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Wednesday 3 March 2021
Kurt Bauer Sentenced to 78 Months of Imprisonment for Advanced-Fee Scheme Targeting ElderlyRead the Press Release
ST. GEORGE, UTAH – Kurt Bauer 57, of Kanab, Utah, was sentenced to 78 months in federal prison after pleading guilty to three counts of wire fraud and two counts of falsely impersonating U.S. government employees in connection with an advanced-fee scheme. Bauer was also ordered to pay $856,422 in restitution to the victims of his crimes.
According to the plea agreement, between 2011 and 2020, Bauer created a fraudulent scheme where he told his victims that he was entitled to hundreds of millions of dollars—even billions—which were frozen in federal court proceedings. Bauer promised his victims that he would pay them large amounts of money if they would pay Bauer money up front, which he would then use to pay court fees to obtain the money frozen in the federal court proceedings. Bauer promised all of his victims large returns on their upfront investment. Bauer received at least $200,000 from two victims who were 80 and 82 years old, respectively, over the course of the scheme.
In order to carry out the fraud, Bauer created the false identities of a New York attorney, a federal court employee, and a billionaire, which he used to communicate with and solicit money from the victims of the scheme. Bauer would use these identities to solicit funds from these victims on a regular—sometimes weekly—basis. Bauer would tell his victims that the money in the federal court proceedings would be released soon and that he needed the funds to pay a “bond” which was required by the court. Bauer also impersonated federal judges and a federal court administrator during the scheme in order to convince the victims that the court proceedings were real, and to persuade victims to continue making payments.
In reality, Bauer had no prospects of receiving money from federal court proceedings; had relatively little wealth; and used the victims’ moneys on credit card payments, hotel bills, restaurants, and other personal expenses.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the FBI conducted the investigation. The U.S. Attorney’s Office worked closely with the Kane County Sheriff’s Office and Kane County Attorney’s Office to prosecute the case.
KC Man Connected to Drive-by Shooting Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing several firearms, including the firearm used in a drive-by shooting.
Eric L. Harper, 28, was sentenced by U.S. District Judge Howard F. Sachs to five years and six months- in federal prison without parole. Today’s sentence reflects an upward variance from the recommended federal sentencing guidelines due to Harper’s connection to a shooting that occurred 41 days prior to his arrest.
On Aug. 7, 2020, Harper pleaded guilty to being a felon in possession of firearms. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harper has a 2014 state felony conviction for an attempted robbery in which he shot the victim in the back four times.
According to court documents, a black Dodge Charger – later identified as belonging to Harper – followed the victim, who had been given a ride from work on the evening of Feb. 22, 2019, to a residence in the 1700 block of East 80th Street in Kansas City. A witness told police officers they saw the black Charger with tinted windows parked nearby when they were leaving work. As they drove from work, the Charger followed them. When they arrived at the residence, the victim got out of the car and started to walk up to the house. The witness told investigators he heard and saw gunfire coming from the Charger. The witness fled the area in his car, with the Charger following him. Eventually, the witness told investigators, he lost sight of the Charger.
Police officers were called to the residence and noticed multiple bullet holes in the front door and along the exterior wall of the house. They also noticed bullet holes and fragments inside the house, including the foyer area and the kitchen. The victim was transported to a local hospital and officers recovered two .45-caliber shell casings from the scene. Investigators spoke with the victim at the hospital. Hospital staff advised detectives that the victim was in critical but stable condition and would need to undergo surgery to remove a bullet.
Investigators retrieved surveillance video from a nearby business that captured the license plate of the Charger and they were able to identify Harper as the owner of the vehicle.
On April 4, 2019, Harper and two other individuals were stopped by law enforcement while traveling in Harper’s Charger. Harper had been seen by law enforcement shooting two handguns and a semi-automatic rifle at a firing range in Lee’s Summit, Mo. Officers seized from Harper’s car an American Tactical Omni-Hybrid AR .223-caliber rifle, loaded with 21 rounds in an extended magazine; a Glock .45-caliber semi-automatic handgun, loaded with one round in the chamber and 26 rounds in an extended magazine; and a Glock .357-caliber semi-automatic handgun, loaded with one round in the chamber and 12 rounds in the magazine. Harper admitted that he had fired the weapons at the range, and that he had shot multiple firearms at the range on several occasions.
The Kansas City Police Crime Laboratory compared shell casing recovered from the scene of the shooting on Feb. 22, 2019, and determined that one of the shell casings had been fired from the Glock .45-caliber semi-automatic handgun recovered from Harper on April 4, 2019.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Resolves Antitrust Case Against Leading Central Pennsylvania Health Care ProvidersRead the Press Release
The Department of Justice announced today that it has reached a settlement with Geisinger Health (Geisinger) and Evangelical Community Hospital (Evangelical) that will resolve the department’s ongoing civil antitrust litigation challenging Geisinger’s partial acquisition of Evangelical. Among other terms, the settlement requires Geisinger to cap its ownership interest in Evangelical at a 7.5% passive interest and eliminates additional entanglements between the two competing hospitals.
On Aug. 5, 2020, the Department of Justice Antitrust Division filed a civil antitrust lawsuit challenging Geisinger’s partial acquisition of Evangelical. The department alleged that Geisinger and Evangelical are close competitors for inpatient general acute-care hospital services for patients in a six-county area in central Pennsylvania, where the two hospital systems together account for approximately 70% of the market.
“Now, more than ever, Americans need access to quality healthcare services at affordable prices,” said Richard A. Powers, Acting Assistant Attorney General of the Antitrust Division. “The anticompetitive agreement between Geisinger and Evangelical reduced their incentives to compete on the price, quality, and availability of high-quality healthcare services, which would have harmed patients in central Pennsylvania. Today’s settlement ensures that those patients will continue to benefit from robust competition between Geisinger and Evangelical.”
According to the complaint, the partial-acquisition agreement created significant entanglements between the hospitals, reducing their incentives to compete against each other and increasing the likelihood of harmful coordination. For example, Geisinger was slated to obtain a 30% ownership interest in Evangelical in exchange for providing $100 million to Evangelical for use on projects approved by Geisinger. These terms would have set Geisinger up as a critical source of funding for Evangelical for the foreseeable future and provided opportunities for Geisinger to influence strategic decisions of its competitor. The agreement also gave Geisinger rights of first offer and first refusal for certain transactions and joint ventures, which, in conjunction with other provisions in the agreement, would have made it difficult for Evangelical to partner with other healthcare entities. The department alleged that the provisions of the partial-acquisition agreement functioned together to substantially lessen competition and unreasonably restrain trade in the market for inpatient hospital services in central Pennsylvania.
If approved by the court, the proposed settlement, filed today in the U.S. District Court for the Middle District of Pennsylvania, would resolve the competitive harm alleged in the complaint. The terms of the settlement are intended to prevent Geisinger from exercising any form of control or influence over Evangelical and to restore the defendants’ incentives to compete with each other on both quality and price. In addition to capping Geisinger’s ownership interest in Evangelical, the proposed settlement restricts Geisinger from increasing its ownership interest in Evangelical, making any loan or providing any line of credit to Evangelical, or exerting any control over Evangelical’s expenditure of funds. Defendants are also each required to implement an antitrust compliance program.
While fully addressing the harm threatened by the partial-acquisition agreement, the settlement allows procompetitive aspects of defendants’ proposal to move forward. Specifically, the settlement permits Evangelical to obtain new electronic health records information technology systems and related IT support from Geisinger, enabling Evangelical to upgrade its electronic health records systems and improve the delivery of care to patients in central Pennsylvania. The settlement also requires Evangelical to use the funds associated with Geisinger’s passive investment for specific projects that will benefit patients and the community.
Geisinger is an integrated regional healthcare provider of hospital and physician services in Pennsylvania. It operates 12 hospitals as well as urgent-care centers and outpatient facilities, and owns physician practices throughout Pennsylvania. Its flagship hospital, Geisinger Medical Center, is a 574-bed hospital located in Danville, Pennsylvania. Geisinger Health’s annual revenue in 2019 was approximately $7.1 billion.
Evangelical Community Hospital is a 132-bed independent community hospital in Lewisburg, Pennsylvania. It also operates an urgent-care center and several other outpatient facilities, and owns a number of physician practices in central Pennsylvania. Its annual revenue in 2019 was approximately $259 million.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric Welsh, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of Pennsylvania may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Judge sentences Jefferson County man to 10 years for conspiracy to distribute methamphetamineRead the Press Release
ST. LOUIS – United States District Judge Stephen N. Limbaugh, Jr. sentenced Keith Estep to 120 months in prison today. The 42-year-old House Springs, Missouri resident pleaded guilty to one count of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and one count of possession with the intent to distribute more than 50 grams of actual methamphetamine.
Investigators discovered, in 2018 and 2019, methamphetamine distributors operating in and around Jefferson County, Missouri, including Estep and several of his co-defendants, were traveling to St. Louis to obtain large quantities of crystal methamphetamine for redistribution in Jefferson County and elsewhere.
On October 20, 2019, investigators executed a federal search warrant at Estep’s residence in House Springs, Missouri. Investigators recovered more than a half-kilogram of crystal methamphetamine, drug paraphernalia and a loaded Ruger LCP .380 pistol.
The Drug Enforcement Administration and the Multi County Narcotics and Violent Crimes Enforcement Unit investigated this case.
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Judge Sentences Three-time Convicted Drug Felon to 12+ Years in PrisonRead the Press Release
PITTSBURGH – Michael S. Frawley was sentenced to 150 months in prison for conspiring to distribute at least 500 grams of cocaine and K2 controlled substances (Schedule I synthetic cannabinoids) while on federal supervised release in 2018, Acting United States Attorney Stephen R. Kaufman announced today.
Frawley, age 50, of Pittsburgh, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan sentenced Frawley to 120 months in prison for the conspiracy conviction and to 30 months in prison for the supervised release violation. Judge Ranjan ordered that the prison sentences be served consecutively to each other followed by eight years of supervised release.
Frawley was previously released from a prior federal prison sentence to supervised release in 2018. He secured his release in 2018, 12 months earlier than he was originally set to be released, after stating that he would be "a productive and law-abiding citizen upon his release from incarceration." He then conspired to distribute kilograms of cocaine and Schedule I synthetic cannabinoid controlled substances in 2018 before and after he was released from prison.
This is Frawley’s third federal cocaine-trafficking sentence. He was previously sentenced to federal prison for conspiring to distribute kilograms of cocaine and to launder the proceeds in 2005. He was also previously sentenced to federal prison for conspiring to distribute kilograms of cocaine in 1997.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Indianapolis brothers indicted on federal firearms chargesRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that two Indianapolis men were indicted for the theft of firearms from a federally licensed firearms dealer. Twin brothers, Tayveon Majors, 18, Indianapolis and Jayveon Majors, 18, were indicted today by a federal grand jury for the theft of 10 firearms from 500 Guns, a gun store located in Speedway.
“With cooperation from the public, and the excellent work by the investigators at the Crime Gun Intelligence Center, several stolen firearms and the thieves who stole them were quickly taken off the streets of Indianapolis,” said Childress. “This case is a great example of citizens working together with law enforcement to make the community a safer place to live.”
According to a criminal complaint filed against the two men, early on the morning of January 21, 2021, Jayveon Majors drove his brother, Tayveon, to an Indianapolis car dealership, where Tayveon stole a vehicle. The brothers then drove separately to the 500 Guns store in Speedway, where Tayveon used the stolen vehicle to drive through the front of the building to gain access. Video surveillance cameras in the store captured images of Tayveon carrying firearms out of the store. Javyeon then drove his brother and the guns to their Indianapolis residence.
Following a tip from the public, CGIC detectives and federal agents began to investigate. The brothers were identified as suspects and a search warrant was obtained for their residence. Federal agents and CGIC investigators located and arrested the two men at their residence within just a few days of the theft, recovering some of the stolen firearms.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chief Randal Taylor said, “This is another example of cooperation from members of our community to help solve crime. I appreciate the work of IMPD detectives, our federal partners and Acting US Attorney John E. Childress for their work in arresting these suspects and charging them in federal court.”
According to Assistant U.S. Attorney William L. McCoskey, who is prosecuting this case for the government, the defendants each face up to 10 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In October 2017, the Office of the United States Attorney announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who commit serious firearms offenses. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.2.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Ivis Enemecio Ortiz-Reyes, 38, a citizen of Honduras, pled guilty yesterday before U.S. District Judge Taylor McNeel to unlawful return of an alien after removal, announced Acting U.S. Attorney Darren LaMarca, and Michael J. Harrison, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Ortiz-Reyes is scheduled to be sentenced by Judge McNeel on June 9, 2021, at 10:00 a.m. in Gulfport. He faces a potential maximum penalty of two years in prison and a $250,000 fine, as well as Department of Homeland Security removal proceedings.
On January 14, 2021, a U.S. Border Patrol Agent assigned to the Harrison County Sheriff’s Department Criminal Interdiction Unit conducted a traffic stop on a vehicle bearing a temporary Texas license plate near Exit 38 in Gulfport. The driver had no driver’s license or other identification, and the agent noticed that there were two passengers with the odor of marijuana emitting from the vehicle.
During a probable cause search of the vehicle, the driver fled on foot, and Harrison County Sheriff’s Deputies, who were assisting, attempted to locate the driver but were unsuccessful. Meanwhile, the Border Patrol Agent located narcotics hidden in a bag in the back seat and both passengers were detained. One of the passengers was arrested in connection with the narcotics which is the subject of a separate, state case.
The other passenger was Ivis Enemecio Ortiz-Reyes, who was determined to be merely a passenger. However, Ortiz-Reyes was confirmed as an illegal alien from Honduras who had been officially removed from the United States to his home nation of Honduras on February 3, 2017, via an Immigration & Customs Enforcement Air Charter from Harlingen, Texas. Officials also determined that Ortiz-Reyes had not received official permission to return to the United States.
Acting U.S. Attorney LaMarca praised the cooperation of the Harrison County Sheriff’s Department, the U.S. Border Patrol, and the U.S. Department of Homeland Security. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Houston man admits to attempting to distribute meth from RGVRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Houston resident has entered a guilty plea in Corpus Christi federal court to transporting nearly 40 kilograms of pure meth with the intent to distribute, announced Acting U.S. Attorney Jennifer B. Lowery.
On Dec. 24, 2020, Christopher Schulgen approached the Javier Vega Jr. checkpoint near Sarita driving a Toyota Camry. Upon arrival, a K-9 alerted to his vehicle. Authorities referred him to secondary inspection where they discovered 44 bundles of a white powdery substance. They were located under the back seat, in factory voids of the door panels and the rear quarter panels of the vehicle.
Law enforcement determined the content of the bundles to be 39.58 kilograms of pure meth with an estimated street value of $800,000.
U.S. District Judge David S. Morales will impose sentencing June 2. At that time, Schulgen faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.
He has been and will remain in custody pending sentencing.
Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.
Guilty Plea Entered in Wide-Ranging Bank Fraud ConspiracyRead the Press Release
PROVIDENCE – A Lawrence, MA, man, one of nine individuals indicted by a federal grand jury in Providence, RI, in July 2020, for their alleged participation in a wide-ranging conspiracy to defraud financial institutions in several states, pleaded guilty on Tuesday in U.S. District Court in Providence.
Hiancarlos Mosquea-Ramos, 28, admitted that he participated in schemes as the seller or the buyer of used vehicles, defrauding Merrimack Valley Credit Union, Sharon Credit Union, Digital Federal Credit Union, Metro Credit Union, Direct Federal Credit Union, RTN Credit Union, and Workers Credit Union.
Mosquea-Ramos admitted that by using his own personal identification information along with counterfeit earnings statements, fabricated automobile purchase and sales agreements, and counterfeit motor vehicle titles, he obtained at least $92,000 in fraudulent loans to purchase fictitious cars. A co-conspirator, Jonathan A. Pimental, 29, of Lawrence, MA, was allegedly listed as the seller of the cars. Pimental is awaiting trial on a charge of conspiracy to commit bank fraud.
Additionally, Mosquea-Ramos admitted that he posed as the seller of various used cars. It is alleged co-conspirator Rolando E. Estrella, 33, of Lawrence, MA, prepared false purchase and sales agreements and counterfeit automobile titles naming Mosquea-Ramos as the seller of the vehicles. Financial institutions approved a total of more than $275,200 in used car loans, disbursing checks made payable to Mosquea Ramos. The checks were quickly deposited and the funds quickly withdrawn and divided among participants of the conspiracy.
Rolando E. Estrella is awaiting trial on multiple charges of conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and fraudulent use of a social security number.
On Tuesday, Hiancarlos Mosquea-Ramos appeared before U.S. District Court Chief Judge John J. McConnell, Jr., and pleaded guilty to conspiracy to commit bank fraud, announced Acting United States Attorney Richard B. Myrus, Special Agent in Charge of the U.S. Secret Service Frederick J. Regan, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Mosquea-Ramos is scheduled to be sentenced on June 1, 2020.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Wisconsin Rapids Man Charged with Tax Crimes
James Canfield, 71, Wisconsin Rapids, Wisconsin, is charged with 14 counts of preparing and filing false federal income tax returns for third parties.
The indictment alleges that Canfield, who operated Advanced Accounting Concepts, Inc., a tax return preparation business in Plover, Wisconsin, prepared and filed tax returns that sought refunds and reductions in taxes due to which the taxpayers were not entitled. The indictment alleges that Canfield claimed false deductions and included with the returns a Schedule E, Supplemental Income and Loss from Business, reporting false income and losses.
If convicted, Canfield faces a maximum penalty of 3 years in federal prison on each count. The charges against him are the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Oxford Man Charged with Illegally Possessing Firearm
Stephen J. Robeson, 57, Oxford, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on September 26, 2020, he possessed a .50 caliber rifle.
If convicted, Robeson faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation, Marquette County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
La Crosse Man Charged with Distributing Methamphetamine
Tang Vue, 35, La Crosse, Wisconsin, is charged with two counts of distributing methamphetamine. The indictment alleges that he distributed methamphetamine on January 29 and February 3, 2021, and that the January 29 distribution involved 50 grams or more of the drug.
If convicted, Vue faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the count alleging the distribution of 50 grams or more, and 20 years on the second distribution count. The charges against him are the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney David J. Reinhard is handling the prosecution.
La Crosse Man Charged with Drug Crime Involving Methamphetamine
Cody B. Stough, 33, La Crosse, Wisconsin, is charged with distributing 50 grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on November 19, 2020.
If convicted, Stough faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Richland-Iowa-Grant Drug Task Force. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Four Houston Men Indicted in San Antonio for ATM Robbery SchemeRead the Press Release
In San Antonio today, a federal grand jury returned an indictment against four Houston men for allegedly stealing approximately $80,000 from a bank ATM technician in San Antonio last month, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs.
The indictment charges 21-year-old Terrance Raynard McDuffy, 24-year-old DeWitt Eugene Ross Jr., 22-year-old Tavan Marque Foots and 25-year-old Jonathan DeWayne Fore with one count of bank robbery. According to court records, on February 11, 2021, McDuffy and Ross approached a serviceman working on an ATM at a Chase Bank branch in San Antonio and stole multiple ATM cassettes which contained a total of $80,340, while Foots and Fore acted as lookouts for the operation.
FBI agents arrested all four defendants following the robbery. McDuffy and Ross remain in federal custody. Foots and Fore are out on bond. No further court dates have been scheduled.
The defendants face up to 20 years in federal prison upon conviction.
The FBI’s Safe Streets Task Force and San Antonio Central Texas Violent Crime Task Force are investigating this case together with the FBI in Houston, Houston Police Department, Texas Department of Public Safety Criminal Investigations Division and San Antonio Police Department. Assistant U.S. Attorney William F. Calve is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Former Stockton Man Pleads Guilty to Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Robert Joseph Maher, 42, formerly of Stockton, pleaded guilty today to single counts of mail fraud and aggravated identify theft in connection with an unemployment insurance benefits fraud and identity theft scheme, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from at least November 2010 through February 2018, Maher participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Maher and his co-defendant, Michael Herron II, also of Stockton, created fictitious companies and fictitious employees by using the real identities of persons with and without their knowledge. They then filed claims with EDD, falsely stating that the employees had been laid-off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Maher, Herron, or their associates.
In one instance, Maher and Herron electronically filed an unemployment insurance claim in the name of an identity-theft victim. Maher knew that the victim was a real person because the claim listed the victim’s correct date of birth and social security number. The claim also listed Maher’s address in Stockton as the claimant’s address, which caused a bank to mail an EDD debit card in the victim’s name to Maher’s address. Maher and Herron then transferred the card’s benefits to Maher’s personal bank account. Maher and Herron also used the victim’s name to register another fictitious business entity that was used in the fraud scheme. In all, Maher and Herron filed at least 72 fraudulent claims for unemployment insurance benefits, seeking a total of $739,535 in fraudulent claims to EDD, of which EDD paid out approximately $609,335. As part of his plea agreement, Maher has agreed to pay full restitution to victims of his offenses.
This case is the product of an investigation by the U.S. Department of Labor - Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On March 26, 2019, Herron pleaded guilty to similar counts of mail fraud and aggravated identity theft and, on June 25, 2019, was sentenced to six years and three months in prison.
Maher is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 8. Maher faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud count, and a mandatory two-year consecutive sentence and $250,000 fine for the aggravated identity theft count. 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.
Former Firefighter Sentenced for Attempted Coercion and Enticement of a MinorRead the Press Release
RICHMOND, Va. – A Pittsburgh man was sentenced today to 126 months in prison for conducting sexually explicit online communications and traveling to Virginia in an attempt to engage in a sexual relationship with a fictitious 10-year-old girl.
According to court documents, in November 2019, Brian Kosanovich, 58, then a firefighter in Pittsburgh, responded to a profile posted by an FBI undercover officer on a website that hosts a network of members interested in alternative forms of sexual relationships, including a variety of fetishes. The undercover officer’s profile indicated that she was a single mother with a 10-year-old daughter.
After establishing contact on the website, Kosanovich and the undercover officer began communicating via an instant messaging application. Kosanovich and the undercover officer engaged in extensive conversations of a sexually explicit nature for several months, much of which focused on Kosanovich engaging in a sexual relationship with who he believed to be a 10-year-old girl, as well as the mother. Over the period of the investigation, Kosanovich sent the undercover officer nude pictures and a prepaid credit card, so that the mother could buy certain items to use with the daughter.
Ultimately, in February 2020, Kosanovich drove from Pittsburgh to Richmond for the stated purpose of engaging in a sexual relationship with the mother and daughter, and he was arrested by FBI officials upon his arrival in Midlothian.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Brian R. Hood 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. 3:20-cr-103.
Former FCI Butner Correctional Officer Indicted on Bribery and Smuggling Contraband ChargesRead the Press Release
WILMINGTON, N.C. – A federal grand jury returned an indictment last week, charging a Cameron man with Bribery, Conspiracy to Introduce Contraband into a Prison, and Introducing Contraband.
“Contraband in prisons is one of the greatest threats to both inmates and correctional officers,” stated Acting United States Attorney G. Norman Acker, III. “This indictment seeks to hold a correctional officer who allegedly violated the trust of his peers by conspiring with inmates to introduce contraband to the prison. My office will always prosecute those who endanger lives and disrupt the good order and discipline within our correctional institutions.”
“When correctional officers smuggle contraband into prisons, they jeopardize the safety of the very institutions they are charged with protecting. The OIG is committed to investigating this type of behavior,” said Russell Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
According to the indictment, Casey Covington, 45, a correctional officer at the Federal Correctional Institution in Butner, conspired with three inmates to smuggle cell phones into the prison. Covington is also accused of accepting bribes in exchange for smuggling in the cell phones and other contraband, including marijuana, tobacco, and alcohol.
According to the indictment, inmates Christopher Lee Davis, 36, Antonio Demond Byers, 40, and Robert Henry Huitt, 32, were also each charged with conspiring with Covington and possessing cell phones in prison.
If convicted, Covington faces 15 years in prison, and Davis, Byers, and Huitt each face up to 1 year in prison.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Department of Justice, Office of the Inspector General, is investigating the case and Assistant U.S. Attorney Robert J. Dodson is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former Controller of local Ford dealership sentenced to 30 monthsRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Robert L. Fowler, of Evansville, Indiana, was sentenced to 30 months in federal prison by U.S. District Judge Richard L. Young for Bank Fraud and Money Laundering.
“Fraud by company insiders robs their victims of money and worse, it robs them of their trust in others,” said Childress. “Greed and deception were the roots of Robert Fowlers life. He will now face the consequences of his choices.”
Fowler served as the Controller at Town and Country Ford for approximately eight years until he was terminated in early September 2016. Prior to becoming Controller, Fowler also served as an assistant office worker for twelve years. As Controller of Town and Country Ford, Fowler was responsible for the payroll, taxes, and accounting for the dealership and essentially served as the business manager.
Town and Country Ford’s parent company, Hays Automotive Group, owns car dealerships in Evansville, Louisville, and Nashville, Tennessee. In September 2016, the Chief Financial Officer and Treasurer of Hays Automotive Group discovered discrepancies in the books and records for Town and Country Ford.
Further investigation revealed several embezzlement schemes conducted by Fowler, including opening unauthorized bank accounts from which he wrote dozens of checks to himself and personal associates; using company funds to pay his child support and other personal expenses at his home; using company credit cards to pay for personal expenses and paying for those transactions with company funds; paying his personal credit card with company funds; and forging signatures of corporate officers when applying for an unauthorized loan of $250,000.
This investigation was a collaborative effort between the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
“His employer put their trust in Mr. Fowler, and he repaid that trust by putting his personal greed ahead of his commitment to the company,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our partners will continue to aggressively pursue those who commit financial fraud to enrich themselves at the expense of others and ensure they are held accountable.”
"IRS Criminal Investigation is committed to investigating individuals who line their pockets with other people’s money,” said Tamera Cantu, Acting Special Agent in Charge, Chicago Field Office, IRS Criminal Investigation. “Mr. Fowler’s sentencing serves as a reminder that individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
According to Assistant United States Attorney Kyle Sawa, who prosecuted this case for the government, Fowler must also pay $432,873 in restitution to Hays Automotive Group and will serve 2 years of supervised release following his imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1 and 5.4.
Florida man admits to conspiring to transport stolen campers across state linesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Taylon Batista Garcia, of Florida, has admitted to his involvement in the theft of campers from a business in Elkins, West Virginia, Acting United States Attorney Randolph J. Bernard announced.
Garcia, 35, pleaded guilty today to one count of “Conspiracy to Commit Offense against the United States.” Garcia admitted to driving a heavy-duty pickup truck into Elkins, West Virginia, and stealing a 2020 Jayco North Point Camper valued at $96,365, from Roy’s RV Supercenter in July 2020.
Garcia is facing up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Federal Grand Jury Indicts Two Men in Connection with Violent Robberies of Chicago-Area Retail BusinessesRead the Press Release
CHICAGO — A federal grand jury has indicted two men for allegedly conspiring to violently rob several pawn shops, currency exchanges, and other retail stores in Chicago and the suburbs.
The robbers wore masks and brandished dangerous weapons in 12 heists from July 2020 to January 2021, according to an indictment returned in U.S. District Court in Chicago. The robbers stole jewelry valued at more than $305,000, as well as more than $22,000 in cash, the indictment states.
Charged with conspiracy to commit robbery are FALANDIS RUSSELL, 25, of Chicago, and TERRANCE WILLIAMS, 24, of Chicago. Russell is currently in law enforcement custody. He pleaded not guilty at his arraignment Tuesday, and he is set to appear for a detention hearing this afternoon before U.S. Magistrate Judge Jeffrey T. Gilbert. Williams has been ordered released on bond. His arraignment is set for this afternoon before U.S. District Judge Edmond E. Chang.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by Police Departments in Chicago, Calumet City, Summit, Burbank, Bolingbrook, Round Lake Beach, Hammond (Ind.), Streamwood, and Arlington Heights. The government is represented by Assistant U.S. Attorney Matthew J. McCrobie.
“The charges in this significant case are the result of the strong partnership between federal, state, and local law enforcement in the Chicago area,” said U.S. Attorney Lausch. “We will continue working together to hold violent offenders accountable.”
“The defendants are accused of a multistate, violent crime spree with 12 armed robberies in almost as many communities,” said FBI SAC Buie. “The public should feel safer when doing business at local establishments, and we hope they feel secure knowing that justice is being done.”
The indictment identifies the 12 robberies allegedly carried out as part of the conspiracy:
- July 31, 2020: Russell and others robbed Cash America, located in the 1800 block of River Oaks Drive in Calumet City.
- Aug. 10, 2020: Russell and others robbed EZ Pawn, located in the 6100 block of South Archer Street in Summit.
- Aug. 10, 2020: Russell and others robbed Cash America, located in the 4500 block of South Cicero Avenue in Chicago.
- Aug. 28, 2020: Russell and Williams robbed Midwest Title & Loan, located in the 8300 block of South Cicero Avenue in Burbank.
- Aug. 28, 2020: Russell and Williams robbed Cash America, located in the 6300 block of South Kedzie Avenue in Chicago.
- Sept. 25, 2020: Russell, Williams, and others robbed Helzberg Diamonds, located in the 600 block of East Boughton Road in Bolingbrook.
- Oct. 13, 2020: Russell, Williams, and others robbed EZ Pawn, located in the 300 block of West Rollins Road in Round Lake Beach.
- Oct. 21, 2020: Russell and Williams robbed EZ Pawn, located in the 4800 block of South Ashland Avenue in Chicago.
- Nov. 6, 2020: Russell, Williams, and others robbed Cash America, located in the 3200 block of West Lawrence Avenue in Chicago.
- Dec. 16, 2020: Russell, Williams, and others robbed Cash America, located in the 6800 block of Indianapolis Boulevard in Hammond, Ind.
- Jan. 19, 2021: Russell and others robbed EZ Pawn, located in the 900 block of East Irving Park Road in Streamwood.
- Jan. 22, 2021: Russell and Williams robbed EZ Pawn, located in the 1700 block of West Algonquin Road in Arlington Heights.
The public is reminded that an indictment 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. The charge in the indictment is punishable by a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Indicts Man for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on Thursday, February 25, 2021, DERRICK ESTES, age 41, resident of Orleans Parish, was charged in a four-count indictment for alleged drug and gun violations. These violations occurred on January 17, 2021 and February 1, 2021. In Count 1 of the indictment, ESTES is charged with possession with intent to distribute fentanyl and over 28 grams of crack-cocaine. Count 2 charges ESTES with possessing a firearm in furtherance of a drug trafficking offense and in Count 3 with being a felon in possession of a firearm. Finally, ESTES is charged in Count 4 with possession with the intent to distribute crack-cocaine and over 40 grams of fentanyl.
In Count 1 and 4 of the indictment, ESTES is charged with possession with the intent to distribute a certain quantity of crack-cocaine and fentanyl, in violation of in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). If convicted, ESTES faces a maximum sentence of 20 years, a fine up to $1,000,000.00, a period of at least 3 years supervised release, and a mandatory special assessment of $100.00 for each count. ESTES is also charged in Count 1 with possession with the intent to distribute 28 or more grams of crack-cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(iii) and in Count 4 with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B)(vi). If convicted, ESTES faces a minimum sentence of 5 years up to a maximum of 40 years imprisonment, a fine up to $5,000,000.00, a period of at least 4 years supervised release, and a mandatory special assessment of $100.00 for each charge. In Count 2, ESTES is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). If convicted, ESTES faces a mandatory minimum sentence of 5 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine up to $250,000.00, a period of 5 years supervised release, and a mandatory special assessment of $100.00. Finally, in Count 3, ESTES is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1). If convicted, ESTES faces a maximum sentence of 10 years of imprisonment, a fine up to $250,000, a period of 3 years supervised release, and a mandatory special assessment of $100.00.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Detainee Who Threw a Chair at an Assistant United States Attorney and Threatened to Kill Him Arraigned on Federal ChargesRead the Press Release
Miami, Florida – A South Florida federal grand jury has indicted Tavorris Wilkins, 33, Palm Beach Gardens, Florida, with assaulting an Assistant United States Attorney and threatening to assault and kill an Assistant United States Attorney.
According to court documents, on November 7, 2019, a jury returned a verdict in a separate case finding Wilkins guilty of multiple federal charges. As the members of the jury were exiting the courtroom, Wilkins picked up a chair at his table and threw it at the Assistant United States Attorney prosecuting his case, barely missing him, alleges the indictment. Multiple Deputy United States Marshals tackled Wilkins and attempted to restrain him. It is alleged that while this occurred, Wilkins threatened to kill and assault the Assistant United States Attorney.
The indictment is only an allegation. Wilkins is innocent until such time that he is proven guilty. If convicted, Wilkins faces a maximum sentence of (20) years’ imprisonment.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, United States Marshal Gadyaces S. Serralta of the USM’s Miami Field Office, and Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USMS and ATF in this matter. This case is being prosecuted by Assistant U.S. Attorney Ajay J. Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 19-cr-80032.
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Fayetteville Man Convicted of Firearm and Drug Trafficking Charges by Federal JuryRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Fayetteville man yesterday on charges of possession of a firearm by a convicted felon, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
According to court records and evidence presented at trial, Miguel Marquis Hutchinson 35, was encountered inside a car at McDonalds on Bragg Blvd. by Fayetteville police officers investigating a nearby armed robbery. Hutchinson matched the description of the armed robbery suspect and provided a false name to the officers. When asked to step out of the car, he made a suspicious movement that caused the officers to jump forward and pin him down. Meanwhile, other officers had observed store security footage which confirmed Hutchinson was not the person being sought for the armed robbery.
During the encounter at the car, officers smelled the odor of marijuana and conducted a search of the car which resulted in locating approximately 22 grams of marijuana inside the center console, baggies, and a digital scale. A loaded 9mm Taurus pistol was also located positioned and ready for use between the driver’s seat on the right side pinned against the center console.
Hutchinson was previously convicted of second-degree murder in North Carolina state court in 2006 in Cumberland County, North Carolina.
Hutchinson faces a mandatory minimum sentence of 5 years’ imprisonment and a maximum sentence of Life in prison when sentenced on June 7, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. Homeland Security Investigations and the Fayetteville Police Department are investigating the case and Assistant U.S. Attorney Gabriel J. Diaz is prosecuting 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.5:19-cr-00523-BO-1.
Edmond Man Convicted of Smuggling Firearms to the Middle East is Sentenced to Serve More Than Three Years in Federal PrisonRead the Press Release
OKLAHOMA CITY – Today, RANDY LEW WILLIAMS, 58, of Edmond, was sentenced to serve more than three years in federal prison for illegally shipping firearms to the Middle East, in addition to two other firearms violations, announced Acting U.S. Attorney Robert J. Troester.
On June 1, 2020, Williams was charged with violating the Arms Export Control Act, making a false statement to a firearms dealer, and possession of an unregistered firearm. According to court records, the Federal Bureau of Investigation (FBI) Legal Attaché in Abu Dhabi, United Arab Emirates (UAE) notified the FBI Oklahoma City Field Division that a FedEx shipment had been seized by UAE authorities in Dubai, UAE, on December 19, 2018. The shipment contained multiple Glock pistols and firearms parts. Shipment records indicated the shipment was sent from Williams, from an address in Oklahoma City to the intended recipient located in Sulaymaniyah, Iraq. Williams did not have a Federal Firearms License from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, or authority from the Department of Defense to export defense articles (i.e. weapons) outside the United States.
On June 26, 2020, Williams pleaded guilty to all three counts charged.
Today, U.S. District Judge Jodi W. Dishman sentenced Williams to serve 40 months in federal prison, followed by two years of supervised release on each count when his prison terms ends. In announcing the sentence, Judge Dishman noted the nature and circumstances of the offense and the need for the sentence to reflect the seriousness of the offense. Williams has been in custody since his arrest on March 2, 2020.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the U.S. Department of Homeland Security Investigations, with assistance from the U.S. Customs and Border Patrol, the U.S. Department of State, the U.S. Postal Inspection Service, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Mark Stoneman prosecuted the case.
Reference is made to court filings for further information.
Dutch National Affiliated with “Bugaloo Bois” Arrested for Illegal Possession of a FirearmRead the Press Release
ABINGDON, Va.- Jaap Willem Lijbers, a Dutch national and member of the Bugaloo Bois, was arrested yesterday on a federal criminal complaint charging him with illegal possession of a firearm while being unlawfully present in the United States. Acting United States Attorney Daniel P. Bubar and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Division announced the arrest today.
Lijbers, 26, was living in the United States on an I-94 Visa that expired on May 20, 2014. A review of immigration records showed that Lijbers never applied for adjustment or readmission.
According to court documents, Lijbers, who was residing in Raven, Virginia, frequently coordinated and communicated online with members of the Bugaloo Bois, a loosely connected group of individuals espousing violent anti-government sentiments. During some of these interactions, court documents allege that Lijbers encouraged other members of the Bugaloo Bois group to attend political rallies and commit acts of violence, to include taking over government buildings. Lijbers also encouraged others to participate in violent conduct against law enforcement officers in a “pig roast.”
The investigation of the case was conducted by the Federal Bureau of Investigation and the Department of Homeland Security (DHS) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Drug User Whose Mother Tried to Claim a Gun was Hers Sentenced to Federal Prison for Unlawfully Possessing the GunRead the Press Release
A man who illegally possessed a gun was sentenced March 1, 2021, to more than three years in federal prison.
Thomas James Masengarb Vesey, age 21, from Hiawatha, Iowa, received the prison term after a September 17, 2020 guilty plea to being a drug user in possession of a firearm.
Evidence at earlier hearings showed that police officers stopped Vesey while he was driving in Marion, Iowa. After he pulled the car over, Vesey switched seats with a passenger before officers approached the car on foot. Officers smelled marijuana and searched the car, finding marijuana and a gun with an obliterated serial number. Vesey’s mother came to the scene of the traffic stop and attempted to take ownership of the gun until officers told her that they were aware that Vesey called her and that the call was recorded. Vesey later admitted that he bought the gun after some of his friends had been murdered. He also told law enforcement that he both used and sold marijuana.
Vesey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Vesey was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Vesey was released on the bond previously set and is to surrender to the United States Marshal’s Service on March 15, 2021.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Marion Police Department, the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-00054.
Follow us on Twitter @USAO_NDIA.
Drug Dealer Who Brought Young Children to Drug Deal Receives 78 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A New Hanover County man was sentenced yesterday to 78 months imprisonment for distribution of a quantity of heroin and fentanyl; possession with intent to distribute a quantity of heroin; and, possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and other evidence, on January 22, 2020, the Wilmington Police Department conducted a controlled purchase of heroin from Quadarrius “Reckless” Cotten, 23, in the bathroom of a Burger King restaurant in Wilmington. At time the of the sale, Cotten was accompanied by two young children. A photograph introduced at the sentencing hearing showed one of the children wearing a Burger King crown standing next to Cotten as he delivered the drugs.
On January 28, 2020, the Wilmington Police Department conducted a second controlled purchase of fentanyl and a firearm from Cotten. Law enforcement later determined that the firearm which Cotten possessed during the offense was stolen.
On May 16, 2020, the Wilmington Police Department was conducting surveillance in the area of 6th and Campbell Streets due to concerns over retaliatory gang violence. Cotten, a validated gang member, was observed engaging in an argument with an individual who was armed with an AK-47 rifle. Officers intervened and during a search of Cotten found a small amount of heroin and nearly $400 in cash in his possession.
Cotten had prior convictions for Conspiracy to Commit Common Law Robbery and Possession of a Firearm by a Convicted Felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation Safe Street Task Force and the Wilmington 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. 7:20-cr-00103-M.
Defendants charged with stealing millions of dollars from the Paycheck Protection Program (PPP)Read the Press Release
ATLANTA – Lakisha Swope and Treisha Pearson have been arraigned on charges of conspiracy, wire fraud, bank fraud, and money laundering after allegedly participating in a scheme to steal over $3.5 million from the Paycheck Protection Program (PPP).
“Swope and Pearson allegedly stole millions of dollars destined to help small business owners,” said Acting U.S. Attorney Kurt R. Erskine. “PPP dollars often provide a bridge for businesses suffering from the effects of the pandemic. However, PPP funds are not unlimited, and those who seek to enrich themselves fraudulently through this program will be prosecuted.”
“These two defendants are accused of misdirecting federal emergency assistance from businesses who need it to stay afloat, to their own pockets, during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their alleged greed affects every tax paying citizen and the FBI will make every effort to make sure funds provided by programs like PPP are used as intended.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Lakisha Swope and Treisha Pearson, together with others, allegedly submitted false PPP applications for a number of entities claiming over $5 million in loans. These PPP applications allegedly contained materially false information such as false representations regarding the applicant entities’ total number of employees and average monthly payroll.
As a result of these false statements, lenders issued over $3.5 million in PPP loans to these various entities. Swope and Pearson, along with other members of the conspiracy, then allegedly used the fraudulently obtained funds for unauthorized expenditures including luxury clothing, restaurants, personal rent, hotels, and vacation rentals.
Lakisha Swope, 43, of Alpharetta, Georgia and Treisha Pearson, 49, of Brookhaven, Georgia, face charges of conspiracy, wire fraud, bank fraud, and money laundering. Both defendants were indicted on February 24, 2021.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
DEA Task Force and Waterbury Police Investigation Results in Drug Charges against 17 IndividualsRead the Press Release
Acting United States Attorney Leonard C Boyle, Waterbury State’s Attorney Maureen Platt, Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration for New England and Waterbury Police Chief Fernando C. Spagnolo today announced that 17 individuals have been charged with federal offenses related to the distribution of heroin, cocaine and crack cocaine in and around Waterbury.
According to statements made in court, for approximately 10 months, the DEA New Haven Task Force and Waterbury Police Department have been investigating a drug trafficking organization that has been distributing large amounts of heroin, cocaine and crack in the Waterbury area. The investigation has included court-authorized wiretaps on multiple phones used by alleged members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging the following individuals with conspiracy to distribute, and to possess with intent to distribute, heroin, cocaine and cocaine base (“crack”):
ZACHARY LEE FOSTER, a.k.a. “Lee,” 54, Waterbury
JASON METZ, a.k.a. “Jay,” 51, Naugatuck
JAMES GRANT, a.k.a. “Bobo,” “Bo,” and “Jimbo,” 56, Waterbury
DEREK METZ, 31, Waterbury
JESUS NIEVES, a.k.a. “Pop,” 37, Waterbury
ALGENYS PAULINO, a.k.a. “Chico” and “Lying Queen,” 32, Bronx, New York
EDDIE SMALLS, a.k.a. “Pooch,” 47, Waterbury
SHERMAN PETERS, a.k.a. “Red,” 36, Waterbury
LATASHA SLAUGHTER, a.k.a. “Tasha,” 42, Waterbury
LAWRENCE JACKSON, 24, Waterbury
ADAM MINES, a.k.a. “White Boy,” 37, Waterbury
HECTOR DIAZ, 23, Waterbury
LECHARD SANTOS, 31, Waterbury
KEON COUNCIL, 43, Waterbury
RONDELL MAURICE WRIGHT, a.k.a. “Reese,” 52, Waterbury
ISAAC WILSON, a.k.a. “Ike,” 24, Waterbury
CHASCITY PEREZ, 25, WaterburyFifteen defendants were arrested today. Grant has been in state custody since January 21 and Peters is still being sought.
In association with today’s arrests, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine. Investigators also seized nine firearms, including an AK-47-style rifle.
If convicted of the charge in the indictment, based on the type and quantities of narcotics attributable to each defendant, Foster, Jason Metz, Grant, Derek Metz, Nieves, Paulino and Smalls face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Peters, Slaughter and Jackson face a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; and Mines, Diaz, Santos, Council, Wright, Wilson and Perez face a maximum term of imprisonment of 20 years.
“More Connecticut residents lost their lives to overdoses in 2020 than in any year previously and the U.S. Attorney’s Office and our law enforcement partners are committed to using the full force of federal law to investigate and prosecute those responsible for trafficking these deadly drugs,” said Acting U.S. Attorney Boyle. “I commend the DEA Task Force members and Waterbury Police for their excellent work during this investigation, and their success in apprehending every charged defendant and seizing a large quantity of narcotics. I also thank the Waterbury State’s Attorney’s office for its continued partnership in these efforts. All involved have made the community safer and saved lives.”
“This joint investigation is an example of how things are supposed to be done, and the results speak for themselves,” said Waterbury State’s Attorney Platt. “The Waterbury State’s Attorney’s Office will continue to work closely with federal prosecutors on this case, and others.”
“Illegal drug distribution ravages the very foundations of our families and communities here in Waterbury,” said DEA Special Agent in Charge Boyle. “Let these arrests and seizures serve as an example to those who distribute poisons like heroin, crack-cocaine and cocaine, that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners here in Connecticut and our solid relationship with the U.S. Attorney’s Office.”
“We are very appreciative for the support from the U.S. Attorney’s Office and for our partnership with the DEA to attack drug trafficking in our community,” said Chief Spagnolo. “This is the second long-term wiretap investigation the Waterbury Police Department has participated in over the last three years, and we expect to continue to work with federal authorities on these kinds of cases going forward.”
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the 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, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso 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.
Contractor Pleads Guilty to Lying to OSHA InvestigatorsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Michael C. Mikulka, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, and Galen Blanton, Regional Administrator of the Occupational Safety and Health Administration (OSHA) Criminal Investigations Team, Region 1, announced that LUIS F. ESTRADA, 47, of Bridgeport, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to making false statements and submitting false documents to OSHA while the agency conducted an investigation into a job site he controlled.
According to court documents and statements made in court, Estrada is the owner of L.L.E. Construction, LLC. In February 2018, Estrada and L.L.E. Construction entered into a written contract to perform roof repairs and other construction services at a property located on Main Street in Bridgeport. In February and March 2018, Estrada was provided with three checks totaling $11,000 for performing the work. On March 1, 2018, a compliance officer with OSHA visited the property and observed what he believed to be various safety infractions by construction workers who were making the roof repairs. The officer then initiated an on-site inspection into the suspected infractions. Estrada was not present at the Main Street property at the time, but spoke to the compliance officer by mobile phone.
On May 22, 2018, OSHA compliance officers served Estrada with a subpoena that demanded documents and records related to L.L.E. Construction’s work at the Main Street property in February and March 2018. On July 30, 2018, Estrada hand-delivered a written response stating that he “did not do any work for the ‘LLE Roofing Project,’” that “[t]here is no payroll because [he] did not work on the ‘LLE Roofing Project,’” and that he “do[es] not have any contract or any documents regarding the ‘LLE Roofing Project.’”
In pleading guilty to one count of making false statements to the U.S. Department of Labor, Estrada admitted that he lied in his written statements on July 30, 2018, and that he later lied in a deposition convened as part of the OSHA investigation into the suspected safety violations at the site.
At sentencing, which is not scheduled, Estrada faces a maximum term of imprisonment of five years. Estrada is released on a $75,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Labor, Office of Inspector General, and the OSHA Criminal Investigations Team, Region 1. The case is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Clarksville Restaurant Owner Pleads Guilty in Alien Harboring and Tax Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – March 3, 2021 – The majority owner of the New China Buffett & Grill (NCBG) in Clarksville, Tennessee, pleaded guilty yesterday in U.S. District Court to conspiracy to harbor illegal aliens; harboring illegal aliens; money laundering; tax evasion; and employment tax fraud, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Quanwei Shi, 31, of Clarksville, pleaded guilty before U.S. District Judge Eli J. Richardson. Shi and NCBG co-owner Chongqiang Chen, 30, also of Clarksville, were arrested in April 2020, after a 14-count indictment charged them in a scheme to harbor undocumented workers and to defeat the tax laws of the United States.
Shi admits that between 2017 and April 2019, he conspired to conceal and harbor illegal aliens from China and Guatemala, profiting from their employment at NCBG. The undocumented workers were not required to complete any forms related to immigration status and were paid in cash, outside the regular payroll system. In addition, Shi admits that the undocumented workers lived with him at his residence on D Street in Clarksville; were transported to NCBG and back daily; and were assigned to work in the kitchen where they would not be able to interact with the patrons of the restaurant.
In addition to harboring the undocumented workers, Shi admits that for tax years 2017 through 2019, he underreported gross receipts on NCBG’s corporate tax returns and failed to collect, account for, and pay over employment taxes for an overall tax loss of $440,941.
The government also seeks to forfeit Shi’s house in Clarksville; two vehicles, the contents of two bank accounts, totaling $33,126.25; and $42,947 in cash.
Shi faces up to 45 years in prison when he is sentenced on July 16, 2021.
The case against Chongqiang Chen remains pending and he is presumed innocent until proven guilty in a court of law.
This case was investigated by Homeland Security Investigations; the IRS-Criminal Investigation; the Diplomatic Security Service of the U.S. Department of State; the Tennessee Bureau of Investigation; the Tennessee Bureau of Workers Compensation; the Clarksville Police Department; and the Montgomery County Sheriff’s Office. Assistant U.S. Attorneys Sara Beth Myers and Robert Levine are prosecuting the case.
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Canadian Man Sentenced on Drug and Immigration OffensesRead the Press Release
A Canadian man was sentenced today to 71 months imprisonment after having pleaded guilty to possessing with intent to distribute marijuana and to unlawful entry into the United States, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Vance Callander of Homeland Security Investigations (HSI), Detroit.
Sentenced was Glen Richard Mousseau, 49, of Windsor, Canada.
According to court records, during the early morning hours on June 5, 2020, Border Patrol Agents observed a vessel carrying Mousseau cross the international boundary from Canada into the United States at a high rate of speed. The vessel fled when agents attempted to perform a stop. Agents observed two large bundles thrown over the side of the vessel. Mousseau had abandoned the vessel and was found seemingly unconscious in the water with approximately 265 pounds of marijuana attached to him with two ropes. Mousseau was subsequently arrested and admitted to possessing the marijuana for distribution in the United States. Mousseau had been previously deported from the United States in December, 1995 and had not obtained authorization to reenter.
Acting US Attorney Mohsin said, “Mousseau was a sophisticated drug smuggler who smuggled large quantities of drugs, to include methamphetamine, cocaine and marijuana, along with bulk cash, across the international waterway between the United States and Canada. He smuggled these items during early morning hours using submersible vessels and diving equipment and a high speed boat showing just how dangerous drug trafficking can be.”
The investigation was led by specials agents with Homeland Security Investigations with the assistance of the St. Clair County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorneys Jonathan Goulding and John O’Brien.
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COVID-19 Unemployment Benefit Fraud Scheme ChargedRead the Press Release
FRESNO, Calif. — On Thursday, Feb. 25, a federal grand jury returned an indictment charging two defendants in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, Acting U.S. Attorney Phillip A. Talbert announced.
The three-count indictment charges Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, with one count of conspiracy to commit mail fraud and two counts of aggravated identity theft. The indictment was unsealed and Vertz was arraigned on Tuesday following his arrest.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to EDD. Recorded jail calls and emails show that Powers and other inmates, provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $103,000 as a result of the fraud.
This case is the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
If convicted of the conspiracy to commit mail fraud, Vertz and Powers each face a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of the aggravated identity theft, they face a mandatory two-year sentence consecutive to any other sentence. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
CEO Sentenced to Prison in $150 Million Health Care Fraud, Opioid Distribution, and Money Laundering SchemeRead the Press Release
The chief executive officer of a Michigan and Ohio-based group of pain clinics and other medical providers was sentenced today to 15 years in prison for developing and approving a corporate policy to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids.
Mashiyat Rashid, 40, of West Bloomfield, Michigan, was the CEO of the Tri-County Wellness Group of medical providers in Michigan and Ohio. In addition to the prison sentence, Rashid was also ordered to pay over $51 million in restitution to Medicare, as well as forfeiture to the United States of property traceable to proceeds of the health care fraud scheme, including over $11.5 million, commercial real estate, residential real estate, and a Detroit Pistons season ticket membership.
Rashid pleaded guilty in 2018 to one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. Twenty-one other defendants, including 12 physicians, have been convicted thus far, including four physicians who were convicted after a one-month trial in 2020. Rashid is the second defendant to be sentenced.
According to court documents, from 2008 to 2016, Rashid was the CEO of the Tri-County Wellness Group, where the clinics had a policy to offer patients, some of whom were suffering from legitimate pain and others of whom were drug dealers or opioid addicts, prescriptions of Oxycodone 30 mg, but forced the patients to submit to unnecessary back injections in exchange for the prescriptions.
Testimony at the trial established that in some instances the patients experienced more pain from the shots than from the pain they had purportedly come to have treated; that audible screams from patients were observed throughout the clinics; and that some patients developed adverse conditions, including open holes in their back. Patients, including patients who were addicted to opioids, who told the doctors that they did not want, need, or benefit from the injections, were denied medication by the defendants and their co-conspirators until they agreed to submit to the expensive and unnecessary injections. The evidence further established that the defendants repeatedly performed these unnecessary injections on patients, as Tri-County was paid more for facet joint injections than any other medical clinic in the United States.
The evidence at trial showed that the Tri-County clinics valued making money over patient care. The Tri-County clinics intentionally targeted the Medicare program and recruited patients from homeless shelters and soup kitchens. Evidence at trial indicated that Rashid only hired physicians who were willing to disregard patient care in the pursuit of money. Rashid incentivized the physicians to follow the Tri-County protocol of offering opioid prescriptions and administering unnecessary injections by offering to split the Medicare reimbursements for these lucrative procedures. The specific injections used had nothing to do with the medical needs of the patients but were instead selected to be administered because they were the highest-paying injection procedures. A former Tri-County employee testified at the trial of Rashid’s co-defendants that the practices at the clinic were “barbaric.”
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima Shafiq Mohsin of the Eastern District of Michigan; Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG’s) Chicago Region; Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; and Special Agent in Charge Sarah Kull of IRS Criminal Investigation (IRS-CI) Detroit made the announcement.
HHS-OIG, FBI, and IRS-CI conducted the investigation. Assistant Chief Jacob Foster of the National Rapid Response Strike Force and Trial Attorney Tom Tynan of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Businessman Indicted for Not Reporting Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Herndon man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.
According to the indictment, Azizur Rahman, 70, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. For the years 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.
Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful.
If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department's Tax Division; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement.
Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Justice Department’s Tax Division 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-22.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Businessman Indicted for Not Reporting Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
A federal grand jury in Alexandria, Virginia, returned an indictment on March 3, 2021, charging a Virginia man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.
According to the indictment, Azizur Rahman of Herndon, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. From 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.
Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful.
If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia, and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation made the announcement.
IRS-Criminal Investigation conducted the investigation, and Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bulk Cocaine Trafficker Is Sentenced to More Than 15 YearsRead the Press Release
CHARLOTTE, N.C. – Harold Broome Jr., 39, of Charlotte, was sentenced today to 181 months in prison and 10 years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, in 2019, law enforcement learned that Broome was distributing large quantities of cocaine in the greater Charlotte area. In April 2019, law enforcement executed a search warrant at Broome’s residence, seizing more than five kilograms powder cocaine, over two pounds marijuana, digital scales, drug paraphernalia, and over $36,000 in cash. Court records show that Broome engaged in drug trafficking activities while on supervised release for a previous federal drug conviction. Broome was arrested on state drug charges and was subsequently released on bond. In December 2019, a federal indictment charged Broome with new drug offenses and an arrest warrant was issued.
In January 2020, law enforcement located and arrested Broome. At the time of his arrest, Broome was continuing to traffic narcotics and was found in possession of bulk cocaine, crack cocaine and marijuana. Subsequent to his arrest, Broome pleaded guilty to a federal superseding indictment, enlarging the scope of his drug trafficking conspiracy.
Broome is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the ATF and CMPD for their investigation of this case.
Assistant U.S. Attorneys Sanjeev Bhasker and Dena King, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Buffalo Man Facing 25 Charges, Including Drug, Gun and COVID Fraud Charges, in Two Separate IndictmentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned two separate indictments against Joseph Bella, 48, of Buffalo, NY. A superseding indictment charges the defendant with possessing with intent to distribute, and distributing cocaine; maintaining a drug involved premises; possessing a firearm in furtherance of a drug trafficking crime; being an unlawful user of a controlled substance in possession of a firearm; and threatening to injure a person through interstate communications. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
The second indictment charges Bella with committing wire and mail fraud, money laundering, and making false statements on a loan application. The charges in the second indictment carry a maximum possible sentence of 30 years in prison and a $1,000,000 fine.
“The common thread running through the allegation in these two indictments is defendant’s willingness to do anything to make a buck, even if it means jeopardizing the health and safety of others,” noted U.S. Attorney Kennedy.
Assistant U.S. Attorneys Nicholas T. Cooper and David J. Rudroff, who are handling the cases, stated that the according to the superseding indictment, indictment and a previously filed criminal complaint, on April 23, 2020, Special Agents and Officers from Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, and the Buffalo Police Department executed a search warrant at a residence on Summer Street in Buffalo. The defendant was present during the execution of that warrant. During the search, a quantity of cocaine, plastic bags, and a digital scale were seized. In addition, agents also discovered: a shotgun and numerous rounds of ammunition; THC gummies, lollipops, and other THC edibles; marijuana cigarettes and loose marijuana; THC vape cartridges; suspected Psilocybin mushrooms; a small quantity of MDMA; various pills; and THC resin.
In addition, Bella is alleged to have defrauded a Salt Lake City, Utah, corporation (Victim) that developed and manufactured COVID-19 test kits. Bella falsely represented that his company, Medcor Staffing, Inc., was laboratory certified to perform high-complexity molecular testing, that Medcor was an “end-user” of the tests, and that Medcor would not attempt to resell them. As a result, the Victim sold Bella 5,000 COVID-19 tests that he could not safely and accurately process, could not provide end-user support for, and, in fact, intended to re-sell at a substantial mark-up.
In March 2020, Bella advertised on his personal Facebook account that he was selling “FDA approved COVID-19 Test Kits.” In April 2020, the defendant communicated with an undercover federal agent by telephone, text message, and email, falsely telling the agent that he had 50,000 COVID-19 tests for sale; that the COVID-19 tests were being stored in a warehouse in San Diego, California at -20 degrees Celsius; that Medcor was an “exclusive licensed reseller” of the tests; and that Medcor employed doctors and scientists to answer customers' questions. Bella attempted to sell the tests to the agent for $30 per test, or more, after fraudulently obtaining the tests for only $8 apiece.
The defendant is also accused of fraudulently obtaining a loan from the Small Business Association under the Economic Injury Disaster Loan (EIDL) Program, which is designed to provide low-interest loans to qualifying small businesses to help them meet financial obligations and operating expenses in the event of a disaster. At Bella’s direction, a subordinate submitted a falsified application for a loan under the EIDL Program for another business Bella owns called BuyMyCard, a purchaser and re-seller of gift cards. The application grossly inflated BuyMyCard’s annual revenue, grossly underreported BuyMyCard’s annual expenses, and falsely stated that Bella was not subject to formal criminal charges at the time of the application. As a result of the falsified application, the SBA approved and funded a $149,900 loan to BuyMyCard under the EIDL Program.
Bella has been under home confinement since May 2020. Following his arraignment on these two indictments, U.S. Magistrate Judge Michael J. Roemer revoked Bella’s release and he was ordered detained pending trial.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The indictments are the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher; U.S. Border Patrol, under the direction of Chief Patrol Agent Eduardo Payan; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; and Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bridgeville Man Pleads Guilty to Possession and Distribution in Project Safe Childhood ProsecutionRead the Press Release
PITTSBURGH - A resident of Bridgeville, Pennsylvania, pleaded guilty in federal court to charges of Distribution of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Stephen R. Kaufman announced today.
Paul Chretien, age 66, pleaded guilty to two counts before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about September 26, 2018, Chretien distributed images in computer graphic files depicting the sexual exploitation of a minor. The court was further advised that on or about February 6, 2019, Chretien possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Conti scheduled sentencing for July 8, 2021. The law provides for a total sentence of not less than five years and not more than 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Chretien.
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 Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .
Armed Carjacker Is Sentenced to 12 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Jordan Allen Williams, 25, of Charlotte, was sentenced to 12 years in prison today on carjacking and firearms offenses, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Williams to serve five years of supervised release upon completion of the prison term.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, on June 2, 2019, at approximately 2:45 p.m., Williams and a co-conspirator approached a male victim at the parking lot of the victim’s apartment complex in Charlotte. Williams pointed a firearm at the victim and ordered the victim to hand over his cell phone, wallet and car keys. The victim complied, and Williams ordered the victim to lay down on the sidewalk or Williams would shoot him. Williams and his co-conspirator fled the scene in the victim’s Jeep Grand Cherokee. CMPD officers located the vehicle shortly thereafter, and Williams and his co-conspirator were arrested after Williams crashed the stolen vehicle while attempting to evade the police.
In March 2020, Williams pleaded guilty to carjacking and brandishing a firearm during, in relation to, and in furtherance of a crime of violence. Court records show that, between 2014 and 2016, Williams was convicted of multiple counts of Breaking and Entering and other felony convictions in Mecklenburg County. During his incarceration for these crimes in 2017, Williams admitted to being a member of the United Blood Nation (UBN) or “Bloods” gang.
Williams is currently in custody and will be transferred to custody of the federal Bureau of Prisons upon designation of a federal facility.
The investigation was handled by ICE-HSI and CMPD. Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Armed Career Criminal Receives 15 Year Sentence for Gun PossessionRead the Press Release
Memphis, TN – Antonio Buffington, 45, has been sentenced to 180 months in federal prison for being a convicted felon in possession of a firearm. Joseph C. Murphy, Jr., Acting United States Attorney announced the sentence today.
According to information presented in court, on November 23, 2018, Memphis Police Department officers responded to a domestic disturbance in the 4200 block of Gladstone Road. The officers were met by the wife of the defendant, Q.B., who advised that she and her husband were in an argument regarding money.
Buffington reportedly retrieved a firearm from a bedside table, pulled the hammer back, and demanded his wife withdraw money from a local ATM. The pair went to a nearby gas station where Q.B. withdrew money from an ATM and provided some to the defendant. The defendant then dropped his wife off at her house and left.
Later, when Buffington returned to the house, his wife called law enforcement. When officers arrived, they recovered an Interarms Industries .44 caliber revolver on the front seat of his vehicle. The defendant was taken into custody. After waiving his Miranda rights, Buffington informed officers that he was in possession of the gun and did take the gun from the nightstand to his vehicle.
Buffington is a convicted felon having previously been convicted of Criminal Attempt: Aggravated Assault, as well as having convictions for Aggravated Robbery. As a result of his felony convictions, Buffington is prohibited by federal law from possessing firearms or ammunition, and was determined to be an armed career criminal under the federal sentencing guidelines and subject to a mandatory minimum sentence of 180 months.
On March 2, 2021, U.S. District Court Judge Sheryl H. Lipman sentenced Buffington to 180 months in federal prison followed by two years supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods (PSN) Task Force. Project Safe Neighborhoods (PSN) initiative, is 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. In 2017, PSN was reinvigorated 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.
Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Albany Felon Sentenced to 51 Months for Illegally Possessing a Loaded, Stolen FirearmRead the Press Release
ALBANY, NEW YORK – Jahmeek Croley, a/k/a “Meeker,” age 33, of Albany, was sentenced today to 51 months in prison for unlawfully possessing a loaded firearm as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief Eric Hawkins of the Albany Police Department.
Croley, who has prior felony convictions for drug and weapons offenses, previously admitted that in November 2019, he possessed a loaded 9mm pistol at his residence in Albany. Croley further admitted to purchasing the pistol – which had been stolen from a Vermont residence in 2015 – in the city of Albany in October 2019.
Croley was arrested on November 14, 2019, as part of an operation targeting the Yard Boys criminal street gang undertaken by the Capital District Safe Streets Gang Task Force, a collaboration of federal, state, and local law enforcement agencies. Croley has been in custody since his arrest. Croley has additional charges pending in Albany County Court.
Senior United States District Judge Thomas J. McAvoy also sentenced Croley to a 3-year term of supervised release, to begin following his term of imprisonment
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, ATF and the Albany Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download.
Tuesday 2 March 2021
United States Reaches Settlement with Charleston County School District to Ensure Equal Opportunities for English Learner StudentsRead the Press Release
Charleston, South Carolina – The Department of Justice’s Civil Rights Division and United States Attorney’s Office for the District of South Carolina announced today a settlement agreement with the Charleston County School District to resolve an investigation into complaints that the school district failed to communicate essential information to thousands of Spanish-speaking, limited English proficient (LEP) parents and denied their children full and equal access to the district’s education programs and services.
The investigation found that the school district often failed to use qualified interpreters to communicate with Spanish-speaking, LEP parents and guardians, even when their need for an interpreter was documented or otherwise evident. It also found that the school district did not consistently translate essential written information into Spanish, nor did it explain options on important decisions about school programs and services with parents in a language they understood.
The agreement, which stems from the United States’ investigation under Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974, will ensure that the school district provides English Learner students and LEP parents the services needed to succeed in the school district’s educational programs.
Under the agreement, the school district, which cooperated at every stage of the investigation and is committed to improving its practices through revised policies and professional development, will:
- Implement effective policies and procedures and provide employees with training to properly identify and meaningfully communicate with LEP parents and guardians;
- Use qualified interpreters and translators at each of the district’s 80 schools and programs to communicate with parents about matters essential to their children’s education and cease relying on family members, untrained staff, and students for such purposes;
- Provide LEP parents with access to documents and information about program offerings, including special education services, in a language they understand at each of the district’s 80 schools and programs;
- Ensure that all parents and guardians knowingly consent to, or decline educational programming and services for, their children; and
- Contact LEP parents and guardians prior to holding special education-related meetings to notify them of the right to have a qualified interpreter at the meeting and translated special-education related documents, at no cost to the parent or guardian.
“Empowering parents and guardians with the information necessary to meaningfully participate in their children’s education is critical to students’ success in school and beyond. We must continue the work to ensure that all parents have this opportunity, regardless of national origin or English proficiency,” said Pamela S. Karlan, Principal Deputy Assistant Attorney General of the Civil Rights Division. “We are encouraged by the Charleston County School District’s commitment and cooperation and look forward to continuing to work with the district to implement this agreement and fulfill its promise of equal treatment for all of the district’s students and their parents.”
“The Charleston County School District should be commended for its cooperation with this investigation and for its commitment to its students, parents, and guardians,” said Acting U.S. Attorney for the District of South Carolina M. Rhett DeHart. “The U.S. Attorney’s Office looks forward to continue working with the school district, as it strives to be a model for other districts in providing full and equal access to information.”
The enforcement of Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974 is a top priority of the Department of Justice’s Civil Rights Division.
Information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
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United States Reaches Settlement Agreement with Bucks County Summer Camp to Resolve Allegations of Disability DiscriminationRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Briarwood Recreation, Inc., d/b/a Briarwood Day Camp (“Briarwood”), located in Furlong, PA, resolved allegations that it violated the Americans with Disabilities Act by denying a child the opportunity to participate in summer day camp programs because of his Type 1 diabetes (also known as insulin dependent diabetes).
The settlement resolves a complaint filed by parents of a young child alleging that, after the boy was diagnosed with Type I diabetes in 2017, Briarwood refused to permit him to continue to participate in the 2017 summer program, and also that Briarwood refused to consider and provide reasonable modifications that would allow the child to attend the 2018 summer day camp program. The complaint was filed under Title III of the Americans with Disabilities Act (ADA).
Title III of the ADA prohibits discrimination on the basis of disability by any person or entity, including any private camp or childcare program, that operates a place of public accommodation. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. When a parent and a child’s physician determine that it is appropriate for a trained layperson to assist a child with diabetes care, a camp or childcare program must provide this as a reasonable modification under the ADA, unless doing so would fundamentally alter the program.
Briarwood submits that it remains committed to providing all children with diabetes an equal opportunity to attend the camp and to participate in all of its programs, services and activities. Under the terms of the settlement agreement, Briarwood will take certain remedial measures including:
- train its staff on the ADA and on diabetes management and develop a sample diabetes medical management plan;
- evaluate the application of each child with diabetes applying to attend the camp, on a case-by-case basis, and make reasonable modifications to permit children with diabetes to attend;
- designate an ADA compliance officer who will monitor compliance with the agreement and review requests for reasonable modifications, among other duties;
- pay $5,000 in compensation to the complainant; and,
- report to the United States on its compliance annually for three years.
“Summer camps, like other child care programs, play a critical role in parents’ ability to go to work or take care of other responsibilities of life. Parents must feel assured that their children will be welcomed, and not be unlawfully denied access to a summer camp on the basis of a disability,” said Acting U.S. Attorney Williams. “We appreciate Briarwood working cooperatively with the United States Attorney’s Office to better understand its obligations under the ADA, and we will continue to work to ensure that summer camp and child care programs are in compliance with the ADA.”
The settled civil claims are allegations only. There has been no determination of civil liability.
Assistant United States Attorney Stacey L. B. Smith handled the case in the Eastern District of Pennsylvania, working jointly with the Civil Rights Division of the Department of Justice.
U.S. Attorney's Office Sponsors 18th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney M. Rhett DeHart announced today the official call for submissions for the United States Attorney’s Office’s 18th Annual Project Safe Neighborhoods (PSN) Logo Contest. The statewide contest welcomes students to illustrate ways to help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications.
The contest is open to all South Carolina grade school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12 grades. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.
The winning entries will be selected by a select group of students from the South Carolina Department of Juvenile Justice, who encourage children and promote community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Law Enforcement Officers’ Association and the South Carolina Sheriffs’ Association for this year’s contest.
Entries should be consistent with the theme of “Preventing Gun Violence in Our Schools.” The deadline for submissions is April 2, 2021. Any student interested in participating in the contest should share that intention with his or her local school, as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found online at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
PSN focuses on reducing violent crime in our communities through enforcement, reentry, and prevention initiatives. The annual logo contest is an important prevention initiative that has proven to be an effective way to engage students in meaningful conversation about preventing gun crimes amongst young people and ensuring a safe learning atmosphere for children. More information on the contest and previous years’ winning logos can be viewed at:
http://www.justice.gov/usao/sc/programs/logowinners.html.
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U.S. Attorney Scott W. Murray Announces His Resignation Effective March 6, 2021Read the Press Release
CONCORD - United States Attorney Scott W. Murray today announced that he will resign from his position effective March 6, 2021.
The resignation was submitted in response to President Biden’s call to replace nearly all remaining Presidentially-appointed/Senate-confirmed U.S. Attorneys.
U.S. Attorney Murray is the chief federal law enforcement officer in New Hampshire. He was nominated by President Trump on December 1, 2017, and confirmed by the United States Senate on February 15, 2018. He was sworn in as the 57Th U.S. Attorney for New Hampshire on March 5, 2018. He was serving his fourth term as Merrimack County Attorney when he was nominated by the President. He previously served as the Chief Prosecuting Attorney for the City of Concord from 1983 to 2011.
In announcing his departure, U.S. Attorney Murray said, “It has been my greatest honor and privilege to serve as U.S. Attorney for the past three years. I am deeply grateful to have had the opportunity to protect the people of New Hampshire through the application of federal law. For a career prosecutor, this was the chance of a lifetime.”
Noting the many changes that had taken place in the U.S. Attorney’s Office since his arrival, Murray said, “During the past three years we have added prosecution and support positions, changed the structure of our Criminal Division and hired over a dozen new staff members. Going forward, I have every confidence that our hard-working dedicated professionals will ensure that federal law is vigorously enforced and that the public interest is effectively advanced.”
Throughout his tenure, U.S. Attorney Murray stressed cooperation between federal, state, and local law enforcement officers as essential to address New Hampshire’s drug and violent crime problems. He attended local law enforcement meetings in all 10 counties and improved communications with county attorney’s offices and the New Hampshire State Police. He also coordinated Project Safe Neighborhood (PSN) trainings around the state to brief police on federal firearms laws. Under PSN, federal prosecutors brought charges against violent criminals, drug traffickers who used guns, convicted felons who possessed guns and those who unlawfully supplied guns to criminals. Many of those prosecutions were adopted from state court cases.
U.S. Attorney Murray conducted regular meetings with the leaders of federal law enforcement agencies operating in New Hampshire and hosted the first New England regional meeting of U.S. Attorneys in Concord in November of 2018. He also implemented regular meetings involving federal drug prosecutors and DEA agents from Maine, New Hampshire, and Massachusetts to improve regional drug enforcement coordination.
Under U.S. Attorney Murray’s leadership, his office devoted substantial resources to combatting drug trafficking, particularly fentanyl and methamphetamine. As part of this effort, U.S. Attorney Murray requested that U.S. Attorney General Jeff Sessions include New Hampshire as one of only 10 districts nationally to receive additional resources under Operation Synthetic Opioid Surge (SOS). Sessions visited the U.S. Attorney’s Office in Concord in July of 2018 to announce implementation of the program. Under Operation SOS, the U.S. Attorney’s Office teamed with the Hillsborough County Attorney’s Office and law enforcement agencies throughout Hillsborough County to target fentanyl dealers. To date, over 90 federal prosecutions have been initiated under Operation SOS.
During U.S. Attorney Murray’s term, prosecutions were launched against large drug trafficking organizations, resulting in the convictions of dozens of dealers. These included trafficking organizations based in Massachusetts and the Dominican Republic who sought to sell lethal drugs to Granite Staters. One notable dealer was sentenced to 45 years in prison for leading a continuing criminal enterprise that distributed multikilogram quantities of fentanyl and reaped millions of dollars in profit from sales in New Hampshire.
U.S. Attorney Murray also pursued significant prosecutions to protect crime victims. These included cases against offenders who produced child pornography, exploited the opioid addiction of young women in order to profit from prostitution, engaged in fraud and theft schemes, and extorted victims on the internet.
Pursuant to the Vacancies Reform Act, First Assistant U.S. Attorney John J. Farley will serve as Acting United States Attorney until a new Presidentially-appointed U.S. Attorney takes office. Farley previously served as Acting U.S. Attorney from March 2017 until U.S. Attorney Murray took office.
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Two Men Charged in Ecuadorian Bribery and Money Laundering SchemeRead the Press Release
Criminal complaints have been unsealed charging two Ecuadorian citizens for their alleged roles in a bribery and money laundering scheme involving Ecuador’s public police pension fund (ISSPOL).
John Luzuriaga Aguinaga, 52, and Jorge Cherrez Miño, 46, were each charged with one count of conspiracy to commit money laundering in complaints filed in the Southern District of Florida on Feb. 10 and Feb. 19, respectively. Luzuriaga was arrested Feb. 26 and had his initial appearance Monday. An arrest warrant has been issued for Cherrez who is believed to be in Mexico.
As alleged in the complaints, between approximately 2014 and 2020, Cherrez, an investment advisor, paid more than $2.6 million in bribes to ISSPOL officials, including at least approximately $1,397,066 to Luzuriaga, ISSPOL’s Risk Director and a member of ISSPOL’s Investment Committee, in order to obtain and retain investment business from ISSPOL. Cherrez allegedly obtained approximately $65 million in profits from one aspect of the scheme.
According to the complaint, Cherrez received payments from the ISSPOL investment business in an account in the United States, used Florida-based companies and bank accounts to pay the bribes, and took acts in furtherance of the bribery scheme while in the Southern District of Florida. Further, to conceal and promote the bribery scheme, Cherrez and Luzuriaga allegedly laundered the corrupt proceeds through Florida-based companies and bank accounts, including numerous U.S. investment fund companies incorporated in Florida with Cherrez as an officer or director.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami office made the announcement.
This case is being investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team. Trial Attorneys Katherine Raut and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Southern District of Florida Assistant United States Attorney Annika Miranda is handling asset forfeiture.
The Justice Department’s Office of International Affairs has provided significant assistance in this case.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
Two District Men Indicted for Violent Kidnapping Live-Streamed on Social MediaRead the Press Release
WASHINGTON – Sincere Howard (“Howard”), 20, and Garrett Hawkins (“Hawkins”), 21, both of Washington, D.C., have been indicted by a federal grand jury in the District of Columbia for conspiracy to commit kidnapping, kidnapping, and cyber stalking. The indictment was announced by Acting U.S. Attorney Michael R. Sherwin, Acting Police Chief Robert Contee of the Metropolitan Police Department (“MPD”), and Steven D’Antuono, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”).
The investigation began after officers from MPD’s Violence Reduction Unit became aware on January 24, 2021, of a live stream on the Instagram social media platform showing an injured and distressed adult male being held against his will and assaulted. The defendants are alleged to have violently assaulted the victim, on January 23, 2021, with a variety of implements, including an electrical extension cord, all while broadcasting their actions on social media. MPD apprehended both defendants on scene and also recovered a firearm.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
In announcing the indictment, Acting U.S. Attorney Sherwin and FBI Assistant Director in Charge D’Antuono commended the work of MPD’s Violence Reduction Unit who investigated the case. Finally, they acknowledged the work of Assistant U.S. Attorneys Emory V. Cole and William Hart, Paralegal Specialist Teesha Tobias, and Legal Assistant Kate Abrey of the U.S. Attorney’s Office for the District of Columbia.
Tennessee Man Sentenced to 17 ½ Years in Prison for Possession of Guns and DrugsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Tennessee man for possession with the intent to distribute cocaine and heroin, and possession of a firearm, announced U.S. Attorney Prim F. Escalona and DEA Special Agent in Charge Brad L. Byerley.
U.S. District Judge Annemarie Carney Axon sentenced Jason Jeremiah Jones, 39, to 210 months in prison after he pleaded guilty in November 2020 to two counts of possession with the intent to distribute a controlled substance, and one count of being a felon in possession of a firearm.
On July 24, 2017, Huntsville/Madison County Strategic Counterdrug Team/HIDTA Task Force obtained a search warrant of Jones’s residence in Huntsville. Agents searched the premises and seized approximately 9 grams of heroin and 85 grams of cocaine, and a Colt .380 pistol.
“This prosecution is a great example of local and federal law enforcement’s teamwork approach to stopping drug dealers and taking guns out of the hands of criminals,” U.S. Attorney Escalona said. “We will use all the tools we have under federal law to assist local agencies working to make our communities safer.”
“This outstanding collaboration between federal and local law enforcement agencies illustrates the continuing unified goal to keeping our community safe,” said DEA Special Agent in Charge Brad L. Byerley. This lengthy sentence closes the door on a career criminal who felt untouchable and beyond the reach of law enforcement. DEA and our law enforcement partners stand firmly to ensure that criminals who peddle in these illegal and dangerous drugs will never escape from facing the consequences of their criminal activities.”
The DEA investigated the case, along with the Huntsville/Madison County Strategic Counterdrug Team/HIDTA Task Force. Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted the case.
Taylor County man and woman indicted on child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dallas Edward Weber, Jr. and Ashley Marie Weber, both of Thornton, West Virginia, were indicted today on a child pornography charge, Acting United States Attorney Randolph J. Bernard announced.
Dallas, 40, and Ashley, 37, were each indicted on one count of “Aiding and Abetting Production of Child Pornography.” Both are accused of using a minor child to engage in sexually explicit conduct and producing child pornography from that conduct in June 2020 in Taylor County.
Dallas and Ashley are each facing 15 to 30 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Taylor County Sheriff’s Office and the FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Tampa Man Pleads Guilty to Dealing Fentanyl-Laced Cocaine, Causing OverdoseRead the Press Release
Tampa, Florida – Marvin Lee Carter, Sr. (41, Tampa) has pleaded guilty to distributing controlled substances, which use resulted in serious bodily injury. Carter faces a mandatory minimum penalty of 20 years, and up to life, in federal prison.
According to the plea agreement, on the Fourth of July weekend in 2019, Carter distributed fentanyl-laced cocaine to a man who later used the drugs and overdosed. The man’s life was saved by the intervention of a responding police officer.
This case was investigated by the Drug Enforcement Administration and the Tampa Police Department, with assistance from Tampa Fire Rescue. It is being prosecuted by Assistant United States Attorney Randall Leonard.
Subcontractor Agrees to Pay the United States $500k+ in Damages After Failing to Pay Prevailing Wages on VA Construction ProjectsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that S.A. Taylor, LLC (“S.A. Taylor”) has agreed to settle claims under the False Claims Act and to pay $561,411.72 based on allegations that the company caused the submission of falsified payroll records as part of two United States Department of Veterans Affairs (the “VA”) construction projects.
S.A. Taylor, a Virginia-based construction company, bid on and was awarded subcontracts to work on two VA construction projects under prime contractor, CTA, I, LLC. Because the construction work was performed for the federal government, all contractors and subcontractors were required, by law, to pay their workers prevailing wages. At the time, the prevailing wage was between $57 to $91.50 per hour, depending on the worker’s classification.
The government contends that S.A. Taylor paid its workers significantly less than the prevailing wage, but that it submitted falsified payroll records to make it seem as if the prevailing wage had been paid. CTA, unaware of the falsity, submitted the payroll to the VA which, in turn, reimbursed S.A. Taylor. Under this scheme, S.A. Taylor pocketed the difference while its workers were shorted wages they were legally due. CTA discovered the falsity during a subsequent arbitration when S.A. Taylor produced two sets of payroll records—one showing the prevailing wages which should have been paid and one showing the actual, lower wages which had actually been paid.
“The underlying False Claims Act lawsuit alleges that S.A. Taylor deliberately exploited its own workers despite a federal law guaranteeing those workers a prevailing wage,” said Acting U.S. Attorney Williams. “Today’s settlement reflects the reality that individuals and entities that exploit workers will be held accountable by the government.”
“Today’s civil settlement reflects the VA OIG’s commitment to maintaining the integrity of VA’s construction contracts and ensuring full compliance with the law,” said Christopher Algieri, Special Agent in Charge of the VA Office of Inspector General’s Northeast Field Office. “We thank the U.S. Attorney’s Office and our law enforcement partners for their vital role in achieving this investigation’s successful outcome.”
“This case is a great example of the OIG’s work with its law enforcement partners to actively investigate fraud involving federal contracts. We will continue to work with our law enforcement partners to protect the integrity of DOL programs and to ensure workers are paid proper wages for the work they perform,” said Acting Special Agent-in-Charge, Jonathan Mellone, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania captioned United States ex rel. CTA, I, LLC v. S.A. Taylor, LLC and Scott Taylor, Civil Action No. 16-2919. Under the qui tam or whistleblower provisions of the False Claims Act, lawsuits like this one may be brought on behalf of the United States and the relator, here CTA, shares in any recovery by the government. The False Claims Act also permits the government to intervene and take over the lawsuit, as it did in this case. The relator was represented in this case by John Manfredonia of Manfredonia Law Offices, LLC and Joseph F. Bouvier of Mattioni, LTD. “We thank the relator and the relator’s counsel for bringing this issue to the government’s attention. Detecting fraud in government contracting is much easier when we have the cooperation of prime contractors like CTA” said Williams. The whistleblower in this case, CTA, will receive $101,054.11 as its share of the recovery.
This matter was investigated by the United States Department of Veterans Affairs Office of the Inspector General and the United States Department of Labor Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney Veronica J. Finkelstein, Auditor Dawn Wiggins, and Investigator Jeffrey R. Braun.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Sherwood Man Detained Pending Trial on Federal Gun ChargesRead the Press Release
LITTLE ROCK—A Sherwood man will remain in custody to await trial after being indicted on federal firearm charges. Noah Shoemaker, 37, appeared for a bond hearing on Monday afternoon before United States Magistrate Judge Patricia S. Harris.
Shoemaker was charged in January 2021 with one count of being a felon in possession of a firearm and one count of possessing a machine gun. When FBI agents arrested Shoemaker on January 30, 2021, they discovered he had fled to Pinnacle Mountain State Park. Upon locating Shoemaker, agents found a firearm on his person and another firearm in his vehicle as well as numerous rounds of ammunition. Additionally, Shoemaker was equipped with camping gear, bottled water, cash, fire supplies, and other survival gear.
Judge Harris determined that Shoemaker poses a risk of flight as well as a risk of danger to the community and remanded him to the custody of the United States Marshals. He will remain in custody until his trial, which is currently scheduled for March 29, 2021, but is expected to be continued due to the Court’s Administrative Order 11.
Shoemaker was initially charged in January on a federal complaint, and subsequently indicted on three charges—two counts of being a felon in possession of a firearm and one count of possessing a machine gun—on Feb. 3, 2021. Being a felon in possession of a firearm and possessing a machine gun are both punishable by up to 10 years’ imprisonment, a fine of not more than $250,000, and up to three years of supervised release. This case is being investigated by the FBI and prosecuted by Assistant United States Attorney Stacy Williams.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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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