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23 April 2021
Convicted Felon Sentenced for Flying Airplane Without a Pilot’s LicenseRead the Press Release
ALEXANDRIA, Va. – A five-time previously convicted felon was sentenced today to 14 months in prison for flying an airplane without a pilot’s license.
According to court documents, on September 27, 2018, Ryan Guy Parker, 31, of Fredericksburg, took an airplane at Shannon Airport in Fredericksburg for a joyride. Parker, who named his business “Outlaw Aviation,” was employed by the airplane’s owner to assemble the plane but had not yet completed the job. At the time of the flight, the airplane had a caster rear wheel, a plastic bicycle water bottle for radiator overflow, and duct tape on key parts of the aircraft.
Despite poor weather conditions, Parker flew just above Shannon Airport’s fuel tanks and twice crossed the airspace used by aircraft on approach to Shannon Airport’s main runway. He flew around the airport for 10 to 15 minutes at a dangerous altitude of around 500 feet. Parker did not possess a pilot’s license at the time of the flight.
According to court documents, the defendant has a lengthy criminal history with five prior felony convictions, including a previous conviction involving unlawful activity pertaining to aircraft. In that case, the defendant was found guilty in the Stafford County Circuit Court for destruction of property and unauthorized use of a vehicle in connection with a separate September 2018 incident that occurred at the Stafford Regional Airport.
On January 22, Parker pleaded guilty to serving as an airman without an airman’s certificate.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; and Jamie Mazzone, Mid-Atlantic Region Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis, III.
Special Assistant U.S. Attorney Michael Lebowitz and Assistant U.S. Attorney Tony Roberts prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-78.
Concord Man Pleads Guilty to Methamphetamine Trafficking and Firearm OffensesRead the Press Release
CONCORD - Jason Manley, 32, of Concord, pleaded guilty in federal court to attempted possession of methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in March of 2019, the United States Postal Inspection Service identified Manley as a customer of an illegal drug vendor operating on the internet. Between March of 2019 and July of 2020, postal inspectors intercepted four parcels addressed to Manley at his residence. Pursuant to search warrants, the seized parcels were found to contain a total of over 2.3 kilograms of highly-pure methamphetamine. On July 10, 2020, an undercover agent made a controlled delivery of an intercepted parcel to Manley’s residence. After Manley accepted the parcel, investigators executed a search warrant of his residence and recovered additional methamphetamine, a handgun and ammunition, $54,483 in cash, and additional items consistent with drug distribution activities.
Manley is scheduled to be sentenced on August 2, 2021. As part of his plea agreement, Manley has agreed to forfeit cash, a firearm, ammunition, jewelry, and other items seized during the investigation.
“Methamphetamine traffickers present a significant threat to the community because they are distributing an extremely dangerous drug,” said Acting U.S. Attorney Farley. “When drug dealers are armed, the risk to public safety is even greater. As this case demonstrates, we are working closely with our law enforcement partners to identify and prosecute the armed drug traffickers who do business in the Granite State.”
This matter was investigated by the United States Postal Inspection Service with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
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Colombian from Houston Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – EDER QUINONES, age 35, a Colombian citizen who was living in Houston, Texas, pleaded guilty on April 14, 2021 before the Honorable Sarah S. Vance to a superseding indictment charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, QUINONES conspired to possess with the intent to distribute and to distribute a kilogram or more of a mixture or substance containing a detectable amount of heroin. QUINONES admitted to being the source of supply for a high-level drug trafficker who was moving kilogram quantities of heroin from Houston to New Orleans and serving as a high-level supplier for New Orleans. QUINONES acknowledged being captured on recorded calls as part of a lengthy Title III wire intercept and being arrested by the FBI in possession of a kilogram of heroin he was attempting to deliver to a New Orleans dealer. QUINONES admitted that he trafficked between 10 and 30 kilograms of heroin as part of the conspiracy.
Sentencing is scheduled for July 21, 2021. QUINONES faces a mandatory minimum term of imprisonment of at least 10 years up to a maximum of life, a fine of $10,000,000, and at least five years of supervised release following any term of imprisonment. QUINONES also faces a payment of a $100.00 special assessment fee.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney David Haller.
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Co-Founder of Hedge Fund Charged with $40 Million Securities Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrest yesterday afternoon of ANDREW FRANZONE, the founder and former general partner of FF Fund I L.P. on charges of securities fraud and wire fraud for his role in a scheme to fraudulently induce more than 100 investors to invest approximately $40 million in his fund by, among other things, lying about the fund’s investment strategy, liquidity, and amount of assets under management. FRANZONE was arrested yesterday afternoon in Fort Lauderdale, Florida, on a criminal complaint (the “Complaint”) and will be presented before a magistrate judge in the Southern District of Florida.
Manhattan U.S. Attorney Audrey Strauss said: “Andrew Franzone allegedly promised his clients access to his successful liquid trading strategy and consistent, positive trading returns. As alleged, those promises were lies. Franzone lied about his fund’s investments and performance, and he lied in promising clients that they had could readily access their invested capital. While his investors lost money, Franzone enriched himself. We will continue to work with our law enforcement partners to protect investors from these types of deceptive practices.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Franzone allegedly misled investors to believe his fund was liquid and he could cover their redemption requests, in a scheme to lure them in to investing in his hedge fund. This should be a reminder that greed has no boundaries and does not care about a favorable portfolio. Postal Inspectors remind all investors to thoroughly check offers, and if they sound too good to be true, keep your money in the bank.”
As alleged in the Complaint unsealed today in Manhattan federal Court[1]:
FRANZONE co-founded Farrell Franzone Investments LLC in 2010. FRANZONE described Farrell Franzone as an opportunity for investors to invest, through the purchase of limited partnership (“LP”) interests, in a hedge fund purporting to trade preferred securities and options and to maintain a highly liquid portfolio for its investors. FRANZONE renamed the fund FF Fund I (“FF Fund”) in 2014, and served as its general partner from that time until approximately September 2019.
In connection with marketing the FF Fund to investors, FRANZONE touted FF Fund as a “multi-strategy investment program … focus[ed] on three unique asset classes: the preferred stock market, the option market, and the private investment portfolio.” When discussing FF Fund, FRANZONE assured investors that FF Fund was focused on trading in the preferred securities and options markets, which afforded its investors access to quarterly liquidity, and that FF Fund had a track record of consistent positive trading returns since its inception in August 2010.
FRANZONE’s representations about FF Fund’s strategy, liquidity, and performance were largely fabricated. Instead of engaging primarily in preferred securities and options trading that ensured the FF Fund’s liquidity, FRANZONE instead diverted more than 80% of FF Fund’s capital to high-risk, illiquid private investments, many of which were either worthless or significantly impaired. FRANZONE also misappropriated FF Fund’s assets to fund his own personal business interests, including the purchase of an airplane hangar, and lied to investors about FF Fund’s performance and assets under management.
Through these and other fraudulent misrepresentations and omissions, FRANZONE induced over 100 investors to invest more than $40 million in FF Fund. Despite showing investors positive trading returns as late as 2019, FF Fund was unable to fulfill redemption requests in early 2019 and is currently in the process of being liquidated.
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FRANZONE, 44, of Fort Lauderdale, Florida, is charged with one count of securities fraud, which carries a maximum potential sentence of 20 years in prison, and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the USPIS and thanked the U.S. Securities and Exchange Commission, which has separately filed a civil action against FRANZONE and FF Fund Management.
This case is being handled by the Office’s Securities and Commodities Task Force. Assistant United States Attorney Kiersten A. Fletcher is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
CARES Act Fraud Unit Bolstered with Appointment of New Assistant U.S. AttorneyRead the Press Release
PROVIDENCE – Acting United States Attorney Richard B. Myrus today announced the appointment and swearing-in of G. Michael Seaman IV as an Assistant United States Attorney in the District of Rhode Island.
Mr. Seaman has been assigned to the CARES Act Fraud Unit in the United States Attorney’s Office Criminal Division, the fourth Assistant United States Attorney assigned to work with federal and state law enforcement in the investigation and the federal prosecution of CARES Act fraud cases. To date, the CARES Act Fraud Unit has charged two-dozen individuals who allegedly targeted more than $30 million in federal CARES Act funding.
A native of Long Island, NY, Mr. Seaman graduated in 2011 from State University of New York at Albany. Mr. Seaman earned his Juris Doctor at State University of New York at Buffalo School of Law, graduating cum laude in 2014.
Mr. Seaman is a Marine Corps reservist, and a former active duty JAG for the USMC. As a Judge Advocate in Okinawa, Japan, he handled a variety of criminal offenses, although his primary focus was investigating and prosecuting Marines for government entitlements fraud. Prior to being stationed in Japan, Mike was stationed in Newport, RI.
Prior to joining the U.S. Attorney’s Office, G. Michael Seaman IV served as a Litigation Associate at Phillips Lytle, LLP in Buffalo, NY, where he managed and litigated a wide variety of matters, including civil actions, civil rights, data security, and fraud.
In welcoming Mr. Seaman’s to the United States Attorney’s Office, Acting United States Attorney Myrus said, “We are very pleased that AUSA Seamen is joining the Office. He is an experienced prosecutor with a demonstrated commitment to serving his country. He will be an excellent addition to our team prosecuting CARES Act fraud cases.
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Buffalo Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa – On Wednesday, April 21, 2021, United States District Court Judge Stephanie M. Rose sentenced Bobby Wilson, III, age 23, of Buffalo, to 24 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Wilson was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
This investigation began in January 2020 when police officers were dispatched to a disturbance at a bar in downtown Davenport. A report had been made regarding a male who stated he had a gun during a verbal altercation. Law enforcement made contact with the subject, later identified as Wilson, who ran to evade officers and resisted arrest when he was caught. Officers located a loaded Springfield XDS .45 caliber handgun in his sweatshirt pocket. At the time of this incident, Wilson knew he had a prior felony conviction for a crime punishable by a term of imprisonment exceeding one year and was prohibited from possessing a firearm.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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.
Buchanan County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
ABINGDON, Va.- – A Whitewood, Virginia man pleaded guilty today to distributing child pornography using a means or facility of interstate commerce.
According to court documents, Jordan Seth Gross, 21, distributed child pornography to an undercover employee with the Federal Bureau of Investigation (FBI) in November 2020. Gross admitted today to using the KIK computer messenger application to communicate with others in a known child pornography chatroom. Gross accessed his KIK account from both his home in Whitewood, in Buchanan County, Virginia, and his place of employment at Buchanan General Hospital in Grundy, Virginia. Using that account, Gross distributed multiple videos of prepubescent females under the age of twelve engaged in sexually explicit conduct to an FBI employee working undercover in the chatroom. Gross admitted he had been distributing child pornography since he was fourteen years old.
“When individuals distribute images and videos of the sexual abuse of children on the internet, they continue these horrific crimes in perpetuity,” U.S. Attorney Bubar stated today. “I’m thankful for the good work of the FBI and Virginia State Police in this case, which ought to send the strong message to anyone tempted to exploit our children for their own abhorrent desires—we will find you and bring you to justice.”
“The innocence of young children should be nurtured, not tarnished via sexually explicit behavior, and then marketed through websites for the entertainment of predators,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said today. “Our investigators work tirelessly to identify these criminals and hold them accountable, but also to identify and provide helpful resources to these victims and their families. We are grateful for the partnership of the Virginia State Police and the United States Attorney's Office's for the Western District in this case.”
Gross pleaded guilty to one count of knowingly distributing one or more visual depictions of a minor engaging in sexually explicit conduct that has been mailed or transported in interstate or foreign commerce. He is scheduled to be sentenced on August 5, 2021 and faces a sentence of between 84-120 months imprisonment, followed by a period of supervised release.
The Federal Bureau of Investigation and Virginia State Police are investigating the case. Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Brooksville Man Sentenced to More Than 10 Years for Selling MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced James Carnley (58, Brooksville) to 10 years and 10 months in federal prison for selling methamphetamine and possessing firearms in furtherance of his drug trafficking offense. The court also ordered Carnley to forfeit three firearms, hundreds of rounds of ammunition, and $812, which had all been used by Carnley to facilitate his drug activities.
Carnley had pleaded guilty on March 6, 2020.
According to evidence presented during the sentencing hearing, Carnley had been selling ounce and kilogram quantities of methamphetamine out of his mobile home in Pasco County for years. On two dates in July 2018, the Pasco Sheriff’s Office (PSO) used a confidential informant to make quarter-ounce purchases of methamphetamine from Carnley. In August 2018, the PSO executed a search warrant at Carnley’s residence and seized approximately two ounces of methamphetamine, three firearms, hundreds of rounds of ammunition, and assorted paraphernalia used to package drugs for sale and consumption. At the time of Carnley’s arrest, he had been selling approximately a kilogram of methamphetamine per week.
This case was investigated by the Federal Bureau of Investigation, the Pasco Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael M. Gordon.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney Karin Hoppmann coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Bristol Realtor Sentenced to 10 Years for Ponzi SchemeRead the Press Release
GREENEVILLE, Tenn. – On April 23, 2021, Tammy Lynn Hawk, 47, of Bristol, was sentenced by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of a negotiated plea agreement, Hawk pled guilty to an information in January 2021. The information charged Hawk with one count each of wire fraud, aggravated identity theft, money laundering, and making a false tax return. Hawk was sentenced to 10 years in prison, followed by three years’ supervised release. Hawk will be required to make restitution of $658,838 to her unpaid victims and $71,062 in unpaid taxes to the United States.
According to court records, Hawk was a well-established real estate agent in the Bristol, Tennessee area. Despite the success she enjoyed as a realtor, she ultimately used her knowledge, skills, and clientele to devise and operate a Ponzi-type scheme. Under her scheme, she would notify victim clients of large profits to be made with quick-flip properties, take cash from the victims, and ultimately repay earlier victims with funds she swindled from newer victims. Hawk defrauded at least 24 victims and, by the time her scheme was discovered, 12 victims remained unpaid and had lost over $500,000.
Hawk took extensive steps to hide and conceal her scheme as well, including false statements, sham real estate contracts, the use of electronic signing services, and forgery. Hawk also failed to disclose any of these matters in connection with a filed bankruptcy case. In addition to repaying earlier victims with funds she swindled, Hawk used proceeds from her offenses to fund her own lifestyle.
“Tammy Hawk’s fraudulent scheme not only betrayed her clients’ trust, but also caused them devastating financial harm,” said Acting United States Attorney Francis M. Hamilton III. “The Court’s sentence demonstrates that there will be serious consequences to criminals who perpetrate this brand of Ponzi scheme. This office values the collaboration among the numerous law enforcement agencies that supported this prosecution.”
“The Secret Service is proud to partner with the Bristol Police Department. The overwhelming success of this investigation is a testament to our belief that building strong, trusted partnerships across the law enforcement community is a proven model for success,” said Resident Agent in Charge Jason Brown, Secret Service - Knoxville Resident Office. “The Secret Service is committed to combatting financial crime, especially in cases where fraudsters take advantage of the trust and confidence of American citizens. The Secret Service, along with our local and federal partners, remain committed to aggressively protecting the nation from criminal opportunists who choose to exploit the American public.”
“This corruption ploy -- which destroyed the lives of many hard-working individuals -- ended today. This plea is the result of collaboration between the Sullivan County District Attorney’s Office and the U.S. Attorney’s Office,” said Second Judicial District Attorney Barry P. Staubus.
“The joint collaboration between these law enforcement agencies in a complex case such as this, is what ensures accountability is brought to Tammy Hawk for victimizing those who trusted her,” said Bristol Police Chief Blaine Wade.
The sentence was announced by Acting United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III.
The criminal indictment was the result of an investigation by the Bristol Police Department, the Second District Attorney General’s Office for Sullivan County, the United States Secret Service, and IRS Criminal Investigations. The federal investigation was co-led by United States Secret Service Senior Special Agent Thomas Whitehead and IRS CI Special Agents Nicholas Worsham and Michael Whitesell.
Assistant U.S. Attorneys Mac Heavener and Todd Martin represented the United States.
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Beckley Man Sentenced to Federal Prison for Distributing MethamphetamineRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced today to 45 months in federal prison for distributing methamphetamine. Isaiah Lamont Shaw, 21, was previously charged as a result of a joint investigation conducted by the Federal Bureau of Investigation (FBI) and the Beckley/Raleigh County Drug and Violent Crime Unit.
According to court documents, on October 30, 2019, Shaw met a confidential informant near a shopping center in Raleigh County and sold him more than five grams of methamphetamine. Shaw sold methamphetamine to the same confidential informant on four other occasions. Each transaction occurred within the Southern District of West Virginia. The drugs sold by defendant were tested by the DEA Drug Lab which established that the methamphetamine was between 92% and 98% pure.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the cooperative investigative efforts of the FBI and the Beckley/Raleigh County Drug and Violent Crime Unit.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00124.
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Bay Area Physician Charged in Alleged Scheme to Buy and Inject Misbranded or Adultered Botox and Juvederm SubstitutesRead the Press Release
SAN FRANCISCO – A federal grand jury handed down an indictment charging Lindsay Marie Clark with receiving, offering, and delivering misbranded drugs and misbranded and adulterated devices, in a scheme to buy at a discount and inject into patients products lacking FDA approval, announced Acting United States Attorney Stephanie M. Hinds and Lisa L. Malinowski, Special Agent in Charge of the Food and Drug Administration (FDA) Office of Criminal Investigations, Los Angeles Field Office.
The indictment, filed April 1, 2021, and unsealed earlier today, alleges that Clark, 44, of San Francisco, is a California physician, with practices in San Francisco and San Mateo, who specialized in procedures that use injectable drugs and devices for cosmetic or aesthetic purposes. The indictment explains that federal law regulates the manufacture, labeling, distribution, and administration of biologics, drugs, and devices shipped or received in interstate commerce. The law forbids, as a felony, the receipt and delivery of misbranded or adulterated products with intent to defraud and mislead. Regulated products include drugs such as injectable botulinum toxin and devices such as injectable hyaluronic acid dermal fillers. Under Congress’s regulatory scheme, the FDA approved the use of Botox®, the brand name of a drug derived from Botulinum Toxin Type A. In addition, the FDA approved the use of dermal fillers made from hyaluronic acid, as Class III medical devices, under the name Juvederm® and related names.
According to the indictment, from at least April 2016 until no earlier than February 2020, Clark obtained drugs and devices, represented by sellers to be foreign versions of Botox® and Juvederm®, that were not the subjects of FDA approval. Clark allegedly obtained these products from sources abroad, primarily by ordering the drugs and devices over the phone and internet. The indictment alleges that Clark purchased at least $270,951 worth of products from these foreign online “pharmacies” and “depots,” and obtained revenue from services rendered in connection with these products, perhaps more than $1,069,880.
The indictment alleges that Clark instructed staff to conceal the true identity, name, and source of these products from patients. The indictment also alleges that Clark had patients sign misleading “consent” forms that referred only to products approved by the FDA, rather than informing patients that they were receiving unlicensed and unapproved products. The indictment further alleges that Clark charged patients the same price for the “Botox” and “Juvederm” products whether the products were FDA-licensed and approved, or unlicensed and unapproved.
“Health care professionals who dispense and administer misbranded and adulterated prescription drugs and devices of unknown origin put the health of their patients at significant risk,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to pursue and bring to justice those who choose to subvert the safeguards of the legitimate drug and device regulatory regime and supply chain and jeopardize the public health.”
Clark is charged with receipt in interstate commerce of a drug that is misbranded, and a device that is adulterated and misbranded, and the delivery or proffered delivery thereof for pay or otherwise, with intent to defraud and mislead, in violation of 21 U.S.C. §§ 331(c), 333(a)(2). If convicted, she faces a maximum penalty of three years in prison and a maximum fine of $10,000. 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.
Clark made an initial appearance today in federal court before the United States Magistrate Judge Jacqueline Scott Corley. She remains out of custody on bond. Her next scheduled appearance is for a status conference before Senior District Judge Susan Illston on June 4, 2021.
The charges contained in the indictment are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorney Joseph Tartakovsky is prosecuting this case with assistance from Laurie Worthen. The prosecution is a result of an investigation by the FDA’s Office of Criminal Investigations.
Baltimore Man Pleads Guilty to Federal Charge for Production of Child PornographyRead the Press Release
Baltimore, Maryland – Marcus Street, age 26, of Baltimore, Maryland, pleaded guilty today to enticing and persuading a minor victim to engage in sexually explicit conduct to produce child pornography, which Street admitted he also distributed.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI); Baltimore City’s State’s Attorney Marilyn J. Mosby; Commissioner Michael Harrison of the Baltimore Police Department (BPD); and Baltimore County Sheriff Jay Fisher.
According to Street’s guilty plea, in December 2019, HSI and BPD investigators conducted a forensic review of the of a 14-year-old victim’s cell phone. The review revealed six 15-second videos of the victim engaged in sexual acts with an adult man. In some of the videos, a distinctive tattoo on the man’s left forearm is visible. Further investigation identified Street as the man depicted in each of the videos.
Law enforcement interviewed Street on December 10, 2019, concerning his interaction with the victim. Street initially claimed that he did not engage in sexual acts with the minor victim. When law enforcement confronted Street with the video of him engaging in sex acts with a minor, Street stated “oh yeah, I did one time, I ain’t gonna lie I did”. Street also told law enforcement that he recorded the video. Following the interview, law enforcement obtained an arrest warrant and Street was arrested on January 6, 2020. After his arrest, Street was again questioned by law enforcement and admitted to engaging in sexually explicit conduct with the victim, stating, “That was it, that was the last time I did anything with this girl.”
Investigators subsequently executed search warrants on Street’s cell phone, social media account, and on the victim’s social media account. Review of Street’s cell phone revealed two minutes-long videos of him engaging in sex acts with the victim. A review of Street’s and the victim’s social media accounts showed that Street had sent shortened versions of those videos, 15 seconds in length, to the victim using social media.
Street faces a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years in federal prison for production of child pornography. U.S. District Judge George L. Russell has scheduled sentencing for August 19, 2021 at 12:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Office of the Baltimore City State’s Attorney, the Baltimore Police Department, and the Baltimore County Sheriff’s Office for their work in the investigation and thanked the Federal Bureau of Investigation for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Ayn B. Ducao.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Attorney General Merrick Garland Recognizes Tricia L. Everest for Advocacy on Behalf of Crime VictimsRead the Press Release
OKLAHOMA CITY – Attorney General Merrick B. Garland today awarded the Volunteer for Victims Award to Tricia L. Everest for her advocacy on behalf of crime victims. Ms. Everest was among 13 individuals and teams from across the country who were honored for their work. The award recipients were recognized virtually during the annual National Crime Victims’ Service Awards Ceremony.
"Every day, we bear witness to stirring acts of heroism on the part of compassionate and courageous advocates – and crime victims themselves," said Attorney General Garland. "One of our responsibilities is to ensure that victims are informed, have a voice, and are supported in the healing process. To the exceptional men and women we honor today – thank you for your service to crime victims, for your commitment to the safety of your communities, and for working to make America a more just and more compassionate place."
Ms. Everest currently serves as the chair for Palomar, Oklahoma City’s Family Justice Center, which removes barriers for abuse victims to access the services they need, as well as the founding chair of ReMerge, which diverts mother from prison and empowers women to build healthy foundations for themselves and their children. Ms. Everest was previously the Oklahoma Assistant Attorney General, where she worked to help victims of crimes. She was also Chair of the Oklahoma County Criminal Justice Authority and provided oversight of finances and operations of the jail. Ms. Everest was inducted into the Oklahoma Hall of Fame in 2019 for her leadership of hope-inspiriting initiatives for people to build stronger lives after victimization. In March 2020, Governor Kevin Stitt announced that, pending confirmation by the Oklahoma State Senate, he was appointing Ms. Everest to be the Secretary of Public Safety, in part for her work on behalf of crime victims.
"Through her passionate and unwavering advocacy for victims of domestic violence, Tricia’s service is a tremendous asset to our Oklahoma communities," said Acting U.S. Attorney Robert Troester. "Her pioneering vision for Palomar set a new standard for local coordinated efforts to combat domestic violence, hold abusers accountable, and provide wholistic support for victims of abuse. It is a privilege to partner with Tricia and witness her influential passion for improving the safety and quality of our communities."
Ms. Everest and the other award recipients were selected from public nominations in 10 categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW). Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. The 40th observance of NCVRW takes place this year, April 18-24, and features the theme, “Support Victims. Build Trust. Engage Communities.”
"We come together each year during National Crime Victims’ Rights Week to show that we are united in our commitment to making sure all crime victims feel heard, respected and remembered," said Office of Justice Programs Acting Assistant Attorney General Maureen A. Henneberg. "We honor these outstanding public safety professionals and advocates who work so hard to support crime victims as they walk the path from trauma to healing."
According to the Department’s Bureau of Justice Statistics, 1.2 million Americans age 12 and older were victims of violent crime, excluding simple assault, in 2019, down from 1.4 million in 2018. An estimated 12.8 million U.S. households experienced one or more property victimizations. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
Following is a list of the all award recipients:
- The Volunteer for Victims Award recognizes individuals who serve without compensation.
Recipient: Tricia L. Everest, Nichols Hills, Oklahoma
- The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.
Recipient: Pfawnn Eskee, Montezuma Creek, Utah
- The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.
Recipient: JoNell Efantis Potter, PhD, Miami, Florida
- The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.
Recipient: Acquanette Lindsay, Dayton, Ohio
- The First Responders Award recognizes an individual from the law enforcement, emergency services, firefighters and rescue professions for extraordinary acts of valor toward crime victims.
Recipients: John Guard, Greenville, North Carolina; and Robin Taylor, Chardon, Ohio
- The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.
Recipient: The Vegas Strong Resiliency Center, Las Vegas, Nevada; and Jennifer Dunn, Waukesha, Wisconsin
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.
Recipient: Jeannette M. Adkins, Bellbrook, Ohio
- The Special Courage Award honors extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim.
Recipients: Jennifer Elmore, Chapel Hill, North Carolina; and Jennifer Luther, Tallahassee, Florida
- The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.
Recipient: Sachiri Henderson, Shreveport, Louisiana
- The Victims Rights Legend Award recognizes an individual whose work over an extended period of time has resulted in positive and substantial change in the field of victim advocacy and/or victims’ rights.
Recipient: Victor I. Vieth, Lewiston, Minnesota
"It is important for us as a country to set aside time during National Crime Victims’ Rights Week to honor victims and to recognize those who advocate for resources and policies designed to meet the many serious challenges victims face," said Office for Victims of Crime Acting Director Katherine Darke Schmitt. "Few people expect to be a victim, and no one deserves the pain and injustice that burden every crime survivor. We should take it upon ourselves this week, and every week, to show our unity with and compassion for those who have experienced the pain of victimization."
To see the complete list of awardees and learn more about past NCVRW recipients, visit www.ovc.gov/gallery.
- The Volunteer for Victims Award recognizes individuals who serve without compensation.
Attorney General Merrick Garland Recognizes John Guard of Pitt County for Advocacy on Behalf of Crime VictimsRead the Press Release
RALEIGH, N.C. – Attorney General Merrick B. Garland today awarded the First Responders Award to John Guard of Greenville for his advocacy on behalf of crime victims. Mr. Guard was among 13 individuals and teams from across the country who were honored for their work. The award recipients were recognized virtually during the annual National Crime Victims’ Service Awards Ceremony.
“Every day, we bear witness to stirring acts of heroism on the part of compassionate and courageous advocates – and crime victims themselves,” said Attorney General Garland. “One of our responsibilities is to ensure that victims are informed, have a voice, and are supported in the healing process. To the exceptional men and women we honor today – thank you for your service to crime victims, for your commitment to the safety of your communities, and for working to make America a more just and more compassionate place.”
John Guard is a Chief Deputy with the Pitt County Sheriff’s Office in Greenville, North Carolina, with over 28 years of experience, including line level response, investigative response, first and second level supervision, and agency management. For almost two and a half decades, he has specialized in investigating domestic violence cases. He has been instrumental in developing policies and procedures related to domestic violence response in Pitt County and the State of North Carolina. Legislators and victim advocates have consulted Chief Guard on the creation of state legislation for domestic violence response, including House Bill 1354, which granted powers of arrest to law enforcement for violation of pretrial release, mandated law enforcement training, and elevated strangulation to a felony crime; and Senate Bill 919, which provides stronger firearm removal provisions for offenders who are subject to a domestic violence protection order.
Chief Guard serves as the chair of the Pitt Domestic Violence Fatality Review Team and was instrumental in its creation. He is a past member and Chair of the Law Enforcement Policy Committee of the North Carolina Domestic Violence Commission, and a past member and Executive Board President of the North Carolina Victim’s Assistance Network. He has participated is several local, state, and federal focus groups that have examined the impact of domestic violence on society. Chief Guard has received numerous awards for his efforts related to domestic violence prevention, including awards from the North Carolina Coalition Against Domestic Violence, the North Carolina Victims Assistance Network, and the Sunshine Lady Foundation.
“John Guard spent his career tirelessly working and advocating for the rights of Domestic Violence victims,” stated Acting United States Attorney G. Norman Acker, III. “He not only investigated hundreds of cases of Domestic Violence, he also willing shared his expertise by training thousands of officers and domestic violence advocates during conferences sponsored by my Office.”
Mr. Guard and the other award recipients were selected from public nominations in 10 categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW). Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. The 40th observance of NCVRW takes place this year, April 18-24, and features the theme, “Support Victims. Build Trust. Engage Communities.”
“We come together each year during National Crime Victims’ Rights Week to show that we are united in our commitment to making sure all crime victims feel heard, respected and remembered,” said Office of Justice Programs Acting Assistant Attorney General Maureen A. Henneberg. “We honor these outstanding public safety professionals and advocates who work so hard to support crime victims as they walk the path from trauma to healing.”
According to the Department’s Bureau of Justice Statistics, 1.2 million Americans age 12 and older were victims of violent crime, excluding simple assault, in 2019, down from 1.4 million in 2018. An estimated 12.8 million U.S. households experienced one or more property victimizations. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
Following is a list of the all award recipients:
- The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.
Recipient: Pfawnn Eskee, Montezuma Creek, Utah
- The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.
Recipient: JoNell Efantis Potter, PhD, Miami, Florida
- The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.
Recipient: Acquanette Lindsay, Dayton, Ohio.
- The First Responders Award recognizes an individual from the law enforcement, emergency services, firefighters and rescue professions for extraordinary acts of valor toward crime victims.
Recipients: John Guard, Greenville, North Carolina; and Robin Taylor, Chardon, Ohio
- The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.
Recipient: The Vegas Strong Resiliency Center, Las Vegas, Nevada; and Jennifer Dunn, Waukesha, Wisconsin
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.
Recipient: Jeannette M. Adkins, Bellbrook, Ohio
- The Special Courage Award honors extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim.
Recipients: Jennifer Elmore, Chapel Hill, North Carolina; and Jennifer Luther, Tallahassee, Florida
- The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.
Recipient: Sachiri Henderson, Shreveport, Louisiana
- The Victims Rights Legend Award recognizes an individual whose work over an extended period of time has resulted in positive and substantial change in the field of victim advocacy and/or victims’ rights.
Recipient: Victor I. Vieth, Lewiston, Minnesota
- The Volunteer for Victims Award recognizes individuals who serve without compensation.
Recipient: Tricia L. Everest, Nichols Hills, Oklahoma
“It is important for us as a country to set aside time during National Crime Victims’ Rights Week to honor victims and to recognize those who advocate for resources and policies designed to meet the many serious challenges victims face,” said Office for Victims of Crime Acting Director Katherine Darke Schmitt. “Few people expect to be a victim, and no one deserves the pain and injustice that burden every crime survivor. We should take it upon ourselves this week, and every week, to show our unity with and compassion for those who have experienced the pain of victimization.”
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
To see the complete list of awardees and learn more about past NCVRW recipients, visit www.ovc.gov/gallery.
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Attorney General Merrick Garland Recognizes Individuals and Organizations for Service to Crime VictimsRead the Press Release
Attorney General Merrick B. Garland today recognized 13 individuals and teams for their advocacy on behalf of victims of crime. The award recipients were honored virtually during the annual National Crime Victims’ Service Awards Ceremony.
“Every day, we bear witness to stirring acts of heroism on the part of compassionate and courageous advocates – and crime victims themselves,” said Attorney General Garland. “One of our responsibilities is to ensure that victims are informed, have a voice, and are supported in the healing process. To the exceptional men and women we honor today – thank you for your service to crime victims, for your commitment to the safety of your communities, and for working to make America a more just and more compassionate place.”
The awardees were selected from public nominations in 10 categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs (OJP), leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW). Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. The 40th observance of NCVRW takes place this year, April 18-24, and features the theme, “Support Victims. Build Trust. Engage Communities.”
According to the Department’s Bureau of Justice Statistics, 1.2 million Americans age 12 and older were victims of violent crime, excluding simple assault, in 2019, down from 1.4 million in 2018. An estimated 12.8 million U.S. households experienced one or more property victimizations. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
“We come together each year during National Crime Victims’ Rights Week to show that we are united in our commitment to making sure all crime victims feel heard, respected and remembered,” said OJP Acting Assistant Attorney General Maureen A. Henneberg. “We honor these outstanding public safety professionals and advocates who work so hard to support crime victims as they walk the path from trauma to healing.”
Following is a list of the award recipients:
- The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.
Recipient: Pfawnn Eskee, Montezuma Creek, Utah.
- The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.
Recipient: JoNell Efantis Potter, PhD, Miami, Florida.
- The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.
Recipient: Acquanette Lindsay, Dayton, Ohio.
- The First Responders Award recognizes an individual from the law enforcement, emergency services, firefighters and rescue professions for extraordinary acts of valor toward crime victims.
Recipients: John Guard, Greenville, North Carolina; and Robin Taylor, Chardon, Ohio.
- The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.
Recipient: The Vegas Strong Resiliency Center, Las Vegas, Nevada; and Jennifer Dunn, Waukesha, Wisconsin.
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.
Recipient: Jeannette M. Adkins, Bellbrook, Ohio.
- The Special Courage Award honors extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim.
Recipients: Jennifer Elmore, Chapel Hill, North Carolina; and Jennifer Luther, Tallahassee, Florida.
- The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.
Recipient: Sachiri Henderson, Shreveport, Louisiana.
- The Victims Rights Legend Award recognizes an individual whose work over an extended period of time has resulted in positive and substantial change in the field of victim advocacy and/or victims’ rights.
Recipient: Victor I. Vieth, Lewiston, Minnesota.
- The Volunteer for Victims Award recognizes individuals who serve without compensation.
Recipient: Tricia L. Everest, Nichols Hills, Oklahoma.
“It is important for us as a country to set aside time during National Crime Victims’ Rights Week to honor victims and to recognize those who advocate for resources and policies designed to meet the many serious challenges victims face,” said OVC Acting Director Katherine Darke Schmitt. “Few people expect to be a victim, and no one deserves the pain and injustice that burden every crime survivor. We should take it upon ourselves this week, and every week, to show our unity with and compassion for those who have experienced the pain of victimization.”
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
To learn more about past NCVRW recipients, visit www.ovc.gov/gallery.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Aryan Brotherhood Member Receives More Than 14 Years in Prison for His Involvement in a Methamphetamine Trafficking OrganizationRead the Press Release
NEW BERN, N.C. – Brian Pearce, 27, of Onslow County was sentenced today to 176 months in prison for Conspiracy to Distribute and Possess With Intent to Distribute Five Hundred (500) Grams or More of Methamphetamine and Possession With Intent to Distribute a Quantity of Methamphetamine. On June 4, 2020, Pearce pled guilty to these charges.
According to court documents and evidence presented in court, on April 12, 2019, Pearce, Bradley Henderson and a third person drove to a residence in the Farmville area to purchase a pound of methamphetamine. They had previously paid for the methamphetamine. The three were waiting for the methamphetamine and concerned they were going to be robbed. Pearce kicked in the door of the residence. Pearce produced a handgun and fired a round into the floor and demanded the methamphetamine. They received 8 ounces of methamphetamine and left. On the way back they observed a police checkpoint. They failed to stop at the checkpoint. Officers pursued the vehicle which made one turn and abruptly stopped when Pearce jumped out of the vehicle and fled on foot. Pearce hid the methamphetamine and handgun in the woods. Pearce returned for the items after he bonded out of jail and retrieved the methamphetamine but was unable to find the handgun. The handgun was later recovered by law enforcement.
On May 6, 2019, the Holly Ridge Police Department conducted a traffic stop where Pearce was the driver. Two bags of methamphetamine were recovered from the driver’s seat and two bags of methamphetamine were recovered from Pearce. Additionally, officers located chunks of loose methamphetamine scattered in the front passenger area.
On May 22, 2019, the Onslow County Sheriff’s Office detectives conducted surveillance at a residence in Snead’s Ferry for narcotics and gang activity. Pearce was a passenger in a truck outside of the residence. Pearce was detained at the scene; he requested a cigarette from a pack inside the truck. A detective retrieved the cigarette pack and located a small quantity of methamphetamine. Detectives searched the residence which also appeared to be a clubhouse for the gang and found more than an ounce of methamphetamine, several firearms and gang paraphernalia. According to law enforcement Pearce was a member of the Aryan Brotherhood and occupied a position of leadership in the organization.
The investigation uncovered that between 2016 and May 22, 2019, Pearce was involved in the distribution of nearly four kilograms of methamphetamine. Pearce and another person had also exchanged methamphetamine for heroin in the Maple Hill Area.
Bradley Henderson was previously sentenced federally for his role in this conspiracy and received an active sentence of 110 months.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of large quantities extremely pure methamphetamine throughout the United States.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Drug Enforcement Administration, the bureau of Alcohol, Tobacco and Firearms, the Duplin County Sheriff’s Office, the Onslow County Sheriff’s Office, and the Holly Ridge Police Department investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-139-FL-5.
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Army Veteran Pleads Guilty to Federal Charges in Maryland for Supplying Forged Military Discharge Certificates to Individuals Applying for Military Waivers to Obtain Commercial Driver’s LicensesRead the Press Release
Greenbelt, Maryland – Philip Mungin, age 58, of Bryans Road, Maryland, pleaded guilty today to forgery of a military discharge certificate and identity theft, in connection with a scheme in which Mungin provided fraudulent DD-214 discharge certificates to individuals for fraudulent military waiver applications for commercial driver’s licenses in exchange for payment.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jamie Mazzone, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office; and Special Agent in Charge Christopher Dillard of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to his guilty plea, between 1997 and 1999, Mungin was enlisted in the Army. Upon Mungin’s discharge in 1999, Victim 1, was the “Senior Transition Specialist” who helped process Mungin’s discharge and signed Mungin’s military discharge certificate, known as the DD-214.
Federal law mandates that drivers of commercial vehicles, such as tractor-trailers and semi-trucks, obtain a commercial driver’s license (CDL). Among other requirements, CDL applicants must pass both a written test and a driving skills test. Third-parties, such as driving schools, are authorized to train prospective CDL holders and administer the necessary tests, however, this training generally takes weeks to complete and may cost students $3,000 to $7,000. The Department of Transportation implemented a program in 2011, aimed at helping U.S. military veterans to get jobs by allowing states to waive the driving skills test for U.S. military veterans who could provide proof that they had been trained to operate the relevant vehicles in the military. To demonstrate their eligibility, veterans had to submit their DD-214 and complete an application, signed by the applicant’s commanding officer to certify that they had the relevant driving experience.
As detailed in the plea agreement, in December 2018, employees at the Maryland Motor Vehicle Administration (MVA) office in Waldorf, Maryland, became suspicious of waiver documents submitted by an applicant and confronted the applicant. The applicant, who had never been in the military, identified Mungin as the person who offered to help him get a CDL by submitting falsified military paperwork. MVA investigators subsequently learned that 44 individuals had submitted fraudulent waiver applications. Many of the drivers who obtained CDLs based on fraudulent military paperwork identified Mungin as the person who helped them. Thirty-four of the fraudulent applications had Victim 1’s name and title at the bottom of the form, many of which included a forged or photocopied version of Victim 1’s signature. The certifying commanding officer on nearly all of the fraudulent waiver forms was the same, a purported colonel. Department of Defense records showed that no person by that name had ever served in the U.S. military.
Specifically, Mungin admits that he falsified DD-214s and military waiver forms for drivers wanting to obtain CDLs, in exchange for the drivers paying Mungin—reportedly between $500 to $2,000 each. Employees at the Waldorf MVA were familiar with Mungin because he often accompanied applicants with fraudulent paperwork to obtain their licenses, typically wearing a military uniform while doing so. At times, Mungin told the employees he was a member of the military police accompanying members who were about to be discharged to obtain their CDLs. At least one fraudulent CDL was issued in Virginia using the same forged DD-214 that Mungin had used with the Maryland drivers. In that application, Mungin listed himself as the commanding officer on the waiver form.
Mungin acknowledged that he received between $15,000 and $40,000 to create false military paperwork, including DD-214s, to assist drivers in fraudulently obtaining CDLs.
As part of his plea agreement, Mungin will be required to forfeit any money, property, or assets derived as a result of, or used to facilitate, the commission of his illegal activities, and will also be required to pay a money judgment of $2,000.
Mungin faces a maximum sentence of one year in federal prison for forgery of a military discharge certificate and a maximum of 15 years in federal prison for identity theft. U.S. District Judge Paula Xinis has scheduled sentencing for August 16, 2021 at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the DOT OIG, DCIS, and the Maryland MVA Office of Investigations and Internal Affairs for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Catherine K. Dick, who is prosecuting the case.
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Acting U.S. Attorney promotes 20th National Prescription Drug Take Back DayRead the Press Release
WHEELING, WEST VIRGINIA – Acting U.S. Attorney Randolph J. Bernard is asking all residents in the Northern District of West Virginia to rid their homes of unwanted and used medications easily and safely.
The Drug Enforcement Administration (DEA) is holding its 20th National Prescription Drug Take Back Day on Saturday, April 24 at locations across the country. The nationwide event aims to provide a safe, convenient, and responsible means of disposing of prescription drugs, while also educating the general public about the potential for abuse of medications.
“Too many times, prescription medications end up in the wrong hands. If you have unwanted and unused medications in your home, you could potentially be harming someone you care about,” said Bernard. “Drug Take Back Day is a safe and convenient way to ensure your loved ones and friends remain safe.”
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Collection sites will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement.
DEA encourages the public to reach out to their local law enforcement to find out if they have any permanent drug disposal locations throughout their local community.
DEA and its partners will collect tablets, capsules, patches, and other solid forms. DEA will also accept vape pens or other e-cigarette devices from individual consumers, only after the batteries are removed from the devices. If the battery cannot be removed, individual consumers can check with large electronic chain stores who may accept the vape pen or e-cigarette devices for proper disposal. Liquids, including intravenous solutions, syringes and other sharps, and illegal drugs cannot be dropped off. This service is free and anonymous, no questions asked.
Acting U.S. Attorney Urges Mainers to Dispose of Unused Prescription Medications During Take Back Day on SaturdayRead the Press Release
PORTLAND, Maine: Acting U.S. Attorney Donald E. Clark joined the U.S. Drug Enforcement Administration in announcing that DEA will be conducting its 20th National Prescription Drug Take Back Day on Saturday, April 24. Between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at 142 collection sites throughout Maine, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local police department. To find a collection site near you go to deatakeback.com.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 83,544 Americans overdosing during the 12-month period ending July 1, 2020, the most ever recorded in a 12-month period. The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, but accelerated significantly during the first months of the pandemic.
The public can drop off potentially dangerous prescription medications at collection sites that will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
“I urge all Mainers to take advantage of Drug Take Back Day,” said Acting U.S. Attorney Clark. “Misuse of prescription drugs leads to addiction and overdose deaths. We can all do our part to prevent these tragic results by disposing of unwanted, unused or expired prescription medications in our homes.”
Learn more about the event at www.deatakeback.com, or by calling 800-882-9539.
22 April 2021
Yankton Man Sentenced for Possession of a Controlled SubstanceRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Yankton, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on April 19, 2021, by U.S. District Judge Karen E. Schreier.
Michael Wayne Zephier, age 40, was sentenced to 3 years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Zephier was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on March 3, 2020. He was found guilty of the lesser offense of Possession of a Controlled Substance as a result of a federal jury trial in Sioux Falls on March 3, 2021.
The conviction stemmed from an incident on February 2, 2020, when Zephier got the car he was driving stuck in a ditch near Marty, South Dakpta. A Yankton Sioux Tribal Law Enforcement officer found the car and noticed it had expired license plates. While the officer was waiting for a tow truck, Zephier arrived in another vehicle and stated the stuck car belonged to a friend who was not from Marty. Zephier then left, but then returned to tell the officer that his friend did not want to come back to his car.
When the officer asked Zephier for his name, Zephier provided a false name. However, the officer knew the actual person whose name Zephier used so the officer instructed Zephier not to leave. Zephier then fled on foot. The officer pursued Zephier on foot, quickly subdued and arrested him. When searched, Zephier had several bags of methamphetamine on him. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, and the Yankton Sioux Law Enforcement. Special Assistant U.S. Attorney Mark Hodges prosecuted the case.
Winterville Man Arrested on Federal Firearm Charge After Attempting to Kill WomanRead the Press Release
GREENVILLE, N.C. – A Winterville man was arrested today on charges of possession of a firearm as a convicted felon after allegedly attempting to kill a woman.
Errol Rahnell Taheim Baston, 36, of Winterville, North Carolina, was arrested by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and is charged by complaint with one count of possessing a firearm as a convicted felon. Baston faces a maximum penalty of 120 months’ imprisonment if convicted. Baston will make his first appearance in federal court today before U.S. Magistrate Judge Kimberly A. Swank, in Greenville, North Carolina.
On April 19, 2021, members of the Greenville Police Department’s Violent Criminal Apprehension Team (VCAT), Emergency Response Team (ERT), and K-9 Unit attempted to serve arrest warrants at Baston’s residence in the 3800 block of Sterling Pointe Drive, Greenville, North Carolina. The charges stem from a domestic incident over the weekend in which Baston reportedly held a woman against her will, repeatedly assaulted and choked her, and attempted to drown her in a bathtub. After a brief standoff, Baston attempted to flee the scene through the rear door of the residence but was ultimately apprehended by a K-9 officer. Officers seized a .40 caliber handgun, a 12-gauge shotgun, and an AR-15 style semi-automatic rifle from the residence. Baston has prior felony convictions for robbery and assault from Kings County, New York.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Greenville Police Department are investigating the case. Assistant U.S. Attorney Aakash Singh is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
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Wheeling man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Lewis Smith, of Wheeling, West Virginia, has admitted to selling cocaine near a local school, Acting U.S. Attorney Randolph J. Bernard announced.
Smith, also known as “Duck,” 50, pleaded guilty today to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Smith admitted to selling cocaine base or “crack” near St. Michael Parish School in January 2018 in Ohio County.
Smith faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterbury Man Sentenced to 29 Months in Federal Prison for Role in Fentanyl and Heroin Trafficking RingRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ERIK RAFAEL POLANCO, also known as “Chino,” 24, of Waterbury, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 29 months of imprisonment, followed by five years of supervised release, for his role in a heroin and fentanyl trafficking ring.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.
On May 18, 2019, Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge. On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin. Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The investigation revealed that Francis Aybar-Peguero received narcotics from members of the Sosa-Ortiz organization and sold them out of his business, the Corner Mini market located on East Farm Road in Waterbury. Polanco worked with Aybar-Peguero to distribute fentanyl and heroin to other drug distributors and customers.
Polanco, Aybar-Peguero and several co-defendants were arrested on October 29, 2019. On that date, investigators executed five search warrants and seized approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash.
On June 2, 2020, Polanco pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin and fentanyl.
Polanco, who is released on a $50,000 bond, is required to report to prison on May 30, 2021.
Sixteen individuals were charged as a result of this investigation. Sosa-Ortiz and Aybar-Peguero pleaded guilty and await sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Lauren Clark and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington Man Sentenced to 10 Years for Drug Distribution in KetchikanRead the Press Release
JUNEAU – Spencer Hill, 24, of Blaine, Washington, was sentenced to 10 years in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine and heroin in Ketchikan, Alaska.
According to court documents, Ketchikan Police Department (KPD) searched the Alaska residence of Hill in November 2019, as part of a drug investigation. During the search, officers found 228 grams of methamphetamine, drug paraphernalia, a money counting machine, a stolen Kel-Tec .22 caliber pistol and keys to a safety deposit box. After obtaining a search warrant for Hill’s safety deposit box, KPD found an additional 1,485 grams of methamphetamine and 815 grams of heroin. In total, Hill had 3.7 pounds of methamphetamine which is the equivalent of 8,410 dosage units and 1.78 pounds of heroin or 8,130 doses – more than the entire population of the Ketchikan Borough.
Records indicate Hill began travelling to Ketchikan in September 2019 to direct the possession and distribution of large amounts of methamphetamine and heroin. Hill collected drug proceeds from others which he then used to purchase more methamphetamine and heroin from his supply source in Washington via the U.S. Postal Service.
Separately, Hill is wanted on a felony warrant in South Dakota involving the trafficking of 22 pounds of marijuana.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The Ketchikan Police Department, U.S. Postal Inspection Service, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Coast Guard Investigative Service, Alaska State Troopers and the Juneau Police Department investigated this case.
This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
This case is part of the U.S. Attorney’s Office, District of Alaska Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative’s ongoing efforts to increase engagement, coordination and action on public safety in Alaska Native communities. The case is also part of Alaska’s High Intensity Drug Trafficking Area (HIDTA) program and the South East Alaska Cities Against Drugs (SEACAD) task force. HIDTA was established in 2018 to enhance and coordinate efforts among local state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska.
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United States Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that the U.S. Attorney’s Office for the District of South Carolina and the Department of Justice’s Office for Victims of Crime is joining communities nationwide in observing National Crime Victims’ Rights Week, an annual celebration of victims’ rights, protections and services. This year’s observance takes place April 18-24 and features the theme, “Support Victims. Build Trust. Engage Communities.”
“A very important part of the U.S. Attorney’s Office is working hand-in-hand with victims of crime, supporting their needs and protecting their rights, while ensuring justice is served for them,” said Acting U.S. Attorney DeHart. “As the theme of this year’s National Crime Victims’ Rights Week highlights, successes in our office come from, in part, the partnership with not only other law enforcement agencies but also with the public. Particularly during this week, we celebrate those in our community who, though victims of crime, remain engaged and stand firm in partnership with law enforcement to ensure justice is realized.”
“Advocacy through community engagement is key to fully serving victims,” said Clarissa Whaley, the U.S. Attorney’s Office’s Victim Services Manager. “While we seek the public’s involvement throughout the year, we especially encourage community partners during National Crime Victims’ Rights Week. Be it through education initiatives or advanced training opportunities, the community has the ability to make a major impact on supporting victims and seeking justice.”
This year marks the 40th annual observance of Victims’ Rights Week, proclaimed first in 1981 by President Ronald Reagan to put crime victims' rights, needs and concerns in a prominent spot on the American agenda. President Reagan’s establishment of the President’s Task Force on Victims of Crime laid the groundwork for a national network of services and legal safeguards for crime victims.
Today, the Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. In South Carolina, the U.S. Attorney’s Office works not only with its federal partners but also its state partners including the South Carolina State Human Trafficking Task Force, the South Carolina Victims Assistance Network, and the South Carolina Attorney General’s Office of Crime Victims’ Compensation to provide essential services to victims, victim compensation, and many other resources.
Despite the COVID-19 pandemic, the United States Attorney’s Office for the District of South Carolina provided over 9,000 victim services, including 200 community events, in 2020.
“The last year has undoubtedly been challenging,” said Office for Victims of Crimes Acting Director Katherine Darke Schmitt. “Victims were often isolated from family, friends, and support systems, and victim service providers grappled with strained resources and formidable barriers to victim outreach and care. So I am particularly proud to once again celebrate the accomplishments of the victims’ rights movement, and to honor the strength and resiliency of victims and service providers.”
“This year’s theme—Support Victims. Build Trust. Engage Communities.—emphasizes the importance of leveraging community support to help victims of crime,” continued Acting Director Schmitt. “Criminal justice and victim service professionals, businesses, healthcare providers, educators, policymakers, houses of worship, and a host of other social and civic groups can work together to ensure that survivors of crime receive the holistic services and support they need. This not only helps the individual heal, but it also improves community safety and wellbeing. In recognition of National Crime Victims’ Rights Week, we invite you to join us in renewing your commitment to respond to crime and violence by helping victims find not only support, recovery, and justice, but also a sense of hope for their future.”
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U.S. Attorney’s Office and FBI Warns Lowcountry and Pee Dee Residents of Telephone Scammers Impersonating Law EnforcementRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart and Federal Bureau of Investigations Special Agent in Charge Susan Ferensic announced today that South Carolinians, particularly those in the Lowcountry and Pee Dee Region, should be on alert for scammers impersonating law enforcement to steal money and identities of victims.
It has been recently reported that callers will “spoof,” or fake their phone numbers, so the calls appear to come from a local police department. They will also provide information like the names of actual law enforcement officers and badge numbers. These scammers sometimes research professional and personal information of the victim, on social media or other open-information sources, to gain trust or make their schemes more believable.
When trust is established, the scammers will attempt to collect money with prepaid debit cards like GreenDot MoneyPak or gift cards to rectify whatever situation the victims are told they are in – such as failing to report for jury duty, failure to appear as an expert witness to a court hearing, or other offenses. The scammers then stay on the phone with the victim, while the victim is instructed to purchase and until the victim provides the prepaid debit card to satisfy the fine.
Although these types of scams have historically targeted the elderly, the recent iteration has primarily focused on professionals, including threatening professionals with the loss of their professional credentials in addition to the identity and monetary theft.
“The best defense to these scams is knowledge and vigilance,” said FBI Special Agent in Charge Ferensic. “Citizens should understand law enforcement will not demand payment of money by way of phone call or email. Suspicious solicitations of this type should be reported to the police or IC3.GOV, a web site maintained by the FBI. We will continue to investigate these complaints and track down the perpetrators.”
To avoid falling victim to such crimes and to help prevent further fraud of this type, Acting U.S. Attorney DeHart offers the following tips:
- Make your social media accounts private and only accept requests and messages from people you know.
- Be wary of answering phone calls from unrecognizable numbers.
- Call, on another phone, the number that you were called from to confirm the legitimacy of the caller and reason for the call.
- Know that a police department or law enforcement officer will never solicit money – particularly through gift cards – from the public.
- Never give your personal information, including banking information – to someone over the phone.
- Do not send money to people or organizations that you do not personally know and trust.
- If you receive a call that appears to be government impersonation fraud, disconnect without providing any personal information and without adhering to the caller’s instructions
- Contact your local police department immediately to report the fraud by calling 911.
- Submit complaints to the FBI at ic3.gov and the Federal Trade Commission, which collects fraud reports nationwide, at reportfraud.ftc.gov.
- Warn family, friends, and associates about the scam, so they can be on high alert.
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U.S. Attorney’s Office and Community Partners Invite the Public to Attend “A Community Day of Hope,” a Public Safety and Victim Resource Event, April 23, 10 am to 2 pmRead the Press Release
The U.S. Attorney’s Office and our partners at Tulsa Metropolitan Ministry, Tulsa County Sheriff’s Office, Tulsa Crime Stoppers, and the Family Safety Center invite the public to attend a public safety and victim resource event:
“A Community Day of Hope,”
Friday April 23, from 10 am to 2 pm
Tulsa’s Promenade Mall (4107 South Yale Ave.).
Will be held outside the mall due to COVID-19 considerations
Acting U.S. Attorney Clint Johnson and Oklahoma Governor Kevin Stitt will attend from 10- 10:30 am.
“On Friday, April 23, from 10 am to 2 pm, I invite the public to join my office and our partners as we show support to victims of crime and share public safety information,” said Acting U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office for the Northern District of Oklahoma stands with victims of crime and their families. We also recognize the unwavering support and vital work that our law enforcement and community partners perform every day to secure victims’ rights and support survivors.”
Approximately 40 law enforcement, victim services and community agencies will share public safety and victim resource information. The Tulsa Fire Department will also distribute 200 backpacks to the public. The Family Safety Center is accepting donations: hygiene products, new stuffed animals, stress balls, pop-top tuna & microwavable mac n cheese, individually wrapped snacks.
Communities nationwide are observing National Crime Victims’ Rights Week, April 18-24, 2021. The week promotes victims' rights, celebrates progress made in the field, and honors crime victims. This year’s theme is “Support Victims. Build Trust. Engage Communities”.
* Throughout the week, the public is also invited to join the U.S. Attorney’s Office and our partners virtually as we observe National Crime Victims’ Rights Week on the U.S. Attorney’s Office’s social media sites (FB: @usaondok; Twitter: @USAO_NDOK).
* Also, in honor of crime victims, several Tulsa businesses have illuminated the sky with pink, purple, or yellow in honor of victims of crime. Businesses include ONEOK, ONE GAS, Oklahomans for Equality, and KJRH Ch. 2. Other businesses are also welcome to join in support.
* Nationally, the Justice Department’s Office for Victims of Crime recognizes individuals and organizations that demonstrate outstanding service in supporting victims. The 2021 National Crime Victims’ Service Awards Ceremony will be held virtually on April 23, 2021, from 3:00 to 4:30 pm eastern time. Learn more and register to watch the ceremony live. #NCVRW2021 https://go.usa.gov/xH3zv
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
Agencies participating in “A Community Day of Hope” on April 23, from 10 am to 2 pm at Tulsa’s Promenade Mall include:
U.S. Attorney’s Office for the Northern District of Oklahoma
Tulsa Crime Stoppers
Tulsa Metropolitan Ministry
Tulsa County Sheriff’s Office
Family Safety Center
Counseling & Recovery Services of Oklahoma
AAA
American Dream Center
Muscogee (Creek) Nation Family Violence Prevention Program
CASA
Oklahoma Department of Human Services - Adult Protective Services
Tulsa Fire Department
Traffic Safety Division/Oklahoma County Sheriff's Office/Oklahoma Highway Safety Office
FBI
Sand Springs Police Department
Tulsa Police Department Victim Witness Unit
Tulsa Police Department Community Engagement Unit
LIFE Senior Services
Oklahoma Highway Patrol
The Coffee Bunker
Surayya Anne Foundation
Tulsa County District Attorney’s Office/Victim Witness Center
Wyandotte Nation Family Violence Prevention Program
SANE Program/Forensic Nursing
211 Eastern Oklahoma, Community Service Council
Marsy's Law of Oklahoma
Camp Hope
Legal Aid Services of Oklahoma
Cherokee Nation One Fire Victim Services
The Tristesse Grief Center
Equality Center of Oklahoma
YWCA
Parkside Psychiatric Hospital & Clinic
Ascension St. John
DVIS (Domestic Violence Intervention Services)
BACA: Bikers Against Child Abuse
The SA Foundation
Camp Hope
U.S. Attorney Announces Extradition of United Kingdom Citizen for His Role in an International Carbon Credit Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that CHRISTOPHER WRIGHT, a citizen of the United Kingdom, was extradited today from Spain. WRIGHT is charged with wire fraud and money laundering relating to his role in a telemarketing scheme involving the fraudulent sale of purported “carbon credits” to victims in the United Kingdom. WRIGHT was arrested in Spain on January 27, 2021, and is the second defendant charged in the case. WRIGHT is expected to be presented on Friday, April 23, 2021, before U.S. Magistrate Judge James L. Cott. WRIGHT’s case is assigned to U.S. District Judge Jesse M. Furman.
U.S. Attorney Audrey Strauss said: “As alleged, Wright and his codefendants deceived retirees in the United Kingdom with false promises of big returns on restricted stock and environmentally friendly ‘carbon credits.’ Many of the victims lost their life savings, while Wright and his criminal associates allegedly hid the proceeds in the United States and overseas. Thanks to the IRS and international cooperation, Wright is now in U.S. custody and facing charges in this District.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The charges in this case are particularly troubling because this scam allegedly targeted the elderly and retirees, many of whom as a result have lost their hard-earned nest eggs. This case is a painful reminder that cold-callers promising substantial investments are almost always looking to prey on the elderly. For those with elderly loved ones, take the time to warn them about these scams.”
According to the allegations in the Indictment:[1]
From in or about 2009 up to and including in or about 2015, WRIGHT and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds of the fraud through bank accounts in the United States and foreign countries. WRIGHT used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily elderly or retired individuals residing in the United Kingdom. Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious. Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more. In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by one of Wright’s co-conspirators. WRIGHT assisted in mailing and emailing of documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims. Victims who tried to sell their investments found they were unable to do so. The victims never received a refund on their principal or any return on their investments.
In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, WRIGHT and his co-conspirators set up overseas bank accounts in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies, which were used to launder a substantial portion of the fraud proceeds.
The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time. From in or about 2009 until in or about 2011, WRIGHT and his co-conspirators sold the stock of Florida-based corporation DirectView Holdings, Inc. (“DirectView”), to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time. In fact, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”
From in or about 2011 until in or about 2015, WRIGHT and his co-conspirators engaged in the sale of fraudulent “carbon credits.” “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere. “Carbon offsets,” which are tied to particular carbon-dioxide emissions reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.” The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return. In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.
* * *
WRIGHT, 48, a citizen of the United Kingdom, is charged with conspiracy to commit mail and wire fraud, substantive mail fraud, and substantive wire fraud, with a penalty enhancement for telemarketing, each of which carries a maximum sentence of 30 years; conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years; and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum sentence of 10 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein and Olga I. Zverovich are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the indictment, and the description of the indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two-Time Felon Sentenced to More Than Six Years for Illegally Possessing FirearmsRead the Press Release
JUNEAU – Jeremy Beebe, 47, of Sitka, Alaska, was sentenced today to 78 months in prison followed by three years of supervised release for illegally possessing firearms.
At the sentencing hearing, U.S. Chief District Judge Timothy M. Burgess noted that the most important sentencing factor in this case was protecting the public from the potential of further crimes by Beebe. Judge Burgess stated that the defendant’s extensive criminal history and the defendant’s possession of firearms along with illegal drugs was a dangerous mix that required a significant sentence to protect the public.
According to court documents, the Sitka Police Department searched the home of Beebe as part of a drug investigation in October 2019. During the search, officers found two rifles, two handguns and other explosive devices as well as methamphetamine, heroin and drug paraphernalia.
Beebe was convicted in 2015 of misconduct involving a controlled substance in the fourth degree and in 2002 he was convicted of sexual assault in the second degree. As someone previously convicted of a felony offense, Beebe is prohibited from possessing firearms or ammunition.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The Sitka Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Jack S. Schmidt prosecuted the case.
This case is part of 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.
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Two key defendants in middle Georgia drug trafficking conspiracy sentenced to federal prisonRead the Press Release
STATESBORO, GA: Two Vidalia, Ga., men who played key roles in an expansive, gang-related drug trafficking ring in middle Georgia each have been sentenced to more than a decade in federal prison.
Justin Adams, a/k/a “Ace,” 40, of Vidalia, and Andre Jackson, a/k/a “Dre,” 31, of Vidalia, were sentenced by U.S. District Court Judge R. Stan Baker, said Acting U.S. Attorney David H. Estes. Adams was sentenced to 165 months in prison, followed by three years of supervised release, while Jackson was sentenced to 188 months in prison, followed by five years of supervised release. There is no parole in the federal system.
Adams, a regional leader in the Gangster Disciples criminal street gang, was sentenced as an armed career criminal after pleading guilty to Distribution of Cocaine and Possession of a Firearm by a Convicted Felon. Jackson pled guilty to Conspiracy to Possess with Intent to Distribute More Than 5 Grams of Methamphetamine, and Quantities of Marijuana and Cocaine.
“These sentences represent significant milestones in the prosecution of Operation Ace in the Hole, a multi-agency investigation disrupting a major source of illegal drugs and guns in the greater Toombs County area,” said Acting U.S. Attorney Estes. “The community is much safer with these defendants behind bars.”
Operation Ace in the Hole, whose name was derived from Adams’ alias, was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated in August 2018 in response to increasing levels of gang violence and drug-related activities in the Vidalia area. Investigators from the Georgia Bureau of Investigation (GBI), working with federal and local law enforcement agencies, identified Deltinaud Toussaint, a/k/a “Black,” a/k/a “Tino,” a/k/a “Tino Black,” 44, of Vidalia, as the primary supplier of the organization’s narcotics – including methamphetamine, cocaine, MDMA or “Ecstasy,” and marijuana – through connections in Atlanta.
In June 2019, investigators executed search warrants at eight houses used for stashing or distributing narcotics in Atlanta and Vidalia, seizing more than two kilos of cocaine, four kilos of marijuana, half a kilo of methamphetamine, more than two kilos of MDMA, pints of Codeine, 600 grams of Xanax, pill presses, and surveillance equipment. The drugs were hidden in such items as children’s backpacks and baby-formula bottles. Investigators also seized 20 firearms, including a fully automatic machine gun and several assault-style rifles, a trove of gang-related documents, and nearly $50,000 in cash.
The investigation culminated in a sealed, 61-count federal indictment returned in January 2020 with 26 defendants charged.
Including Adams, Jackson, and Toussaint, 22 of the 26 defendants have entered guilty pleas; 12 of them have been sentenced, with terms of up to 141 months in prison. Toussaint is among seven defendants awaiting sentencing, while three defendants are awaiting trial. One defendant, Torey Johnny Lee Washington, a/k/a “Fool,” 40, of Vidalia, is a fugitive.
“Illegal guns and drugs have no place in Georgia. They are dangerous and threaten the safety of our communities,” said Vic Reynolds, Director of the GBI. “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations.”
“These sentences reinforce our strong commitment to dismantle gangs that plague our communities with drugs, guns and violence, and threaten the safety of the citizens who live in them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Toombs County residents can take comfort in these two sentences, and many more to follow, that will keep this predatory gang off their streets.”
“These violent, gang-related drug dealers can no longer peddle poison in Vidalia, Ga., and the surrounding community,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration Atlanta Field Division. “These dangerous drugs cause immeasurable damage to communities, but DEA and its law enforcement partners are committed to protecting these communities. Both defendants will serve well-deserved time in prison.”
‘This case is the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The OCDETF case was investigated by the ATF, the DEA, the FBI, the GBI, the Georgia Department of Community Supervision, the Toombs County Sheriff’s Office, the Lyons Police Department, the Oconee Drug Task Force, and the Liberty County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorneys Joseph McCool. And E. Greg Gilluly Jr.
Two Texas Men and One Oregon Man Charged with Fraud Scheme to Obtain over $14 Million in Covid-Relief LoansRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Amaleka McCall-Brathwaite, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA”), Jonathan D. Larsen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Stephen Donnelly, Acting Special Agent in Charge of the Office of the Inspector General of the Board of Governors for the Federal Reserve announced that APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” were charged with participating in a fraudulent scheme to obtain over $14 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. TOUSSAINT and MUNDENDI are expected to be presented tomorrow before a U.S. magistrate judge in the Northern District of Texas. BELLA was arrested on March 18, 2021 in the Eastern District of Virginia. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Audrey Strauss said: “Apocalypse Bella and his co-defendants are charged with engaging in a scheme to obtain over $14 million in fraudulent loans from the government. The Coronavirus pandemic has profoundly affected the global economy, and Government-funded Coronavirus loan programs provide much-needed economic relief to individuals, families, and businesses suffering economic hardships. This Office and our law enforcement partners will continue to ensure the watchful protection of these critical funds from fraud.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged in the indictment, the defendants in this case are charged with fraudulently securing loans intended to help honest small businesses and their employees deal with the pandemic’s economic effects. Our actions should serve as a reminder of our steadfast commitment to bringing justice to those who would seek to illegally leverage government programs for selfishly personal gains. These defendants now face a personal reckoning - the result of which may be an extended stay in federal prison for each of them.”
IRS-CI Special Agent-in-Charge Jonathan Larsen said: “The CARES Act and the Payroll Protection Program have been a life line to help sustain the many small and large businesses who were impacted by the pandemic. The defendants are accused of fraud against these programs solely to enrich themselves, a flagrant and reprehensible abuse of these programs, which has kept so many American businesses afloat. Today’s charges make it clear that IRS-CI and our partners will continue to aggressively root alleged abusers of these programs.”
Acting Special Agent in Charge, Eastern Region, OIG for the Federal Reserve Board and CFPB Stephen Donnelly said: “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.”
SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite said: “Law enforcement will identify all conspirators to pull fraud schemes out by the roots. SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to the Indictment[1] unsealed today in Manhattan federal court:
APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processes loan applications under the SBA’s Paycheck Protection Program (“PPP”), in order to obtain at least approximately $14 million in government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the novel coronavirus/COVID-19 pandemic.
This scheme resulted in the approval of fraudulently procured loans for two companies (“Company-1” and “Company-2”), both located in the Southern District of New York, totaling approximately $4 million, and the distribution of the proceeds of these fraudulently obtained funds to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA.
The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds to the fraud scheme. Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies for the Economic Injury Disaster Loan (“EIDL”) program just months earlier. For instance, the PPP loan application for Company-1 represented that Company-1 had over 100 employees. However, an earlier EIDL loan application for Company-1 dated on or about March 30, 2020, represented that Company-1 had only four employees.
BELLA, TOUSSAINT, and MUNDENDI devised and executed this fraudulent scheme by conspiring with individuals who own, operate or otherwise are affiliated with businesses, such as Company-1 and Company-2. BELLA, TOUSSAINT, MUNDENDI, and other co-conspirators supervised and coordinated the submission of fraudulent PPP loan applications for those businesses, and in some cases, completed and/or submitted the fraudulent applications themselves.
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BELLA, 36, of Clackamas, Oregon, TOUSSAINT, 39, of Irving, Texas, and MUNDENDI, 32, of Dallas, Texas, are charged with one count of conspiracy, which carries a maximum sentence of five years in prison, one count of major fraud against the United States, which carries a maximum sentence of ten years in prison, and one count of wire fraud and wire fraud conspiracy, each of which carry a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the FBI, SBA-OIG, IRS-CI, and the OIG for the Federal Reserve.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorneys Dina McLeod and Eun Young Choi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the indictment, and the description of the indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Pulaski County Men Convicted After Cocaine Conspiracy TrialRead the Press Release
LITTLE ROCK—After a three-day trial, a federal jury has found two Pulaski County men guilty of their involvement in a cocaine distribution conspiracy. James “Richie Rich” Richards, 52, of Wrightsville, and Isaac May, 42, of Sweet Home, were found guilty on all counts when the jury returned their verdict late Wednesday evening. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Richards and May at a later date.
Both Richards and May were charged with and convicted of one count of conspiracy to distribute five kilograms or more of cocaine and several counts of using a phone to facilitate a drug trafficking crime. Richards was also convicted of conspiracy to distribute 28 grams or more of crack cocaine, and one count of distribution of cocaine.
Richards and May were originally charged in August 2018 with nine other defendants, all of whom have already pleaded guilty. The investigation revealed that in December 2017, Richards began supplying May with cocaine that Richards obtained from supplier and codefendant John Garner. In January 2018, Garner began dealing with May directly. Garner supplied May with cocaine two to three times per week until April of 2018.
Garner had a longer relationship with Richards and began using Richards’ home in Little Rock as a base of distribution in 2010. Garner supplied Richards with cocaine on a daily basis, in significant amounts large enough for Richards to distribute to other sellers, including kilogram and ounce quantities. A confidential informant recorded transactions in which he bought cocaine from Richards, and Richards discussing his cocaine distribution activities, and those recordings were played at trial.
At trial, Garner testified against his former customers. He stated that the approximately seven kilograms of cocaine found in his home and at his storage unit during the execution of a search warrants in June 2018 was part of the supply he was using to distribute to Richards and May, among other customers. Had Garner not been arrested, he would have continued distributing to Richards and May from this supply.
In July 2020, Garner was sentenced to 180 months in prison. Other codefendants who have been sentenced in the case include Larry Clark, Jr. – 262 months, Antwan Hardaway – 12 months and 1 day, and Bridgette Williams – 36 months. All remaining defendants, including Richards and May, are awaiting sentencing.
The statutory penalty for conspiracy to distribute more than five kilograms of cocaine is not less than 10 years and not more than life imprisonment, a fine of not more than $10 million, and not less than five years of supervised release. The statutory penalty for distribution of less than 500 grams of cocaine is not more than 20 years’ imprisonment, a fine of not more than $1 million, and not less than three years of supervised release. The statutory penalty for using a phone in furtherance of a drug trafficking crime is not more than four years’ imprisonment, a fine of not more than $250,000, and not more than one year of supervised release. The investigation was conducted by the FBI with assistance from the Arkansas State Police and Arkansas National Guard Counter Drug. The case was prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Two Men Indicted in Rockford on Charges of Illegally Possessing Machine GunsRead the Press Release
ROCKFORD — A federal grand jury returned indictments in separate cases charging two men with illegally possessing machine guns.
The defendants are charged with possessing devices that were used to convert a conventional semi-automatic pistol into a fully automatic firearm. The devices are commonly referred to as “switches,” “auto-sears,” or “conversion devices,” among other names.
The indictments were returned Tuesday in U.S. District Court in Rockford.
In one case, JAVAUGHN A. HIXSON, 21, of Rockford, was charged with three counts of possessing a conversion device, and one count of illegal possession of a firearm as a convicted felon. Hixson pleaded not guilty to the charges during arraignment this afternoon before U.S. Magistrate Judge Lisa A. Jensen. Hixson was ordered to remain detained in federal custody pending trial. According to the indictment, Hixson knowingly possessed conversion devices on Oct. 22, 2020, Nov. 5, 2020, and Dec. 8, 2020. Hixson illegally possessed the firearm - a loaded Glock pistol - on Jan. 4, 2021, the indictment states.
In the other case, MARCUS D. WILLIAMS, 25, of Loves Park, was charged with one count of possessing a firearm that had been converted into a machine gun. According to the indictment, Williams on Jan. 7, 2021, knowingly possessed a loaded Glock .40-caliber firearm that had been converted into a machine gun by an aftermarket “switch” device. Williams is currently in the custody of the Illinois Department of Corrections. His arraignment in federal court has not yet been scheduled.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and Dan O’Shea, Chief of the Rockford Police Department. The government is represented in the Hixson case by Assistant U.S. Attorney Talia Bucci, and in the Williams case by Assistant U.S. Attorney Jessica Maveus.
Each of the counts charged in the indictments carry a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Two Charleston Men Plead Guilty to Federal Gun ChargesRead the Press Release
CHARLESTON, W.Va. – Two Charleston men that were arrested on criminal complaints in February 2021 pleaded guilty today to federal gun charges.
According to court documents, Devonte Lavauhn Andrews, 28, was stopped by officers with the Charleston Police Department on January 24, 2021 while walking on Hale Street. At the time, Andrews had a Taurus PT 738 .380 ACP loaded firearm behind his back. Andrews has a 2016 federal felony conviction for distribution of heroin and is prohibited from possessing firearms.
Also according to court documents, on February 10, 2021, law enforcement officers executed a search warrant at the Charleston residence of William Edward Byers II, 44, and located five firearms. Byers is prohibited from possessing firearms due to a 2016 felony conviction in Kanawha County Circuit Court for conspiracy to manufacture, deliver or possess a controlled substance with the intent to manufacture or deliver a controlled substance.
Andrews and Byers both pleaded guilty to being a felon in possession of a firearm and are scheduled to be sentenced on July 22 and July 21, 2021, respectively. Each faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Lisa G. Johnston of the Southern District of West Virginia made the announcement.
The long-term investigation, dubbed the “Woo Boyz,” resulted in federal charges against 15 individuals and was conducted by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team (MDENT), with assistance from the U.S. Marshals Service and the West Virginia State Police. The Appalachia High Intensity Drug Trafficking Area (AHIDTA) provided critical support to the investigative agencies.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearings. Assistant United States Attorney Monica D. Coleman is prosecuting the cases.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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 Nos. 2:21-cr-00046 (Andrews) and 2:21-cr-00047 (Byers).
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Turlock Man Charged for Large-Scale Drug Trafficking OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Luis Armando Romero Jr., 20, of Turlock, charging him with distribution of methamphetamine.
Acting U.S. Attorney Phillip A. Talbert and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon made the announcement with the California Department of Justice.
According to court documents, on Jan. 28, in Merced County, Romero sold approximately 1 kilogram of a mixture containing methamphetamine. Subsequently, on April 6, law enforcement officers executed a search warrant at Romero’s residence in Huntington Beach and found approximately 280 pounds (127 kilograms) of methamphetamine, 55 pounds (25 kilograms) of cocaine, 20 pounds (9 kilograms) of fentanyl pills, 6.6 pounds (3 kilograms) of fentanyl powder, and 2 pounds (907 grams) of heroin. Agents also seized more than $73,000 in cash.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Area Gang and Narcotic Enforcement Team, the Merced County Sheriff’s Office, and the Los Angeles County Sheriff’s Office. Assistant U.S. Attorneys Antonio J. Pataca and Kathleen Servatius are prosecuting the case.
If convicted, Romero faces a mandatory minimum of 10 years in prison and a maximum of up to life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation, the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Transnational Drug Trafficker Sentenced to 26 Years in Federal Prison for Conspiracy to Distribute Fentanyl, Heroin, Methamphetamine, Cocaine and for Money LaunderingRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Reynaldo Perez Munoz, age 41, of Pasco, Washington, was sentenced after having pleaded guilty on August 28, 2020, to Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, 5 Kilograms or More of Cocaine and 1 Kilogram or More of Heroin, two counts of Money Laundering, and Possession with Intent to Distribute 400 Grams or more of Fentanyl. Senior United States District Judge Edward F. Shea sentenced Reynaldo Perez Munoz to a 26-year term of imprisonment, to be followed by a 7-year term of court supervision after he is released from federal prison. Pursuant to forfeiture proceedings, no additional fine was imposed.
According to information disclosed during court proceedings, this case arose from a Federal Bureau of Investigation (FBI) Task Force investigation in Southern California. The Task Force identified a transnational drug trafficking organization (DTO) and worked in an undercover capacity to identify the DTO’s money laundering activities and locations in the United States where the DTO was trafficking narcotics. Munoz, and other co-conspirators were identified by the FBI as members of the DTO.
The Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington executed several search warrants and seized over 19,000 Fentanyl-laced pills, 40 pounds of heroin, 4 pounds of methamphetamine, 23 pounds of cocaine, and $170,000 in U.S. currency. They found items consistent with packaging large amounts of U.S. currency, multiple firearms, multiple identifications, and other indicia of drug trafficking. In terms of the significance of this drug trafficking organization to which he played a role, the cash money drops further corroborate that in less than one month, this organization was able to hand deliver over $1.25 million in drug cash proceeds. This case involved one of the single largest drug seizures in the Eastern District of Washington. It also involved one of the largest Fentanyl pill seizures at the time.
During court proceedings, it was disclosed that FBI cryptoanalysis analyzed drug ledgers seized from Munoz and determined they reflected an additional $6 million collected in drug cash proceeds and several hundred kilograms of controlled substances to include fentanyl laced pills.
Senior District Judge Shea found that Munoz was the leader organizer of a cell with the Sinaloa Cartel in the Eastern District of Washington. As a leader of the cell operating here, Munoz was responsible for coordinating drug shipments and collecting large amounts of drug cash proceeds that would be sent back to cartel leaders in Mexico.
Acting United States Attorney Harrington said, “This case highlights the joint commitment, dedication, and partnership between our state and federal partners in combatting drug trafficking in our community. I commend their outstanding work. This investigation made a substantial mark upon a large-scale organization that had chosen Eastern Washington as a point of operation. It is these types of investigations that bring into focus the dangers drug trafficking organizations pose to our community.”
"In just a short period of time, Munoz and his co-conspirators coordinated vast shipments of drugs and cash across state and international borders," said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. "Removing these dangerous drugs from Washington state will no doubt save lives and families from the pain of addiction. This sentence reflects the severity of Munoz's actions, and he will have decades in prison to consider the impact of his decisions."
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington, Cross Border Violence Task Force (CBVTF) in San Diego CA, Kennewick Police Department, Richland Police Department, Pasco Police Department, Benton County Sheriff’s Office, and Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Ten Individuals Charged with Disaster Assistance FraudRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned ten separate indictments charging ten individuals with fraudulently applying for disaster benefits from the Federal Emergency Management Agency (FEMA), which is a department of the United States Department of Homeland Security.
In August 2016, severe flooding impacted south Louisiana and a Presidential Disaster Declaration was issued on August 14, 2016 under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The incident period covered August 11, 2016 through August 31, 2016. FEMA was authorized to provide transportation assistance for repair or replacement of a primary vehicle damaged by the disaster.
The indictments allege that on certain dates between September 22, 2016 and November 14, 2016 each of the defendants, acting in concert with others, made false statements and representations to FEMA in an application for transportation benefits and provided certain documentation required by FEMA to process the claim in connection with the Presidential Disaster Declaration for the Louisiana Severe Storms and Flooding. Each application for Disaster Assistance was submitted on behalf of each defendant claiming their vehicle sustained flood damage in Iberia and Lafayette Parishes in Louisiana, when each of them was a resident of St. Mary Parish, Louisiana, which was not included as a designated parish for assistance.
The indictments further allege that each defendant submitted a signed letter to FEMA stating the subject vehicle belonged to the defendant, was their only means of transportation, and was no longer operable. In each case, the repair estimates submitted by each defendant, which ranged from $6,291 to 8,736, were all from repair shops that did not exist. A list of the defendants and the charges they face are as follows:
Defendant Name
Charges
Brittany Nicole Hawkins, 29,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Shannan Latreice Johnson, 45,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Tasha Jesse Louis, 39,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Jarnell Wayne Payne, a/k/a Jernell W. Payne, 43,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Kevin Callery, 54,
Baldwin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Leo Green, Jr., 55,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Robert Joseph Johnson, Jr., 33,
Patterson, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Derrick Shawn Kirt, 44,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $5,999 to defendant
Jarmaine Scott Thomas, Jr., 25,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
Johnathan D. Wilson, 38,
Franklin, Louisiana
- Fraud in Connection with Major Disaster or Emergency Benefits – one count
- Theft of Government Money or Property – one count
- Fraudulent repair estimate resulted in disbursement of $6,000 to defendant
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
If you have any information to report concerning potential FEMA fraud, please call the National Center for Disaster Fraud at 1-866-720-5721.
This investigation is ongoing and is being conducted by the U.S. Department of Homeland Security – Office of Inspector General. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
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Tehama County Man Indicted for Possession with Intent to Distribute Fentanyl and Illegal Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Austreberto Santamaria-Valencia, 25, of Red Bluff, charging him with possession with intent to distribute fentanyl and being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 6, law enforcement officers responded to a report of a suspected overdose by a motel guest in Red Bluff. When officers entered the room, they found Santamaria-Valencia sitting in a chair, unconscious but breathing. On the bed near him, officers saw multiple plastic bags containing what appeared to be blue pills, of the type sold as counterfeit oxycodone pills, but which often contain fentanyl. Officers were able to wake Santamaria-Valencia. In response to their questions, Santamaria-Valencia indicated that he had taken fentanyl. Medical personnel tended to Santamaria-Valencia and confirmed he was not in danger of overdosing. A records check indicated that Santamaria-Valencia had a warrant out for his arrest, and officers arrested him at that time.
Pursuant to an authorized search warrant, after Santamaria-Valencia had been taken to the Tehama County Jail, officers searched Santamaria-Valencia’s room and car and seized approximately 1,000 counterfeit M-30 Oxycodone pills, a loaded Taurus G3C 9 mm semi-automatic pistol, two bottles containing a total of 170 Farmapram (Alprazolam-Xanax) pills, five packets of suboxone strips, 90 grams of marijuana, approximately $7,000 in cash, and other items commonly used in street sales of narcotics.
This case is the product of an investigation by Homeland Security Investigations, the Red Bluff Police Department, the Tehama County Major Crimes Unit, and the Tehama County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Santamaria-Valencia faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the charge of possession with intent to distribute fentanyl. If convicted for being a felon in possession of a firearm, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Syracuse Man Pleads Guilty to Sexual Exploitation of a Child and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Austin Pratt, age 24, of Syracuse, pled guilty today in federal court to both counts of an indictment charging him with Sexual Exploitation of a Child and Distribution of Child Pornography, announced Acting United States Attorney Antionette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Acting New York State Police Superintendent Kevin P. Bruen.
In entering his guilty plea, Pratt admitted that he used the Instagram name “redneck_pratt” to message with a person who represented themselves to be a 15-year-old girl, but who law enforcement later confirmed was an adult male from Nevada. Pratt admitted that the “girl” sent sexually explicit images to him and asked Pratt to produce and send explicit images of himself with young girls. Pratt admitted that he then sexually abused a 10-year-old child, produced images and a video of that abuse, and sent the images and video to the person he believed to be a 15-year-old girl.
Pratt will be sentenced by Hon. David N. Hurd in Utica, NY on August 26, 2021. The terms of Pratt’s plea agreement call for a sentence of at least 20, and up to 30 years imprisonment to be followed by no less than 20 years supervised release. He also faces a fine of up to $250,000, will be required to pay restitution to his victim, forfeit the phone he used to produce and send the images and video of the abuse, and will have to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation, Syracuse Resident Agency and the New York State Police as a part of the Mid-State Child Exploitation Task Force, in cooperation with the Syracuse Police Department and the Onondaga County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Steven A. Humphries Sentenced to Life in Prison for Producing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 21, 2021, Steven A. Humphries, age 51, currently of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, to life imprisonment for producing and possessing child pornography.
Humphries pleaded guilty to an indictment charging him with one count of production of child pornography in violation of 18 U.S.C. § 2251(a) and (e) and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B). Humphries had previously been convicted of sexual offenses against minors and was on state parole and registered as a sex offender at the time of the offenses.
On October 21, 2018, law enforcement officers searched Humphries’ home and found a large cache of child pornography, including depictions of the defendant molesting a prepubescent minor. Humphries had been hiding his child pornography in a waterproof container in the pond behind his home.
“The United States is committed to vigorously investigating and prosecuting child sex predators,” stated Acting U.S. Attorney Francis M. Hamilton III. “This prosecution and sentence demonstrate that registered sex offenders will be prosecuted to the fullest extent of the law if they reoffend.”
The Federal Bureau of Investigation investigated this case.
Assistant United States Attorney Jennifer Kolman represented the United States in Court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Statement by Attorney General Merrick B. Garland on Earth DayRead the Press Release
On April 22, 1970, millions of people across America came together and sparked a movement that led to the enactment of many of our nation’s foundational environmental laws, including the Clean Air Act, the Endangered Species Act, the Clean Water Act, and the Safe Drinking Water Act. Today, as billions of people around the world celebrate Earth Day, I want to acknowledge Department of Justice attorneys, investigators, and professional staff who work every day to advance the cause of justice by enforcing those laws.
Although environmental crime and injustice can happen anywhere, communities of color, low-income communities, and tribal communities often bear the highest burden of the harm caused by environmental crime, pollution, and climate change. Earlier this week, I was proud to join EPA Administrator Michael Regan in announcing the nation’s first-ever Environmental Crime Victim Assistance Program.
This joint effort, which will empower environmental crime victims to participate fully and equally in our justice system, was developed and will be coordinated by the Justice Department’s Environment and Natural Resources Division and the EPA, with financial support from DOJ’s Office for Victims of Crime. The program will help ensure that victims of federal environmental crimes are properly identified, that their rights are protected, and that they receive the services and support they need — from the opening of an investigation through the final adjudication of the case.
For 151 years, the Justice Department’s mission has been to ensure equal justice under law. On this 51st Earth Day celebration, we honor our mission by advancing the cause of environmental justice.
Read the Attorney General’s remarks at the DOJ-EPA Listening Session on Promoting Justice for Victims of Environmental Crime here.
St. Francis Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on April 19, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Charles Cordier, III, age 22, was sentenced to 10 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cordier was indicted by a federal grand jury on January 14, 2020. He pled guilty on February 1, 2021.
The conviction stemmed from an incident that occurred in the afternoon of November 5, 2019, in Rosebud, South Dakota. On that date, Cordier was arrested by a Rosebud Sioux Tribe Law Enforcement Services Officer for assaulting his girlfriend and placed in a patrol vehicle. As the arresting officer was preparing to depart the scene, Cordier began kicking the patrol vehicle window. The officer opened the door to restrain Cordier, at which point Cordier head-butted and kicked the officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Cordier was immediately turned over to the custody of the U.S. Marshals Service.
St. Croix Man Apprehended with Gun, Ammunition, Drugs and Money Sentenced to 5 Years in Prison on Federal Firearm ChargeRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Rakem Hendrickson, 29, of St. Croix, appeared before Chief Judge Wilma A. Lewis, in District Court on April 21, 2021, and was sentenced on the charge of Use of a Firearm During a Drug Trafficking Crime. Chief Judge Lewis sentenced Hendrickson to a 5-year prison term, a 4-year period of supervised release, a fine of $1,000, and assessed a special assessment of $100.
According to court documents, on February 16, 2018, the Virgin Islands Police Department (VIPD) received a tip from a concerned citizen that Hendrickson was selling drugs from his Jeep Wrangler, that Hendrickson was known to carry a firearm, and that he routinely parked the Jeep in the vicinity of Dynasty (Paul’s) Grocery Store. VIPD officers established surveillance at that location and thereafter observed Hendrickson park and exit his vehicle. Officers observed drug paraphernalia consisting of a clear plastic bag containing multiple vials in plain view, located in the back of Hendrickson’s Jeep. Shortly thereafter, officers obtained and executed a search warrant. As a result, officers located and confiscated a loaded Glock 22 Austria handgun, 2 additional magazines, 82 rounds of ammunition, approximately 133 grams of marijuana, drug paraphernalia in the form of 94 plastic vials, a digital scale, 2 mason jars, plastic baggies, and $2,584 cash. The foregoing occurred within 1,000 feet of the Lew Muckle Elementary School.
The Virgin Islands Police Department and Homeland Security Investigations investigated the case. The DEA Southeast Laboratory in Miami analyzed the marijuana.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Southern Illinois Professor Indicted for Grant FraudRead the Press Release
CARBONDALE, Ill. – A mathematics professor and researcher at Southern Illinois
University – Carbondale (SIUC) is under federal indictment for grant fraud. Mingqing Xiao, 59, of Makanda, Illinois, is accused of fraudulently obtaining $151,099 in federal grant money from the National Science Foundation (NSF) by concealing support he was receiving from an arm of the Chinese government and a Chinese public university. Xiao is charged with two counts of wire fraud and one count of making a false statement.
The prosecution is part of the Justice Department’s ongoing China Initiative. Led by the
Department’s National Security Division (NSD), the China Initiative is an effort to safeguard
American intellectual property and research programs and counter the multi-faceted threat posed by the PRC government to U.S. national security.While the Chinese government maintains ambitious strategic goals to dominate certain global economic sectors, its ability to achieve those goals is hampered by its lack of domestic innovation. Comments made by Chinese Premier Li Keqiang at a Communist Party gathering in March
2019 underscore this dilemma: “Our capacity for innovation is not strong and our weakness in terms of core technologies for key fields remains a salient problem.”¹ Given this identified weakness, China resorts to various forms of economic aggression to achieve its strategic goals, including hacking, theft, espionage, and recruiting “non-traditional collectors” in academia to acquire U.S. technologies and intellectual property. The China Initiative works with academia and private industry to combat the PRC government’s diverse counterintelligence threats.“Again, an American professor stands accused of enabling the Chinese government’s efforts to corruptly benefit from U.S. research funding by lying about his obligations to, and support from, an arm of the Chinese government and a Chinese public university,” said John C.
Demers, Assistant Attorney General for National Security. “Honesty and transparency about funding sources lie at the heart of the scientific research enterprise. They enable U.S. agencies to distribute scarce grants for scientific research fairly and equitably. And they allow other researchers to evaluate potential conflicts of interest and conflicts of commitment. When researchers fall short of fulfilling these core academic values in ways that violate the law, the Department stands ready to investigate and prosecute.”
1
Source: http://www.china.org.cn/china/NPC_CPPCC_2019/2019-03/16/content_74578930.htm“We know that China exploits American universities to further the aims of the Chinese Communist
Party,” said U.S. Attorney Steven D. Weinhoeft. “That’s one reason why the National
Science Foundation requires applicants to disclose all sources of support, including foreign ties, as a condition to receive federal grant funding. Prosecutions like this one play a critical role, not just in protecting American investments in academic research from foreign exploitation, but also in combating the growing threat that China poses to our national security.”
“The FBI takes seriously its commitment to work with our partners in academia to protect U.S. research funded grants,” said Sean M. Cox, FBI-Springfield’s Special Agent in Charge. “This investigation, like so many others, should serve as a reminder that failure to be truthful and transparent on an application for U.S. funded grants is a violation of the law. In this case the applicant allegedly failed to disclose his affiliation with China. Individuals who fail to disclose their affiliation with any foreign nation will be held accountable.”According to the indictment, Xiao has worked in SIUC’s mathematics department since
2000, focusing his research on partial differential equations, control theory, optimization theory, dynamical systems, and computational science. In that position, Xiao (who is an American citizen) allegedly applied for and received NSF grant funds for a project set to run from 2019 to 2022 without informing NSF about another, overlapping grant he had already received from the Natural
Science Foundation of Guangdong Province, China. Xiao also allegedly failed to inform NSF that he was on the payroll of Shenzhen University, a public university in Guangdong Province, and that he had already committed to teaching and conducting research at Shenzhen University from
2018 to 2023.The indictment further alleges that in March 2019, while his NSF grant proposal was still pending, Xiao submitted another grant proposal to the Natural Science Foundation of China. According to the indictment, Xiao allegedly applied for the funds as an employee of Shenzhen University and did not disclose the new Chinese proposal to NSF. Xiao is charged with falsely certifying to SIUC that his
NSF grant proposal was true, complete, and accurate.Before awarding the grant, NSF questioned Xiao about any current or pending funding from “worldwide sources,” including specifically whether he held any position outside the United
States or had obtained funding from any non-US funding sources. The indictment accuses Xiao of falsely reporting to NSF that he had nothing else to disclose.The defendant’s initial court appearance has not yet been scheduled. If convicted, Xiao faces a maximum penalty of 20 years in prison on each count of wire fraud and 5 years in prison for making a false statement. All three charges are also punishable by a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing
Guidelines and other statutory factors.FBI-Springfield, the IRS, and the Department of Homeland Security are investigating the case. Assistant U.S. Attorney Peter T. Reed is prosecuting the case, with assistance from NSD’s Counterintelligence & Export Section.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
xiao_indictment.pdf
Six Language Recruiters Indicted for Recruiting Unqualified Linguists for Deployment with U.S. Armed Forces in AfghanistanRead the Press Release
UPDATE
The indictment described in the press release below was dismissed without prejudice by U.S. District Court Judge Leonie M. Brinkema on June 23, 2021.
ALEXANDRIA, Va. – A federal grand jury in the Eastern District of Virginia returned an indictment Wednesday charging six former employees of a government contractor for their role in a conspiracy to commit wire fraud in connection with a U.S. government contract to recruit and deploy qualified linguists to Afghanistan where they would provide language services in Dari and Pashto to the U.S. military, including interacting with Afghan civilians and military forces.
According to court documents, Mezghan N. Anwari, 41, of Centerville, Virginia, Abdul Q. Latifi, 45, of Irvine, California, Mahjoba Raofi, 47, of San Diego, California, Laila Anwari, 54, of Fredericksburg, Virginia, Rafi M. Anwari, 54, of Centerville, Virginia, and Zarghona Alizai, 48, of Annandale, Virginia, were employed as linguist recruiters for the Arlington, Virginia-based government contractor, which performed subcontract services such as recruiting linguists to serve in support of U.S. military operations, pursuant to a U.S. government prime contract valued in excess of $700 million.
“As alleged in the indictment, the defendants exploited the trust placed in them by the U.S. military and recruited unqualified linguists to be deployed to Afghanistan,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who undermine the integrity of the procurement process and potentially jeopardize the United States’ mission overseas.”
The indictment alleges, among other things, that the defendants knowingly recruited linguists who lacked the minimum language proficiency in Dari or Pashto. The defendants arranged for other individuals with stronger language skills to fraudulently impersonate the unqualified linguist candidates during oral proficiency interviews, which were tests independently conducted by another government contractor to ensure that candidates identified by the defendants met minimum proficiency standards. In so doing, the defendants sought to make it appear that the linguist candidates possessed stronger language skills than was the case and to ensure that their unqualified linguist candidates would receive passing scores. At times, the defendants themselves fraudulently impersonated candidates during interviews. During the scheme, the defendants received a base salary plus a series of incentive-based bonuses determined by how far through a multi-step vetting process a recruited candidate progressed.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves at the expense of American soldiers and military operations in Afghanistan,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Fraud and abuse of U.S. government contracts paid for by the American taxpayer, and designed to support our men and women uniform, will not be tolerated.”
“This indictment alleges serious crimes that threatened to put American troops at greater risk in a combat zone,” said John F. Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud that SIGAR special agents and their investigative partners got to the bottom of this alleged scheme. We remain committed to protecting our country’s investment in Afghanistan reconstruction, and to pursuing justice anytime that investment is put at risk.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Department of Defense’s procurement system” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for DCIS. “The special agents of DCIS along with our investigative partners will vigorously investigate contractors who attempt to rig the system for their own ill-gotten gain. Illicit conduct of this sort deprives our military forces of crucial services and cheats the American taxpayer. We remain steadfast in our mission to root out fraud against U.S. Department of Defense and bring those responsible to justice.”
Mezghan Anwari is charged with conspiracy to commit wire fraud and six counts of wire fraud. Latifi is charged with conspiracy to commit wire fraud and five counts of wire fraud. Raofi is charged with conspiracy to commit wire fraud and two counts of wire fraud. Laila Anwari is charged with conspiracy to commit wire fraud and two counts of wire fraud. Rafi Anwari is charged with conspiracy to commit wire fraud and three counts of wire fraud. Alizai is charged with conspiracy to commit wire fraud and two counts of wire fraud.
The defendants are scheduled for arraignment on May 5, before U.S. District Court Judge Anthony J. Trenga in the Eastern District of Virginia. If convicted, each of the defendants face a maximum of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Special Inspector General for Afghanistan Reconstruction (SIGAR), the U.S. Army Criminal Investigation Command, and DCIS are investigating the case.
Assistant U.S. Attorney Matthew Burke and Trial Attorneys Michael McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-85.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Six Language Recruiters Indicted for Recruiting Unqualified Linguists for Deployment with U.S. Armed Forces in AfghanistanRead the Press Release
UPDATE
The indictment described in the press release below was dismissed without prejudice by U.S. District Court Judge Leonie M. Brinkema on June 23, 2021.
A federal grand jury in the Eastern District of Virginia returned an indictment Wednesday charging six former employees of a government contractor for their role in a conspiracy to commit wire fraud in connection with a U.S. government contract to recruit and deploy qualified linguists to Afghanistan where they would provide language services in Dari and Pashto to the U.S. military, including interacting with Afghan civilians and military forces.
According to court documents, Mezghan N. Anwari, 41, of Centerville, Virginia, Abdul Q. Latifi, 45, of Irvine, California, Mahjoba Raofi, 47, of San Diego, California, Laila Anwari, 54, of Fredericksburg, Virginia, Rafi M. Anwari, 54, of Centerville, Virginia, and Zarghona Alizai, 48, of Annandale, Virginia, were employed as linguist recruiters for the Arlington, Virginia-based government contractor, which performed subcontract services such as recruiting linguists to serve in support of U.S. military operations, pursuant to a U.S. government prime contract valued in excess of $700 million.
The indictment alleges, among other things, that the defendants knowingly recruited linguists who lacked the minimum language proficiency in Dari or Pashto. The defendants arranged for other individuals with stronger language skills to fraudulently impersonate the unqualified linguist candidates during oral proficiency interviews, which were tests independently conducted by another government contractor to ensure that candidates identified by the defendants met minimum proficiency standards. In so doing, the defendants sought to make it appear that the linguist candidates possessed stronger language skills than was the case and to ensure that their unqualified linguist candidates would receive passing scores. At times, the defendants themselves fraudulently impersonated candidates during interviews. During the scheme, the defendants received a base salary plus a series of incentive-based bonuses determined by how far through a multi-step vetting process a recruited candidate progressed.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves at the expense of American soldiers and military operations in Afghanistan,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Fraud and abuse of U.S. government contracts paid for by the American taxpayer, and designed to support our men and women uniform, will not be tolerated.”
“As alleged in the indictment, the defendants exploited the trust placed in them by the U.S. military and recruited unqualified linguists to be deployed to Afghanistan,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who undermine the integrity of the procurement process and potentially jeopardize the United States’ mission overseas.”
“This indictment alleges serious crimes that threatened to put American troops at greater risk in a combat zone,” said John F. Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud that SIGAR special agents and their investigative partners got to the bottom of this alleged scheme. We remain committed to protecting our country’s investment in Afghanistan reconstruction, and to pursuing justice anytime that investment is put at risk.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Department of Defense's procurement system” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for DCIS. “The special agents of DCIS along with our investigative partners will vigorously investigate contractors who attempt to rig the system for their own ill-gotten gain. Illicit conduct of this sort deprives our military forces of crucial services and cheats the American taxpayer. We remain steadfast in our mission to root out fraud against U.S. Department of Defense and bring those responsible to justice.”
Mezghan Anwari is charged with conspiracy to commit wire fraud and six counts of wire fraud. Latifi is charged with conspiracy to commit wire fraud and five counts of wire fraud. Raofi is charged with conspiracy to commit wire fraud and two counts of wire fraud. Laila Anwari is charged with conspiracy to commit wire fraud and two counts of wire fraud. Rafi Anwari is charged with conspiracy to commit wire fraud and three counts of wire fraud. Alizai is charged with conspiracy to commit wire fraud and two counts of wire fraud. The defendants are scheduled for initial court appearances on May 5, before U.S. District Court Judge Anthony J. Trenga of the U.S. District Court for the Eastern District of Virginia. If convicted, each of the defendants face a maximum of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
SIGAR, the U.S. Army Criminal Investigation Command, and DCIS are investigating the case.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
Trial Attorneys Michael McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Burke of the Eastern District of Virginia are prosecuting the case. Trial Attorney Daniel Butler of the Fraud Section contributed significantly to the investigation of this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Arrested in $1M Payroll Fraud SchemeRead the Press Release
SAN ANTONIO – Six defendants were arrested in San Antonio on criminal charges related to their alleged participation in a scheme to defraud two transportation companies of over $1 million.
According to court documents, Veronica Rios, 42, of Salado; Pedro Guillen, 48, of San Antonio; Mario Martinez, 48, of Von Ormy; Guadalupe Alsidez, 47, of San Antonio; Amanda Hernandez, 23, of San Antonio; and Maira Vargas, 37, of San Antonio defrauded the transportation companies of over $1,407,000 through a payroll scheme. According to the indictment, Rios processed payroll for the companies. In 2017, Rios started overpaying employees in exchange for some of the overpayment. To further the scheme, Rios also added non-employees to the payroll who gave Rios part of the payments they received.
Rios, Martinez, and Alsidez were arrested on April 19. Guillen, Hernandez and Vargas were arrested on April 21. Guillen, Hernandez and Vargas are on bond. Rios, Martinez and Alsidez are in custody pending detention hearings.
Veronica Rios is charged with 18 counts of wire fraud for fraudulent payments she made to various employees. Each of the remaining defendants is charged with three counts of wire fraud for fraudulent payments they received from Rios. If convicted, the defendants face a maximum penalty of 20 years in prison on each count.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Christopher Combs, San Antonio Division, made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Daphne Newaz is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sacramento Area Home Health Care and Hospice Agencies Owner Pleads Guilty to Conspiring to Defraud MedicareRead the Press Release
SACRAMENTO, Calif. — Liana Karapetyan, 41, of El Dorado Hills, pleaded guilty today to one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Karapetyan and another individual owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Karapetyan and another individual certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Karapetyan and another individual paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Karapetyan and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies at least over $2 million for services purportedly provided to beneficiaries referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case is a product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Troy L. Nunley is scheduled to sentence Karapetyan on Aug. 26. Karapetyan faces maximum statutory penalties of 10 years in prison for the health care fraud conspiracy charge and five years in prison for the kickback conspiracy charge. She also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on April 19, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Phillip Little Hoop, age 38, was sentenced to 120 months in federal prison, followed by 7 years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Hoop was indicted by a federal grand jury on September 10, 2019. He pled guilty on February 1, 2021.
The conviction stemmed from an incident that occurred on August 25, 2019, in Rosebud, wherein Little Hoop sexually assaulted a six-year-old child.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Little Hoop was immediately turned over to the custody of the U.S. Marshals Service.
Rock Island Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa — On Wednesday, April 21, 2021, United States District Court Judge Stephanie M. Rose sentenced Donovan Ryan Schmacht, age 40, of Rock Island, Illinois, to 30 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Schmacht was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
In April 2020, Davenport Police Department officers made contact with Schmacht after he and his friend had confronted two individuals near Locust and Main Street in Davenport with what appeared to be firearms concealed under their shirts. When officers responded to the area, Schmacht noticed the officers, and walked behind a dumpster. As officers approached Schmacht, he fled on foot disregarding verbal commands to stop. Officers were able to catch Schmacht and a physical struggle ensued. Once arrested, officers recovered a loaded black Taurus nine-millimeter semi- automatic pistol behind the dumpster where Schmacht had thrown it. As a convicted felon, Schmacht is prohibited from possessing firearms.
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.