Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 22 March 2021
Justice Department Seeks to Shut Down Mississippi Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Mississippi seeking to bar a Mississippi tax return preparer from owning or operating a tax return preparation business and preparing tax returns for others.
The civil complaint was filed against Terance Price, both individually and doing business as Superior Taxes. It alleges that Price knowingly took unreasonable positions on returns he prepared that led to understatements of the tax customers owed or overstatements of the refunds to which they were entitled to receive. In particular, the complaint alleges that Price prepared returns that claimed residential energy credits, fuel tax credits, or unreimbursed employee business expenses that he knew were false. According to the complaint, the IRS has assessed penalties against Price for failing to comply with due diligence requirements that obligate a tax return preparer to make reasonable inquiries to ensure that a customer is legitimately entitled to various tax credits, including the earned income tax credit. The complaint alleges that Price has not paid the penalties incurred for past violations of those due diligence requirements.
The complaint further alleges that Price filed hundreds of tax returns each filing season since 2015, the year in which he began operating his tax preparation business, and that he has filed tax returns using other tax preparers’ personal identifying information. According to the complaint, the potential tax losses from the returns that Price prepared for tax years 2017 and 2018 could exceed $1 million, and actual losses from his activities could surpass that estimate. In addition, the complaint alleges that Price’s conduct harms his customers, who are responsible for these tax deficiencies and, potentially, interest and penalties.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Eagle Butte Man Not Guilty of Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota man was acquitted of Assault with a Dangerous Weapon as a result of a federal jury trial in Pierre, South Dakota, on March 17, 2021.
Joshua Heideman, age 27, was indicted by a federal grand jury on July 16, 2020.
The charge relates to an incident where the Defendant is alleged to have assaulted a 69-year old man with a bar on May 20, 2020, in Dupree. After the jury trial, Heideman was remanded into custody based upon his admission to violating the terms and conditions of his supervised release from a 2017 First Degree Burglary conviction
The investigation was conducted by Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Attorney's Office prosecuted the case.
Judge sentences St. Louis man for drugs and weapons chargesRead the Press Release
ST. LOUIS – United States District Judge Sarah E. Pitlyk sentenced Demarko Nelson to 46 months in prison today. The 23-year-old Berkeley, Missouri resident pleaded guilty, in December, to three counts of being a felon in possession of a firearm and one count of possession with intent to distribute fentanyl.
On March 2, 2020, Nelson ran a stop sign at the intersection of Clara and Etzel Avenues in the City of St. Louis, while driving a Pontiac G6. Officers from the St. Louis Metropolitan Police Department stopped the vehicle. After identifying Nelson, a convicted felon, officers found two handguns. They seized the loaded gun on Nelson’s side of the vehicle and released a purple handgun located on the other side of the vehicle to the registered owner in the passenger seat.
On April 9, 2020, Nelson was riding in his friend’s Dodge Challenger on Interstate 70. Nelson’s friend was driving approximately 100 miles per hour when a tire blew, causing the friend to lose control. The car left the road, ripped through a chain-link fence, struck a streetlight and overturned on Bircher Boulevard in St. Louis. At the hospital, officers found two clear baggies of marijuana and more than $6,000 in the friend’s fanny pack. Back at the scene, an SLMPD accident investigator found a loaded purple handgun near a storm sewer just feet away from the Challenger. The firearm was later confirmed to be the purple gun from the original incident.
On August 20, 2020, the United States Marshals Service apprehended Nelson at his home in St. Louis County. While clearing the house, the U.S. Marshals discovered two bags containing 9.64 grams of fentanyl. U.S. Marshals also found a stolen handgun in Nelson’s bedroom.
The St. Louis Metropolitan Police Department and United States Marshals Service investigated this case. Assistant United States Attorney Zack Bluestone is handling the case.
#####
Idaho Man Sentenced to Federal Prison for Role in Darknet Drug Distribution SchemeRead the Press Release
PORTLAND, Ore.—A former Boise, Idaho resident was sentenced to federal prison today for his role in a darknet drug distribution scheme, announced Acting U.S. Attorney Scott Erik Asphaug. Kevin Marc Crotteau, 25, was sentenced to one year and one day in prison followed by three years of supervised release.
According to court documents, in July and August 2018, U.S. Customs and Border Protection (CBP) officers intercepted several packages containing MDMA and ketamine shipped from France to Crotteau’s co-conspirator, Brandon Paul Bart, 25, of Portland, at four different Portland addresses. On August 30, 2018, federal agents from Homeland Security Investigations (HSI) and officers from the Portland Police Bureau (PPB) assigned to a federal drug interdiction task force detained Bart after he attempted to retrieve two of the parcels, and executed search warrants on the parcels and Bart’s residence.
Investigators seized approximately eight kilograms of MDMA and two kilograms of ketamine. They determined that the packages had been imported from France to Bart’s addresses by Crotteau. The following day, August 31, 2018, investigators from HSI and PPB traveled to Boise and executed a search warrant at Crotteau’s residence.
Crotteau’s drug trafficking scheme generated significant proceeds. Investigators determined that Crotteau had sold Bitcoin valued at more than $108,000 and deposited the proceeds into a personal bank account. Crotteau used proceeds to purchase a Tesla valued at $136,200. Federal agents seized the Tesla.
On October 3, 2019, Crotteau was charged by criminal information with conspiracy to possess with intent to distribute controlled substances. On August 4, 2020, he pleaded guilty to the same charge.
On June 26, 2019, Bart was charged by criminal information with conspiracy to possess with intent to distribute controlled substances. On August 27, 2019, he pleaded guilty to the same charge. Bart was sentenced to five years’ probation on September 13, 2020.
This case was investigated by the HIDTA Interdiction Task Force comprised of HSI and PPB with assistance from CBP and the Boise Drug Enforcement Administration. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. The Oregon HIDTA program was established by the White House Office of National Drug Control Policy (ONDCP) in June of 1999. In 2015, the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 14 counties and the Warm Springs Indian Reservation. Counties in the HIDTA include Oregon’s Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock and Canyon counties.
Ice Company Fined, Required to Remedy Clean Air Act ViolationsRead the Press Release
PROVIDENCE – J.P. Lillis Enterprises, Inc., D/B/A Cape Cod Ice, a cold storage warehouse and ice manufacturing facility that stores over 10,000 pounds of anhydrous ammonia at its facility on the banks of the Seekonk River, was fined $90,000 an placed on federal probation for three years by a federal court judge in Providence today for repeatedly failing to implement a Risk Management Plan (RMP) to be executed in the event of an accidental release of anhydrous ammonia, an extremely hazardous substance.
The facility, located in an industrial area adjacent to residential area, and in the vicinity of an elementary school, was assessed civil penalties by the Environmental Protection Agency as far back as 2012 for failing to develop and submit an RMP, and since has repeatedly been found to contain equipment in need of repair to avoid a potential release of anhydrous ammonia.
Subsequent inspections by EPA, OSHA, and the East Providence Fire Department found the existence of corrosion on ammonia-carrying pipes and on the facility’s high- pressure ammonia receiver; the failure of corrosion-preventing insulation on the pipes; and inadequate inspection, testing, and maintenance of the ammonia piping and receiver.
Acting United States Attorney Richard B. Myrus and Tyler Amon, Special Agent in Charge of the Environmental Protection Agency Criminal Investigation’s Division Boston Area Office announced today that in addition to a $90,000 fine imposed by U.S. District Court Chief Judge John J. McConnell, Jr., Cape Cod Ice will, within 90 days, engage a qualified independent ammonia refrigeration consultant to conduct an audit that (1) evaluates Cape Cod Ice’s compliance with the Clean Air Act and address deficiencies identified by the EPA, OSHA, and East Providence Fire Department and (2) includes a required maintenance inspection program.
Acting United States Attorney Myrus said, “The United States Attorney’s Office is committed to working with EPA to ensure that companies doing business in Rhode Island fully comply with the Clean Air Act. Exposure to anhydrous ammonia can cause serious health issues. Today’s resolution will help to mitigate the risk of accidental release of ammonia by ensuring that Cape Cod Ice conducts a thorough third-party audit of its ammonia refrigeration system and implements an appropriate Risk Management Plan under the Clean Air Act.”
"Protecting Rhode Island communities from hazardous chemical releases is a priority for EPA" said Tyler Amon, Special Agent in Charge of EPA's Criminal Investigation Division. "Today's sentence emphasizes the importance of companies abiding by Risk Management Plans (RMP), put in place to protect workers, emergency responders and the surrounding residents."
Cape Cod Ice is required to submit to the United States Attorney’s Office and to United States Probation within 30 days of the completion of the audit an action plan to address the findings of the audit and a timeline of completion of actions to be taken by the company.
Background
In January of 2017, EPA sent a letter to Cape Code Ice, urging Cape Cod Ice to ensure compliance with the RMP requirements. In April of 2017, EPA inspected the facility and again observed numerous violations of the RMP and PSM regulations, including the existence of corrosion on ammonia-carrying pipes and on the facility’s high-pressure ammonia receiver, and the failure of corrosion-preventing insulation on the pipes. In June of 2017, EPA also issued an Administrative Compliance Order to Cape Cod Ice.
In May of 2017, the East Providence Fire Department inspected the facility and issued a Notice of Violation finding, among other things, that ammonia piping was rusted and showed signs of excessive corrosion, with areas that had moldy insulation or no insulation; and that the ammonia receiver was corroded. The Fire Department ordered the facility to come into compliance. Cape Cod Ice has submitted reports to the East Providence Fire Department and to EPA indicating that it has taken steps to bring the facility into compliance.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Dianne Chabot, EPA Regional Criminal Enforcement Counsel.
The matter was investigated by the EPA’s Criminal Investigation Division.
###
IT Contractor Sentenced to Two Years for Deleting Carlsbad Company’s Microsoft User AccountsRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – March 22, 2021
SAN DIEGO – Deepanshu Kher was sentenced today in federal court to two years in prison for accessing the server of a Carlsbad Company and deleting over 1,200 over the company’s 1,500 Microsoft User Accounts.
According to court documents, Kher was employed by an information technology consulting firm from 2017 through May 2018. In 2017, the consulting firm was hired by the Carlsbad Company to assist with its migration to a Microsoft Office 365 (MS O365) environment. In response, the consulting firm sent its employee, Kher, to the company’s Carlsbad headquarters to assist with the migration.
The company was dissatisfied with Kher’s work and relayed their dissatisfaction to the consulting firm soon after Kher’s arrival. In January 2018, the consulting firm pulled Kher from the company’s headquarters. A few months later, on May 4, 2018, the firm fired Kher, and a month after that, in June 2018, Kher returned to Delhi, India.
On August 8, 2018, two months after his return to India, Kher hacked into the Carlsbad Company’s server and deleted over 1,200 of its 1,500 MS O365 user accounts. The attack affected the bulk of the company’s employees and completely shut down the company for two days. As the company’s Vice President of Information Technology (IT) explained, the impact was felt inside and outside the company. Employees’ accounts were deleted – they could not access their email, their contacts lists, their meeting calendars, their documents, corporate directories, video and audio conferences, and Virtual Teams environment necessary for them to perform their jobs. Outside the company, customers, vendors and consumers were unable to reach company employees (and the employees were unable to reach them). No one could inform these buyers what was going on or when the company would be operational again.
Unfortunately, even after those two days, the problems remained. Employees were not receiving meeting invites or cancellations, employees’ contacts lists could not be completely rebuilt, and affected employees could no longer access folders to which they previously had access. The Carlsbad Company repeatedly handled multitudes of IT problems for three months. The Vice President of IT closed by saying, “[i]n my 30-plus years as an IT professional, I have never been a part of a more difficult and trying work situation.”
In pronouncing the sentence, U.S. District Court Judge Marilyn L. Huff noted that Kher perpetrated a significant and sophisticated attack on the company, an attack which was planned and clearly intended as revenge. In addition to the two years in custody, Judge Huff sentenced Kher to three years’ supervised release and restitution to the Company of $567,084, the amount that the Company paid to fix the problems which Kher caused.
Kher, an Indian national, was arrested when he flew from India to the United States on January 11, 2021, unaware of the outstanding warrant for his arrest.
“This act of sabotage was destructive for this company,” said Acting U.S. Attorney Randy Grossman. “Fortunately, the defendant’s revenge was short-lived and justice has been delivered.” Grossman commended the excellent work of Assistant U.S. Attorney Alexandra F. Foster and the FBI agents on this case.
“The FBI was able to identify, arrest, and prosecute Deepanshu Kher, despite the fact that he committed this harmful hack while outside the United States. This case shows the commitment, expertise, and reach of the FBI in working cyber intrusion cases,” said Suzanne Turner, Special Agent in Charge of FBI's San Diego Field Office. “We encourage companies to develop a relationship with the FBI and local law enforcement prior to a cyber security incident and incorporate us into incident response plans. In this case, the victim company’s swift notification and cooperation with the FBI contributed greatly to the successful outcome. Living in a digital world, it is important to get ahead of the threats, be proactive and predictive in the way we approach cybersecurity.”
If victimized in a cyber security incident, the FBI encourages companies to immediately contact the FBI. Specialized cyber agents will work with companies to protect company information and the personal data of its customers. Please contact the FBI San Diego's cyber program by calling our field office at (858) 320-1800 or submitting tips at Internet Crime Complaint Center (IC3).
DEFENDANTS Case Number 19cr4643-H
Deepanshu Kher Age: 32 Delhi, India
SUMMARY OF CHARGE
Intentional Damage to a Protected Computer (18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i))
Maximum Penalty: Ten years in prison; $250,000 fine.
INVESTIGATING AGENCY
FBI
Huntington Woman Sentenced to 70 Months in Prison for Role in Akron to Huntington Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced today to 70 months in federal prison for her role in a conspiracy responsible for transporting methamphetamine from Akron, Ohio to Huntington where it was distributed.
Mary Beth Cummings, 36, previously pled guilty to conspiracy to distribute 50 grams or more of methamphetamine. Cummings admitted that during May 2019, she participated in a conspiracy with multiple individuals to distribute methamphetamine in the Huntington area. During the conspiracy, Cummings repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. Cummings relied on multiple individuals from Akron to deliver the methamphetamine to her and Cummings would in turn distribute the methamphetamine to various customers in Huntington. Cummings also admitted that she was aware some of her customers also intended to distribute the methamphetamine she provided to them.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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. 3:19-cr-00245.
Follow us on Twitter: SDWVNews
###
Huntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today to conspiracy to distribute heroin.
Lynndell Nicola Boling, age 37, admitted that from at least December 2018 to October 15, 2020, she worked with other persons to sell heroin in Huntington. At first, she and another individual would run drugs to customers for their source of supply. Boling was paid with heroin for her own use. Later, she began meeting a drug runner at the Greyhound bus station who was working for her source. The runner would provide approximately 500 grams to 800 grams of heroin to Boling for her and others to sell. On October 15, 2020, members of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a search at Boling’s residence. Law enforcement seized from the residence 300 grams of heroin, worth approximately $40,000, and $17,960 in cash, which was money made from selling heroin. Also seized during the search was a Taurus .380 caliber pistol which had been provided to Boling by her heroin source to protect the heroin and money.
Boling faces a mandatory minimum of 10 years and up to life in prison when she is sentenced on June 21, 2021.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
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-00189.
Follow us on Twitter: SDWVNews
###
Huntington Man Pleads Guilty to Federal Crack Cocaine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to possession with intent to distribute cocaine base, also known as “crack.”
Daniel Legette, 45, admitted that on November 12, 2020, officers with the Huntington Police Department executed a search warrant at Legette’s residence located on Oakland Avenue in Huntington. During the search, officers seized approximately 100 individually wrapped bags of crack cocaine totaling approximately 23 grams. Officers also seized additional quantities of methamphetamine, heroin, and a rifle. Legette admitted that he possessed and intended to distribute all of the drugs seized by police.
Legette faces up to 20 years in federal prison when he is sentenced on June 21, 2021.
United States District Judge Robert C. Chambers presided over the hearing. The Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00007.
Follow us on Twitter: SDWVNews
###
Honduran National Convicted on Drug Trafficking and Weapons ChargesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against GEOVANNY FUENTES RAMIREZ (“FUENTES RAMIREZ”) on all three counts in the Indictment, which included cocaine-importation and weapons charges. FUENTES RAMIREZ is scheduled to be sentenced by the Honorable P. Kevin Castel on June 22, 2021.
Manhattan U.S. Attorney Audrey Strauss said: “Geovanny Fuentes Ramirez was, up until his arrest by the DEA just over a year ago, a ruthless, powerful, and murderous cocaine trafficker in Honduras. He facilitated the shipment of large loads of cocaine by bribing Juan Orlando Hernández Alvarado, then president of the Honduran National Congress and now the Honduran president. Hernández Alvarado instructed Fuentes Ramirez to report directly to convicted co-conspirator and former Honduran congressman Tony Hernandez, the president’s brother. Now Geovanny Fuentes Ramirez, one of the criminal conduits between Honduran officials and drug traffickers, faces a possible life behind bars.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
Beginning in or about 2009, FUENTES RAMIREZ and others established and operated a cocaine laboratory in the Cortés Department of Honduras, where they produced hundreds of kilograms of cocaine each month. FUENTES RAMIREZ worked with others to receive cocaine shipments sent to Honduras over air and maritime routes, and to transport cocaine that he produced at the laboratory. FUENTES RAMIREZ provided security for the facility, and for the transportation of cocaine, using heavily armed workers and Honduran police and military personnel.
On several occasions between approximately 2010 and 2013, FUENTES RAMIREZ helped arrange or directly participated in drug-related violence. In or about 2012, for example, after FUENTES RAMIREZ’s cocaine laboratory was raided by law enforcement, FUENTES RAMIREZ beat and tortured a law enforcement official who FUENTES RAMIREZ believed to have been involved in the investigation of the laboratory. FUENTES RAMIREZ murdered the officer by shooting him in the head with what FUENTES RAMIREZ described as “mercy shots.”
In or about 2013, FUENTES RAMIREZ paid a bribe of at least approximately $25,000 to Honduran president Juan Orlando Hernández Alvarado (“JOH”), who was at the time the president of the Honduran National Congress, and allowed JOH to access millions of dollars’ worth of cocaine from FUENTES RAMIREZ’s laboratory. In connection with negotiations relating to the laboratory, JOH told FUENTES RAMIREZ that he was interested in access to the laboratory because of its proximity to Puerto Cortés, a key shipping port on the northern coast of Honduras. JOH also told FUENTES RAMIREZ that the Honduran armed forces would provide security, and that Óscar Fernando Chinchilla Banegas, the Attorney General of Honduras, would help protect FUENTES RAMIREZ’s drug trafficking activities. JOH instructed FUENTES RAMIREZ to report directly to JOH’s brother, Juan Antonio Hernández Alvarado (“Tony Hernández”), for purposes of their drug trafficking partnership. Finally, JOH told FUENTES RAMIREZ that he wanted to make the DEA think that Honduras was fighting drug trafficking, but that instead he was going to eliminate extradition and “stuff drugs up the gringos’ noses,” referring to flooding the United States with cocaine.
In October 2019, Tony Hernández was convicted of the same offenses as FUENTES RAMIREZ, as well as an additional count of making false statements to the DEA. FUENTES RAMIREZ met with JOH following two key filings in the prosecution of Tony Hernández, as demonstrated by, among other things, data from FUENTES RAMIREZ’s phone reflecting that he twice searched for directions to JOH’s Casa Presidencial in Tegucigalpa, Honduras, after the filings. Tony Hernández is scheduled to be sentenced by Judge Castel on March 30, 2021.
* * *
FUENTES RAMIREZ, 51, was convicted on three counts: (1) conspiring to import cocaine into the United States, which carries a mandatory minimum prison term of 10 years and a maximum prison term of life; (2) using and carrying machine guns during, and possessing machine guns in furtherance of, the cocaine-importation conspiracy, which carries a mandatory consecutive prison term of 30 years; and (3) conspiring to use and carry machine guns during, and to possess machine guns in furtherance of, the cocaine-importation conspiracy, which carries a maximum prison term of life.
Ms. Strauss praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, Matthew J. Laroche, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
Hamblen County Man Convicted of Drug and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On March 19, 2021, a federal jury convicted, Lynn Richard Norton, 61, of Morristown, Tennessee, of conspiracy to distribute more than 50 grams of methamphetamine, distribution of methamphetamine, and possession of a firearm by a convicted felon. As a result of the convictions, the defendant faces a prison sentence of 15 years up to life. The Honorable J. Ronnie Greer, United States District Judge, presided over the trial. Sentencing is scheduled for September 13, 2021.
Beginning in early 2019, according to evidence presented at trial, Norton conspired to distribute more than 50 grams of methamphetamine with James Ward, another defendant who pled guilty to the charge and who testified against Norton. Ward testified he supplied Norton with two to four ounces of methamphetamine per week, and on two occasions, Norton sold Ward methamphetamine. On April 8, 2019, Norton also sold methamphetamine and a Bryco Arms 9 mm pistol to a confidential informant who was working with the Hamblen County Sheriff’s Office. Norton has a number of prior felony convictions, including convictions for drug dealing, aggravated assault, and escape. Based on his record, Norton is considered an armed career criminal under federal law and therefore faces a sentence of 15 years to life.
This was the first federal criminal jury trial completed in Greeneville in the Eastern District of Tennessee since the expiration of the Court’s standing order suspending jury trials due to the COVID-19 pandemic.
Investigating agencies included the Hamblen County Sheriff’s Office, the Johnson City Police Department, the Tennessee Bureau of Investigation, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Assistant U.S. Attorneys Emily Swecker and Mac Heavener represented the United States in court.
This case was part of the High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
###
Former Williamson County Mail Carrier Sentenced for Stealing Rebate ChecksRead the Press Release
Brittany Freeman, 27, of Johnston City, Illinois (Williamson County), was sentenced this week to
three years’ probation and a $100 fine and was ordered to pay $704.10 in restitution to her
victims. Freeman had earlier pled guilty to theft of mail by a postal service employee.
In February and March, 2020, while working as a mail carrier, Freeman stole over $700 worth of
rebate checks sent by Menard’s to customers along her routes. Surveillance cameras at a nearby
Menard’s store captured Freeman using the rebate checks for herself soon after stealing them.
“Any tampering with the U.S. mail system is taken seriously, particularly when postal
service employees abuse their position of trust,” U.S. Attorney Steven D. Weinhoeft said.The case was investigated by the United States Postal Service, Office of the Inspector
General. The case was prosecuted by Assistant United States Attorney Peter T. Reed.Former Venezuelan official pleads guilty in connection with international bribery and money laundering schemeRead the Press Release
HOUSTON - A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation has pleaded guilty for his role in laundering millions of dollars in bribes and corruptly providing business advantages.
Citgo is a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA),.
Jose Luis De Jongh Atencio (De Jongh), 48, was the former procurement officer and manager in Citgo’s Special Projects Group. According to court documents, between approximately 2013 and 2019, he accepted over $7 million in bribe payments in exchange for assisting businessmen and related companies in procuring contracts with Citgo. De Jongh also provided them with other business advantages.
Two included Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident.
De Jongh admitted to directing bribe payments from Gonzalez, Farias and others into bank accounts in the names of shell companies he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert.
Gonzalez and Farias also entered guilty pleas in connection with the case.
De Jongh pleaded guilty today to one count of conspiracy to commit money laundering. U.S. District Judge Gray H. Miller accepted the plea and has set sentencing for Aug. 19. At that time, De Jongh faces up to 20 years in prison.
As part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties he purchased with his corrupt proceeds.
To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation into bribery at PDVSA.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.
Assistant U.S. Attorneys (AUSA) Robert S. Johnson and John P. Pearson are prosecuting the case along with Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section. AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
First North Korean National Brought to the United States to Stand Trial for Money Laundering OffensesRead the Press Release
Note: A copy of the indctment can be viewed
here.WASHINGTON – After nearly two years of legal proceedings, Mun Chol Myong (Mun), 55, a national of the Democratic People’s Republic of Korea (DPRK), has been extradited to the United States. This case represents the first ever extradition to the United States of a DPRK national. Mun is accused of laundering money through the U.S. financial system as part of a scheme to provide luxury items to the DPRK.
“The indictment alleges that Mun defrauded banks and laundered money in an effort to evade counter-proliferation sanctions imposed on North Korea by the United States and the United Nations,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. "He is the first North Korean intelligence operative — and the second ever foreign intelligence operative — to have been extradited to the United States for violation of our laws. We will continue to use the long reach of our laws to protect the American people from sanctions evasion and other national security threats.”
“We are pleased that Mun has been extradited and will stand trial for the offenses alleged in the indictment,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia will always be prepared to protect our nation’s financial system and pursue those who violate our laws, regardless of where they might hide.”
“One of the FBI’s biggest counterintelligence challenges is bringing overseas defendants to justice, especially in the case of North Korea,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “Thanks to the FBI’s partnership with foreign authorities, we’re proud to bring Mun Chol Myong to the United States to face justice, and we hope he will be the first of many.”
“It is important to underscore the relevance of this first-ever extradition of a North Korean national,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis field office. “Our Minneapolis agents worked this case closely with international partners highlighting how FBI special agents are persistent and have an international impact wherever they are.”
According to the indictment and other court documents unsealed today, between April 2013 and November 2018, Mun and others conspired to covertly and fraudulently access the U.S. financial system. Mun is alleged to have defrauded U.S. banks and violated both U.S. and United Nations (U.N.) sanctions as part of his money laundering activities in transactions valued at over $1.5 million. The indictment further alleges that Mun was affiliated with the DPRK’s primary intelligence organization, the Reconnaissance General Bureau, which is the subject of U.S. and U.N. sanctions.
Mun has been detained in a foreign country since his arrest by local authorities on May 14, 2019. He made his initial appearance today in federal court in the District of Columbia, where he was indicted on May 2, 2019. Mun faces six counts of money laundering, including conspiracy to commit money laundering.
According to the indictment, Mun and his conspirators went to great lengths to avoid detection of their sanctions-busting operation. They used a web of front companies and bank accounts registered to false names and removed references to the DPRK from international wire transfer and transactional documents. By intentionally concealing that their transactions were for the benefit of DPRK entities, Mun and his conspirators deceived U.S. correspondent banks into processing U.S. dollar transactions for the benefit of DPRK entities, which the correspondent banks would have otherwise not processed.
This investigation was conducted by the FBI’s Minneapolis Field Office and coordinated by the FBI’s Counterintelligence Division. The Department of Justice would also like to thank the U.S. Indo-Pacific Command and the FBI’s Investigative Operations Division for providing analytical support during the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing Mun’s arrest and extradition. The FBI’s Washington Field Office also provided essential support during the extradition process.
Assistant U.S. Attorneys Michael P. Grady and Tejpal S. Chawla of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section, with support from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick, are prosecuting the case.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty beyond a reasonable doubt in a court of law.
Felon Sentenced to Prison for Possessing FirearmRead the Press Release
HUNTINGTON, W.Va. - A Huntington man was sentenced today to 46 months in federal prison for being a felon in possession of a firearm.
Kevin Holmes, Jr., 31, previously pleaded guilty and admitted that on December 22, 2019, an officer with the Huntington Police Department pulled a vehicle over around the intersection of 20th Street and 6th Avenue in Huntington. Holmes was the only person in the vehicle. After determining there were warrants for Holmes arrest, the officer asked Holmes to get out of the vehicle. After a brief foot pursuit, the officer arrested Holmes. While conducting an inventory search of the vehicle, officers found a loaded .357 Magnum revolver. Holmes was prohibited from possessing a firearm under federal law because of a 2015 conviction in Kentucky for trafficking a controlled substance, fleeing police and wanton endangerment.
United States District Judge Robert C. Chambers imposed the sentence. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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-00017.
Follow us on Twitter: SDWVNews
###
Federal Employee Charged with Unauthorized Representation of Claims Against the GovernmentRead the Press Release
Jackson, Miss. – Megan Mariah Patrick, 36, of Terry, Mississippi, has been charged in a federal indictment with unauthorized representation of claims against the government and false statements to a federal agency, announced Acting United States Attorney Darren J. LaMarca, Special Agent in Charge Dax Robertson with the U.S. Department of Agriculture Office of Inspector General, and Special Agent in Charge Rodregas Owens of the Social Security Administration Office of Inspector General - Atlanta Field Division.
The indictment, handed up by a federal grand jury on March 16, 2021, charges Megan Mariah Patrick, a Rural Development Loan Specialist with the United States Department of Agriculture in Jackson, with three counts of unauthorized representation of claims against the United States, and three counts of false statements to a federal agency.
“Those who disregard the conflict of interest laws and their duty of loyalty to their employer for easy profit at the expense of the taxpayer, will find themselves standing before a court of law to answer for their wrongs,” said Acting U.S. Attorney LaMarca.
According to the indictment, from August 2017 through March 2019, Patrick acted as an attorney, outside her official duties as Rural Development Loan Specialist, to represent claimants before the Social Security Administration seeking increased federal benefits. In each case where she entered her appearance as an attorney representing the claimant before the Social Security Administrative Law Judge, Patrick filed an official form with the Social Security Administration, stating that she was not disqualified or otherwise prohibited as a federal employee from representing the claimant. In fact, as Patrick then knew, such statement was false, because, as an employee of the U.S. Department of Agriculture, she was prohibited by law and regulation from representing claimants against the United States in the Social Security Administration.
Patrick appeared for arraignment on March 22, 2021, before U.S. Magistrate Judge LaKeysha Greer Isaac in Jackson. She was released on conditions of bond pending trial.
If convicted, Patrick faces maximum penalties of 5 years in prison and a $250,000 fine for each count of unauthorized representation, as well as for each count of false statements.
The case has been set for trial on May 3, 2021 before U.S. District Judge Kristi H. Johnson in Jackson.
Acting U.S. Attorney LaMarca commended the work of the Special Agents of the Office of the Inspector General for the U.S. Department of Agriculture and the Office of Inspector General for the Social Security Administration, who investigated the case. The Byram, Mississippi, Police Department assisted with the arrest. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Federal Judge Sentences “Pill Mill” Co-Owner to PrisonRead the Press Release
Acting United States Attorney Richard G. Frohling announced today that on March 18, 2021, Susan Moyer (58), of Milwaukee, the former co-owner and office manager of the “Compassionate Care Clinic” in Milwaukee, was sentenced to one year and one day in federal prison for her role in distribution of Oxycodone.
According to court records, Moyer and her codefendant, Steven Kotsonis, M.D., operated the Compassionate Care Clinic as a “pill mill,” issuing baseless prescriptions for high doses of Oxycodone and other opioids in exchange for cash. According to court filings, Moyer was not a licensed health professional and had no medical training. Despite this, she typically would write out prescriptions, which Kotsonis would sign without actually seeing the individual patient or doing any examination. During an office visit to the Compassionate Care Clinic during the course of the investigation, Moyer was recorded referring to herself as the “Oxy Czar.” According to court filings, at least two patients of the Compassionate Care Clinic overdosed on Oxycodone and died.
Moyer and Kotsonis each pled guilty to felony offenses. In July 2020, Kotsonis also was sentenced to a year and a day in prison.
Acting United States Attorney Frohling stated: “The Department of Justice is committed to using all available tools to stop those involved in fueling the opioid crisis. I commended the hard work and dedication of the investigators, agents, analysts, and attorneys involved in seeking to bring justice to the individuals harmed by the actions of Ms. Moyer and Mr. Kotsonis.”
“The Drug Enforcement Administration (DEA) is committed to identifying and investigating those individuals who use their positions of trust to become drug dealers for personal profit,” said DEA Wisconsin Assistant Special Agent in Charge John McGarry. “This investigation is an example of our resolve to hold those individuals accountable for their actions.”
This case was investigated by the DEA. The case was prosecuted by Assistant United States Attorney Laura S. Kwaterski.
Information and resources concerning the opioid crisis and the DEA’s “360 Strategy” for addressing the crisis may be found at the DEA’s website, www.dea.gov
# # #
For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
Follow us on Twitter
El Departamento de Justicia Resuelve Investigación Sobre las Barreras del Idioma en el Sistema Judicial Administrativo de ColoradoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con la Oficina de Tribunales Administrativos de Colorado (OAC, por sus siglas en inglés) para ayudar a las personas con dominio limitado del inglés (LEP, por sus siglas en inglés) a acceder a asistencia lingüística oportuna y competente en el sistema judicial.
La OAC es un tribunal administrativo que atiende las reclamaciones de indemnización laboral, así como las reclamaciones en otras áreas críticas como los derechos civiles, la justicia ambiental, la educación y el transporte. El acuerdo resuelve una investigación del Departamento de Justicia de la OAC bajo el Título VI de la ley de Derechos Civiles de 1964. El Título VI prohíbe la discriminación por motivos de raza, color de piel y origen nacional por parte de las entidades beneficiarias de asistencia federal, como la OAC. La revisión del Departamento de Justicia descubrió inquietudes con el cumplimiento del Título VI de parte de la OAC, incluida una regla que prohibía a la OAC proporcionar intérpretes calificados para ayudar a las personas con dominio limitado del inglés a comprender y participar en sus procedimientos judiciales.
“Para las personas con dominio limitado del inglés, el no recibir los servicios lingüísticos que necesitan para participar de manera significativa en un procedimiento judicial puede tener consecuencias realmente devastadoras. No podemos cumplir la promesa de nuestra Nación de acceso a la justicia para todos sin desmantelar las barreras del idioma en nuestro sistema judicial”, señaló Pamela S. Karlan, fiscal general auxiliar adjunta principal de la División de Derechos Civiles. “Felicito al juez presidente y al liderazgo de la OAC por tomar medidas para cumplir esta promesa y por su compromiso de brindar servicios críticos para los usuarios de los tribunales con un dominio limitado del inglés.”
“Este acuerdo redundará en una ayuda real para las personas que buscan justicia en el sistema de tribunales administrativos de Colorado pero que no hablan inglés”, comentó el fiscal federal interino para el Distrito de Colorado Matt Kirsch. “Agradezco que la Oficina de Tribunales Administrativos de Colorado haya reconocido la oportunidad de trabajar con nuestra oficina y la División de Derechos Civiles en la elaboración de un acuerdo que beneficiará a las comunidades de Colorado que hablan otros idiomas que no son el inglés.”
Un aspecto clave de la implementación del acuerdo por parte de la OAC será una revisión de su Regla 21, que ahora exigirá que la OAC proporcione intérpretes calificados sin costo para las personas LEP en los procedimientos judiciales. Además, la OAC ha creado una política y un plan de acceso lingüístico, y ha acordado notificar los servicios de asistencia lingüística en al menos los ocho idiomas principales con que se encuentra. La OAC creará y publicará un proceso de quejas de acceso lingüístico y exigirá la capacitación anual sobre cuestiones de LEP para jueces, personal y contratistas. El fuerte apoyo y la participación activa del juez presidente de la OAC y la Fiscalía General de Colorado han sido clave para la resolución rápida y cooperativa de este asunto.
Según los términos del acuerdo firmado hoy, el Departamento de Justicia supervisará el cumplimiento de la OAC durante dos años.
La aplicación del Título VI de la ley de Derechos Civiles de 1964 es una de las principales prioridades de la División de Derechos Civiles. Hay disponible más información sobre la División de Derechos Civiles en su sitio web en https://www.justice.gov/crt-espanol, y la información sobre el dominio limitado del inglés y el Título VI está disponible en www.lep.gov/SPA. Los miembros del público pueden reportar posibles violaciones de los derechos civiles en https://civilrights.justice.gov/report/.
East Alton Woman Charged with Stealing Disabled Daughter's Social Security FundsRead the Press Release
A federal grand jury in East St. Louis, Illinois, has returned a 21-count indictment charging
Melissa D. Wasylak, 48, of East Alton, with stealing Supplemental Security Income (“SSI”) funds
that were intended for her disabled daughter. The indictment also charges Wasylak with wire fraud
and making false statements on forms submitted to the Social Security Administration (“SSA”).
The SSA administers the SSI program, which provides a minimum level of income to aged, blind, and
disabled individuals with limited resources. For disabled children, SSI benefits are paid to a
representative payee, who is responsible for handling the funds and reporting to the SSA. Federal
law requires that all SSI funds must be used for the benefit of the disabled child.Wasylak applied for her disabled daughter to receive SSI benefits and was appointed as her
daughter’s representative payee. According to the indictment, in 2008, Wasylak’s daughter stopped
living with her and went to live with Wasylak’s ex-husband. Despite this fact, Wasylak continued to
receive her daughter’s SSI funds. The indictment charges that Wasylak did not use those funds for
her daughter’s expenses, but instead used the SSI money to pay her own personal expenses. This
allegedly continued until the situation was reported to the SSA in May of 2019.Wire fraud is punishable by up to 20 years in prison. The maximum punishment for theft of
government funds is 10 years’ imprisonment. Making a false statement on a Social Security form
carries a five-year statutory maximum term of imprisonment. Each of the charges comes with a
possible fine of up to $250,000, and Wasylak could also be ordered to pay restitution.An indictment is merely a formal charge against a defendant. Under the law, the
defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt
to the satisfaction of a jury.Wasylak is scheduled to be arraigned by United States Magistrate Judge Gilbert C. Sison on Monday,
April 5, 2021, at 10:00 a.m., at the federal courthouse in East St. Louis.The investigation was conducted by the SSA – Office of the Inspector General. The case
is being prosecuted by Assistant United States Attorney Scott A. Verseman.Dominican Republic Native Faces up to 40 Years in Prison After Pleading Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Elison A. Ledesma-Melo a/k/a Carlos Rivera Perez a/k/a Ostin M. Echevarria-Roman, 46, a native of the Dominican Republic, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that in August 2018, the Drug Enforcement Administration began investigating the drug trafficking activities of the defendant who was a retail distributor of heroin in the Buffalo area. Ledesma-Melo traveled to the New York, NY, area to obtain heroin which he then brought back to Buffalo for distribution. On September 11, 2019, investigators conducted surveillance of the defendant’s vehicle as it traveled between the Buffalo area and the New York area. A traffic stop of Ledesma-Melo’s vehicle was conducted on Route 20A in Warsaw, NY. The defendant produced a Puerto Rico driver’s license in the name of Ostin M. Echevarria-Roman with a March 1972 birthdate. Following a brief roadside conversation, during which Ledesma-Melo provided false information and exhibited unusual behavior, a New York State Trooper searched the vehicle. A K-9 narcotics detection dog was also brought to the scene to assist in the search. The K-9 made a positive indication for the presence of narcotics in the rear seat/hatch area. A follow-up search of that area resulted in the recovery of a plastic bag which contained in excess of 100 grams of suspected heroin. Ledesma-Melo was taken into custody.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for July 15, 2021, before Judge Sinatra.# # # #
Davenport Man Sentenced to Prison for Gun OffenseRead the Press Release
DAVENPORT, Iowa — On Thursday, March 18, 2021, United States District Court Chief Judge John A. Jarvey sentenced Isaiah Michael McAllister, age 22, of Davenport, to 37 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Following his prison term, McAllister was ordered to serve three years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
Police encountered McAllister after he was involved in a verbal confrontation and possessed a gun. McAllister ran from the police and attempted to hide the loaded firearm in the common area of an apartment complex where children were playing. McAllister is a member of the MMG street gang.
This matter was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Wednesday, March 17, 2021, United States District Court Chief Judge John A. Jarvey sentenced Alexander Jamica Hubbard, age 40, of Davenport, to 180 months in prison for Possession with Intent to Distribute Marijuana and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Following his imprisonment, Hubbard was ordered to serve three years of supervised release and pay $200 to the Crime Victims’ Fund.
The investigation began in early 2019 when law enforcement received information that Hubbard was selling marijuana and possessed stolen firearms. On December 30, 2019, law enforcement conducted a search warrant at Hubbard’s residence in Davenport and seized 6,362.05 grams of marijuana and hemp; a loaded .380 caliber firearm; $20,100 in U.S. currency; a 2005 Cadillac Escalade; and a 2012 Jaguar Portfolio XJ. As a convicted felon, Hubbard was prohibited from possessing a firearm.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Federal Prison for EscapeRead the Press Release
DAVENPORT, Iowa — On Wednesday, March 17, 2021, United States District Court Chief Judge John A. Jarvey sentenced Cordell McDowell, age 32, of Davenport, to two years in prison for escape announced Acting United States Attorney Richard D. Westphal. Following his prison term, McDowell was ordered to serve three years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
The charge arose in 2020 after McDowell failed to report to the residential reentry center in Davenport to serve the remainder of his prison sentence. McDowell’s whereabouts were unknown for approximately four months until he was arrested in relation to his involvement in a murder/robbery investigation. McDowell has a history of non-compliance with supervision and a prior federal conviction for escape.
This matter was investigated by the United States Marshals Service. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Couple Charged with Firearms Offenses after Standoff in Hotel Reveals Cache of Firearms and AmmunitionRead the Press Release
NEWARK, N.J. – A husband and wife were arrested on weapons charges after a standoff at a Hudson County hotel, Acting U.S. Attorney Rachael A. Honig announced.
Rahim Harris, 42, of Maplewood, New Jersey, is charged by complaint with one count of possession of firearms and ammunition by a convicted felon. His wife, Haneefha White, 39, of Pottsville, Pennsylvania, is charged by complaint with aiding and abetting the possession of firearms and ammunition by a convicted felon. They will have their initial appearances by videoconference at a date to be determined.
According to documents filed in this case and statements made in court:
On Dec. 21, 2019, Harris was charged by complaint with weapons and aggravated assault offenses allegedly committed on that date. On March 14, 2021, law enforcement received information indicating that Harris was in a specific room at a hotel in Secaucus, New Jersey. Law enforcement officers responded to the hotel a few hours later to attempt to locate and arrest Harris, who was identified from a photograph as the person staying in the specific hotel room.
Officers observed Harris’ wife entering the room. They attempted to summon White while she was in the hallway, but she entered the room and closed the door. White then called the front desk and asked why police were in the hallway. Law enforcement officers spoke with White on the telephone to persuade her to come out. She indicated there were other individuals in the room and that they were “on edge” and had firearms and hand grenades.
After several hours of unsuccessful negotiations with White, law enforcement called the room and Harris picked up the phone. Harris stated that he did not want to come out because of the arrest warrant and that he was “prepared for war” and “ready to die.”
In the early hours of March 15, 2021, Harris and White (who were the only occupants of the room) surrendered. A lawful search of the room yielded numerous weapons, fraudulent identification papers, bank cards, $36,910 in cash and a vehicle registration.
Each of the charges carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to the charges. She also thanked the Hudson County Prosecutor’s Office; the Secaucus Police Department; the Hudson County Regional SWAT Team; the Hudson County Sheriff’s Office; the Jersey City Police Department Bomb Squad; and the New Jersey Transit Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Columbus man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Malcom X. Lewis, of Columbus, Ohio, has admitted to a methamphetamine charge, Acting United States Attorney Randolph J. Bernard announced.
Lewis, 28, pled guilty to one count of “Distribution of Methamphetamine.” Lewis admitted to selling methamphetamine in January 2020 in Marshall County.
Lewis 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Columbia Man Sentenced to More Than 8 Years in Federal Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Ra’Quan Rasheen Williams, 24, of Columbia, was sentenced to more than eight years in federal prison, after pleading guilty in September 2020 to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on March 8, 2019, Columbia Police Department officers were conducting a property check at an apartment complex on Alcott Drive in Columbia. Officers saw Williams and two other individuals near a car in the apartment complex parking lot. The officers smelled marijuana coming from the area where the car was parked and approached Willliams and the others to investigate further. During a pat down search of Williams, one officer felt a firearm in Williams’ waistband. Williams immediately began running from the scene and dropped a 9mm pistol which was recovered by officers on the scene. Williams was eventually apprehended after a short chase through the apartment complex. The 9mm pistol that Williams dropped was loaded with 17 rounds of ammunition in a large capacity magazine. Williams was also found with a quantity of heroin after his arrest.
Williams was prohibited from possessing a firearm or ammunition based on several prior state convictions. Williams was under community supervision at the time of his arrest, after serving a five-year prison sentence for a 2014 conviction of assault and battery of a high and aggravated nature during an incident in which an individual was shot. In 2015, Williams was convicted of burglary that included the theft of guns from a residence. Williams was also convicted in 2018 of carrying or concealing a weapon while he was an inmate at the Lee Correctional Institution in Bishopville.
Senior United States Judge Terry L. Wooten sentenced Williams to 100 months imprisonment for the felon in possession of a firearm and ammunition charge, to be followed by a three-year term of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant United States Attorney Christopher D. Taylor of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), 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.
#####
Colorado Man Charged with Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Canon City, Colorado, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Jeremiah Edward Haning, age 38, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 18, 2020, Haning, who had previously been convicted of a crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a Taurus .38 Special caliber revolver, which had been previously shipped and transported in interstate and foreign commerce.
The charge is merely an accusation and Haning is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Alcohol, Tobacco, Firearms, and Explosives and the South Dakota Highway Patrol. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Haning was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 25, 2021.
Chittenden County Man Linked to Shooting Charged with Possessing over Eight Ounces of Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Loren Senna, 37, of Burlington, Vermont, was arrested on Friday evening and has been charged by federal complaint with possessing with intent to distribute 28 grams or more of a mixture or substance containing cocaine base. Senna is scheduled to appear remotely this afternoon for an initial appearance before the Hon. Kevin J. Doyle, United States Magistrate Judge.
According to the complaint filed this morning, on Friday evening, officers with the South Burlington Police Department were assisting in the investigation of a Burlington shooting when they conducted a traffic stop of a white Dodge Ram being driven by Senna. The officers observed a large quantity of what appeared to be drugs on the driver’s floorboard, which was later determined to be approximately 230 grams of suspected cocaine base, or approximately 8 ounces. A search of Senna resulted in the seizure of $5,812 and a 9mm bullet. A search of Senna’s backpack resulted in the discovery of a 9mm firearm. Investigators have preliminarily linked Senna to a white Jeep from which multiple gunshots were discharged earlier Friday evening near Murray Street and Allen Street in Burlington.
The United States Attorney emphasizes that the charge against Senna is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, Senna could face up to forty years in prison, a mandatory minimum of five years in prison, up to a $5,000,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Senna’s personal history and characteristics.
AUSA Nicole P. Cate is prosecuting the case for the government. Senna is represented by the Federal Public Defender’s office.
Casa Grande Man Sentenced to 108 Months for Multiple AssaultsRead the Press Release
PHOENIX, Ariz. – Last week, Leon Arron Nopah, 31, of Casa Grande, Arizona, was sentenced by United States District Judge Douglas L. Rayes to 108 months in federal prison. On December 2, 2020, Nopah pleaded guilty to Assault with a Dangerous Weapon, Possession of a Firearm in Furtherance of a Crime of Violence, and Assault Resulting in Serious Bodily Injury. The sentence includes a term of 102 months in prison for the three offenses and a consecutive six-month term for violating supervised release in CR-15-1186-PCT-DLR. Nopah’s prison sentence will be followed by a three-year term of supervised release.
Between October 1, 2017, and November 19, 2017, Nopah intentionally assaulted his then-girlfriend by pressing a loaded pistol into the side of her head, causing extreme pain and leaving a visible indentation in her temple. The victim’s young child was present during the incident.
On July 20, 2018, Nopah intentionally assaulted a different girlfriend by striking her head and biting her hand and ear, resulting in serious bodily injuries. This victim’s minor children were also present during the assault.
Nopah and the two victims are enrolled members of the Colorado River Indian Tribe.
The Bureau of Indian Affairs – Office of Justice Services and the Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-0021-PCT-DLR; CR-15-1186-PCT-DLR
RELEASE NUMBER: 2021-015_NopahBurlington Man Sentenced to Prison for Methamphetamine OffenseRead the Press Release
DAVENPORT, Iowa — On Wednesday, March 17, 2021, United States District Court Chief Judge John A. Jarvey sentenced Lavelle Harris, age 36, of Burlington, to 262 months in prison for Conspiracy to Distribute Methamphetamine announced Acting United States Attorney Richard D. Westphal. Following his prison term, Harris was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
Harris was involved in the distribution of more than 4.5 kilograms of ice methamphetamine. Harris has a history of violence and was designated as a career offender under the United States Sentencing Guidelines, as he has two prior felony drug convictions. Harris was also under criminal justice supervision at the time of this offense. The defendant was identified as a member of the Black P Stones street gang. Harris was one of eight defendants who faced federal charges in the Southern District of Iowa after a multi-year joint federal and state narcotics investigation which culminated in the execution of several search warrants in various locations, including several in Burlington, on November 19, 2020.
This investigation was conducted by the Federal Bureau of Investigation; Southeast Iowa Narcotics Taskforce; Burlington Police Department; Des Moines County Sheriff’s Office; West Central Illinois Taskforce; Quincy, Illinois, Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County Sheriff’s Office; Mt. Pleasant Police Department; West Burlington Police Department; Keokuk Police Department; Ft. Madison Police Department; Lee County Sheriff’s Office; Iowa City Police Department; Johnson County Sheriff’s Office; North Liberty Police Department; Coralville Police Department; Muscatine County Sheriff’s Office; Louisa County Sheriff’s Office; Washington County Sheriff’s Office; Bettendorf Police Department; Illinois State Police; Monmouth, Illinois, Police Department; Macomb, Illinois, Police Department; Galesburg, Illinois, Police Department; Adams County, Illinois, Sheriff’s Office; and Fulton County, Illinois, Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Buffalo Woman Arrested and Charged with Stealing Unemployment Benefits; Used Money to Pay for Plastic SurgeryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shaneesha White, 25, of Buffalo, NY, was arrested and charged by criminal complaint with theft of government funds, fraud associated with disaster relief, and wire fraud. The charges carry a maximum penalty of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that in October 2020, the U.S. Department of Labor received information from the New York State Department of Labor that a federal prisoner was illegally receiving NYS unemployment insurance benefit payments. Subsequent investigation determined that the IP address associated with the unemployment claim was also associated with multiple other claims, including the defendant Shaneesha White. According to the complaint, a total of $48,833.15 was deposited onto Key Bank debit cards controlled by the defendant. The debit cards were in the name of White, and two others. The complaint further states that the defendant used the unemployment benefits to pay for various expenses including a trip to Florida, cosmetic surgery, footwear, and cosmetics.
The 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. It expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for benefits. The CARES Act provided for three new UI programs: Pandemic Unemployment Assistance (PUA); Federal Pandemic Unemployment Compensation (FPUC); and Pandemic Emergency Unemployment Compensation (PEUC).
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.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on conditions.
The complaint is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region; the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent-in-Charge Todd Dennis; and the Social Security Administration, Office of Inspector General, under the direction of Special Agent-in-Charge John F. Grasso.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Brownsville man admits guilt and forfeits $2.5M in real estateRead the Press Release
McALLEN, Texas – A 54-year-old man has entered a guilty plea to conspiracy to defraud the United States and aiding and abetting the failure to file a form 8300, announced Acting U.S. Attorney Jennifer B. Lowery.
Jesus Juraidini admitted to paying over $2.5 million to Delfino Gaona in connection with the purchase and/or construction of at least six residential and commercial properties. Gaona, 48, Mission, was doing business as Keystone Construction and DG & GG Investments LLC.
Juraidini admitted he and Gaona conspired to avoid currency reporting requirements from approximately January 2010 through at least Nov. 14, 2018. Juraidini admitted he knew that under federal law, a non-financial trade or business such as the businesses Gaona operated must file a notice with the Secretary of the Treasury for the receipt of $10,000 in currency in one transaction, known as an IRS Form 8300.
Juraidini knew Gaona was not going to file the required document. A review of records confirmed that Gaona nor his business entities filed the proper form documenting the cash proceeds.
As part of his plea agreement, Juraidini also agreed to a money judgment in the amount of $2,519,000 and forfeiture of 10 properties in Hidalgo County.
U.S. District Judge Randy Crane will impose sentencing June 3. At that time. Juraidini faces up to five years in prison. He is set for a bond hearing before U.S. Magistrate Judge J. Scott Hacker today at 3 p.m.
Gaona previously pleaded guilty and is pending sentencing before U.S. District Judge Micaela Alvarez June 24.
The FBI conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorneys Roberto Lopez Jr. and Rick Blaylock Jr. are prosecuting the case.
Bentonia Man Sentenced to 15 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Christopher Michael Cockrell, 45, of Bentonia, was sentenced today by U.S. District Court Judge Carlton W. Reeves to 15 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Cockrell was also ordered to pay a $1,500.00 fine. Judge Reeves imposed an additional 10-month prison sentence due to Cockrell’s violation of the terms of supervised release.
On September 2, 2020, the United States Probation Office discovered that Cockrell had possession of cell phone which contained a video showing a firearm in a hunting blind. Cockrell had been previously convicted in federal court in the Western District of Missouri for a Human Trafficking Offense. After having served a lengthy prison sentence, Cockrell was released from prison and came to live in Mississippi. Cockrell was then placed under the supervision of the United States Probation Office in the Southern District of Mississippi.
The United States Probation Office informed the ATF that they believed there was evidence that Cockrell had possessed a firearm. As a convicted felon it is against federal law for the Cockrell to possess a firearm. ATF agents investigated, and Cockrell eventually admitted that he had possessed firearms for hunting purposes.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Bert Carraway and Charles W. Kirkham.
Bank Teller Indicted on Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today the Indictment of KAREN FARRELL TIGLER, age 34, of Harvey, Louisiana, who was charged on Friday, March 19, 2021, in a twelve-count federal indictment for Bank Fraud, Making False Statements to Federal Agents, and Making and Subscribing False Tax Returns, in violation of Title 18, United States Code, Sections 1344 and 1001(a)(2) and Title 26, United States Code, Section 7206(1) respectively. If convicted, TIGLER faces a maximum term of thirty (30) years imprisonment and/or a fine of $1,000,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, TIGLER faces a term of supervised release up to five (5) years after her release from prison.
According to today’s Indictment, from January 1, 2013, to November 14, 2016, TIGLER was employed as a multi-service banker with the Hancock Whitney Bank. TIGLER worked at the Whitney branch, also known as the “Morgan State Branch,” located at 430 Chartres Street, New Orleans, LA. Client A was in her mid-80s in 2015 and 2016 and was a banking customer of Whitney. From February 9, 2015, to October 28, 2016, approximately 100 counter checks totaling approximately $349,556 were processed and debited, without permission or authorization, from Client A’s account.
TIGLER used her position with the bank to embezzle approximately $349,556 from Client A’s account by using 100 counter checks to debit funds from Client A’s account. TIGLER used her position with the bank to access personal information from other legitimate banking transactions to create the fraudulent counter checks. TIGLER forged the signatures of Client A and various others on the counter checks in an effort to conceal her embezzlement scheme. TIGLER accessed or utilized legitimate checks drawn on Client A’s account in order to prepare fraudulent counter checks. TIGLER cashed 21 counter checks totaling $73,924 that were supposedly for “roofing,” “market/garden work,” “light fixtures/cleaning,” “extras plumbing,” “misc. work,” “renovations,” and “maintenance.” TIGLER cashed 79 counter checks totaling approximately $275,632 payable to another individual that were supposedly for “house,” “maintenance,” and for “happy birthday.”
TIGLER also lied to the FBI in an effort to conceal her embezzlement of funds from Client A’s account. TIGLER falsely claimed to the FBI to have received verbal approval from Client A to cash the counter checks. In addition, TIGLER failed to report $134,429 on her 2015 tax return and $215,127 on her 2016 return. TIGLER reported W-2 income from the bank of $21,290 for the tax year 2015 and $19,256 for 2016.
TIGLER spread the deposits of cash of embezzled funds into her various accounts. TIGLER also failed to report gambling winnings of $32,180 on her 2015 tax return. When confronted by a relative of Client A, TIGLER falsely implicated another individual in an effort to conceal her embezzlement of funds from Client A’s account.
“Ms. Tigler's alleged abhorrent greed was evident when she purposefully used her employment to embezzle thousands of dollars from an elderly client of the bank. Individuals like Ms. Tigler who allegedly engage in fraudulent schemes will be held accountable,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge. “I would like to thank the efforts put forth by our partners at the Internal Revenue Service, and the Hancock Whitney Bank for helping the FBI disrupt fraud, especially fraud that affects our elderly population.”
“Honest and law-abiding citizens should not be victims of those who use deceit and fraud to line their pockets with other people’s money,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Those individuals who allegedly engage in financial fraud should know they will not go undetected and will be held accountable.” IRS Criminal Investigators will continue to use their financial expertise to identify and trace illicit funds associated with these types of fraud schemes.”
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, the Internal Revenue Service, and the Hancock Whitney Bank 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, and Assistant U.S. Attorney Maria Carboni.
Attorney General Merrick B. Garland Announces Monty Wilkinson as Director of the Executive Office for U.S. AttorneysRead the Press Release
Attorney General Merrick B. Garland today announced that former acting Attorney General Monty Wilkinson has been appointed as the Director of the Executive Office for U.S. Attorneys (EOUSA). Wilkinson previously served as the Director of EOUSA from 2014 until December 2017, and prior to that as its Principal Deputy Director and Chief of Staff.
During his career with the Department of Justice, Mr. Wilkinson has served as Counselor and Deputy Chief of Staff to the Attorney General, as an Associate Deputy Attorney General, and as the Deputy Assistant Attorney General for Human Resources and Administration. He also held senior management positions for nearly a decade in the U.S. Attorney’s Office for the District of Columbia. Mr. Wilkinson started his career at the Department of Justice as a trial attorney in the Criminal Division.
Norman Wong, who has been serving as the Acting Director of EOUSA since January 20, 2021, will return to his position as Principal Deputy Director. “Norm Wong has served at EOUSA with distinction for a number of years and provided exemplary leadership to the U.S. Attorney’s Offices as Acting Director over the past seven weeks,” said Attorney General Garland. “Norm’s commitment to public service is exceptional and I thank him for his service.”
“I look forward to working with Monty again as I did 25 years ago when I was the Principal Associate Deputy Attorney General,” said Attorney General Garland. “Monty ensured that the Department continued to work and to honor its proud traditions during the leadership transition between new administrations. The Department is fortunate to have Monty back at EOUSA and I am confident he will help continue to build upon our many successes in enforcing our country’s laws, bringing criminals to justice and ensuring equal justice under the law.”
Learn more about EOUSA at https://www.justice.gov/usao.
Armed Carjacker Sentenced in Federal CourtRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Dorian Lakeith Webb, Jr., 19, of Mobile, was sentenced today for his participation in an armed carjacking which occurred in Mobile during December of 2019. In December of 2020, Webb pled guilty to the charge of brandishing a firearm during and in furtherance of the carjacking, a crime of violence under federal law.
According to documents filed in connection with his guilty plea, Webb participated with two other men in an armed robbery and carjacking of an individual who was trying to buy a gun through Facebook. The victim fled, and three or four shots were fired by the perpetrators. Several weeks later, Webb was pulled over driving 86 miles per hour in a 65 mph zone. When the car was stopped, Webb had a black bag on his lap containing a Glock pistol. Analysis of the Glock and the fired cartridges recovered from the carjacking confirmed that the pistol in Webb’s possession matched the spent casings. Webb admitted in his plea that he was one of the men involved in the carjacking.
United States District Court Judge Jeffery U. Beaverstock imposed a seven-year mandatory sentence in Webb’s case this morning, and ordered that Webb serve a five-year term of supervised release when he is released from custody. Webb was also ordered to pay $200 in restitution and a mandatory special assessment of $100. No fine was imposed. The judge further entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Arizona Man Found Guilty of Sex CrimesRead the Press Release
Acting United States Dennis R. Holmes announced that Carlocito Slim, 35, was found guilty of Attempted Commercial Sex Trafficking of a Minor and Attempted Enticement of a Minor Using the Internet following a two-day federal court trial held in Rapid City, South Dakota. The verdict was returned on March 10, 2021.
Each charge carries a mandatory minimum sentence of 10 years up to life in federal prison and/or a $250,000 fine, a mandatory minimum of five years up to lifetime supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Slim was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting internet predators. Following multiple text messages with a person Slim believed to be a pimp for a 15 year-old prostitute, but who was in fact an undercover agent, he proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Slim went to the pre-determined location to meet the minor’s pimp, he was instead met by law enforcement agents and placed under arrest.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Internet Crimes Against Children Task Force, and the Department of Homeland Security. Assistant U.S. Attorney Sarah B. Collins prosecuted and tried the case.
A presentence investigation was ordered and a sentencing date has not been set. Slim was remanded to the custody of the U.S. Marshals Service pending sentencing.
Acting U.S. Attorney Raj Parekh and FBI Leaders Condemn Acts of Violence and Discrimination Against Asian Americans and Pacific IslandersRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI condemn all acts of violence, racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders across the nation and in our communities.
“Hate crimes and discrimination against anyone, including Asian Americans and Pacific Islanders, are reprehensible acts that are contrary to the ideals of our Nation and have no place in our society,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will not stand still amid the horrific reports of racist and xenophobic acts of violence targeting Asian American and Pacific Islander individuals and communities nationwide. I reaffirm our Office’s unwavering commitment to ensuring that those who perpetrate federal crimes fueled by hate are held accountable, and EDVA stands united with our law enforcement partners in combating these injustices. Asian Americans and Pacific Islanders are our fellow Americans, and like all human beings, deserve dignity, respect, and the right to live without fear. As part of our collective responsibility to ensure equality and justice for all, I urge members of the community to report hate-based crimes to law enforcement to ensure that anyone who engages in this deplorable conduct can be brought to justice.”
“The Asian American and Pacific Islander community can trust that the FBI is dedicated to investigating hate crimes, which can have a devastating impact and bring fear to entire communities,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “A Core Value of the FBI is respecting the dignity of all those we protect. The FBI is committed to working with all communities to build trust and address the fears they experience due to hate and biased-based crimes, which have no place in our Nation.”
The U.S. Attorney’s Office for the Eastern District of Virginia urges the community to be vigilant and to report any suspected hate-based crime to the FBI by submitting an online tip at fbi.gov/tips, by calling 1-800-CALL-FBI, or by calling 911 in an emergency.
Federal law protects against discrimination based on race, gender, religion, national origin, sexual orientation, gender identity, disability, age, and citizenship in several important aspects of daily life, such as housing, employment, places of public accommodation, educational opportunities, and other areas. More information about these and other federal civil rights protections is available at https://civilrights.justice.gov/#your-rights.
Additional resources regarding hate crimes and bias incidents are available at https://www.fbi.gov/investigate/civil-rights/hate-crimes.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, and Christopher Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Friday 19 March 2021
Waterloo Felon Pleads Guilty to Possessing a GunRead the Press Release
A man who was found in possession of ammunition and a few days later in possession of a loaded firearm pled guilty March 18, 2021, in federal court in Cedar Rapids.
Mar’yo Doyuan Lindsey, age 24, from Waterloo, Iowa, was convicted of one count of being a felon in possession of a firearm.
In a plea agreement, Lindsey admitted that the Iowa State patrol found him in a car on July 3, 2020, in possession of a large capacity magazine and ammunition. A few days later, on July 12, 2020, Lindsey was found by Waterloo police officers in possession of a loaded 9mm handgun. Lindsey had previously been convicted of the following felony offenses: (1) on April 28, 2014, in Black Hawk County, Iowa, he was convicted of possession of a firearm as a felon and carrying weapons on school grounds; and (2) on May 12, 2017, in Black Hawk County, Iowa, he was convicted of intimidation with a dangerous weapon, willful injury causing bodily injury, possession of a firearm as a felon, and going armed with intent.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Lindsey remains in custody of the United States Marshal pending sentencing. Lindsey faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the Iowa State Patrol, the Waterloo Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2049.
Follow us on Twitter @USAO_NDIA.
Virginia Man Sentenced for Cyber “Sextortion” SchemeRead the Press Release
ALEXANDRIA, Va. – A Warrenton man was sentenced today to 31 years in prison for a years-long “sextortion” scheme running from 2016 to 2020 in which he coerced numerous preteen and teenage victims to create and send him electronic images of themselves engaged in sexually explicit conduct.
“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”
Filippo Parlagreco, 36, pleaded guilty to the production, distribution, and possession of child pornography on November 5, 2020. According to court documents, in summer 2017, Parlagreco—posing as a teenage girl on social media—began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, Parlagreco posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, Parlagreco continued to contact her with demands for sexually explicit images over the course of three years.
“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and torment innocent children for his own perverse pleasure, but as this prosecution shows, the Department of Justice will continue to marshal its resources to pursue these predators and combat this epidemic.”
“The Federal Bureau of Investigation and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community, and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”
Once law enforcement was able to identify Parlagreco, further investigation revealed that he had sexually exploited at least 13 other minor victims nationwide between 2016 and 2020 in a similar manner, including some as young as 11 years old. Parlagreco’s tactics ranged from false promises of confidentiality and misrepresentation of his identity to extortion and threats of prosecution. The evidence further showed that he traded child sexual abuse material with other offenders online, and that he possessed hundreds of images and dozens of videos of child sexual abuse in an encrypted portion of his phone.
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, and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
Assistant U.S. Attorney Jonathan Keim and Trial Attorneys Jessica Urban and Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
The FBI’s Washington Field Office investigated the case with assistance from local law enforcement throughout the country.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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-243.
Van Zandt County Man Sentenced for Mail-Order OpioidsRead the Press Release
TYLER, Texas – A Wills Point, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Namand Joaquincy Battles pleaded guilty on July 29, 2020, to possession with intent to distribute a controlled substance. Today, he was sentenced to 27 months in federal prison by U.S. District Judge J. Campbell Barker.
“I commend the hard work of the investigative team that put this case together,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to use a multi-agency approach to combat international drug trafficking. We will not tolerate drug dealers like this one trying to profit off the addictions of our fellow citizens.”
According to information presented in court, in January 2020, law enforcement officials received information that a package had been seized as it was being shipped from the United Kingdom to a Wills Point, Texas, address. The package, which was marked “clothing,” contained some clothes and snacks as well as 50,000 Tramadol tablets. Federal agents were able to determine a second package was being mailed from the United Kingdom to the same Wills Point, Texas address. That package also contained 50,000 Tramadol tablets and had been intercepted by law enforcement at the John F. Kennedy airport in New York. Battles was identified as the intended recipient. The investigation revealed that after receiving the packages from overseas sources, he would repackage the tablets for distribution by using United States Postal Service Priority Mail boxes and envelopes. Battles admitted to having possessed with intent to distribute at least 100,000 Tramadol 100 mg tablets during the course of his criminal activities. He was indicted by a federal grand jury on January 15, 2020.
This case was investigated by the U.S. Customs and Border Protection, Homeland Security Investigations, U.S. Postal Inspection Service, Texas Department of Public Safety-Criminal Investigations Division, and Van Zandt County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Allen Hurst.
Two Reeves County Detention Center Guards Charged with Smuggling Cell Phones to InmateRead the Press Release
Today, U.S. Magistrate Judge David Fannin unsealed an information charging two prison guards with smuggling cell phones and other contraband to a Reeves County Detention Center (RCDC) inmate, announced U.S. Attorney Ashley C. Hoff and Department of Justice Office of Inspector General (DOJ-OIG) Special Agent in Charge Cloey Pierce, Houston Division.
The information unsealed today charges El Paso residents Eduardo Garcia, age 19, and Armando Valdivia, age 22, with one count of providing contraband in prison. The information alleges that from August 2020 to September 2020, the RCDC guards smuggled multiple cell phones to an inmate inside the prison facility.
The defendants, who were arrested yesterday by DOJ-OIG agents, face up to one year in federal prison and a maximum $100,000 fine upon conviction. During the initial appearance today, Judge Fannin set a personal recognizance bond for Garcia. Garcia is scheduled for a preliminary hearing on March 24, 2021. Valdivia remains in custody and is scheduled for a detention and preliminary hearing on March 22, 2021.
DOJ-OIG investigated this case. Assistant U.S. Attorney Kevin Eaton is prosecuting this case.
An information is merely a charge and should not be considered as evidence of guilt. Defendants are presumed innocent until proven guilty in a court of law.
#####
Two Red Lake Men Charged with Sexual Abuse of ChildrenRead the Press Release
Acting United States Attorney W. Anders Folk today announced federal charges against two men in separate child sexual abuse cases occurring on the Red Lake Indian Reservation. The defendants, KEITH ALLEN EHRICH, 38, and KORY PAUL LUSSIER, 24, made their initial appearances earlier today before Magistrate Judge David T. Schultz in U.S. District Court.
According to the allegations in the indictment against EHRICH, between August 2017 and October 11, 2020, EHRICH knowingly engaged in the sexual abuse of a minor.
According to the allegations in the criminal complaint against LUSSIER, between August 2, 2014 and September 20, 2020, LUSSIER knowingly engaged in the sexual abuse of a minor.
These cases are the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
These cases are being prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
The charges contained in the indictment and the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
KEITH ALLEN EHRICH, 38
Red Lake, Minn.
Charges:
- Sexual abuse of a minor, 1 count
- Abusive sexual contact with a child, 1 count
KORY PAUL LUSSIER, 24
Red Lake, Minn.
Charges:
- Aggravated sexual abuse of a child, 1 count
- Abusive sexual contact with child, 1 count
- Sexual abuse of a minor, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tulsa Man Sentenced to 55 Months in Prison after Threatening Civilians, Officer with a FirearmRead the Press Release
A man who pointed a gun at civilians and in the direction of a Broken Arrow police officer was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Jonathan David Kelley, 36, of Tulsa, to 55 months in federal prison followed by three years of supervised release. In November, Kelley pleaded guilty to being a felon and drug user in possession of a firearm.
“Jonathan Kelley is a convicted felon and methamphetamine user and as such, is prohibited by federal law from possessing a firearm. He was a danger to the public and law enforcement officers serving our communities,” said Acting U.S. Attorney Clint Johnson. “Now, he is no longer a threat because violating federal firearms laws has serious consequences. He will serve more than five years in prison for his crimes. I am thankful for the officers and agents of the Broken Arrow and Tulsa Police Departments and ATF, as well as Assistant U.S. Attorney Mark Morgan, who leads our 2150 Initiative. Their work is critical to protecting Oklahomans and reducing gun crime in our communities.”
Broken Arrow Police Officers encountered Kelley disoriented and waving around a gun in public on Sept. 5, 2020. The defendant also pointed the gun at two civilians earlier in the day. During the incident, Kelley refused the officers’ commands to drop the firearm and continued walking away, cycling the firearm and telling officers he “had a round in the chamber.” Kelley also pointed his gun in the direction of an officer who arrived during the incident. Officers were eventually able to apprehend and arrest the defendant safely and collect the Glock 17 pistol with a round in the chamber.
According to the government’s sentencing motion, Tulsa police officers had also responded to a domestic violence call involving Kelley and his gun on Aug. 29, 2020.
The Broken Arrow Police Department, Tulsa Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Mark R. Morgan prosecuted the case.
Kelley was prosecuted as part of the 2150 Initiative, a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as those responsible as the “source” of the firearms to prohibited persons. The initiative was named in memory of Tulsa Police Sergeant Craig Johnson. Sgt. Johnson’s badge number, 2150, was selected for the initiative as a way to honor his life and his commitment to the Tulsa community. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Towing Company Owner Sentenced for Tax Fraud and Evading Cash Transaction ReportingRead the Press Release
BOSTON – The owner of a Revere towing company was sentenced yesterday on charges of engaging in an under-the-table payroll fraud scheme that defrauded the government of more than $3.3 million.
Gennaro Angiulo, 49, of Nahant and Saugus, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 42 months of probation with 18 months of home confinement and ordered to pay restitution of $1,769,486 and forfeiture of $430,000. Judge Woodlock also ordered that Angiulo complete 40 hours of community service per week during his term of home confinement and not be involved in running his business, GJ Towing, during this time period. The government recommended a sentence of 27 months in prison.
In November 2020, Angiulo pleaded guilty to one count of willful failure to collect and pay over taxes and one count of evading cash transaction reporting requirements.
For tax years 2014 through at least 2017, Angiulo paid a portion of the wages to employees of GJ Towing, in cash “under the table.” In doing so, Angiulo did not collect, account for or pay over to the IRS required withholding and FICA taxes. The cash payments to employees were funded, at least in part, by cashing checks from clients of GJ Towing and other third parties in groups totaling not more than $10,000 in a single day.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Three men admit participation in gambling operationRead the Press Release
AUGUSTA, GA: Two Waynesboro, Ga., men and a Greenwood, S.C., man have admitted to federal charges for participating in a longtime illegal gambling operation.
Grady Brandon Mobley, 44, and Daniel Cates, 50, both of Waynesboro, Ga., and Joel Rees, 59, of Greenwood, S.C, entered guilty pleas to Informations charging each of them with Prohibition of an Illegal Gambling Business, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Mobley also pled guilty to Fraud and False Statements.
In accordance with the plea agreement, Mobley faces a negotiated sentence of 12 months plus one day in federal prison, and has forfeited $340,084. He also agrees to pay $207,716 in restitution to the IRS and Georgia Department of Revenue, and a fine of $2,000. Cates agreed to the forfeiture of $100,000.
After plea hearings before U.S. District Court Chief Judge J. Randal Hall, each of the three men were released on bond pending sentencing and formal acceptance of the plea agreement at a later date.
“These men participated in an illegal gambling operation for at least a decade in the Waynesboro area, eventually funneling business through a foreign-based website,” said Acting U.S. Attorney Estes. “But even that offshore venture wouldn’t keep them out of the reach of diligent law enforcement professionals who turned the tables on this illicit operation.”
As described in court documents and testimony, Mobley operated as a “bookie” for an illegal sports betting operation for at least the past 10 years in Burke County, at first collecting bets and paying out winnings himself, and later through a sports betting website operated from Costa Rica.
In 2015, Mobley merged his operation and began splitting his profits with a smaller gambling ring operated by Jones. From 2015 to 2017, Mobley cashed bettor’s checks totaling approximately $220,000 at his parent’s check cashing business which operated out of the Mobley Package Shop in Girard, Ga. To help conceal the growing amount of cash involved in the transactions, Mobley enlisted the assistance of Cates, who admitted that he funneled approximately $250,000 in gambling proceeds through his Waynesboro tire store, Cates Firestone, in return for money and favors from Mobley.
During this period, Mobley admitted filing false information on his income tax returns to conceal the amount of proceeds from the illegal gambling operation.
“No matter how hard these defendants tried to hide their illegal operation, their greed ultimately caught up with them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “FBI agents will pursue criminal activity that violates our Constitution, no matter where an investigation takes them, and along with the U.S. Attorney’s Office will hold them accountable.”
“Schemes concealing funds in order to evade income tax, such as those utilized by Mobley, are unfair to every taxpayer who obeys the law and pays their fair share,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The public should know that IRS-Criminal Investigation will do everything we can to hold individuals accountable for their actions.”
The case is being investigated by the FBI and IRS Criminal Investigations, and prosecuted for the United States by Assistant U.S. Attorneys Tara M. Lyons and Asset Recovery Unit Chief Xavier A. Cunningham.
The International Rescue Committee (“IRC”) Agrees to Pay $6.9 Million to Settle Allegations That It Performed Procurement Fraud by Engaging in Collusive Behavior and Misconduct on Programs Funded by the United States Agency for International DevelopmentRead the Press Release
WASHINGTON – The Justice Department announced today that the International Rescue Committee (“IRC”) has agreed to pay $6.9 million to settle allegations under the False Claims Act related to United States Agency for International Development (“USAID”)-funded programming for beneficiaries affected by the conflict in Syria. The settlement announced on March 16, 2021, is part of a civil resolution involving the U.S. Attorney’s Office for the District of Columbia, USAID, and the USAID Office of Inspector General (OIG).
IRC is a global humanitarian aid, relief and development nongovernmental organization that provides emergency aid and long-term assistance to refugees. It is headquartered in New York, New York. In the early years of the conflict in Syria, IRC received USAID funding for humanitarian assistance programming, specifically to provide emergency cross-border humanitarian assistance to internally displaced persons located within Syria.
USAID’s OIG conducted investigations in Turkey into allegations that IRC staff participated in a collusion and kickback scheme with a Turkish supply ring, which included bid-rigging activities in the selection of goods and services contracts for cross-border humanitarian relief into Syria. USAID OIG and the USAO-DC Civil Division also investigated allegations that IRC staff received kickbacks, steered bid procurement tenders, and allowed conflicts of interest between staff and suspect vendors. The investigation revealed that conduct by IRC staff resulted in the procurement of goods at unreasonably high prices, which were subsequently invoiced to USAID from October 2012 to December 2015.
USAO-DC Civil Division and USAID OIG thoroughly examined all source documents including contracts, proposals, contract terms, and invoices, in the lead-up to IRC’s agreement to pay the United States $6,934,500 to settle the False Claims Act allegations.
We are happy to bring this case to resolution and will continue to work with Offices of Inspectors General to ensure that humanitarian aid dollars that are targeted for humanitarian assistance for displaced persons are not compromised by lax oversight controls but are used appropriately to help those in dire need,” said Acting United States Attorney Channing D. Phillips.
Acting USAID Inspector General Thomas J. Ullom stated, “This settlement sends a strong message that USAID-funded implementers must have systems in place to detect, deter, and prevent fraud in humanitarian assistance programming. Aid organizations that lack proper monitoring and oversight controls over their procurement processes put taxpayer dollars at risk and compromise the delivery of critical assistance to those in need. USAID OIG’s global investigative operations will continue to shine a light on and drive consequences for fraud affecting USAID programming.”
Statement of Acting U.S. Attorney Gonzalez on Anti-Asian Hate Crimes and Bias ActsRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. and Special Agent in Charge Dennis W. Rice of the Federal Bureau of Investigation’s (FBI) Salt Lake City Field Office today highlighted the federal role in countering hate crimes and bias acts—especially those targeting Asian Americans and Pacific Islanders.
“No one in Idaho should live in fear of violence because of who they are, what they look like, or what part of the world they or their families came from,” said Acting U.S. Attorney Gonzalez. “The U.S. Attorney’s Office and the FBI are committed to bringing all of our tools to bear in supporting our Asian American and Pacific Islander community groups here in Idaho, as we have witnessed a rise in hate and bias incidents occurring across the country. These crimes, and other acts of hate and bias, have no place in our community. I urge all Idahoans to report hate-based crimes to either local or federal law enforcement.”
The U.S. Attorney’s Office and FBI review information about potential hate crimes from members in the community and also provide assistance to local, state, and tribal law enforcement with investigations of hate crimes. Office personnel have been reaching out to community groups to explain the federal role and encourage reports to local and/or federal law enforcement.
“Hate crimes are not only an attack on an individual, but an entire community,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “As hate crimes are the highest priority of the FBI’s civil rights program, I want to assure the public that we will work diligently with our law enforcement partners to thoroughly investigate any allegations of such crimes."
The most recent statistics on hate crimes are available here 2019 Hate Crime Statistics from the FBI’s Uniform Crime Report.
Additional resources regarding hate crimes and bias incidents can be found by visiting these links: civilrights.justice.gov/#your-rights and fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources.
For information about contacting the U.S. Attorney’s Office in the District of Idaho visit: www.justice.gov/usao-id/. The FBI’s Salt Lake City Field office can be reached at (801) 579-1400. To submit an online tip, visit www.tips.fbi.gov/.
# # #
San Jose Physician Charged with Unlawfully Distributing Hydrocodone and OxycodoneRead the Press Release
SAN JOSE – Donald Siao appeared today to face federal charges that he illegally distributed hydrocodone and oxycodone pills in his medical practice and committed health care fraud, announced Acting United States Attorney Stephanie M. Hinds, Drug Enforcement Administration Acting Special Agent in Charge Peter A. Vainauskas, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven Ryan, and the California Department of Justice, Division of Medi Cal Fraud and Elder Abuse (DMFEA).
The federal complaint alleges that Siao, 55, of San Jose, is a medical doctor licensed by the state of California who conducted his practice in San Jose. His license authorized him to write prescriptions for Schedule II through V controlled substances for medical care. The complaint alleges that a prescription monitoring system identified Siao was a high prescriber, exemplified by a recent year when Siao wrote 8,201 prescriptions for controlled substances, including large quantities of hydrocodone and oxycodone and many instances of the dangerous combination of opioid, muscle relaxant, and benzodiazepine. An investigation followed.
During the investigation, the complaint alleges that undercover law enforcement agents posed as new patients and met with Siao at his medical practice. The complaint describes that during initial visits, the agents complained of pain in vague or general terms. Siao conducted little or no physical examinations, the complaint alleges. The initial and subsequent visits usually lasted approximately two minutes. In initial visits Siao prescribed hydrocodone or oxycodone, and the complaint describes that in follow-up appointments Siao continued to prescribe the same medicine and increased the amounts.
In one example in the complaint, an uncover agent posing as a patient met with Siao at an initial appointment and complained of pain. Following an eight second physical examination, Siao wrote a prescription for 30 pills of Norco, a hydrocodone-acetaminophen combination. In subsequent visits as short as 2 minutes and 10 seconds, the undercover agent requested larger prescriptions for reasons that included he had given away pills to his employees as work incentives and that he had ran out of pills when he went to a concert. Siao increased the size of the prescriptions, eventually writing a prescription for 90 Norco pills at his last visit. In another example in the complaint, an undercover agent requested and received a larger prescription of Norco so he could pay back friends with the pills. The agent then requested a prescription for Marinol, explaining he would not take the Marinol but rather would display the prescription at work as a pretext for his positive drug tests, saying “that way it covers the dirty drug test.” Siao replied “gotcha” and wrote the prescription.
The complaint also charges Siao with health care fraud and alleges that on May 9, 2018, he wrote alprazolam and oxycodone prescriptions for a patient without any legitimate medical purpose.
Siao is charged with three counts of illegal distribution of hydrocodone and one count of illegal distribution of oxycodone, all in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). If convicted of any of these counts, he faces a maximum penalty of 20 years in prison and a maximum fine of $1,000,000. Siao is also charged with two counts of health care fraud, in violation of 18 U.S.C. § 1347. If convicted of either of these counts, he faces a maximum penalty of 10 years in prison and a maximum fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Siao made an initial appearance today in federal court before the Honorable Susan van Keulen, United States Magistrate Judge. He remains out of custody on bond. His next scheduled appearances are a hearing to review bond conditions on March 24, 2021, at 1 p.m., before U.S. Magistrate Judge van Keulen and a hearing for status on indictment set for April 19, 2021, at 1 p.m., before United States Magistrate Judge Robert M. Illman.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by the United States Attorney’s Office for the Northern District of California. This prosecution is the result of an investigation by DEA, FBI, HHS-OIG, and DMFEA. Through DMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. Through DMFEA’s civil and criminal enforcement efforts, the Attorney General has recovered tens of millions of dollars from and secured the convictions of hundreds of Medicaid providers who violate California laws through fraudulent and wrongful practices.
San Diego Law Enforcement Leaders Condemn Anti-Asian Hate CrimesRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – March 19, 2021
SAN DIEGO – Acting U.S. Attorney Randy Grossman, San Diego FBI Special Agent in Charge Suzanne Turner and San Diego County District Attorney Summer Stephan today condemned racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders in the United States and urged members of the community to report hate-based crimes and incidents to law enforcement.
“Acts of hate have no place in our community,” Grossman said. “No one should be targeted because of who they are or where they are from. When someone is targeted because of their race or ethnicity, terror reverberates to every member of their community. We want to receive reports of activities motivated by hate so that we can address civil rights violations, as well as hate and bias incidents.”
“The FBI and our partners at the United States Attorney’s Office and the District Attorney’s Office simply won’t tolerate crimes spurred by hate and which are meant to intimidate and isolate the groups targeted,” said SAC Turner. “People of all races, ethnicity and national origins deserve to feel safe in their communities. If a crime is shown to be motivated by bias, it will be investigated by the FBI and the perpetrators held responsible for their actions.” SAC Turner emphasized, “Today, we are reminding the public to report information regarding any hate crime to the FBI.” Members of the public may report a potential hate crime to the Federal Bureau of Investigation at 1-800-CALL-FBI or online at www.tips.fbi.gov.
“Hate crimes are despicable and inexcusable, said Stephan. “Protecting our community from hate crimes is a priority for my office because hate erodes our right to equality and fairness, leaves a lasting impact on the victim and instills fear in the wider community. Hate won’t be tolerated, and I encourage the community to report both hate incidents and hate crimes.” Stephan said the San Diego County District Attorney's Office has seen a three-fold increase in hate crimes targeting Asian communities in San Diego County and is currently prosecuting several such criminal cases. The DA’s Office has established an online tool at SanDiegoDA.com where the public can directly report suspected hate crimes.
The U.S. Attorney’s Office and the Federal Bureau of Investigation review information and community reports about potential hate crimes for potential prosecution, and also provide assistance to local, state, and tribal law enforcement with investigations of hate crimes through their participation in the San Diego Regional Anti-Hate Crime Coalition. Local leaders, including Assistant U.S. Attorney and Civil Rights Enforcement Coordinator Christopher Tenorio and Deputy District Attorney and Lead Hate Crimes Prosecutor Leonard Trinh, will participate in a webinar hosted by Alliant International University ABC 10 News, San Diego, on March 23, 2021, titled “Unpacking Domestic Terrorism: Combating Hate & Targeted Violence Against the Asian-American Community.”
For information about this event, please see attached flyer.
The most recent statistics on hate crimes are available here 2019 Hate Crime Statistics from the FBI’s Uniform Crime Report.
Additional resources regarding hate crimes and bias incidents are here:
https://civilrights.justice.gov/#your-rights
https://www.fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources