria was murdered, in Tegucigalpa.
Hernández’s Co-Conspirators
On August 8, 2019, Fernandez Rosa was sentenced in this District to life in prison for, among other things, his participation in HERNÁNDEZ’s cocaine importation conspiracy and for committing 18 murders. Several of HERNÁNDEZ’s other co-conspirators, including, among others, Hernández Pineda, Calix Hernández, Bonilla Valladares, Arnaldo Urbina Soto, Carlos Fernando Urbina Soto, and Miguel Angel Urbina Soto, are also charged in this District with firearms and drug trafficking offenses based on, among other things, their participation in HERNÁNDEZ’s cocaine importation conspiracy. On February 12, 2020, Hernández Pineda surrendered in this District and he is awaiting trial. On March 22, 2021, HERNÁNDEZ’s co defendant and co-conspirator Geovanny Fuentes Ramirez was convicted at trial in this District of drug trafficking and weapons offenses. Fuentes Ramirez’s sentencing is scheduled for June 22, 2021.
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In addition to the prison term, HERNÁNDEZ, 42, was sentenced to five years of supervised release.
Ms. Strauss praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, OCDETF New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Matthew Laroche, and Jason A. Richman are in charge of the prosecution.
Former Government Contracting Officer Sentenced for Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme while she served as a contracting officer for the Broadcasting Board of Governors (BBG).
“The defendant sold out her position by receiving bribe payments in exchange for providing preferential treatment to a contracting firm that received millions of dollars in taxpayer money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of our firm commitment to seeking equal justice under the law and holding accountable government officials who betray their oaths and violate the public’s trust.”
According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for the BBG’s International Broadcast Bureau, Office of Contracts until September 2017. Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.
In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for preferential treatment and the performance of official acts benefitting the firm.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments. Instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative, and Sturgis instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
“When a public official accepts bribes during the government contracting process, it is a betrayal of the U.S. taxpayer and the principle of fairness in government contracting,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s sentencing is yet another example of the dedication and perseverance of the FBI and our partners to root out corruption and deceit. Sturgis defrauded the U.S. and taxpayers and will be held accountable for her unlawful and duplicitous actions.”
On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
The Department of State’s Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Public Integrity Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-158.
Former Contracting Officer Sentenced for Bribery ConspiracyRead the Press Release
A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme.
According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for in the International Broadcast Bureau, Office of Contracts, of the Broadcasting Board of Governors (the BBG) until September 2017. In that capacity, Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.
In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for Sturgis giving the firm preferential treatment.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments; instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative and instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The Department of State, Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Boston Police Captain Arrested for Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Captain was arrested today and charged in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Richard Evans, 62, of Hanover, was charged in an indictment unsealed today with one count of conspiracy to commit theft concerning programs receiving federal funds, one count of embezzlement from an agency receiving federal funds, one count of conspiracy to commit wire fraud and three counts of wire fraud. Evans will make an initial appearance via videoconference in federal court in Boston later today.
“The public counts on police supervisors to lead by example and serve as models of honor, integrity and professionalism,” said Acting United States Attorney Nathaniel R. Mendell. “When they break the law for personal financial gain with the officers they supervise, they not only violate the trust of the public, but they dishonor their fellow officers. I want to thank the Boston Police Department for its continued cooperation with our investigation.”
“Captain Richard Evans is accused of betraying the public’s trust, and the reputation of his fellow police officers, by conspiring with officers he supervised at BPD’s Evidence Control Unit to steal tens of thousands of dollars in taxpayer money for work they did not do, over the course of five years,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It is deeply troubling when officers who have sworn to uphold the law violate their oath and use their badge as a license to commit a crime. We would like to thank the Boston Police Department for its cooperation and commitment to ending this practice.”
“Former Captain Evans allegedly conspired to commit theft and defraud taxpayers. The alleged conduct is antithetical to the job we trust law enforcement officers to do – uphold the law and act with honesty and integrity,” said Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
According to the indictment, Evans oversaw the BPD’s Evidence Control Unit (ECU), which was responsible for, among other things, storing, cataloging and retrieving evidence at the warehouse. ECU officers were eligible to earn overtime pay of 1.5 times their regular hourly pay rate for overtime assignments. It is alleged that beginning in at least March 2015, Evans and other officers routinely departed overtime shifts two or more hours early but submitted false and fraudulent overtime slips claiming to have worked the entirety of each shift.
The indictment alleges that the fraud occurred during one overtime shift, called “purge” overtime, that was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4:00 to 8:00 p.m. on weekdays. On days which Evans claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often by 6:00 p.m. or earlier. Despite this, it is alleged that Evans routinely submitted false and fraudulent overtime slips claiming to have worked from 4:00 to 8:00 p.m. Evans also endorsed the fraudulent overtime slips of his subordinates.
From March 2015 to February 2019, Evans and his co-conspirators allegedly collected tens of thousands of dollars in fraudulent overtime. Specifically, Evans allegedly received over $12,395 for overtime hours he did not work and endorsed dozens of fraudulent overtime slips submitted by subordinates.
From 2015 through 2018, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, FBI Boston SAC Bonavolonta and DOJ-OIG SAC Cunningham made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced for Failing to Pay Child SupportRead the Press Release
CONCORD - Richard E. Goulet, Jr., 51, of Ocala, Florida, was sentenced to five years of probation for failing to pay child support, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in December of 2007, a decree of divorce was issued in the Portsmouth Family Division Court ordering Goulet to pay support in a specified amount for his three children, all of whom are residents of New Hampshire.
Since the date of the decree in 2007, the defendant failed to pay child support as ordered by the court. He owed over $100,000.00 in unpaid support at the time of his arrest. Prior to sentencing, he paid over $107,000 of past-owed child support to bring his obligations current. His sentence also includes a mandatory condition requiring him to keep his monthly support obligations current.
Goulet previously pleaded guilty on October 23, 2019.
“Out-of-state parents who fail to meet their child support obligations are committing a federal crime,” said Acting U.S. Attorney Farley. “Unfortunately, it took a federal prosecution to make this defendant finally pay over $100,000 in child support. This case should send a serious message to deadbeat parents that failing to pay court-ordered child support can result in serious consequences, including a federal felony conviction.”
“Failing to pay court-ordered child support is a federal crime,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We appreciate our partnership with the New Hampshire United States Attorney’s Office in the investigation and prosecution of such cases.”
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Charles Rombeau and former Assistant U.S. Attorney Helen Fitzgibbon.
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Federal Jury Convicts Nepalese Man of Attempting to Entice and Meet A Pregnant 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – A federal jury has found Sanjay Lama (32, Jacksonville) guilty of using the internet to attempt to entice a 12-year-old child to engage in sexual activity. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Lama was arrested on September 25, 2019, in Jacksonville and has been detained since that date. A sentencing hearing is scheduled for July 19, 2021. Lama is a citizen of Nepal who, at the time of this offense, was legally residing in Jacksonville and working as an information technology specialist for a local company.
According to evidence and testimony introduced during the five-day trial, on September 25, 2019, an undercover FBI agent who was posing online as a pregnant 12-year-old girl, was contacted by Lama, who was using the screen name “Awesome_Jack.” Lama and the undercover agent engaged in online conversation using a social media app known both for its anonymity as well as for being a way to meet others online for sex. Throughout that day, Lama sent 160 text messages in which he expressed his desire to meet the 12-year-old “child” to engage in sexual activity. Lama provided graphic descriptions of the sexual acts that he wanted to perform on the “child.” Later that afternoon, Lama left his workplace in downtown Jacksonville and rode his motorcycle to a prearranged location at a shopping center in south Jacksonville to meet the “child.” His plan was to take her to her nearby residence for sex. When he arrived at the meeting location, Lama was approached by FBI agents as he was texting with the “child” on his cellphone and was arrested.
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fayette County Woman Charged with Stealing Government PropertyRead the Press Release
PITTSBURGH - A resident of White, Pennsylvania, has been indicted by a federal grand jury on a charge of committing theft of government property, Acting United States Attorney Stephen R. Kaufman, announced today.
The one-count Indictment named Jacqueline Knupp, 41, as the sole defendant.
According to the Indictment, Knupp stole approximately $1,794.21 in currency from the United States.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than three years, or a combination thereof. 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.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Pleads Guilty to Drug Charges and Misuse of a Social Security NumberRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to conspiracy to distribute more than 40 grams of fentanyl and misusing a Social Security number.
Bladimir Sanchez Soto, 29, formerly of Methuen, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of false representation of a Social Security number. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 27, 2021. Sanchez Soto was indicted in May 2020.
As stated during court proceedings, Sanchez Soto helped arrange four sales of approximately 65 grams of fentanyl in November 2019 and January 2020. In February 2020, Sanchez Soto and a co-defendant were arrested and additional fentanyl was seized. Sanchez Soto was previously indicted in the Western District of Michigan in connection with using a false name and Social Security number to obtain a Michigan driver’s license in Nov. 2016. The matter was transferred to the District of Massachusetts for plea and sentencing.
The charge of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl provides for a minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a $5 million fine. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Delaware man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Andre Jason Burgos, of Wilmington, Delaware, has admitted to his role in a drug distribution enterprise, Acting United States Attorney Randolph J. Bernard announced.
Burgos, also known as “Ghost,” 30, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Burgos admitted to working with others to sell cocaine hydrochloride, cocaine base, heroin, and fentanyl from June 2019 to October 2020 in Berkeley County and elsewhere.Burgos faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Dallas Man Pleads Guilty to Obstructing IRS LawsRead the Press Release
A Dallas man pleaded guilty today to attempting to obstruct the due administration of the internal revenue laws of the United States, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
According to court records, between 2009 and 2017, David Marcus Easler, 58, earned approximately $836,699 in wages. As of January 2019, Mr. Easler had an outstanding tax balance of approximately $326,257. This substantial tax due was a result of his longstanding failure to pay his income taxes dating back to 1996.
Since at least 2004, the IRS sent several Notices of Levy on Wages to Mr. Easler to collect past due income taxes. When the IRS became aware of his employment with a particular company, the IRS attempted to collect past due income taxes by either withholding taxes from his salary, or by using tax levies and/or garnishment of wages from Mr. Easler's employer.
In direct response to IRS efforts to collect his past due taxes, Mr. Easler filed four different voluntary petitions for bankruptcy. With some of these bankruptcy filings, Mr. Easler submitted false and fraudulent tax returns and other tax return related documents. For example, as part of his 2009 bankruptcy filing, he submitted several income tax returns that falsely reported that he made “0” dollars of taxable income.
In 2011 and 2013, Mr. Easler signed and filed with the IRS three false U.S. Nonresident Alien Income Tax Returns, Form 1040NR, in which he fraudulently represented that he was a non-resident of the United States living in the foreign country of Texas. In these forms, Mr. Easler also falsely claimed that he was due tax refunds.
From 2012 through 2015, Mr. Easler provided several of his employers with false Employee's Withholding Certificates, Form W-4, in which he fraudulently inflated the number of exemptions to reduce the amount of income taxes withheld from his paychecks. On some Forms W-4, Mr. Easler falsely claimed he was "exempt" from the withholding of any taxes from his paychecks.
On November 17, 2014, Mr. Easler testified at bankruptcy hearing before a United States Bankruptcy Judge. During the hearing, the Bankruptcy Judge told Mr. Easler that his theory to justify his non-payment of income taxes was "all a big ruse to keep people from paying taxes.” The United States Bankruptcy Judge also told Mr. Easler that his theory amounted to a ''tax evasion system" and said if Mr. Easler continued to refuse to pay his income taxes, "it's not going to do anything for you in the courts of this country. You're just wasting your time."
Even after these warnings, Mr. Easler did not change course and continued his efforts to impede the IRS by filing two additional bankruptcy petitions in 2015 and 2016 to obstruct IRS tax collection efforts.
“Every citizen of this country has a lawful duty to report their taxable income and pay their fair share of taxes: there is no gray area on the subject,” said Mark Pearson, IRS Criminal Investigation Special Agent in Charge. “Not only did Mr. Easler choose to ignore his duty to pay taxes for over 20 years, he repeatedly attempted to obstruct IRS collection efforts. Mr. Easler is now a convicted felon. The IRS and Department of Justice remain determined and vigilant in investigating and prosecuting those who willfully refuse to pay taxes on their income and thus undermine the integrity of the U.S. tax system."
Mr. Easler now faces up to three years in federal prison. His sentencing has been set for August 13, 2021.
IRS Criminal Investigation is conducting the investigation. Assistant U.S. Attorney David Jarvis is prosecuting the case.
Crownpoint man charged with two counts of aggravated sexual abuseRead the Press Release
ALBUQUERQUE, N.M. – Emerson Pinto, 58, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, made his initial appearance in federal court on March 29 on an indictment charging him with two counts of aggravated sexual abuse in Indian Country. Pinto will remain in custody pending an arraignment scheduled for March 31.
v Pinto was indicted by a federal grand jury on March 12. According to the indictment, between on or about Sept. 1, 2009 and Oct. 31, 2009, Pinto allegedly engaged in and attempted to engage a sexual act with Jane Doe 1 and Jane 2. At the time of the offense, the victims were both under the age of 12. The alleged incident occurred on the Navajo Nation.
If convicted, Pinto faces up to life in prison. An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty.
The FBI investigated this case with assistance from Navajo Nation Police Department. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Covington Man Sentenced for Making a False Declaration in Connection with a BankruptcyRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that PENH KANG (“KANG”), age 42, of Covington, Louisiana, was sentenced today for Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).
According to documents filed in federal court, on or about the 12th day of September 2017, in the Eastern District of Louisiana, KANG, knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury, as permitted under Section 1746 of Title 28, in and in relation to a case under Title 11, In re Pehn Kang, No.17-12431. KANG submitted a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions. Additionally, KANG failed to disclose gambling losses of approximately $40,000 to $60,000, an interest in two Capital One Bank accounts, and a $50,000 life insurance policy.
U.S. District Judge Greg G. Guidry sentenced KANG to probation for a term of 24 months.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Court Enters $4.5 Million Judgment Against Owner of Defunct Urine Drug Testing Laboratory Resolving Allegations of Participation in Kickback SchemesRead the Press Release
CHARLOTTE, N.C. – Acting United States Attorney for the Western District of North Carolina William T. Stetzer announced today that the United States District Court for the Western District of North Carolina entered final judgment in the amount of $4.5 million against Douglas Smith, resolving the United States’ claims against Smith, one of the former owners of Physicians Choice Laboratory Services (PCLS), a now-defunct diagnostic testing laboratory formerly located in Charlotte, North Carolina and Rock Hill, South Carolina. Smith consented to entry of final judgment against him to resolve allegations that he violated the Anti-Kickback Statute (AKS), and, as a result, caused PCLS to submit millions of dollars in false claims for reimbursement to the Medicare program in violation of the federal False Claims Act (FCA).
In June of 2019 the United States filed its Complaint in Intervention asserting FCA claims against Smith, PCLS and other agents of the laboratory based on allegations that they participated in various schemes to offer or provide benefits to physicians in exchange for the referral of patient samples for drug testing. The United States contended that such conduct violated the AKS, which specifically forbids any person or entity from knowingly and willfully offering, paying, soliciting, or receiving remuneration to influence the referral of items or services reimbursable by a federal health care program, and, that as a result, it was entitled to recover damages under the FCA.
This settlement resolves the United States’ allegations that from September 2012 through July 2014, PCLS submitted false claims to the Medicare program as a result of Smith’s payment of kickbacks to the owner of a medical practice in Knoxville, Tennessee.
Last week, the U.S. Attorney’s Office for the Western District of North Carolina announced that another defendant, Philip McHugh, also a former owner of PCLS, had agreed to pay over $2 million to resolve claims asserted by the United States that he participated in schemes to illegally induce physicians to refer patients to PCLS for urine drug testing. In December of 2019, the U.S. Attorney’s Office announced that another defendant, Manoj Kumar, a former sales representative and manager of PCLS, had paid $649,407 to resolve similar claims.
The United States’ civil action was filed in the District of North Carolina following the filing of two whistleblower complaints under the qui tam provisions of the FCA, titled United States ex rel. Jenkins et al. v. Physician’s Choice Laboratory Services et al., originally filed in the Eastern District of Tennessee, and United States ex rel. Hartnett & Shoched v. Physicians Laboratory Services, LLC et al., originally filed in the Middle District of Florida, which were transferred to the Western District of North Carolina and consolidated under Civil Case No. 17-cv-37.
Resolution of this matter was the result of coordinated efforts and investigation by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Attorney’s Office. The claims resolved by entry of the judgment are allegations only and there has been no determination of liability.
Cortland County Woman Pleads Guilty to Child Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Sarah Gates, age 39, of Cortland, New York, pled guilty today to a three-count information charging that she, together with Christopher M. Perry, conspired to sexually exploit, and sexually exploited, a child under five years of age for the purpose of producing images of the abuse.
The announcement was made by the Acting United States Attorney Antoinette T. Bacon and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of her guilty plea, Gates admitted that on several occasions in 2017, she and Christopher M. Perry sexually exploited a child under five years of age while taking photographs using two cell phones.
Christopher M. Perry pled guilty to the same offenses on April 9, 2020 and was sentenced on November 3, 2020 to serve 540 months (45 years) in federal prison.
Senior United States District Judge Thomas J. McAvoy will sentence Gates on July 28, 2021. Each of the three crimes to which Gates pled guilty carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000.00, and a term of post-imprisonment supervised release of at least 5 years and up to life. She will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant United States Attorney Adrian S. LaRochelle as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Corporate Officer Sentenced to Prison for Medicaid FraudRead the Press Release
NEW BERN, N.C. – A Greensboro woman was sentenced today to 37 months in prison and also ordered to make restitution in the amount of $ 213,927.55 to the North Carolina Medicaid program for Conspiracy to Commit Health Care Fraud.
According to court documents, Pamela Grace Faulkner, 60, was the sole officer of Skeen Services, Inc., which was a company with offices in Greensboro, Greenville, Lumberton, and Wilson, North Carolina. In 2013 and 2014, Faulkner’s co-conspirator, Renee Christine Borunda, submitted over 4,500 fraudulent claims to Medicaid which falsely represented that behavioral health services had been provided to over 190 North Carolinians when in fact the services had not been provided. Faulkner was aware that Borunda was submitting the false claims. They had agreed to split the monies from the fraudulent claims. Medicaid paid Skeen Services, Inc. approximately $213,927.55 for these false claims by electronically depositing the funds into an account over which Faulkner had control. Faulkner then paid Borunda approximately $144,000.
Borunda was previously sentenced on November 7, 2018, to 37 months in federal prison followed by 3 years of supervised release for Conspiracy to Commit Health Care Fraud in violation of 18 U.S.C. § 1349 and Aggravated Identity Theft in violation of 18 U.S.C. § 1028A.
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 North Carolina Department of Justice’s Medicaid Investigations Division (“MID”) and the Internal Revenue Service - Criminal Investigation investigated this case. Assistance was provided by the Office of Compliance and Program Integrity of the North Carolina Division of Health Benefits, EastPointe, Sandhills Center, and Trillium Health Resources. Assistant United States Attorney John Parris and Special Assistant United States Attorney Mike Heavner prosecuted the case.
The MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-cr-00059-FL
Connecticut Nurse Pleads Guilty to Tampering with Liquid MorphineRead the Press Release
BOSTON – A Connecticut nurse pleaded guilty today in federal court in Springfield to tampering with liquid morphine prescribed to a patient.
Danielle Works, 42, of Stafford Springs, Conn., pleaded guilty to one count of tampering with a consumer product before U.S. District Court Judge Mark G. Mastroianni, who scheduled sentencing for June 2, 2021. Works was charged in Oct. 2020.
On Jan. 27, 2018, Works tampered with a bottle of morphine prescribed to a patient at Governor’s Center, a nursing facility in Westfield, by removing the morphine from the bottle and diluting the remaining morphine with another substance. The morphine was prescribed to a hospice patient, who subsequently received diluted doses of the medication shortly before her death. After ingesting the morphine, Works was observed to be significantly impaired while providing care to patients at the nursing facility.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Christopher Looney of Mendell’s Health Care Fraud Unit is prosecuting the case.
Company agrees to pay more than $315K to resolve allegations of false claims involving U.S. Disadvantaged Business Enterprise programRead the Press Release
COLUMBUS, Ohio — A highway construction company based in Summit County, Ohio has agreed to pay the United States $315,252.92 to settle a False Claims Act lawsuit claiming that the company violated the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) program rules that are designed to encourage participation by women- and minority-owned businesses.
The settlement agreement resolves allegations that Karvo Companies filed claims for payment falsely certifying that they were complying with the U.S. Department of Transportation and the Ohio Department of Transportation’s DBE) program requirements, including falsely claiming that their subcontractors were eligible under the DBE requirements and were providing “commercially useful functions” as part of two highway construction projects between 2015 and 2018.
“The payment includes restitution and interest,” said Acting U.S. Attorney Vipal J. Patel, “and the settlement agreement sends a good message to contractors participating in government DBE programs that we will act if they don’t fulfill their end of the contract and follow the rules.”
“The settlement agreement entered into today confirms our steadfast commitment to maintaining the integrity of the U.S. Department of Transportation’s (DOT) Disadvantaged Business Enterprise program,” said Andrea M. Kropf, Special Agent-in-Charge, Midwestern Region, DOT Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from actions that undermine DOT-funded programs and projects and the public trust.”
The case was filed under the qui tam provisions of the False Claims Act and was filed on behalf of the United States by a former employee of the company. The former employee will receive a share of the settlement amount.
The settlement is not an admission of liability by Karvo, however, the United States concluded that its claims were well-founded.
Deputy Civil Chief Andrew M. Malek is representing the United States in this case.
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Butler County Woman Charged with Issuing Money Orders to HerselfRead the Press Release
PITTSBURGH - A resident of Cabot, Pennsylvania, has been indicted by a federal grand jury on a charge of fraudulently issuing money orders, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Connie Hedrick, age 68, as the sole defendant.
According to the Indictment, from on or about June 25, 2019, to on or about March 31, 2020, Hedrick was caught fraudulently issuing money orders to herself.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than 3 years, or a combination thereof. 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.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Browning man admits murder, kidnapping on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man today admitted to murdering a man and to holding a woman hostage by knifepoint on the Blackfeet Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Jason Avery Mattson, 30, pleaded guilty to second degree murder and to kidnapping as charged in an indictment. Mattson faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 24. Mattson was detained.
In court documents filed in the case, the government alleged that on March 3, 2020, law enforcement was called to the Blackfeet Indian Reservation after the discovery of a body, which showed signs of homicide. The body was identified as John Doe. An autopsy confirmed the manner of death was homicide, with evidence of blunt force injury.
In addition, the government alleged that on March 10, 2020, Mattson called Blackfeet Law Enforcement Services, confessed to killing John Doe and told dispatch he had a knife and a gun. While officers were responding to the residence, Mattson called again and told dispatch he was holding a hostage, identified as Jane Doe, at knifepoint. Mattson threatened to kill Jane Doe and held her hostage for about four hours before she was able to escape. Mattson was taken into custody.
Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the FBI, Bureau of Indian Affairs and Blackfeet Law Enforcement Services.
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Boyle County Man Sentenced to 27 Years for Distribution of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Perryville, Ky., man, Kenneth Ray Cook, 42, was sentenced on Tuesday to 324 months in federal prison, by U.S. District Judge Karen Caldwell, following his conviction for distribution of child pornography.
According to his plea agreement, on August 28, 2019, Cook admitted to intentionally uploading images of child pornography on the Internet. Additionally, Cook’s distribution and possession of child pornography involved 600 or more images, including eight videos or similar visual depictions. Cook had a prior qualifying conviction, further enhancing his sentence.
Cook pleaded guilty to the charge in October 2020.
Under federal law, Cook must serve 85 percent of his prison sentences. Cook will be under the supervision of the U.S. Probation Office for life, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Lt. Colonel Phillip Burnett, Acting Commissioner of the Kentucky State Police; jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant U.S. Attorneys David Marye and James Chapman.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Blaine Man Charged with Illegal Possession of Firearms and AmmunitionRead the Press Release
Acting United States Attorney W. Anders Folk today announced a federal criminal complaint charging THOMAS WILDER MOSELEY, 29, with illegal possession of firearms and ammunition. MOSELEY will make his initial appearance on March 31, 2021, before Magistrate Judge Becky Thorson in U.S. District Court.
According to the allegations in the criminal complaint, on August 15, 2020, a protest took place at the Minneapolis Police Department’s 5th Precinct building in south Minneapolis. The event became violent and destructive when individuals began throwing rocks and other objects, breaking windows, firing mortar-type fireworks at the building and at officers stationed on the roof, spray painting the building, and using paint to obscure the video surveillance cameras. After reviewing video surveillance footage, investigators were able to identify MOSELEY as one of the individuals who was spray painting the front windows of the building. The building sustained several thousand dollars’ worth of damages a result of the incident.
According to the allegations in the criminal complaint, on October 15, 2020, MOSELEY was present inside the Hennepin County Government Center where protesters had gathered during a court appearance for the four former Minneapolis police officers charged in the death of George Floyd. Hennepin County Sheriff’s Deputies arrested MOSELEY on probable cause based on his involvement in the August 15 incident. At the time of his arrest, MOSELEY was carrying a loaded handgun. MOSELEY was subsequently charged in Hennepin County District Court with possessing a dangerous weapon within a courthouse complex, a felony.
According to the allegations in the criminal complaint, following MOSELEY’s arrest, Minneapolis Police officers executed a search warrant at MOSELEY’s residence in Blaine, Minnesota, and recovered two firearms, more than 1,400 rounds of ammunition, 96 grams of marijuana, and other drug paraphernalia. Officers also obtained a search warrant for MOSELEY’s Toyota Tacoma, which was parked in downtown Minneapolis near the Government Center. Among other things, officers recovered from the vehicle five firearms, a large amount of ammunition, a hatchet, a crowbar, gas masks, and controlled substances, including marijuana, psychedelic mushrooms, and cocaine.
According to the allegations in the criminal complaint, while investigating MOSELEY for criminal damage to property at the 5th Precinct, officers observed on several occasions MOESLEY smoking marijuana. Following MOSELEY’s arrest on October 15, he was booked and held at the Hennepin County jail, where personnel ordered that he be given a bottom bunk for the first seven days due to “unknown medical” precautions and drug withdrawal symptoms.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
THOMAS WILDER MOSELEY, 29
Blaine, Minn.
Charges:
- Possessing firearms and ammunition while being an unlawful user of, and addicted to, controlled substances, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Attorney and Real Estate Developer Sentenced for Fraud ChargesRead the Press Release
BOSTON – A Nantucket man who is a real estate developer and attorney was sentenced today in federal court in Worcester in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
James E. Levin, 62, formerly of Natick and now living on Nantucket, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison, three years of supervised release and ordered to pay restitution and forfeiture to be determined at a later date. In Sept. 2020, Levin pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.
From July 2010 to September 2011, Levin, as the manager of 5 May Street Apartments, LLC, applied for and obtained federal funds from the U.S. Department of Housing and Urban Development (HUD), through the City of Worcester, to rehabilitate a multi-unit apartment building at 5 May Street in Worcester. Since the City of Worcester distributes grant funds on behalf of HUD and the Massachusetts Department of Housing and Community Development, Levin submitted seven payment requests to the City for work he fraudulently claimed he completed on the building and associated costs. Despite not completing the work he claimed in the payment requests, Levin obtained over $2.3 million in funds for the 5 May Street project, which the City of Worcester was required to pay back to the government.
Acting United States Attorney Nathaniel R. Mendell; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Mendell’s Springfield Branch Office and Assistant U.S. Attorney Danial E. Bennett of Mendell’s Worcester Branch Office prosecuted the case.
Assistant Commissioner of NYC Probation Department Pleads Guilty to Child Pornography OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Costello, 53, of Bethlehem, PA, entered a plea of guilty before United States District Court Judge Joseph F. Leeson, Jr., to all five counts of child pornography offenses with which he was charged last month.
In February 2021, Costello was charged by Indictment with three counts of receipt of child pornography, one count of access with intent to view child pornography, and one count of possession of child pornography. The defendant admitted to receiving sexually explicit images of children over the Internet and possessing thousands of sexually explicit images and videos of children on several devices that he kept and stored at his residence. During the time that he committed these crimes, Costello was employed as Assistant Commissioner of the New York City Department of Probation.
“Robert Costello possessed and viewed visual depictions of the sexual exploitation of children, images that cause lasting harm to real, innocent victims,” said Acting U.S. Attorney Williams. “As an Assistant Commissioner working for the City of New York, the defendant held a position of trust and leadership – which we now know was woefully misplaced. Our Office will continue to work with our law enforcement partners in all jurisdictions to investigate and prosecute child sexual exploitation offenses.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The defendant faces a maximum possible sentence of 90 years’ incarceration with mandatory minimum sentence of five years’ imprisonment, five years up to a lifetime of supervised release, and up to a $1,250,000 fine.
The case was investigated by the Department of Homeland Security Investigations and Bethlehem Township Police Department, and is being prosecuted by Assistant United States Attorneys Francis A. Weber and Kelly Harrell, and Department of Justice Trial Attorney Jessica Urban of the Child Exploitation and Obscenity Section (CEOS).
Armed Standoff in Everglades National Park Leads to Federal Attempted Murder and Firearms Charges Against Miami ManRead the Press Release
Miami, Florida -- South Florida federal prosecutors have charged 37-year-old Drew Curtis Sikes with attempting to kill an officer of the United States and with a federal gun crime after an armed standoff in Everglades National Park on Sunday.
According to allegations in a criminal complaint affidavit, on March 28, 2021, Sikes shot several rounds from an AK-47 semi-automatic rifle at law enforcement officers who were attempting to get Sikes out of a wooded area inside Everglades National Park. It is alleged that Sikes had been involved in an altercation at the Park earlier that day and that law enforcement officers were responding to a call reporting the alleged incident. Sikes was not at the location of the reported altercation when officers arrived. After some initial investigating, which included observing scrapes and marks on the face of Sikes’s alleged victim, officers searched for Sikes along highway 9336, between the Mahogany Hammocks and Flamingo Park sections of Everglades National Park.
When officers arrived in marked police vehicles to the wooded area where they believed Sikes to be, they used a loudspeaker to convey information and commands to Sikes: They identified themselves as law enforcement and directed Sikes to exit the woods. At that point, according to the complaint affidavit, officers heard gunfire and felt rounds traveling over their heads. Despite officers’ continued commands that Sikes cease fire and emerge from the woods, Sikes continued shooting, says the affidavit. Law enforcement officers negotiated for over an hour with Sikes, who eventually emerged from the woods and was arrested, according to the allegations.
Sikes is scheduled to make his initial court appearance today, March 30, 2021, in federal magistrate court in Miami.
Juan Antonio “Tony” Gonzalez, Acting U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Christopher Smith, Special Agent in Charge, National Park Service, made the announcement.
FBI Miami and the National Park Service are investigating this case. Miami Dade Police Department provided assistance. Assistant U.S. Attorney Manolo Reboso is prosecuting this case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-mj-02597.
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Albuquerque tax preparer charged with fraudulent returnsRead the Press Release
ALBUQUERQUE, N.M. – Solomon Gbara, 47, of Albuquerque, was arraigned in federal court today, on a 13-count indictment for aiding and assisting in the preparation and presentation of false and fraudulent income tax returns. A federal grand jury indicted Gbara on March 12.
According to the indictment, from Feb. 10, 2015, through March 13, 2017, Gbara allegedly assisted in the preparation and presentation of individual income tax returns (IRS Form 1040) that included claims Gbara knew were false. These misrepresentations included claims for dependents and Schedule C businesses to which the taxpayers were not entitled under the provisions of internal revenue laws.
If convicted, Gbara faces a sentence of up to three years in prison for each count of the indictment. An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Albuquerque company agrees to $240,000 settlement relating to Controlled Substances Act claimsRead the Press Release
ALBUQUERQUE, N.M. – Acting U.S. Attorney for the District of New Mexico Fred J. Federici has announced that Albuquerque Health Services (AHS) has agreed to a $240,000 settlement relating to civil claims brought by the Department of Justice on behalf of the United States Drug Enforcement Administration (DEA).
AHS operates medication assisted treatment facilities that dispense controlled substances to consumers. Each AHS clinic is separately registered with the DEA and authorized to dispense controlled substances pursuant to the provisions of the Controlled Substances
Act (CSA).
At issue in the civil claim was the registration of one of AHS’s clinics in Albuquerque, which expired June 30, 2019, and was not reinstated until August 12, 2019. The government contended that the clinic nonetheless continued to dispense methadone, a schedule II controlled substance, to patients during the period the DEA registration had lapsed.
By the terms of the settlement, AHS agrees to pay $240,000 and the government releases AHS from any civil or administrative monetary claim the United States has for the covered conduct under the CSA. AHS admits no liability or wrongdoing.
“We are pleased to reach agreement that reinforces the need for compliance with the terms of the Controlled Substances Act,” said Acting U.S. Attorney Federici. “When the United States grants any entity authorization by law we have an obligation to ensure that the responsibilities and requirements on which that authority is contingent are fulfilled and that the limits of that authority are not exceeded.”
“The rules and regulations set forth in the Controlled Substance Act are in place for a reason,” said Kyle W. Williamson, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “The latest CDC overdose death statistics are a grim reminder that registrants must do their part to keep our communities safe and healthy. Through our oversight responsibilities, DEA will ensure that registrants comply with the law.”
Assistant U.S. Attorney Ruth F. Keegan represented the United States in the settlement agreement.
Acting U.S. Attorney Addresses Increasing Danger of Counterfeit Prescription OpioidsRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. and Drug Enforcement Administration (DEA) Special Agent in Charge Frank Tarentino today highlighted the danger that counterfeit prescription pills pose to our community. Opioid and prescription drug abuse is at an all-time high. In 2019, 70,630 drug overdose deaths occurred in the United States and more than 70 percent of those deaths involved an opioid.
Historically, the opioid epidemic began with a rapid increase in the prescribing of opioids starting in the 1990s. It continued when those addicted to opioids began to use heroin because it was cheaper and more readily available. Now, the most recent part of this epidemic is the increase in availability of counterfeit pills. Counterfeit pills are illicitly manufactured in clandestine labs, mostly using fentanyl as the active ingredient, and are made to look like legitimate prescription opioids commonly prescribed to alleviate pain or anxiety. These counterfeit pills are then illegally sold by street drug dealers as Oxycodone, Xanax, Percocet, or other similar drugs. Counterfeit pills are also being sold over the internet and delivered by mail. These counterfeit pills have led to increased overdoses and deaths across the country but particularly here in the Western region of the United States where there was a 67 percent increase in such death rates from 2018 to 2019. It is important to note that there is no concern of counterfeit pills entering the legitimate prescription supply chain.
“Prescription opioid abuse has already taken a devastating toll on our community,” said Acting U.S. Attorney Gonzalez. “But we have also seen a terrifying rise in the prevalence of counterfeit prescription pills being sold on the street and online. The public must be aware that while these pills may look like prescription drugs, they likely contain the powerful synthetic opioid fentanyl.” He went on to emphasize that, “a lethal dosage of fentanyl is just two milligrams, equivalent in size to a few grains of salt, as compared to a lethal dose of heroin at 30 milligrams, and that’s why communities everywhere have tragically experienced more fatal overdoses. That pill you bought off the street could be the last one you ever take.”
Counterfeit pills are incredibly dangerous because these imitation pills often look exactly like prescription Oxycodone in size, shape, color, and markings. In other words, there is no way to tell whether a pill purchased illicitly on the internet or the street is actually Oxycodone or a more powerful drug. The picture below on the left is an image of a legitimate Oxycodone pill. The picture on the right is an image of counterfeit Oxycodone pills.
“Between 2017 and 2019, there was great cause for concern when Idaho experienced a gradual increase in the number of drug related overdoses and deaths due to the misuse and abuse of prescription opiates and the increased availability of heroin,” said DEA Special Agent in Charge Frank Tarentino. “Alarmingly, in the last six months, the availability and seizure of fentanyl-laced counterfeit pills has exploded in the region. Law enforcement and public health officials have also noted a sharp increase in overdoses and deaths from fentanyl. The DEA and our law enforcement partners are committed to stemming the tide of this surge of lethal pills on our city streets by targeting the criminal networks who are profiteering while causing death in our communities,” SAC Tarantino concluded.
In 2019, synthetic opioids caused more overdose deaths than any other opioid including heroin. Synthetic opioids accounted for approximately 73 percent of all opioid-involved deaths. Based on a sampling of tablets seized nationwide in 2019, DEA found that 27 percent contained potentially lethal doses of fentanyl. “Frankly, if it weren’t for the outstanding work of first responders administering naloxone (an opioid antagonist that rapidly reverse opioid overdose) and saving lives of those who have overdosed, the number of deaths would be much, much higher,” Mr. Gonzalez said.
Unless prescription drugs are obtained from an authorized medical provider or pharmacy, the public should not consume or even handle these pills. The synthetic opioids contained in them are often lethal if consumed even if in the smallest amounts. All Idahoans are urged to only use prescription drugs prescribed to them by legitimate health care providers and obtained from their pharmacy. “I’m urging you to share this potentially life-saving message with friends and family today. Help us save a life,” Mr. Gonzalez said.
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Monday 29 March 2021
Weleetka Resident Sentenced to 13 Months for Abusive Sexual Contact in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kyle Elliott Leitka, age 31, of Weleetka, Oklahoma, was sentenced to 13 months’ imprisonment and 10 years of supervised release for Abusive Sexual Contact In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2244(b) and 2246(3). The charges arose from an investigation by the Federal Bureau of Investigation.
The Indictment to which the defendant previously entered a guilty plea alleged that on or about June 22, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant knowingly engaged and attempted to engage in abusive sexual contact with the victim.
Acting United States Attorney Christopher J. Wilson said, “Touching a child for sexual gratification is inexcusable. It is criminal and morally repugnant. Seeing our most vulnerable being preyed upon is heartbreaking, and it is the goal of the justice system to identify, prosecute and punish those responsible for these reprehensible crimes.”
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States. Leitka was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Two Florida men plead guilty to running “Grandparent Scam” in Northern OhioRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that John Tyler Pla, 25, and Johnny Lee Palmer, 26, both of Tampa, Florida, pleaded guilty to operating a “Grandparent Scam” in the Northern District of Ohio that caused their victims a combined loss of $383,932. Pla and Palmer both entered pleas of guilty to conspiracy to commit wire fraud and wire fraud.
According to court documents, from July 20, 2020 to August 28, 2020, Pla and Palmer orchestrated a “Grandparent Scam” targeting elderly victims in Northern Ohio cities, including Brecksville, Parma, Gates Mills, Lorain, Mansfield, Fairview Park, Westlake and Mentor. A member of the scheme would call elderly victims claiming to be a relative or an attorney for that relative and claim the family member had been arrested and, as a result, required money for bail. A member of the scheme would then make arrangements with the victim to collect the money through a “courier.” Instead, Pla, Palmer, or a member of the scheme would travel to the victim’s residence and collect the money. In total, the victims suffered a combined loss of $383,932.
Pla and Palmer are scheduled to be sentenced on July 26, 2021.
The investigation was conducted by the Cleveland Division of the FBI and the Westlake Police Department. This case is being prosecuted by Assistant U.S. Attorney Brian McDonough.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Three Men Plead Guilty to Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Three men appeared in U.S. District Court in Huntington today and pleaded guilty to federal drug crimes.
Michael Stanley Wright, 33, of Huntington, pleaded guilty to possession with intent to distribute methamphetamine and fentanyl. Wright admitted that on March 4, 2020, law enforcement officers searched his house located on Washington Avenue in Huntington. They seized approximately 194.3 grams of methamphetamine mixture and approximately 4.7 grams of fentanyl. Wright also had methamphetamine and fentanyl on his person when he was searched following his arrest. Wright admitted that he intended to sell the fentanyl and methamphetamine. Also seized by law enforcement officers during the search were two firearms - a Colt, Model CF1911, .45 caliber pistol and a Taurus, “Judge” .45/.410 revolver – and approximately $5,536 in cash, which was money Wright had made from selling drugs. Wright faces up to 40 years in prison when sentenced on June 28, 2021. The Huntington Police Department conducted the investigation. Assistant United States Attorney Greg McVey is handling the prosecution.
In a separate case, Aaron Howell, 46, of Huntington, entered a guilty plea to possession with the intent to distribute heroin and methamphetamine. Howell admitted that on November 12, 2020, he was being transported to the Huntington Police Department and removed heroin and methamphetamine from his person and left it in the back of a police cruiser. Howell faces up to 20 years in prison when he is sentenced on June 28, 2021. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie Taylor is handling the prosecution.
In another case, Antoine Louis, 38, of St. Albans, pleaded guilty to possession with the intent to distribute methamphetamine and heroin. According to court documents and statements made in court, Louis admitted that 0n October 19, 2020, he was stopped by law enforcement in St. Albans. A police K-9 alerted to the presence of controlled substances and Louis admitted to officers that he had hidden controlled substances on his person. Louis also gave his consent for law enforcement officers to search his residence. During the search of Louis’ home, law enforcement officers located two firearms, six rounds of ammunition, approximately 27.1 grams of methamphetamine and approximately 47.3 grams of heroin. At that time, Louis was on supervised release for a previous federal drug conviction. Louis also admitted that on October 6, 2020, he sold over five grams of heroin to a confidential informant (CI) that was working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Louis faces up to 20 years in prison when he is sentenced on June 28, 2021. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
United States District Judge Robert C. Chambers presided over the hearings.
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-00103(Wright), 3:21-cr-00006(Howell) and 2:20-cr-00195(Louis).
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Staten Island-Based International Narcotics Trafficker and Money Launderer Sentenced to 48 Months in PrisonRead the Press Release
Earlier today, in federal court in Brooklyn, Adolfo LaCola was sentenced by United States Chief District Court Judge Margo K. Brodie to 48 months in prison for his participation in a narcotics distribution conspiracy and money laundering. LaCola pleaded guilty to the charges in September 2020.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant aspired to be a one-stop-shop for cocaine trafficking and money laundering, but thanks to the outstanding work of our law enforcement partners, LaCola’s next stop will be federal prison,” stated Acting U.S. Attorney Lesko. “This Office will vigorously pursue narcotics traffickers who peddle drugs that endanger our communities.”
“LaCola’s criminal enterprise landed him in jail,” stated DEA Special Agent-in-Charge Donovan. “The DEA and our law enforcement partners investigate traffickers and money launderers alike who enable drug addiction in our communities. I applaud the partnership and hard work of the U.S. Attorney’s Office Eastern District of New York and the Internal Revenue Service Criminal Investigation throughout this investigation.”
“The elaborate criminal network established by LaCola led to the appropriate sentence handed down today stated IRS-CI Special Agent-in-Charge Larsen. “This investigation highlights the excellent work done through our partnership at the DEA Strike Force to tackle these drug and money laundering organizations.”
“LaCola operated with a complete disregard for law enforcement as he ran a large-scale cocaine distribution scheme and offered to ‘clean’ hundreds of thousands of dollars for who he thought was just another criminal looking to make a buck,” stated HSI Special Agent-in-Charge Fitzhugh. “LaCola’s brazen pride and cavalier attitude yielded the evidence needed to arrest and charge this self-purported, high level, international narcotics trafficker/money launderer. Once again, we demonstrate our collective investigative acumen showing that the work of HSI New York with the DEA Strike Force and NYPD is unyielding, and we will persist to make sure deadly drugs do not reach our communities.”
“Today’s sentencing demonstrates the investigative efforts of New York City law enforcement and our dedication to stop the threat that narcotics trafficking poses to public safety. I commend and thank the NYPD investigators involved in this investigation in addition to our colleagues at the U.S. Attorney, Eastern District, Internal Revenue Service Criminal Investigation, and Homeland Security Investigations for building such a strong conspiracy case,” stated NYPD Commissioner Shea.
LaCola’s arrest arose out of a long-term investigation by the DEA and IRS-CI of local narcotics trafficking and distribution in New York City. Between April 2018 and December 2018, LaCola conspired with others to import kilograms of cocaine from Mexico into the United States. Unbeknownst to LaCola, one of the individuals with whom he was negotiating a multi-kilogram deal was cooperating with the DEA. In his meetings with this individual, LaCola offered his services as a large-scale cocaine distributor in Staten Island and as a money launderer for narcotics traffickers. The defendant arranged for the individual to try a 100-gram sample of his cocaine, after which he attempted to negotiate a deal for regular shipments of multi-kilogram loads of cocaine. LaCola informed the individual that the sample he provided came from a 10-kilogram shipment he had received and that he could regularly provide the individual with 10 to 15 kilograms of cocaine from his sources of supply in Mexico.
LaCola also offered his services as a money launderer for narcotics traffickers. He offered to use a co-conspirator’s businesses to launder up to $300,000 a-month for another individual who turned out to also be cooperating with the DEA. The defendant facilitated the laundering of $100,000 of purported heroin trafficking proceeds. This money, in reality, came from the DEA informant.
The case was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the NYPD; the New York State Police; HSI; IRS-CI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney David J. Lizmi is in charge of the prosecution.
The Defendant:
ADOLFO LACOLA
Age: 54
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-187 (MKB)
Sixteen Heroin Traffickers Sentenced in “Operation Last Trip”Read the Press Release
Sixteen individuals operating a heroin trafficking ring have been convicted and sentenced to federal prison following an investigation led by the Drug Enforcement Administration and Texas Department of Public Safety, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
This marks the third round of sentencings in a larger heroin trafficking investigation dubbed “Operation Last Trip.” In total, forty defendants have been prosecuted for trafficking heroin, and various other drugs, including meth, between 2017 and 2019, according to court documents.
The sixteenth and final defendant in this round, 27-year-old Erica Anne Maloney, was sentenced Friday by U.S. District Judge Reed C. O’Connor to more than 3 years imprisonment for her role in the heroin distribution conspiracy.
According to court documents, investigators identified multiple individuals who traveled from Wichita Falls to the Dallas area repeatedly for the purpose of purchasing heroin and other illicit drugs. The heroin buyers would then transport the opioids back to Wichita Falls to sell to customers.
“A highly-addictive and deadly opioid, heroin has plagued communities across Texas,” said Acting U.S. Attorney Shah. “The U.S. Attorney’s Office, the DEA and state and local law enforcement partners are committed to dismantling distribution networks and prosecuting drug traffickers.”
“These sentences reflect a win for all citizens of North Texas who value safe and drug-free communities,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas. “These individuals who spent their days distributing heroin will now spend nights in jail while the men and women of the DEA Dallas Field Division will continue their efforts to keep heroin off our streets.”
Other defendants connected in this case received the following prison sentences:
• Eric Casey O’Neill, aka “Irish”: 120 months
• Erica Renee Robertson: 37 months
• Leslie Amanda Pavlick: 71 months
• Oland Randle Robison, aka “Doodle: 235 months
• Marquise Day-Leon Isham, aka “Black”: 70 months
• Sabrina Marie Berreles: 6 months
• Curtis Lee Buss: 36 months
• Jessica Maria Lance: 46 months
• Michael Thomas Leon, aka “Mikey”: 37 months
• David Wayne Vinson: 84 months
• Jeremey James Fields: 48 months
• Amy Faye Moore: 24 months
• Farrah Sage Harwell: 8 months
• Kayla Leann Gray: 46 months
• Charles William Wallace IV: 37 months
The Drug Enforcement Administration, the Texas Department of Public Safety Criminal Investigations Division led the investigation with the assistance of the Wichita Falls Police Department Organized Crime Unit, the Wichita County District Attorney’s Office Drug Enforcement Division, the Wichita County Sheriff’s Office and the Duncanville Police Department.
Assistant U.S. Attorney Robert Boudreau was in charge of these prosecutions.
Sioux Falls Man Sentenced for Distribution of a Controlled Substance Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury was sentenced on March 22, 2021, by U.S. District Judge Karen E. Schreier.
Jacob Allen Baker, age 27, was sentenced to 240 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Baker was indicted by a federal grand jury on August 17, 2020. He pled guilty on December 21, 2020.
The conviction stemmed from an incident on or about August 14, 2019, when Baker, knowingly and intentionally distributed fentanyl and said fentanyl resulted in the serious bodily injury of a victim. The victim smoked the fentanyl provided by Baker and sustained an overdose, which was reversed by the administration of Narcan. Fentanyl is a Schedule II controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Agency. Special Assistant U.S. Attorney Mark Hodges prosecuted the case.
Baker was immediately turned over to the custody of the U.S. Marshals Service.
Second Defendant Pleads Guilty in Conspiracy to Steal and Sell Construction Equipment, Boats, and Sport Vehicles.Read the Press Release
PROVIDENCE – A Providence man, one of nine individuals indicted by a federal grand jury for participating in schemes in several states to steal and sell nearly $700,000 worth of excavators, sport boats, jet skis, all-terrain vehicles, and trailers, pleaded guilty today to conspiracy and interstate transportation of stolen goods charges, announced Acting United States Attorney Richard B. Myrus.
The indictment alleges that nine individuals participated in a conspiracy to steal, transport, and sell stolen excavators, boats, jet skis, ATVs, and trailers from businesses in South Kingstown and Tiverton, RI; Auburn, Rehoboth, and Easton, MA; Waterford, Vernon, and Stafford, CT; and Hampstead, NH. Many of the stolen items were stored in Providence, Johnston, Warwick, North Providence, Scituate, and Glocester, R.I. Several of the stolen items were hauled to Florida to be sold.
Appearing today before U.S. District Court Judge Mary S. McElroy, Jared J. Santiago, 28, admitted that as a participant in the conspiracy, in December 2019, he and others stole two boats, a 24-foot boat valued at $102,065, and a 22-foot boat valued at $90,914, from Don’s Marina in Tiverton, RI, and transported one of the boats to Sarasota, Florida.
Santiago pleaded guilty to conspiracy to commit interstate transportation of stolen property and interstate transportation of stolen property, and is scheduled to be sentenced on June 17, 2021.
On December 21, 2020, Luis M. Morales, 37, of Providence, admitted that on July 17, 2020, he drove his pick-up truck to a Stafford, CT, dealership where he and others stole a 2020 Yamaha watercraft, a 2019 Can-Am Maverick Sport off-road vehicle, and two trailers; and that on July 20, 2020, he drove his pick-up truck to a dealership an Easton, MA, dealership and stole three jet skis. Morales admitted that the stolen items were transported into Rhode Island.
Morales pleaded guilty to conspiracy to commit interstate transportation of stolen property and two counts of interstate transportation of stolen property. He is scheduled to be sentenced on May 21, 2020.
Seven other defendants, including the alleged leader of the conspiracy, Jose A. Montes, aka Jose Rivera, aka “Tuto”, 36, of Cranston, are awaiting trial.
The investigation, launched by the Johnston and North Providence Police Departments, and joined by the FBI Safe Streets Task Force and merged with a parallel investigation by Rhode Island and Connecticut State Police, and the Easton, MA, and the Hampstead, NH, Police Departments, determined that between November 2019 and July 2020, three Bobcat excavators, ten jet skis, four boats, eight all-terrain vehicles, and ten trailers valued at over $700,000 were stolen.
Two Bobcat excavators each valued at $60,000 and one valued at $75,000, were allegedly stolen from an Auburn, Mass., dealer between late Friday, April 10, 2020, and late Saturday April 11, 2020. Using GPS built into the equipment, the excavators were located on April 13, 2020, and recovered by law enforcement. Two of the excavators were discovered in Johnston. The third was found in North Providence. GPS data showed that two of the stolen machines were stored on a farm in North Scituate before being moved to Johnston. One of the excavators was brought briefly to a residence in Warwick.
GPS data showed that the third excavator was first taken to a location in Glocester then moved to North Providence, where it was located and seized by law enforcement.
An ATV stolen from a dealership in Hampstead, New Hampshire in July 2020 was discovered on Gallup Street in Providence and towed by police to an impound facility. The ATV was subsequently stolen again from the impound.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
Acting United States Attorney Richard B. Myrus thanks the Tiverton, South Kingstown, Scituate, Cranston and Providence, RI, Police Departments, the Auburn MA, Police Department, and the Manatee County Sheriff’s Office in Florida for their assistance in the investigation.
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Santa Clarita Man Pleads Guilty to COVID-19 Relief FraudRead the Press Release
LOS ANGELES – A Santa Clarita Valley man pleaded guilty today to perpetrating a scheme to fraudulently obtain approximately $1.8 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
According to court documents, Hassan Kanyike, 29, of Santa Clarita, admitted that he submitted six fraudulent PPP loan applications and two fraudulent EIDL applications. The applications sought funds to purportedly pay the salaries of employees whom he claimed worked for two of his businesses. Kanyike successfully obtained approximately $1 million through four PPP loans, and another $300,000 through two EIDL loans.
In support of the fraudulent PPP loan applications, Kanyike submitted fake federal tax filings and payroll reports. For example, in one loan application, Kanyike falsely claimed the business had 26 employees and an average monthly payroll of $168,000, and he submitted a fabricated IRS tax form claiming Falcon Motors had paid $2,022,300 in payroll in 2019. But Kanyike admitted during his plea that the company had substantially fewer employees and substantially lower payroll. Kanyike further admitted that he obtained additional Employer Identification Numbers from the IRS in April and May 2020, so that he could apply for multiple loans for the same used-car business. Kanyike then used a substantial portion of the PPP loan proceeds for his own personal benefit.
Kanyike was arrested in December 2020 at Los Angeles International Airport just before he was about to board a flight to Dubai. At the time of his arrest, Kanyike had transferred approximately $762,000 to Uganda, his country of citizenship, from one of the business accounts that had received the loan proceeds, in violation of the terms of the PPP and EIDL program.
Kanyike pleaded guilty to one count of wire fraud before United States District Judge Virginia A. Phillips. He is scheduled to be sentenced on August 23 and faces a maximum penalty of 20 years in prison. As part of his guilty plea, Kanyike is required to pay approximately $1.3 million in restitution.
Homeland Security Investigations and Treasury Inspector General for Tax Administration investigated the case.
Assistant Chief William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Richard E. Robinson of the U.S. Attorney’s Office for the Central District of California’s Major Fraud Section are prosecuting the case. The case was previously prosecuted by former Trial Attorney Benjamin Saltzman of the Fraud Section.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program. In April 2020, Congress authorized over $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses 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 time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
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.
Possession of a Stolen Safe, Ammunition, and Drugs Leads to Prison SentenceRead the Press Release
A man who was found by Waterloo Police in possession of a stolen safe, ammunition, and over 1000 pills containing alprazolam, a Schedule IV controlled substance, was sentenced on March 26, 2021, to more than 5 years in federal prison.
Bradley McMahan, age 36, from Waterloo, Iowa, received the prison term after an October 13, 2020 guilty plea to being a felon and an unlawful drug user in possession of ammunition.
In a plea agreement, McMahan admitted that on October 24, 2019, Waterloo police officers searched his home and found a stolen gun safe, that contained over 1000 counterfeit pills containing alprazolam and ammunition when McMahan obtained the safe after it had been stolen.
McMahan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. McMahan was sentenced to 63 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. pFor more information about Project Guardian, please see /media/1122011/dl?inline.
McMahan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 20-2029.
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Piedmont Man Sentenced to 50 Years in Prison for Possession and Production of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Piedmont man for possession and production of child pornography, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge R. David Proctor sentenced Matthew Allan Smyth, 37, to 600 months in prison followed by 120 months of supervised release. Smyth pleaded guilty in December 2020 to one count of production of child pornography and one count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, Smyth admitted that he enticed a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography between November 2016 and January 2018. On March 27, 2018, electronic devices seized from Smyth pursuant to a search warrant were received by U.S. Immigration and Customs Enforcement Homeland Security Investigations for forensic examination. The forensic review of the devices revealed a total of 15 pornographic videos and 161 pornographic images of the minor victim. All the videos and images were produced by Smyth.
“Today’s sentence sends a strong message to all other sexual predators,” USA Escalona said. “Smyth stole the innocence of this young child. Children are our most vulnerable victims, and my office will do everything in our power to seek justice for them.”
“These crimes are disgusting, and our investigators will remain ever vigilant in protecting victims,” SAC Sharp said. “Thank you to the collaborative efforts of our state and local law enforcement partners to remove yet another child predator from our community.”
“This sentence ensures that Smyth will not be able to hurt anyone else with his filth and the community can rest a little easier in that knowledge,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
FBI and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Alabama Law Enforcement Agency, Piedmont Police Department, and the Oxford Police Department. Assistant U.S. Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.