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15 April 2021
Former CEO of Braskem Pleads Guilty to BriberyRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Jose Carlos Grubisich, the former chief executive officer of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, pleaded guilty before United States District Judge Raymond J. Dearie to (1) conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and (2) conspiring to violate the books and records provisions of the FCPA in failing to accurately certify Braskem’s financial reports. Grubisich and his co-conspirators engaged in a massive bribery scheme involving Braskem and its parent company Odebrecht S.A. (Odebrecht), in which hundreds of millions of dollars were diverted from Braskem to a secret slush fund that was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business for Braskem. Under the plea agreement, Grubisich has agreed to pay approximately $2.2 million in forfeiture.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Grubisich abused his position of trust as CEO of Braskem to both facilitate and conceal the payment of millions of dollars in bribes so that Braskem could increase its profits and its senior executives — including Grubisich himself — could personally benefit,” stated Acting United States Attorney Lesko. “This Office is committed to the prosecution of corrupt gatekeepers, including officers and directors of public companies, who, like Grubisich, use the United States’ financial system to commit crimes.”
“As CEO of a publicly traded company, Grubisich and other senior executives at Braskem engaged in a large-scale, sophisticated international bribery and fraud scheme and then lied to U.S. shareholders and authorities to conceal their criminal conduct,” stated Acting Assistant Attorney General McQuaid. “Today’s guilty plea demonstrates the Department’s commitment to holding individuals accountable for corrupt and fraudulent conduct, including those at the highest corporate echelons.”
As set forth in court filings and at today’s proceedings, between approximately 2002 and 2014, Grubisich, a citizen of Brazil, who served as the CEO and a member of the Board of Directors of Braskem as well as in various capacities for Odebrecht— engaged in a scheme to bribe Brazilian government officials in violation of the FCPA. As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund which Grubisich and others had set up through fraudulent contracts and offshore shell companies that were secretly controlled by Braskem. At the time of the conspiracy, Braskem’s American Depositary Receipts were publicly traded on the New York Stock Exchange.
Grubisich admitted that, while CEO of Braskem, he agreed to pay bribes to Brazilian government officials to ensure Braskem’s retention of a contract for a significant petrochemical project from Petroleo Brasileiro S.A.–Petrobras, Brazil’s state-owned and state-controlled oil company. Grubisich further admitted that while CEO of Braskem, he agreed to falsify Braskem’s books and records by causing Braskem to falsely record the payments to offshore shell companies controlled by Braskem as payments for legitimate services. Grubisich signed false Sarbanes-Oxley certifications submitted to the United States Securities and Exchange Commission (SEC) that, among other things, attested that Braskem’s annual reports fairly and accurately represented Braskem’s financial condition, and that Grubisich, as Braskem’s principal officer, had disclosed all fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting.
In December 2016, Braskem and Odebrecht pleaded guilty in the Eastern District of New York to one-count criminal informations charging each with conspiracy to violate the anti-bribery provisions of the FCPA. Braskem settled with the SEC in related proceedings on the same day.
The government’s case is being prosecuted by Assistant U.S. Attorneys Julia Nestor and Alixandra Smith of the Office’s Business and Securities Fraud Section, and Assistant Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters. The FBI’s International Corruption squad in New York is investigating the case.
The Criminal Division’s Office of International Affairs provided substantial assistance, as did the SEC’s Division of Enforcement, Ministério Público Federal and the Departamento de Polícia Federal in Brazil, the Office of the Attorney General in Switzerland, and the governments of Portugal, Andorra, United Kingdom, and Panama.
The Defendant
JOSE CARLOS GRUBISICH
Age: 64
Sao Paulo, BrazilE.D.N.Y. Docket No. 19-CR-102 (RJD)
Former Bureau of Prisons Correctional Officer Sentenced for Sex OffenseRead the Press Release
PHOENIX, Ariz. – Today, Irv Anglin, 29, of Tempe, Arizona, was sentenced by U.S. District Judge John J. Tuchi to 8 months in prison, followed by 10 years of supervised release. Anglin previously pleaded guilty to Abusive Sexual Contact of a Ward. Anglin will also be required to register as a sex offender.
Anglin worked as a Correctional Officer at the Federal Bureau of Prisons in Phoenix, Arizona. Between January 1, 2019, and November 30, 2019, Anglin engaged in sexual contact with an inmate he supervised at the facility.
“Sexual abuse of inmates is never tolerated. Today’s sentencing shows that those who abuse inmates will be held accountable,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice, Office of the Inspector General, Denver Field Office.
“This officer abused his position of authority by harming an inmate and betrayed the trust of the federal government. Instead of providing safe imprisonment, Anglin violated his oath and the rights of this individual,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “The FBI is committed to strengthening trust in law enforcement by holding those who abuse their privileges and abandon their responsibilities accountable.”
The U.S. Department of Justice, Office of the Inspector General (Denver office) and the Federal Bureau of Investigation conducted the investigation in this case. Gayle Helart, William G. Voit, and Christine D. Keller, Assistant U.S. Attorneys, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: 2020-CR-00625-JJT
RELEASE NUMBER: 2021- 027_Anglin# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.For-Profit Trade School Owner Found Guilty of Defrauding VA, Student VeteransRead the Press Release
The owner of a for-profit trade school has been convicted of bilking the U.S. Department of Veterans Affairs of $72 million and of misleading student veterans, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After approximately seven hours of deliberation, a federal jury on Thursday found Jonathan Dean Davis, the 43 year-old owner of Retail Ready Career Center, guilty of seven counts of wire fraud and four counts of money laundering.
“Mr. Davis lied to multiple government agencies in order to swindle veterans out of their hard-won GI Bill benefits. While graduates of Retail Ready were just scraping by, Mr. Davis was living the high life,” said Acting U.S. Attorney Prerak Shah. “We are grateful to the jury for their time in helping us bring this defendant to justice. To undermine the VA is to insult the incredible sacrifices made by U.S. military veterans.”
“Owners of schools that are entrusted with the education of our nation’s veterans will be held accountable if they defraud the post-911 GI Bill program or veteran students,” stated VA OIG Special Agent in Charge Jeffrey Breen. “Today’s guilty verdict was reached under the leadership of the U.S. Attorney’s Office, and as a result of the extensive work of special agents of the VA Office of Inspector General, the FBI, and the United States Postal Inspection Service.”
According to evidence presented at trial, Mr. Davis marketed Retail Ready’s six-week HVAC training course to veterans whose tuition and fees would be covered by the Veteran’s Educational Assistance Act of 2008, also known as the post-9/11 GI Bill. The defendant, who was essentially broke at the time of the crime, realized that he could charge $18,000 to $21,000 per student for the six-week course, if only he could get approval from the VA to accept GI Bill payments for tuition – which required prior approvals from the Texas Workforce Commission (TWC) and the Texas Veterans Commission (TVC).
These agencies required applicants to certify that they were not personally facing any criminal or civil actions, and to prove that their schools were established educational institutions in stable financial condition. Knowing he could not meet these requirements, Mr. Davis repeatedly lied and concealed information from these agencies.
“Several decisions lie ahead that will ultimately make the difference if I succeed or if I fail. More gut-wrenching conversations, more humiliating experiences, more lying is in order,” Mr. Davis wrote in an electronic journal he kept on his computer, which was recovered by federal agents during a search of Retail Ready. The journal became a key piece of evidence at trial.
Mr. Davis assured the TWC that he was not subject to any civil actions, when, in fact, he was facing numerous civil judgments over unpaid debts. He also told the TWC that he was not facing any criminal charges, when, in fact, he had a pending felony charge for theft of services.
Chronicling his arrest in his journal, Mr. Davis wrote, “I was arrested on December 20th, last Friday night (a week ago) for a warrant that had been hanging around since April apparently. I didn’t know that I had one but it was for Theft of services for a bad check I had written in June or July of 2012 to the Doubletree for $25,000.00, which makes the charge a felony … The more complicated and damaging aspect is that having a felony arrest doesn’t do well with trying to apply for a school certificate.”
Mr. Davis told the TVC that Retail Ready had been operating as a school for two years, when, in fact, the company had only existed for a few months and had never trained any students. He claimed that Retail Ready was fully prepared to train veterans, when, in fact, the company lacked a building and basic supplies. He even lied to an independent accountant about the school’s financial condition, and then submitted false financial statements to both the TWC and the TVC.
“I lied to the accountant that I am using for my audit service, I told him that I don’t have anything in the company name other than a lease and I left out having Jay being an employee and that I’ve had a bank account with expenses out of it because it is a disaster and wouldn’t project a very good picture,” Mr. Davis wrote in his journal.
Eventually, based upon Mr. Davis’ lies to the TWC and TVC, the VA accepted Retail Ready’s application, allowing Mr. Davis to charge veterans’ tuition and fees to the VA under the GI Bill.
In 2014, he began recruiting student veterans, promising to prepare them for lucrative careers in the heating and air conditioning industry. Upon entering the workforce, however, many of these veterans discovered that Retail Ready had failed to teach them many of the basic skills necessary for entry-level technician jobs.
Several veterans testified at trial that they had relied on the Retail Ready’s fraudulently obtained VA endorsement and were sorely disappointed about their post- Retail Ready career prospects and pay. They were also shocked to learn of the rate at which Retail Ready’s six-week course had drained their GI Bill benefits, testifying that they felt “used,” “taken advantage of,” “deceived,” and “bamboozled.”
Even as his veteran graduates struggled to make ends meet, Retail Ready collected more than $72 million in GI Bill benefits from the VA. Using the proceeds of his fraud, Mr. Davis purchased a $2.2 million home in Dallas, a $428,000 Lamborghini, a $280,000 Ferrari, and a $260,000 Bentley, among other things.
He now faces up to 180 years in federal prison. His sentencing hearing has been set for Sept. 15.
The VA’s Office of Inspector General conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the United States Postal Inspection Service’s Fort Worth Field Office. Assistant U.S. Attorneys Douglas Brasher and Fabio Leonardi are prosecuting the case, and Assistant U.S. Attorney Dimitri Rocha is handling forfeiture. U.S. District Judge Brantley Starr presided over the trial.
Federal Jury Convicts Jacksonville Man of Possession of A Firearm by A Convicted FelonRead the Press Release
Jacksonville, Florida – A federal jury has found Ronnie Jerome Jones (39, Jacksonville) guilty of possessing a firearm as a convicted felon. Due to his multiple prior felony convictions, Jones qualifies for an increased penalty under the Armed Career Criminal Act. He faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 19, 2021.
Jones had been indicted on March 11, 2020.
According to evidence and testimony presented at trial, Jones, a previously convicted felon sold a .45 caliber handgun to a pawn shop in Jacksonville. Jones has been convicted of numerous violent narcotics felony offenses and is therefore prohibited from possessing firearms or ammunition under federal law. At the time of this offense, Jones had been out of prison for less than nine months.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian and Assistant United States Attorney Laura Cofer Taylor.
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 and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
El Paso Man Sentenced to Federal Prison for Assaulting a Child on the Ysleta Del Sur Pueblo ReservationRead the Press Release
A federal judge in El Paso sentenced 28-year-old Roberto Martinez today to 40 months imprisonment for assaulting a child on the Ysleta Del Sur Pueblo reservation, announced U.S. Attorney Ashley C. Hoff; Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division; and Ysleta Del Sur Pueblo Tribal Police Chief Robert Martinez.
In addition to the prison term, Senior U.S. District Judge David Briones ordered that Roberto Martinez be placed on supervised release for a period of three years after completing his prison term.
On January 7, 2021, Roberto Martinez pleaded guilty to one count of assault with a dangerous weapon with intent to do bodily harm in Indian Country. According to court records, on November 1, 2019, Roberto Martinez threatened the victim with a knife while inside the victim’s home.
HSI and the Ysleta Del Sur Pueblo Tribal Police Department investigated this case. Assistant U.S. Attorney Christopher Kirk Mangels prosecuted this case.
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Dunmore Man Sentenced to 16 Months’ Imprisonment for Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric R. Colborn, age 46, of Dunmore, Pennsylvania, was sentenced on April 14, 2021, to 16 months’ imprisonment to be followed by a three-year term of supervised release by U.S. District Court Judge Robert D. Mariani for bank fraud. Judge Mariani also ordered Colborn to pay restitution in the amount of $22,470.40.
According to Acting United States Attorney Bruce D. Brandler, Colborn previously entered guilty pleas on January 15, 2020 to bank fraud and conspiracy to commit bank fraud.
Colborn created a counterfeit Wells Fargo brokerage statement in his name showing that he had in excess of $14,000,000 in a brokerage account, and then fraudulently induced reliance on the counterfeit brokerage statement to secure property and other things of value. One such example occurred when Colborn admittedly issued a bad check to a local realtor in the amount of $2,000 for a down payment toward the purchase of a residence in Dunmore, Pennsylvania with a promise of paying $190,000 in cash at closing. The realtor subsequently contacted Wells Fargo and learned that the brokerage account did not exist.
Beginning in November 2017 through March 2019, Colborn admitted to unlawfully issuing a series of bad checks totaling more than $400,000 in order to obtain property. For example, in November 2017, Colborn issued a bad check in the amount of $58,786.54 to Motor World in order to take possession of a Range Rover. In that same month, Colborn issued a bad check in the amount of $68,416.70 to Gibbon’s Ford in order take possession of a 2018 Ford F-150 pick-up truck. In January 2019, Colborn issued a bad check in the amount of $95,682.48 to Ken Pollock Alfa Romero in order take possession of an Alfa Romero vehicle. The vehicles were subsequently repossessed. Colborn’s fraud scheme also included a series of bad checks issued to local retailers for thousands of dollars, including Home Depot, RJ Walker, Dick’s Sporting Goods and Auto Zone.
The case was investigated by the Internal Revenue Service – Scranton Office, the Dunmore Police Department, and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
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Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mario Rayshawn White, of Detroit, Michigan, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
White, also known as “MT,” 30, pleaded guilty today to one count of “Conspiracy to Distribute Oxycodone.” White admitted to selling Oxycodone in April 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Davenport Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Thursday, April 15, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jaterius Deshawn Davis, age 22, of Davenport, to 140 months in prison for Possession with Intent to Distribute Cocaine Base, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Davis was ordered to serve three years of supervised release to follow his prison term and pay $300 to the Crime Victims’ Fund.
On July 17, 2019, Davis punched an officer in the face after the officer attempted to lawfully arrest him. Davis ran from officers but was quickly apprehended. In Davis’ pockets a loaded .380 caliber Ruger handgun with a defaced serial number, 15 grams of marijuana, and a digital scale with cocaine and marijuana residue were found. Officers also located five grams of crack cocaine concealed in his underwear. Immediately prior to his arrest, Davis was seen riding in a vehicle where officers had located a handgun and ammunition linked to a shooting six days earlier. Through his plea of guilty, Davis admitted knowingly possessing the handguns, ammunition, and narcotics.
Davis was previously convicted of Dominion/Control of a Firearm by a Felon. As a convicted felon, Davis knew he was prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Citizen of Guatemala Pleads Guilty to Illegally Reentering U.S.Read the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JUAN LUIS MONZON MONTEROSO, also known as Edwin Galvez Lemus, 36, a citizen of Guatemala last residing in Bridgeport, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to illegal reentry of a removed alien.
According to court documents and statements made in court, in November 2010, approximately two weeks after Monzon Monteroso was encountered by U.S. Border Patrol (USBP) in Jacksonville, Florida, he voluntarily departed the U.S. In January 2011 and again in April 2011, Monzon Monteroso was encountered by the USBP in Texas and was subsequently removed to Guatemala. He illegally reentered the U.S. and, in May 2017, was encountered by ICE in Hartford. He was removed to Guatemala a third time in July 2017.
On December 19, 2019, Monzon Monteroso, using the alias Edwin Galvez Lemus, was arrested by Monroe Police and charged with assault on personnel, breach of peace, reckless endangerment, criminal trespass and running from police. He has been detained since his arrest.
At sentencing, which is not yet scheduled, Monzon Monteroso faces a maximum term of imprisonment of two years.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chicago Man Sentenced to Three and a Half Years in Prison for Illegally Possessing Loaded Gun on City’s West SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to three and a half years in federal prison for illegally possessing a loaded handgun in the city’s Austin neighborhood.
ALVIN WASHINGTON, 39, illegally possessed the firearm inside a restaurant in the 5100 block of West Chicago Avenue on May 12, 2020. A Chicago Police Department Police Observation Device (“POD camera”) captured Washington holding the gun between his legs while sitting near a window in the restaurant. CPD officers were dispatched to the restaurant, where they conducted a protective pat-down search of Washington and discovered the loaded gun in his waistband.
Washington had previously been convicted of multiple felonies, including a firearm-related offense, and was not legally allowed to possess the gun.
Washington pleaded guilty earlier this year to one count of illegal possession of a firearm. U.S. District Judge Gary S. Feinerman imposed the 42-month prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance.
The government was represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee of the U.S. Attorney’s Office’s Gun Crimes Prosecution Team. The team works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Charleston Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CHARLESTON, W.Va. – Adam Matthew Denson, 33, of Charleston, pleaded guilty to conspiracy to distribute 5 grams or more of methamphetamine. Denson was charged in a single-count Information in March 2021.
According to the plea agreement and statements made in court, Denson conspired with other persons to distribute methamphetamine on three separate occasions in Charleston in August 2019.
Denson faces up to 40 years in prison when sentenced on July 14, 2021.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00040.
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Car Thief and Two-time Felon Sentenced to over Four Years in Prison for Illegally Possessing a FirearmRead the Press Release
FAIRBANKS – A Kalskag, Alaska, man was sentenced to four years and three months in prison followed by three years of supervised release and $1,900 in restitution to the victim of the stolen vehicle.
According to court records, on July 9, 2020, Ethan Kerr, 29, stole a 2004 Scion from a Fairbanks home and drove it south on the Parks Highway. Near Cantwell, an Alaska State Trooper attempted to stop Kerr for speeding. Refusing to stop, Kerr fled the Troopers at speeds exceeding 105 mph. Leaving the highway to elude law enforcement, the car became stuck in a mud bog near the railroad. He abandoned the vehicle after removing a .44-caliber Smith & Wesson revolver that belonged to the car owner. Kerr was picked up by a nearby individual in a truck who flagged down the Troopers to help with the stuck car. They quickly identified Kerr and attempted to arrest him. Kerr broke free and ran into the woods where he was later found with a K-9 search by Alaska State Troopers.
Kerr has two prior felony convictions with the State of Alaska including burglary for which he was currently on parole and assault. As someone previously convicted of a felony offense, Kerr is prohibited from possessing firearms or ammunition. In December 2020, Kerr pleaded guilty to illegally possessing a firearm as a convicted felon.
Acting U.S. Attorney Bryan Wilson for the District of Alaska; Colonel Bryan Barlow, Director of the Alaska State Troopers and Special Agent-in-Charge Jonathan T. McPherson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the sentencing announcement.
Assistant U.S. Attorney Daniel Doty prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
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Bloomsburg Couple Charged with Covid-Relief FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darryl Corradini, age 63, and Vicki Hackenberg, age 57, both of Bloomsburg, Pennsylvania, were charged on April 13, 2021, by a federal grand jury with perpetrating a bank fraud and money laundering scheme that included nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to Acting United States Bruce D. Brandler, the indictment alleges that Corradini, Hackenberg, and other coconspirators created a shell corporation, CGM Realty LLC, and opened bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. The conspirators allegedly used the accounts to receive over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations. Forged IRS documentation also was included with the PPP application, containing false information about CGM Realty LLC’s nonexistent payroll obligations. Over $350,000 was then used to purchase Bitcoins, a type of cryptocurrency.
Corradini and Hackenberg are charged with conspiring to commit bank fraud and with two counts of committing bank fraud for submitting false and fraudulent documentation to obtain the PPP loan. They also are charged with two counts of making false statements on loan applications, with conspiring to commit money laundering, and with three counts of engaging in unlawful monetary transactions by purchasing Bitcoins with the fraudulently obtained PPP loan. Corradini is charged with one count of making false statements to IRS agents that he did not have access to CGM Realty LLC’s bank account. Hackenberg is charged with two counts of making false statements to IRS agents that she had no knowledge of CGM Realty LLC, and that she had not communicated with other coconspirators in over a year.
The case was investigated by the IRS, Criminal Investigations. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Criminal indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bassfield Felon Convicted for Possessing Multiple Firearms under Project EJECTRead the Press Release
Hattiesburg, Miss. – Enoch Ben Buckley III, 37, of Bassfield, was convicted today by Senior U.S. District Judge Keith Starrett for being a felon in possession of multiple firearms, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On September 23, 2020, Buckley was found in possession of multiple firearms during the execution of an arrest warrant in Lamar County. Buckley is a multiple-time convicted felon, with his most recent felony conviction being for felonious possession of a weapon by a convicted felon in Jefferson Davis County Circuit Court in 2018. For this offense, Buckley was sentenced to serve ten years in the custody of the Mississippi Department of Corrections.
Williams was originally indicted for this offense on October 20, 2020. He will be sentenced before Judge Starrett on July 27, 2021 at 10:15 a.m.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service Fugitive Task Force investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Arizona Man Sentenced for Possession of Multiple Fraudulently-Obtained Unemployment Benefits CardsRead the Press Release
LAS VEGAS, Nev. – An Arizona man has been sentenced today to 30 months in federal prison for possessing multiple unemployment benefits debit cards — all in different names — and intending to fraudulently obtain nearly $239,000 in benefits, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region.
Delashaun Dean, 32, of Tolleson, Arizona, pleaded guilty in February 2021 to one count of possession of counterfeit and unauthorized access devices. In addition to the term of imprisonment, U.S. District Judge Andrew Gordon sentenced Dean to three years of supervised release.
According to court documents, between October 3 and October 5, 2020, the Las Vegas Metropolitan Police Department found 15 unemployment insurance benefits debit cards issued by the California Employment Development Department (EDD) in Dean’s hotel room and on his person. The debit cards were all in different names; none were in Dean’s name. In addition, law enforcement found a fake driver’s license and a notebook containing personal identifying information of multiple individuals, which was used to apply for unemployment insurance benefits. At least $238,914 in unemployment benefits were approved for claims associated with the recovered EDD debit cards.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus.
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Ansonia Man Sentenced to Prison for Serving as "Money Mule" in Online Lottery and Romance ScamsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MONTRELL DOBBS, JR., 28, of Ansonia, was sentenced today by U.S. District Judge Stefan R. Underhill to 18 months of imprisonment, followed by three years of supervised release, for serving as a “money mule” in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery. The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing. Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings. The victims never receive winnings. In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions. Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them. Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.
Dobbs was recruited to be a “money mule” for individuals who were operating lottery and romance scams between approximately August 2015 and March 2020. Dobbs retrieved fraudulently obtained cash, checks and money orders that were sent through the mail to various addresses in New Haven, Hamden and Ansonia, and he retrieved funds that were wired through electronic money transfers. Also, using the alias “Derek Williams,” Dobbs retrieved from the Ansonia Post Office packages containing fraudulently obtained cash and checks. Dobbs deposited checks and money orders into his own bank account, kept a portion of the funds, and passed along the remaining money to other co-conspirators, either by mailing cash or depositing money into other bank accounts.
The investigation revealed that these scams defrauded more than 200 victims across the U.S. of more than $5 million. Many of the victims were elderly and vulnerable, and some victims lost their life savings. One Connecticut victim lost more than $1 million.
Dobbs’ involvement in the scheme involved at least 25 victims who lost more a total of more than $85,000. Judge Underhill ordered Dobbs to pay full restitution.
Dobbs was arrested on March 12, 2020. On December 21, 2020, he pleaded guilty to one count of money laundering.
Dobbs, who is released on a $100,000 bond, is required to report to prison on June 2.
Four of Dobbs’ alleged co-conspirators are awaiting trial.
This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Anchorage Man Convicted on All Counts of Sex Trafficking Minors, Child Pornography and Illegal Possession of a FirearmRead the Press Release
ANCHORAGE – An Anchorage man was convicted on five counts of sex trafficking of minors, three counts of production of child pornography and two counts of being a felon in possession of a firearm. The verdict came after a three-day federal bench trial with Senior U.S. District Judge Ralph R. Beistline.
According to court documents and evidence presented at trial, between mid-October 2018 and December 1, 2018, Tristan Jamal Grant, aka “Goo,” 35, conspired with another person to traffic two minors, a 15-year-old female and a 17-year-old female. Both minors were runaways who stayed with Grant at his co-conspirator’s apartment. While at the apartment, they created an online advertisement that was used to market the minors. Grant then assisted his co-conspirator in trafficking the victims; encouraging them to perform sex acts for money; serving as protection for the minors and driving one of the minors to a date to perform sex acts. Additionally, Grant produced child pornography with one of the minors on two separate occasions.
Grant was arrested by Anchorage Police Department following a shooting on December 12, 2018. When arrested Grant was in possession of two weapons. Because Grant had previously been convicted of a felony, possession of those guns was illegal.
Grant remained in custody and was indicted by a federal grand jury on January 15, 2019. Grant escaped from custody during a court ordered release to meet with his attorney at his attorney’s office to prepare for trial. Grant was captured and later indicted on February 23, 2021, for escape by prisoner in custody and failure to appear.
“This conviction should be a strong reminder that sex trafficking and exploitation of children will not be tolerated,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “The successful conviction of this case was due to the courage of the victims and the collaborative efforts of federal, state and local law enforcement and prosecutors. Our office will remain steadfast in our pursuit of all those who perpetuate sex trafficking of children.”
“Tristan Grant terrorized our neighborhoods and recruited minors for commercial sex acts, profiting from their exploitation. This guilty verdict is a win for our entire community,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “The FBI is grateful for our collaborative partnerships across the state, and in this case the Anchorage Police Department, as we continue to combat crimes against Alaska’s youth.”
Sentencing is scheduled for July 14 at 9:00 a.m. in Anchorage. As a result of his convictions, Grant faces a sentencing range of not less than 15 years in prison and up to life. Grant also faces a term of supervised release following prison of not less than five years and up to life. Each conviction carries a maximum fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was the product of an investigation by the Federal Bureau of Investigation, Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, working together through the FBI’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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14 April 2021
Wood County Woman Guilty of Stealing Stimulus PaymentRead the Press Release
MARSHALL, Texas – A Hawkins, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Brianna Clarisse Banks, 24, pleaded guilty to theft of government money today before U.S. Magistrate Judge Roy Payne.
“COVID has been financially devastating for many East Texans, especially for those who were already struggling,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thieves who take the federal funds intended for the financially vulnerable will be aggressively investigated and prosecuted in the Eastern District of Texas.”
According to information presented in court, in April of 2020, the U.S. Treasury issued an Economic Impact Payment (EIP) check in the amount of $1,200.00, made payable to an individual and mailed it to that individual’s post office box in Avinger, Texas. Banks stole the EIP check from the individual’s post office box and then used the victim’s name, social security number, and date of birth to open a checking account, but used Banks’ mailing address for the address on the account. Banks deposited the stolen EIP check into the fraudulently opened bank account and then withdrew the funds and spent them for her own personal benefit.
A federal grand jury returned an indictment against Banks on Jan. 20, 2021. Under federal statutes, Banks faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
This case is being investigated by the U.S. Secret Service and the Cass County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
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Wolf Point man charged with first degree murderRead the Press Release
GREAT FALLS – A Wolf Point man accused of murdering another man in Wolf Point, on the Fort Peck Indian Reservation last year, appeared on murder and firearms crimes on April 13, Acting U.S. Attorney Leif Johnson said today.
Doratello “DJ” Juan Fischer, 35, pleaded not guilty to an indictment charging him with first degree murder and to use of a firearm during a crime of violence. If convicted of the murder charge, Fischer faces a mandatory life in prison, a $250,000 fine and five years of supervised release. If convicted of the firearms crime, Fischer faces a mandatory minimum 10 years to life in prison, consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Fischer was detained pending further proceedings.
The indictment alleges that on Nov. 27, 2020 in Wolf Point, Fischer unlawfully killed the victim, identified as John Doe, with malice aforethought and premeditation, and that Fischer knowingly used a firearm in relation to the murder count.
Assistant U.S. Attorneys Lori Suek and Jared Cobell are prosecuting the case, which was investigated by the FBI.
PACER case reference. 21-23.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Winnebago Man Indicted for ArsonRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 13, 2021, a federal grand jury returned an indictment against Christian B.M. Crawford (age: 28) of Winnebago County, Wisconsin, charging him with arson of a building in violation of Title 18, United States Code, Section 844(i).
The indictment alleges that on January 22, 2021. Crawford maliciously damaged the Ridgeway VP gas station in Neenah, Wisconsin, by fire. If convicted of the charge, Crawford faces a mandatory minimum five-year prison term and a maximum of 20 years of imprisonment. He also faces a fine of up to $250,000.
This case was investigated by the Winnebago County Sheriff’s Office, the City of Neenah Police Department, the Town of Menasha Police Department, the Town of Fox Crossing Police Department, and the Town of Clayton Fire Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
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Winnebago Man Indicted for ArsonRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on April 13, 2021, a federal grand jury returned an indictment against Christian B.M. Crawford (age: 28) of Winnebago County, Wisconsin, charging him with arson of a building in violation of Title 18, United States Code, Section 844(i).
The indictment alleges that on January 22, 2021. Crawford maliciously damaged the Ridgeway VP gas station in Neenah, Wisconsin, by fire. If convicted of the charge, Crawford faces a mandatory minimum five-year prison term and a maximum of 20 years of imprisonment. He also faces a fine of up to $250,000.
This case was investigated by the Winnebago County Sheriff’s Office, the City of Neenah Police Department, the Town of Menasha Police Department, the Town of Fox Crossing Police Department, and the Town of Clayton Fire Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer
(414) 297-1700
Follow us on Twitter
Wheeling man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason Timothy Henry, of Wheeling, West Virginia, was sentenced today to 60 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Henry, age 45, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2020. Henry admitted to having more than 50 grams of methamphetamine in November 2019 in Ohio County.
The judge also ordered the forfeiture of the following:
• Taurus, .357 magnum revolver; • Six rounds of .357 ammunition; • One box of .357 ammunition; • One box of 9mm ammunition; • Three rounds of 7.62 x 39 caliber ammunition; • One cylinder for revolver; and
• Mossberg, 12-gauge shotgun.Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Wheeling Police Department and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Wesley Chapel Man Sentenced to 25 Years in Prison for Armed Robbery SpreeRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Robert Dayon Dumas (26, Wesley Chapel) to 25 years in federal prison for robbery and discharging a firearm in furtherance of a violent crime. The Court also ordered Dumas to forfeit the firearm and ammunition used in the robberies, and to make restitution to the victims.
Dumas had been found guilty on January 25, 2021, following a bench trial.
According to court documents and evidence presented at trial, during a one-week span in February 2018, Dumas used a gun to rob five Wesley Chapel businesses, including a gas station, a hotel, and a cell phone store. During the robberies, Dumas held victims at gunpoint, including a woman and her two-year-old granddaughter. He also threatened to shoot victims if they did not do what he said, at one point firing his gun above a victim’s head and stating, “the next one goes in your head!” In total, the robbery spree netted just over $2,000.
This case was jointly investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Welch Cattleman Admits to a $1.2 Million Check Kiting SchemeRead the Press Release
A Welch cattleman who defrauded First State Bank of Commerce pleaded guilty Friday in federal court, announced Acting U.S. Attorney Clint Johnson.
John Theodore Linthicum, 52, also known as Teddy Linthicum, pleaded guilty to conspiracy to commit bank fraud before U.S. District Judge Gregory K. Frizzell.
“Teddy Linthicum perpetrated a check kiting scheme for his own gain and swindled First State Bank of Commerce out of $1.2 million,” said Acting U.S. Attorney Clint Johnson. “Bank fraud, and other white-collar schemes, will not be tolerated. The U.S. Attorney’s Office will hold fraudsters, like Linthicum, accountable for their crimes.”
The check kiting scheme was carried out by Linthicum and another cattle dealer, Douglas Mayfield, from October 2016 to January 2017.
In the fall of 2016, Linthicum experienced dwindling cash flow in his cattle business. He proposed that Mayfield write NSF checks to Linthicum that he could deposit into his bank account, thereby enabling Linthicum to avoid overdraft limitations and continue his cattle operation. Linthicum knew that Mayfield did not have sufficient funds to cover the checks he was writing to Linthicum.
Mayfield provided approximately 30 insufficiently funded checks from his accounts at Grand Savings Bank, in Grove, to Linthicum for deposit into Linthicum’s account at First State Bank. Most often, Mayfield would simply sign the checks and Linthicum would fill in the amounts payable to himself. Linthicum frequently wrote in the memo notation that the checks were for the purchase of cattle, which was not true. The checks generally ranged between $100,000 and $375,000. The bank lost approximately $1.2 million as a result of the scheme.
Linthicum’s sentencing is set for Aug. 3, 2021. Mayfield previously pleaded guilty to the same charge in federal court, and his sentencing is pending.
The Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General and Federal Housing Finance Agency-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kevin Leitch and Vani Singhal are prosecuting the case.
Upshur County Man Guilty of Sexual Exploitation of a ChildRead the Press Release
MARSHALL, Texas – A Gilmer, Texas man has pleaded guilty to federal child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Michael Parker, 41, pleaded guilty to sexual exploitation of a child today before U.S. Magistrate Judge Roy Payne.
“The U.S. Attorney’s Office for the Eastern District of Texas places the highest priority on protecting our children from sexual predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those that seek to victimize minors should know that the EDTX will do whatever it takes to find them and bring them to justice for their heinous crimes.”
According to information presented in court, Parker hid a cellular phone in a bathroom for the purpose of capturing video recordings of a minor under the age of twelve. Parker positioned the phone to intentionally capture images and videos of the child. Parker then distributed the images and videos of the child to other individuals utilizing multiple online communications platforms, including e-mail, a cloud storage account, and a photo-sharing social media application.
A federal grand jury returned an indictment charging Parker with federal violations on Sep. 17, 2020. Under federal statutes, Parker faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by the Department of Homeland Security, the Texas Department of Public Safety, the Gilmer Police Department and the Longview Police Department and prosecuted by Assistant U.S. Attorney Jim Noble.
Uncle of Drug Trafficking Ring Leader Pleads Guilty for His Role in Narcotics Conspiracy Operating in the Jamestown, NY AreaRead 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 Garland Beardsley a/k/a Charlie Beardsley, 53, of Jamestown NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to conspiring to possess with intent to distribute, and distributing, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that between December 2018 and October 27, 2020, the defendant was an associate in a drug trafficking ring led by his nephew, co-defendant Rocco Beardsley, which sold methamphetamine, heroin, fentanyl, crack cocaine, cocaine, and hydrocodone in the Jamestown area. Garland Beardsley distributed methamphetamine to Rocco Beardsley’s customers. Rocco Beardsley stored, distributed, and manufactured methamphetamine, heroin/fentanyl, and other controlled substances at the defendant’s residence on Newland Avenue in Jamestown. On January 21 and February 11, 2020, an individual working with investigators purchased crystal methamphetamine from Rocco Beardsley at the defendant’s residence.
Charges remain pending against Rocco Beardsley. 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.
The plea is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing will be scheduled at a later date.
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USP Lee Inmate Sentenced for Weapon PossessionRead the Press Release
ABINGDON, VIRGINIA – Juan Fernando Sanchez, an inmate at the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 48 months in prison for unlawfully possessing a weapon inside the prison, Acting United States Attorney Daniel P. Bubar announced today.
Sanchez, 26, possessed a 6.5-inch-long prison-made sharpened metal weapon. The weapon was discovered in his front pocket during a random search.
Sanchez pleaded guilty on January 12, 2021.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
U.S. Attorney’s Office Honors Service and Career of Thomas E. Delahanty IIRead the Press Release
PORTLAND, Maine: Acting U.S. Attorney Donald E. Clark and the employees of the U.S. Attorney’s Office honored the public service career of Thomas E. Delahanty II, who served as U.S. Attorney in both the Carter and Obama administrations. Delahanty died earlier this week at the age of 75.
Delahanty had a lengthy and distinguished career in both the state and federal courts of Maine. After starting his legal career in private practice in Lewiston, he was elected District Attorney in 1974 for the newly created Prosecutorial District Three, covering the counties of Androscoggin, Oxford and Franklin. He held that position until President Carter appointed him U.S. Attorney for Maine. He was sworn into office on May 22, 1980, and served until August 1981, when he resigned following a change in the presidential administration.
Delahanty was in private practice in Lewiston until November 1983, when Governor Joseph Brennan appointed him to the Maine Superior Court. He served as a Superior Court Justice until 2010, when he again became U.S. Attorney on appointment of President Obama. He was sworn into office on July 1, 2010, and served until his resignation in March 2017, following the change in administration. He then returned to the Maine Superior Court as an active retired justice.
“Tom Delahanty was a giant in the Maine legal community,” said U.S. Attorney Clark. “His service to the people of Maine, including two appointments as U.S. Attorney, spanned over 40 years. In addition to his professional accomplishments, he was also an honorable, just man and a devoted husband, father and grandfather. We at the U.S. Attorney’s Office mourn his passing and send our condolences to his family.”
Two Pittsburgh Men Indicted on Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - Two residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The six-count Indictment named Brandon Washington, 34, and Damone Porter, 33, as defendants.
According to the Indictment, on or about March 4, 15 and 18, 2021, Washington possessed with the intent to distribute cocaine and/or cocaine base. The Indictment further alleges that Washington possessed a firearm in furtherance of this drug trafficking crime and that Washington was prohibited from possessing the firearm and ammunition because he is a convicted felon. Additionally, the Indictment charges Porter, a convicted felon, with illegally possessing a firearm on or about March 18, 2021.
With respect to Washington, the law provides for a maximum total sentence of not more than life in prison, a fine of $1,500,000 or both. With respect to Porter, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Individuals Charged with Bank Secrecy Act Offenses and Operating an Unlicensed Money Transmitting BusinessRead the Press Release
BROOKLYN, NY - An indictment was unsealed today in federal court in Brooklyn charging Gyanendra Asre and Hanan Ofer with Bank Secrecy Act (BSA) offenses and operating an unlicensed money transmitting business. Asre is charged with two counts of failure to maintain an anti-money laundering program, five counts of failure to file Suspicious Activity Reports and one count of operation of an unlicensed money transmitting business. Ofer is charged with one count of operation of an unlicensed money transmitting business. The defendants were arrested today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the arrests and charges.
“The defendants allegedly operated an illegal money transmitting business and took advantage of smaller financial institutions to engage in risky financial transactions, without the oversight and compliance with anti-money laundering controls they had promised,” stated Acting United States Attorney Lesko. “This Office will vigorously prosecute those who deliberately avoid reporting requirements and put the integrity of U.S. financial institutions at risk.”
“As alleged, Asre and Ofer used a small, unsophisticated financial institution to process high-risk, high-dollar international transactions without the anti-money laundering procedures required by law,” stated Acting Assistant Attorney General McQuaid. “Today's announcement demonstrates the Department's commitment to hold accountable individuals who knowingly expose the U.S. financial system and U.S. financial institutions to the risk of laundering criminal proceeds.”
"The Bank Secrecy Act was established to protect our financial system and maintain the integrity of our banking system. As alleged, Ofer and Asre blatantly disregarded our laws and placed their own enrichment above all else,” stated HSI Special Agent-in-Charge Fitzhugh. “The defendants took advantage of a small, unsophisticated financial institution and pumped billions of dollars of high-risk transactions through it, any one of which could have left the bank in ruin. HSI New York’s El Dorado Task Force continues to protect the nation’s financial systems and working with its partners, will see to it that those seeking to exploit our laws for their own financial gain are brought to justice.”
As alleged in the indictment, from 2014 to 2016, Asre and Ofer devised a scheme to bring lucrative and high-risk international financial business lines such as international currency trading to small, unsophisticated financial institutions. Asre and Ofer were trained in anti-money laundering compliance and procedures, and represented to the financial institutions that, because of their experience and training, they understood the risks associated with the high-risk business lines and would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.
Based on Asre and Ofer’s representations, the New York State Employees Federal Credit Union (“NYSEFCU”), a small financial institution with a volunteer board that primarily served New York state public employees, allowed Asre and Ofer to conduct high-risk transactions through the NYSEFCU. Asre and Ofer then caused the transfer of more than $1 billion in high-risk transactions, including hundreds of millions of dollars originating from high-risk foreign jurisdictions, through the NYSEFCU and other entities. Contrary to their representations, Asre willfully failed to implement and maintain the requisite anti-money laundering programs or conduct oversight required to detect, identify and report suspicious transactions. This caused, among other things, the NYSEFCU to process more than $1 billion in high-risk transactions during Asre’s tenure, without ever filing a single Suspicious Activity Report as required by law.
Asre and Ofer also owned and operated DDH Group, LLC, a money transmitting business and money services business that conducted some of these high-risk transactions without licensing or registering that entity as required by law.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section, in coordination with the Office’s Bank Integrity Task Force, which is charged with investigating and charging corporate and individual actors who launder criminal proceeds using the U.S. banking system and enforcing anti-money laundering controls under the Bank Secrecy Act. Assistant United States Attorneys Ryan C. Harris and Francisco J. Navarro of the Eastern District of New York are prosecuting the case with Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation is being conducted by HSI’s El Dorado Task Force in New York.
The Defendants:
GYANDERA ASRE
Age: 53
Greenwich, ConnecticutHANAN OFER
Age: 67
New York, New YorkE.D.N.Y. Docket No. 21-CR-174 (DG)
Two Charged in High-Risk International Financial SchemeRead the Press Release
An indictment was unsealed today in the Eastern District of New York charging two defendants with failing to maintain anti-money laundering controls, failing to file suspicious activity reports, and operating an unlicensed money transmitting business.
As alleged in the indictment, from 2014 to 2016, Gyanendra Asre, 53, of Greenwich, Connecticut, and Hanan Ofer, 67, of New York, New York, devised and executed a scheme to bring lucrative and high-risk international financial business to small, unsophisticated financial institutions. Asre and Ofer were trained in anti-money laundering compliance and procedures, and represented to the financial institutions that, because of their experience and training, they understood the risks associated with the high-risk business and would conduct appropriate anti-money laundering oversight as required by the Bank Secrecy Act.
Based on Asre and Ofer’s representations, the New York State Employees Federal Credit Union (NYSEFCU), a small financial institution with a volunteer board that primarily served New York state public employees, allowed Asre and Ofer to conduct high-risk transactions through the NYSEFCU. Asre and Ofer then caused the transfer of more than $1 billion in high-risk transactions, including hundreds of millions of dollars originating from foreign jurisdictions, through the NYSEFCU and other entities. Contrary to their representations, Asre willfully failed to implement and maintain the requisite anti-money laundering programs or conduct oversight required to detect, identify, and report suspicious transactions. This caused, among other things, the NYSEFCU to process more than a billion dollars in high-risk transactions during Asre’s tenure, without ever filing a single Suspicious Activity Report, as required by law.
Asre and Ofer owned and operated DDH Group LLC, a money transmitting business and money services business that conducted some of these high-risk transactions, without it being licensed or registered as required by law.
“As alleged, Asre and Ofer used a small, unsophisticated financial institution to process high-risk, high-dollar international transactions without the anti-money laundering procedures required by law,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today's announcement demonstrates the department's commitment to hold accountable individuals who knowingly expose the U.S. financial system and U.S. financial institutions to the risk of laundering criminal proceeds.”
“The defendants allegedly operated an illegal money transmitting business and took advantage of smaller financial institutions to engage in risky financial transactions, without the oversight and compliance with anti-money laundering controls they had promised,” said Acting U.S. Attorney Mark J. Lesko for the Eastern District of New York. “This office will vigorously prosecute those who deliberately avoid reporting requirements and put the integrity of U.S. financial institutions at risk.”
“The Bank Secrecy Act was established to protect our financial system and maintain the integrity of our banking system,” said Special Agent in Charge Peter C. Fitzhugh of Homeland Security Investigations (HSI) New York. “As alleged, Ofer and Asre blatantly disregarded our laws and placed their own enrichment above all else. The defendants took advantage of a small, unsophisticated financial institution and pumped billions of dollars of high-risk transactions through it, any one of which could have left the bank in ruin. HSI New York’s El Dorado Task Force continues to protect the nation’s financial systems and working with its partners, will see to it that those seeking to exploit our laws for their own financial gain are brought to justice.”
Asre is charged with two counts of failure to maintain an anti-money laundering program, five counts of failure to file Suspicious Activity Reports, and one count of operation of an unlicensed money transmitting business. Ofer is charged with one count of operation of an unlicensed money transmitting business. The defendants are scheduled to be arraigned on the indictment this afternoon.
HSI is investigating the case.
Trial Attorneys Margaret Moeser and Leigh Kessler of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Ryan C. Harris and Francisco J. Navarro of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Members of Transnational Money Laundering Network Pleaded Guilty to Aiding Foreign Drug Trafficking OrganizationsRead the Press Release
ALEXANDRIA, Va. – Within the last week, three individuals pleaded guilty to their involvement in a conspiracy to launder at least $30 million of drug proceeds combined throughout the United States on behalf of foreign drug trafficking organizations (DTOs). These guilty pleas are the result of a nearly four-year investigation into the relationship between foreign drug trafficking organizations and Asian money laundering networks in the United States, China, Mexico, and elsewhere.
“These defendants were involved in a wide-ranging conspiracy to launder millions of dollars of drug proceeds throughout the United States to aid foreign drug trafficking organizations,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through their tenacity and indefatigable investigative efforts, our law enforcement partners unraveled the complex money laundering scheme, which involved the use of casinos, front companies, foreign and domestic bank accounts, and bulk cash smuggling. This prosecution demonstrates our continued commitment to dismantle and bring to justice transnational criminal organizations that threaten the safety of our communities.”
“For years, these defendants participated in a sophisticated money laundering system to help drug cartels line their pockets with the ill-gotten gains of drug trafficking, while profiting considerably, themselves,” said Wendy Woolcock, Special Agent in Charge for the DEA Special Operations Division. “Money laundering is not a victimless crime – the actions of these individuals routed millions of dollars in drug proceeds back to the cartels, allowing these criminal organizations to further their activities, flooding our communities with dangerous drugs, causing devastating addictions and death. The apprehension and prosecution of these individuals is a significant success for the DEA, and we thank our countless partners for their work in this transnational effort to battle money laundering and other related crimes at the highest levels.”
“The dedicated men and women of the Drug Enforcement Administration will go to great lengths to ensure those who profit off of the poisoning of our communities are ultimately brought to justice,” said Special Agent in Charge Todd Scott, head of DEA’s Louisville Division. “I’m very proud of the work done by our folks, along with our law enforcement counterparts in this complex investigation.”
According to court records, the defendants participated in a years’ long conspiracy to use casinos, front companies, foreign and domestic bank accounts, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main trafficking activities involved cocaine. The DTOs issued “contracts” to the defendants to collect money generated by drug trafficking activities in the United States, and members of the conspiracy engaged in financial transactions that were designed to conceal the illicit source of the original proceeds, in return for the payment of commissions.
To facilitate the scheme, the defendants used several methodologies, including transporting, or causing others to transport, drug proceeds across the United States and in the Eastern District of Virginia. The defendants also converted drug proceeds into Chinese and Mexican currency through a variety of methods, including “mirror transfers” in which financial transactions in the United States are used to trigger the release of equivalent funds into bank accounts in China, with those funds then being used to purchase Chinese goods that are subsequently sold by merchants in Latin American countries, including Mexico.
As part of a guilty plea entered on April 9, Jiayu Chen, 46, of Brooklyn, New York, admitted to his participation in the drug trafficking and money laundering network. Chen received drug proceeds from couriers in New York City and then delivered this cash to other individuals who conducted additional financial transactions with the money to hide its source. Chen kept detailed ledgers of the money he received totaling approximately $2.8 million. During this period, Chen was a mail carrier for the U.S. Postal Service (USPS), and he received drug proceeds from, and paid commissions to, couriers as compensation for their role in transporting drug proceeds. On at least one occasion, Chen accepted bulk drug proceeds while wearing his USPS uniform.
As part of a guilty plea entered today, Tao Liu, 46, of Hong Kong, admitted that he worked with his co-defendants to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of co-defendant Xizhi Li, which he later deposited into bank accounts that Xizhi Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Tao himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
As part of a guilty plea entered today, Jingyuan Li, 49, of San Gabriel, California, admitted that he used a California-based seafood import/export business, known as “Shuoyu USA Inc.” (Shuoyu), in connection with the above-described money laundering scheme. Specifically, Li used the proceeds of drug trafficking to purchase goods through Shuoyu, which he later had shipped to China and Hong Kong for sale. This enabled the conspiracy to pay back the DTOs who gave the conspiracy the contracts to launder their money. Additionally, Li organized and participated in the delivery of drug cash within the United States. In all, Li’s activities resulted in the laundering of at least $3.8 million of drug proceeds.
Jiayu Chen pleaded guilty to conspiracy to commit money laundering, and he faces a maximum penalty of 20 years in prison when he is sentenced on July 20, 2021. Tao Liu pleaded guilty to conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison, and bribery of a public official, which carries a maximum penalty of 15 years in prison, when he is sentenced on July 13, 2021. Jingyuan Li pleaded guilty to conspiracy to commit money laundering, and he faces a maximum penalty of 20 years in prison when he is sentenced on July 13, 2021. 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.
In addition to the three defendants referenced above, two other defendants, Xizhi Li, 45, and Eric Yong Woo, 43, previously were charged in the superseding indictment for their alleged involvement in the scheme. Li and Woo have pleaded not guilty and are presumed innocent unless and until they are proven guilty at trial, which currently is scheduled for August 23, 2021. In addition, Jianxing Chen, 40, was charged in the superseding indictment for his alleged involvement, and he remains a fugitive.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation Dark Castle and Taishan Triangle. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Wendy C. Woolcock, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Special Operations Division; J. Todd Scott, Special Agent in Charge for the DEA-Louisville; Raymond P. Donovan, Special Agent in Charge for the DEA-New York; Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service (DSS); and Angie M. Salazar, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Chicago, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the pleas.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
Significant assistance was provided by the Australian Criminal Intelligence Commission and the Australian Federal Police, the Mexican Federal Police, Australia Department of Home Affairs, the Guatemalan National Civil Police (PNC), and the New Zealand Police.
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. 1:19-cr-334.
Third Former Maryland Tax Preparer Pleads Guilty to a Federal Tax Fraud ConspiracyRead the Press Release
Greenbelt, Maryland – Veronica Hope Fortune, age 54, of Upper Marlboro, Maryland, pleaded guilty today to conspiracy to defraud the United States and to assisting in the preparation and filing of false tax returns.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Fortune’s plea agreement, in August 2015 Fortune was a tax preparer in Maryland with electronic tax return filing privileges from the Internal Revenue System (IRS). Fortune agreed to allow Co-Conspirator 1 and Co-Conspirator 2, both of whom had been suspended from the IRS’s e-filing program, to use Fortune’s unique electronic filing identifiers, in exchange for the use of Co-Conspirator 1 and Co-Conspirator 2’s shared office space in Temple Hills, Maryland.
Co-Conspirator 1 and Co-Conspirator 2 misrepresented their identities on their clients’ tax returns by using Fortune’s identifiers to prepare and electronically file the tax returns with the IRS. Fortune also joined in her co-conspirators’ practice of falsifying tax returns and fraudulently claiming refunds. Specifically, Fortune and her co-conspirators falsified tax returns by: fabricating, inflating, and improperly claiming items on the Schedules A that were attached to clients’ federal individual income tax returns; and engineering business losses on Schedules C by fabricating, inflating, and improperly claiming purported business expenses. As a result, Fortune, Co-Conspirator 1, and Co-Conspirator 2 artificially lowered their clients’ taxable income, thereby lowering the taxes that the clients owed to the IRS and inflating their refunds.
On December 15, 2017, the IRS also expelled Fortune from the electronic tax return filing program due to a criminal investigation into fraudulent tax returns filed using her unique identifiers. Fortune then made misrepresentations about the criminal nature of her issues with the IRS to a third-party electronic return originator (“ERO”) in order to obtain their assistance. The ERO allowed Fortune to file tax returns using its unique electronic filing identifiers, and Fortune shared those identifiers with Co-Conspirator 1 and Co-Conspirator 2. Using the new identifiers, the co-conspirators, including Fortune, continued to prepare and file false and fraudulent returns through at least the 2019 tax filing season, which ended on or about April 2019.
In total, the tax loss caused to the IRS as a direct result of Fortune and her co-conspirators’ conspiracy for the tax years 2012 through 2018 was $189,748. As part of her plea agreement, Fortune will be required to pay restitution in the full amount of the loss, which the parties stipulate is at least $189,748.
Fortune faces a maximum sentence of five years in federal prison for the conspiracy and a maximum of three years in federal prison for aiding and assisting in the preparation and filing of false tax returns. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 20, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah Grossi and Trial Attorney Kathryn Sparks of the Tax Division, who are prosecuting the case.
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Texas man headed to prison for trying to sexually entice minorRead the Press Release
BROWNSVILLE, Texas - A 49-year-old Austin man has been ordered to federal prison following his conviction of coercion and enticement of a minor to engage in sexual activity, announced Acting U.S. Attorney Jennifer B. Lowery.
Jeffrey Charles Hyde Jr. pleaded guilty Nov. 1, 2018.
Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve 121 months in federal prison. Hyde was further ordered to pay restitution to the victim and will serve 25 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
“Child exploitation investigations continue to be one of our highest priorities,” said Deputy Special Agent in Charge Timothy Tubbs of Homeland Security Investigations (HSI). “No crime affects us more deeply than the exploitation of innocent children. HSI will continue to identity, arrest and prosecute those who traumatize and victimize children.”
On or about Sept. 9 to Nov. 28, 2017, Hyde utilized a cell phone to attempt to persuade and entice a minor to engage in unlawful sexual activity. During this time, Hyde was residing in Austin and communicating with a minor female n the Rio Grande Valley area.
During these texts, Hyde actively attempted to persuade the minor to engage in unlawful sexual activity. He also sent sexually-explicit videos to the minor.
HSI - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Texas Woman Sentenced to One Year and A Day in Prison for Using Fraudulently Obtained PassportRead the Press Release
SAN FRANCISCO – Shakisha Haskins was sentenced today to a year and a day in prison for using a passport secured by a false statement and making false statements to a government agency after using a fraudulently obtained passport and other false information to gain access to a repatriation flight from India, announced Acting United States Attorney Stephanie M. Hinds and U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
“The Diplomatic Security Service (DSS) is firmly committed to working with the U.S. Department of Justice and our local law enforcement partners to investigate and prosecute all criminal activity related to passport fraud, identity theft, and theft of public money,” said Special Agent in Charge Perlman. “The strong relationship we enjoy with our partners, including U.S. Customs and Border protection, is vital towards preventing fugitives from concealing their attempts to enter the U.S., ensuring the integrity of U.S. travel documents, and protecting greater U.S. interests.”
Haskins pleaded guilty to the charges on September 23, 2020. According to her plea agreement, Haskins admitted that in 2017 she obtained a passport by submitting fraudulent documents or information, including the victim’s social security number, birth certificate, and driver’s license. Haskins used her own photograph substituted in place of the photograph of the victim on the passport application. Once in possession of the fraudulently obtained passport, Haskins began to use it—according to the date stamps in the passport, Haskins used the fraudulently obtained passport to travel 37 times between March 2017 and April 2020. Haskins used the passport while living abroad for three years.
Haskins’s use of the passport came to an end in the spring of 2020. In March of 2020, as a means of managing travel during the Covid pandemic, the government of India announced that it would end commercial flights from India to the United States. The end of commercial flights prompted American citizens to seek assistance from the United States Embassy when making plans to return to the United States. On March 28, 2020, Haskins requested a repatriation flight for her and her son, and on April 4, 2020, she provided information to the United States Consular Officers in New Delhi as part of her effort to be added to the manifest for a flight back to the United States. Haskins provided to the United States government the victim’s social security number, date of birth, and passport number so she could be added to the repatriation flight. Haskins also used the fraudulently obtained passport to enter the United States on April 5, 2020.
On April 6, 2020, Haskins was charged by Complaint with one count of use of a passport secured by a false statement, in violation of 18 U.S.C. § 1542. On July 8, 2020, Haskins was charged by information with one count of use of a passport secured by a false statement, in violation of 18 U.S.C. § 1542, and one count of making a false statement to a government agency, in violation of Title 18 U.S.C. § 1001(a)(2). Haskins pleaded guilty to both counts.
In addition to the prison term, Judge Donato ordered Haskins to serve thirty-six months of supervised release and to pay restitution in the amount of $7,932.89.
Special Assistant United States Attorney Denise M. Oki is prosecuting the case with assistance from Soana Katoa and Daniel Fuentes. The prosecution is the result of an investigation by the DSS.
Tax Preparer Charged with Filing False ReturnsRead the Press Release
A federal grand jury in Philadelphia returned a superseding indictment charging a Pennsylvania man with sixteen counts of assisting in the preparation of federal tax returns.
According to the superseding indictment, Jean Coq of Philadelphia prepared tax returns for clients for tax years 2013 and 2014 that claimed inflated itemized deductions, including unreimbursed employee expenses and gifts to charity. As a result of these false items, Coq’s clients sought tax refunds to which they were not entitled.
If convicted, Coq faces a maximum penalty of three years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.
The IRS-Criminal Investigations is investigating the case.
Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division and Assistant U.S. Attorney David Ignall of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Statement by the Principal Deputy Assistant Attorney General for Civil Rights Leading A Coordinated Civil Rights Response to Coronavirus (Covid-19)Read the Press Release
Principal Deputy Assistant Attorney General for Civil Rights Pamela S. Karlan issued the following statement and attached resource guide to assist Federal agencies, state and local governments, and recipients of Federal financial assistance in addressing ongoing civil rights challenges related to the COVID-19 pandemic:
The COVID-19 pandemic has stressed our Nation’s commitment to an open, equal, and inclusive society. We have seen hateful and xenophobic rhetoric and violence aimed at Asian American and Pacific Islander (AAPI) communities and businesses. We have also seen Black, Indigenous, Latino, and Pacific Islander communities, as well as people with disabilities, suffer disproportionately high rates of death and greater risk of infection and hospitalization. COVID-19 has magnified social, economic, and environmental inequalities that we cannot ignore.
As a Nation, we cannot adequately respond to, and recover from, COVID-19 if we do not protect all of our neighbors. That requires us to pursue justice on behalf of those targeted because of their race, color, religion, national origin, sex (including sexual orientation and gender identity), disability, or citizenship.
The Department of Justice will vigorously enforce Federal civil rights as we continue the process of national reckoning, recovery, and healing. Civil rights protections and responsibilities still apply, even during emergencies. They cannot be waived. Federal agencies, state and local governments, and recipients of Federal financial assistance are an integral part of our shared effort to uphold civil rights.
The following principles should assist in meeting these nondiscrimination obligations:
1. Combat hate crimes, harassment, and other discrimination against the AAPI community. There has been a disturbing rise in violence, harassment, and discrimination directed at the AAPI community. Laws prohibiting such conduct must be vigorously enforced by the Federal government, acting with its state and local partners. We must support and provide services to victims of hate crimes, harassment, or unlawful discrimination and ensure the safety of schools, workplaces, and communities through prompt and thorough investigation of complaints. The attached guide includes resources to support prevention and reporting of hate crimes in communities. It also explains how to report discrimination, harassment, or hate incidents in housing, education, employment or other civil rights violations. The Civil Rights Division is prepared to work with sister Federal agencies to support state and local efforts aimed at preventing pandemic-related harassment and discrimination targeting AAPI communities. For more information on preventing hate crimes in your community, visit the Department of Justice’s hate crimes resource page: https://www.justice.gov/hatecrimes.
2. Ensure equal access for people with disabilities and avoid disability discrimination. COVID-19 has had a devastating and disproportionate impact on people with disabilities. Governments, health care providers, and long-term care facilities must comply with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). This includes when making decisions about who will receive medical care, including vaccines and hospital beds. It also includes crafting and implementing policies such as crisis standards of care, visitation rules, and vaccine distribution plans. People living in nursing homes and other long-term care facilities have been placed at particular risk of COVID-19 infection and death. Some reports show that more than one-third of all deaths from COVID-19 in the U.S.—over 172,000 people—are linked to nursing homes and other long-term care facilities. Providing services in home- and community- based settings instead of in long-term care facilities can satisfy the ADA integration mandate by preventing unnecessary institutionalization. It can also reduce COVID-19 risk. As governments, employers, and businesses lift pandemic-related restrictions and reopen, they must comply with the ADA and Section 504. This includes providing reasonable accommodations and modifications, physical access, and effective communication. For information about rights and responsibilities under these statutes, please contact the ADA Information Line at 800-514-0301 (voice) or 800- 514-0383 (TTY) or visit https://www.ada.gov/. Additional relevant information can be found on the U.S. Department of Health and Human Services’ Office for Civil Rights’ website at https://www.hhs.gov/civil-rights/for-providers/civil-rights-covid19/index.html.
3. Reduce further learning loss for vulnerable students. Education inequalities have worsened as COVID-19 continues to disrupt learning for millions of students. Students of color are experiencing disproportionate failure rates, a growing digital divide disadvantages students who cannot access the internet and miss school as a result, and students with limited English proficiency and/or a disability are suffering serious educational consequences. Students who are homeless or in juvenile justice facilities are particularly at risk of learning disruptions. Schools contribute to these challenges when they fail to communicate with limited English proficient families in a language they understand about how to access online learning and other important information about school activities. Whether schools begin to reopen or continue to teach virtually, they must do so in compliance with Titles IV and VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, the Equal Educational Opportunities Act of 1974, the ADA, and Section 504. COVID-19 resources for schools, students, and families can be found at https://www.ed.gov/coronavirus?src=feature&utm_medium=email&utm_source=govdelivery.
4. Protect correctional staff, incarcerated and detained people, and their families. Studies have shown that compared to the general population, a disproportionate number of COVID-19 outbreaks and deaths occur in jails, prisons, and detention facilities across the country. Certain communities of color, including Black, Indigenous, and Latino people, as well as people with disabilities, are more likely to have comorbidities, and suffer serious and even fatal COVID-19 infections, both in the general population and in jails, prisons, and detention centers. Individuals with limited English proficiency and those with disabilities can face increased isolation and lack meaningful access to essential information during COVID-19. This can limit their ability to obtain treatment and timely escalation of care when needed. State and local jails, prisons, and detention centers that receive Federal financial assistance must not discriminate on the basis of race, color, and national origin under Title VI of the Civil Rights Act of 1964 and other statutes. They must also comply with the ADA’s and Section 504’s disability nondiscrimination mandate. In addition to the statutory prohibitions on discrimination, these facilities may not deprive prisoners of their rights guaranteed by the Eighth and Fourteenth Amendments. Federal prisons and detention facilities are subject to Executive Order 13166 and other authorities that protect the civil rights of Federal detainees and inmates. For further guidance on managing pandemic response and recovery in correction and detention facilities, see https://nicic.gov/coronavirus and https://www.cdc.gov/coronavirus/2019-ncov/hcp/broad-based-testing.html.
5. Protect vulnerable populations facing housing instability. COVID-19 has exacerbated existing racial and economic disparities in access to safe and affordable housing. Despite these challenges, individuals retain their fundamental right to obtain housing free from discrimination. Direct providers of housing must still comply with the Fair Housing Act. Our country already faced a severe shortage in affordable housing before the economic impacts of COVID-19 caused significant increases in housing instability. With studies showing that certain communities of color are more likely to be at risk of eviction, we must ensure that discrimination is not an additional barrier. Information on where to find housing assistance during the pandemic can be found here: https://www.benefits.gov/news/article/402. The Department of Housing and Urban Development also maintains a list of resources, found at https://www.hud.gov/coronavirus.
6. Provide information in languages other than English. Large numbers of people in the United States do not read or understand English well. Yet all people need to understand the symptoms, when to stay home, and how to protect themselves and their families to prevent the spread of the virus. Federal, state, and local public messaging on pandemic safety measures and recovery efforts should be provided in the wide array of languages spoken by people with limited English proficiency. Likewise, it is important that we ensure language accessibility in law enforcement, courts, and victim services so that victims of hate crimes and discrimination can vindicate their rights. Title VI requires recipients of Federal financial assistance to provide meaningful access to Federally-funded programs and activities to people with limited English proficiency. More information about ensuring language access and the concentration of, and languages spoken by, persons with limited English proficiency in a particular community can be found at https://www.lep.gov/ and https://www.lep.gov/maps.
7. Collect data to monitor, track, and ensure equitable outcomes. COVID-19 requires accountability and action to address longstanding disparities for Black, Indigenous, Latino, AAPI, and other people of color, as well as people with disabilities. Complete, consistent, and accurate data collection and reporting on race, ethnicity, disability, and limited English proficient status are essential to our ability to recognize and address disparities and inequality. Federal civil rights offices are authorized to use qualitative (studies, news reports, and other sources of information) and quantitative data to conduct outreach, technical assistance, and enforcement to ensure compliance with Title VI of the Civil Rights Act of 1964. The Civil Rights Division is available to consult with Federal agencies on approaches to data collection and assessments to determine whether policies or practices may have a discriminatory impact. For more information on identifying discrimination under Title VI and on data collection, see https://www.justice.gov/crt/fcs/T6Manual7#Z; see also Executive Order 13985 (addressing the need for race, ethnicity, and disability data collection).
The Civil Rights Division will do its part to facilitate a coordinated federal response to these issues. Under Executive Order 12250, the Department of Justice is responsible for ensuring the consistent and effective implementation of Federal civil rights laws “prohibiting discriminatory practices in Federal programs and programs receiving federal financial assistance.” Accordingly, I have directed the Civil Rights Division’s Federal Coordination and Compliance Section and the Disability Rights Section to ensure that Federal agencies use their authority to pursue a comprehensive approach to advance equity and redress inequities in pandemic response and recovery. Finally, the Civil Rights Division will continue to convene meetings of Federal civil rights offices to:
1) exchange information and resources for agencies to take action on COVID-19-related harassment and discrimination;
2) monitor and address civil rights issues related to COVID-19 and recipients of Federal financial assistance;
3) identify strategies to ensure Federal, state and local efforts achieve equitable outcomes in current and future emergency planning and response;
4) work with the Federal agencies to develop and identify data sources or indices that will assist recipients of Federal financial assistance to collect data from communities of color and other underserved populations. The Civil Rights Division, together with other agencies throughout the Federal government, will continue to monitor civil rights issues related to COVID-19 and vigorously enforce civil rights laws. To file a complaint with the Civil Rights Division, please fill out our online form at https://civilrights.justice.gov/.
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South Carolina man sentenced to 10 years for “crystal” meth and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Todd Michael Hensley, of Anderson, South Carolina, was sentenced today to 120 months of incarceration for drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Hensley, age 48, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.”
On January 23, 2020, officers conducted a traffic stop of Hensley’s vehicle in Marshall County and found him to be in possession of approximately 2.73 pounds of “crystal” methamphetamine, also known as “ice,” a loaded 9mm Glock pistol, four loaded 10-round Glock firearm magazines, a loaded 15-round Glock firearm magazine, and three loaded 31-round Glock firearm magazines. Following the traffic stop, a search warrant was executed at Hensley’s home in Anderson, South Carolina, where officers seized an additional 14 firearms, including three AK47s, approximately 300 rounds of ammunition, 50 grams of “ice,” and $9,000 in cash.
The judge also ordered the forfeiture of the firearms, ammunition, and cash.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The Anderson County, South Carolina Sheriff’s Department assisted.
U.S. District Judge John Preston Bailey presided.
Software developer charged with damaging the computer system of a Cleveland companyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury sitting in Cleveland has returned an indictment charging Davis Lu, 51, of Houston, Texas, with one count of damaging protected computers. The Defendant is accused of using his position as a software developer to execute malicious code on his employer's computer servers. The Defendant was arrested this morning without incident.
According to the indictment, the Defendant was employed as a Software 1 Senior Developer working with emerging technology for Company 1, a corporation that held its principal place of business in Cleveland, Ohio. On or about August 4, 2019, Company 1’s servers experienced a disruption that crashed production servers and prevented employees from accessing those servers.
The indictment states that Company 1 investigated the source of the disruption and discovered unauthorized code installed on a server, causing that server to create an infinite loop and crash. Furthermore, it is alleged that the company found additional code that deleted files associated with user profiles, thereby denying users access to Software 1.
The indictment states that Company 1 requested that the Defendant return his company-issued computer. It is alleged that shortly before returning the computer, the Defendant deleted encrypted volumes, attempted to delete Linux directories and attempted to delete two additional projects. Additionally, the company discovered that the Defendant had allegedly conducted internet searches on how to escalate privileges, hide processes and delete large folders and/or files.
According to the indictment, as a result of these alleged actions, Company 1 suffered a loss of at least $5,000 and damage affecting ten or more protected computers.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Division of the FBI and is being prosecuted by Assistant United States Attorneys Brian S. Deckert and Daniel J. Riedl and Senior Counsel Adrienne Rose of the Justice Department’s Computer Crime and Intellectual Property Section.
Six Defendants Convicted and Sentenced to over 75 Years Combined in Federal Prison for Trafficking MethamphetamineRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas,announced that on April 14, 2021, the final of six (6) individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring which operated in Benton County, Arkansas and other jurisdictions such as California and Missouri. This investigation and prosecution, named “Operation Inner Circle,” lasted from approximately January of 2019 through today’s final sentencing hearing. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, in early 2019, Homeland Security Investigations Fayetteville initiated an investigation which revealed that a methamphetamine distributor in Los Angeles, Zeache Dupree Rose, would supply methamphetamine to local sellers of methamphetamine Michael James Smith, Craig Ryan Kelley and Joseph A. James, who would sell it in smaller amounts locally in Northwest Arkansas and Southwest Missouri. In order to facilitate the transportation of the methamphetamine from California to Arkansas, Rose would utilize couriers DaJohn Alexander and Marcus A. Jones, who would transport the methamphetamine in luggage smuggled on to commercial aircraft or buses traveling from California to Arkansas. In total, more than 13 kilograms of pure methamphetamine was seized as part of this operation.
Defendants in this conspiracy received the following sentences:
Zeache Dupree Rose, age 25, the leader of the organization from Los Angeles, California was sentenced December 18, 2020 to 180 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine and one count of money laundering. Rose was indicted in the Western District of Arkansas on March 4, 2020 and plead guilty on July 1, 2020.
Michael James Smith, age 43, a distributor of methamphetamine from Anderson, Missouri was sentenced October 7, 2020 to 151 months in federal prison followed by five years of supervised release on one count of Possession With Intent to Distribute More Than Fifty (50) Grams of Methamphetamine. Smith was indicted in the Western District of Arkansas on November 20, 2019 and plead guilty on December 9, 2019.
Joseph A. James, age 39, a distributor of methamphetamine from Siloam Springs, Arkansas was sentenced December 8, 2020 to 121 months in federal prison followed by four years of supervised release on one count of Conspiracy to Distribute More Than Five-Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine. James was indicted in the Western District of Arkansas on August 16, 2019 and plead guilty on October 3, 2019.
Craig Ryan Kelley, age 45, a distributor of methamphetamine from Eureka Springs, Arkansas was sentenced August 12, 2020 to 240 months in federal prison followed by five years of supervised release on one count of Distribution of More Than Five (5) Grams of Methamphetamine. Kelley was indicted in the Western District of Arkansas on March 4, 2020 and plead guilty on May 1, 2020.
DaJohn Lequor Alexander, age 21, a transporter of methamphetamine from Los Angeles, California, was sentenced November 4, 2020 to 97 months in federal prison followed by three years of supervised release on possession of methamphetamine with intent to distribute. Alexander was charged by Information and entered a plea of guilty on July 2, 2020.
Marcus Alan Jones, age 27, a transporter of methamphetamine from Los Angeles, California, was sentenced April 14, 2021 to 120 months in federal prison followed by three years of supervised release for conspiracy to distribute methamphetamine. Jones was charged by Information and entered a plea of guilty on December 2, 2020.
This prosecution was part of the Western District of Arkansas’ Operation Inner Circle, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF case was investigated by Homeland Security Investigations in Fayetteville, Arkansas and Los Angeles, California, The Internal Revenue Service in Fayetteville, Arkansas, the Benton County, Arkansas Sheriff’s Office, the Rogers, Arkansas Police Department, the Bentonville, Arkansas Police Department and the Northwest Arkansas National Airport (XNA) Police Department. Assistant United States Attorney Brandon Carter prosecuted the case for the Western District of Arkansas.
San Francisco Daycare Center Employee Charged with Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Jace Wong was charged today in a federal complaint with possession of child pornography, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the federal complaint filed today, Wong, 26, of San Francisco, used the social media application Kik to join an online chat group that shared child sexual abuse material. The complaint alleges that Wong posted child sexual abuse videos to the chat group and communicated directly with an undercover officer in the group. During their chat yesterday, April 13, 2021, Wong sent the undercover officer a 36 second video in which a prepubescent female, estimated to be 4 to 6 years old, is seen standing on a black and white tiled bathroom floor with her pants down to her ankles and her vagina exposed. Law enforcement was able to identify Wong and his current location, which was a San Francisco daycare center where he was employed. Wong was arrested as he left the daycare center yesterday afternoon. After the arrest, agents observed a black and white tiled bathroom in the facility believed to be where the video was produced.
Wong is scheduled to make his initial appearance on the complaint on Thursday, April 15, 2021, at 10:30 a.m. in San Francisco before the Honorable Jacqueline Scott Corley, United States Magistrate Judge. He currently remains in custody.
Investigators are asking anyone who has further information about Jace Wong or his activities that are relevant to this case to email the FBI tip line at tips.fbi.gov or call (415) 553-7400.
Wong is charged with possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). If convicted, he faces a maximum sentence of 20 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant United States Attorney Joseph Tartakovsky is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Rochester Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gary Stopani, 28, of Rochester NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possessing and accessing with intent to view child pornography involving prepubescent minors. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that on October 8, 2020, investigators seized a laptop, two hard drives, and two cellular telephones from the defendant, which contained images and videos of child pornography. In total, Stopani’s electronic devices contained more than 600 images and/or videos of child pornography. Some of the images included involved prepubescent minors engaged in sexually explicit conduct and images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Greece Police Department, under the direction of Andrew P. Forsythe.
Sentencing is scheduled for July 15, 2021, at 9:15 a.m. before Judge Siragusa.
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Repeat Sex Offender Sentenced to 20 Years in Federal PrisonRead the Press Release
BOWLING GREEN, KY. – Chief U.S. District Judge Greg Stivers yesterday sentenced repeat sex offender Mark Allen Johnson, 31, of Bowling Green, to 20 years’ imprisonment, followed by lifetime supervised release, for distribution of child pornography, attempted enticement, and attempted transfer of obscene material to a minor, announced Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
“The fine work of Branch Chief Madison Sewell, the FBI, and the Roswell Georgia Police Department ensured the successful prosecution of Johnson,” said Acting U.S. Attorney Bennett. “The prosecution team’s effort resulted in a lengthy 20-year period of incarceration followed by federal supervision for life. The community is safer now for all citizens - especially our children.”
“Due to the lengthy sentence handed down yesterday, the FBI along with our valued partners, have effectively removed a dangerous child predator from our community,” said FBI Louisville Special Agent in Charge Robert Brown. “Know that those found exploiting the innocence of children online will be met with rigorous investigators working to hand down the harshest of punishments. The FBI will stop at nothing to provide justice to victims of sexual exploitation.”
In January 2020, Johnson pled guilty in state court to Prohibited Use of an Electronic Communication System to Procure a Minor. According to a sentencing memorandum filed by the United States, Johnson had created a profile and went online to communicate with minors. In one such communication, Johnson engaged with an individual he believed to be a thirteen-year-old girl, but who was actually an undercover Georgia law enforcement officer. Johnson engaged the officer in overtly sexual conversations, and in February 2020 (only a few weeks after his state court plea), he sent the Georgia undercover officer a video of child pornography.
Independently of his Georgia chats, Johnson was also chatting online with another person who he believed to be a minor, and who was an undercover FBI agent. The conversations with the undercover FBI agent date back to December 2019, were overtly sexual, and included an offer to meet the individual he believed to be a minor in order to engage in sex acts.
The investigations combined when, after the FBI conducted a federal search warrant at Johnson’s Bowling Green residence, Johnson provided the Georgia undercover with a copy of the federal search warrant. Johnson explained that he had a new number because the FBI had taken his phone in the search. Johnson was arrested shortly thereafter and has been in federal custody ever since.
After being sentenced by the United States District Court, Johnson is also due to return to state court for sentencing on the state charge to which he pled in January 2020, where the recommended sentence is five years “to run consecutively to any other sentence in any other indictment.”
Branch Chief Madison Sewell of the Bowling Green United States Attorney’s Office prosecuted the case. The investigations were conducted by the Federal Bureau of Investigation and the Roswell (GA) Police Department.
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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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Readout of Attorney General Merrick B. Garland’s Call with the Minister of Justice and Attorney General of CanadaRead the Press Release
Attorney General Merrick B. Garland spoke yesterday with David Lametti, the Minister of Justice and Attorney General of Canada. In their inaugural conversation, the Attorneys General discussed a number of transborder law enforcement issues, including cybercrime, as well as violence against women, minorities, Indigenous peoples and other historically disadvantaged persons. The Attorneys General discussed their shared commitment to combatting systemic racism and discrimination and to further enhancing bilateral cooperation on law enforcement matters, including through the reinstitution of the U.S./Canada Cross-Border Crime Forum.
Portland Area Mail Thief Pleads Guilty to Bank Fraud, Identity Theft, and Possession of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Washington County, Oregon man pleaded guilty today for using stolen bank checks and debit cards to defraud local residents and illegally possessing distribution quantities of methamphetamine, announced Acting U.S. Attorney Scott Erik Asphaug.
William Anthony McCormack, Jr., 39, pleaded guilty to a superseding criminal information charging him with one count each of bank fraud, aggravated identity theft, and possession with intent to distribute methamphetamine.
According to court documents, between June and September 2020, McCormack devised a scheme whereby he would steal bank checks and debit cards from community mailboxes, primarily in Washington County, and use them to make unauthorized withdrawals from victims’ bank accounts. On at least five separate occasions, McCormack deposited stolen checks into victims’ Rivermark Community Credit Union accounts and immediately made unauthorized withdrawals from the same accounts.
On September 29, 2020, during a traffic stop for speeding and driving with a suspended license, a Tualatin Police officer arrested McCormack pursuant to a federal arrest warrant. At the time of his arrest, McCormack possessed 30 small plastic baggies containing at least 5 grams of methamphetamine and two 9mm handguns in the glove compartment of his vehicle. Officers also found several driver’s licenses, U.S. passports, and pieces of mail that did not belong to him in McCormack’s trunk and hotel room.
McCormack faces a maximum sentence of 72 years in prison, a $6.25 million fine, and five years’ supervised release. He is subject to a mandatory minimum prison sentence of seven years. McCormack will be sentenced on July 27, 2021 before U.S. District Court Judge Anna J. Brown.
As part of his plea agreement, McCormack has agreed to pay restitution in full to his victims as ordered to the court.
This case was investigated by the U.S. Postal Inspection Service. It is being prosecuted by Meredith Bateman and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
If you or someone you know are the victim of or witness a mail-related crime, please contact the U.S. Postal Inspection Service by visiting www.uspis.gov/report.
Philadelphia Police Officer Indicted on False Statement and Obstruction ChargesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Kennedy, 49, of Philadelphia, PA, was charged by Indictment with six counts of making materially false statements to the FBI, one count of obstruction of justice, and one count of conspiracy to make a false statement.
According to the Indictment, the defendant participated in the execution of a Philadelphia Police Department search warrant while on duty as a police officer. During the execution of that warrant, Kennedy is alleged to have pocketed evidence, that is, cash proceeds of drug trafficking that was on a nightstand. Subsequently, the Federal Bureau of Investigation (FBI) investigated reports that Kennedy stole this cash. The Indictment alleges that the defendant, when interviewed by FBI agents and Philadelphia Police Department Task Force Officers, made a number of false statements about the incident. The Indictment further alleges that the defendant obstructed justice by corruptly persuading another Philadelphia Police Department officer, and conspiring with that officer, to lie to the FBI about the incident in order to create an alibi and corroborate Kennedy’s false statements.
“The charges against Officer Kennedy allege behavior that is in stark contrast to values police officers are supposed to embody,” said Acting U.S. Attorney Williams. “Our community expects everyone in law enforcement to follow the law, and justice demands it. Thank you to the FBI and the Philadelphia Police Department for their dedicated work on this investigation.”
“As law enforcement officers, we must be held to the highest of ethical standards,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The public’s trust is critical for our justice system to function properly. That's why the FBI will do everything in its power to hold accountable an officer whose criminal actions undermine that trust.”
If convicted, the defendant faces a maximum possible sentence of 55 years’ imprisonment, including a federal Guidelines Range of a period of incarceration.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department Task Force Officers, and is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Joseph LaBar.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Fraud and Identity Theft Charges for his Role in Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Marlon Palacios, age 33, of Pittsburgh, Pennsylvania, pled guilty today to participating in a conspiracy to commit access device fraud, as well as for committing aggravated identity theft, for taking part in a nationwide gas station skimming scheme that involved stealing the banking and personal information of residents of Upstate and Central New York who used the “pay at the pump” feature to make gasoline purchases.
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); and Acting Inspector in Charge Joshua McCallister, Boston Division, United States Postal Inspection Service (USPIS).
As part of his guilty plea, Palacios admitted to being a part of a conspiracy that, between December 2015 and July 2019, obtained the credit and debit card information of gas station customers using skimming devices surreptitiously installed inside gas pumps. Using the stolen information, members of the conspiracy created fake debit and credit cards, and then used those fake cards to obtain money orders and gift cards, and to withdraw cash from ATMs. Members of the conspiracy enriched themselves with some of the money orders, gift cards, and cash, and also provided money orders and gift cards to members of a money laundering conspiracy who used various bank and gift card exchange website transactions to obscure the nature and source of the funds.
Senior District Judge Gary L. Sharpe is scheduled to sentence Palacios on August 12, 2021. For the access device fraud conspiracy charge, Palacios faces up to 5 years in prison; a fine of up to $250,000; and up to 3 years of supervised release. For the aggravated identity theft charge, Palacios faces a term of imprisonment of 2 years, to be served consecutive to any other term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in San Juan, Miami, and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Patient Recruiter Sentenced to Prison for $3.3 Million Cancer Genetic Testing Fraud SchemeRead the Press Release
A Florida man was sentenced today to 10 years in prison for conspiracy to commit health care fraud in connection with a scheme that resulted in the submission of approximately $3.3 million in fraudulent claims to Medicare for genetic testing.
Ivan Andre Scott, 36, of Kissimmee, was convicted by a federal jury on Jan. 8, 2021, of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive unlawful health care kickbacks, and three counts of receiving unlawful kickbacks. According to court documents, Scott was the owner of Scott Global, a telemarketing call center located in Orlando. The evidence showed that Scott targeted Medicare beneficiaries with telemarketing phone calls falsely stating that Medicare covered expensive cancer screening genetic testing, or “CGx” tests. Each test cost as much as $6,000. After beneficiaries agreed to take the test, the evidence showed Scott paid unlawful bribes and kickbacks to telemedicine companies to obtain doctor’s orders authorizing the tests.
The evidence at trial showed that the telemedicine doctors approved the expensive testing even though they were not treating the beneficiary for cancer or symptoms of cancer, and often without even speaking with the beneficiary. According to the evidence presented at trial, Scott then sold the genetic tests and doctor’s orders to laboratories in exchange for illegal kickbacks. To conceal the illegal kickbacks, Scott submitted invoices to the laboratories and other marketers making it appear as though he were being paid for hourly marketing services, rather than per referral.
Between November 2018 and May 2019, labs submitted more than $3.3 million in claims to Medicare for genetic tests that Scott had referred to them, of which Medicare paid over $1.3 million. In that timeframe, Scott personally received approximately $194,000 for his role in the scheme.
“The defendant used telemarketing and telemedicine to defraud Medicare of more than a million dollars for unnecessary genetic screening tests,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department will continue working with our law enforcement partners to bring to justice those who seek to use new technologies to plunder our government health care programs.”
“Fraudsters who steal from taxpayer-funded federal health care programs and engage in predatory telemarketing calls are a threat to our country’s health care system and its most vulnerable beneficiaries,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Health and Human Services, Office of Inspector General (HHS-OIG). “Our agents will continue to aggressively investigate health care fraud and hold criminals responsible for their actions.”
“The unscrupulous tactics used in this scheme to steal from taxpayers is what drives our investigators to combat healthcare fraud,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office. “The FBI’s mission to protect the American people includes protecting them from fraudsters who cheat our nation’s federally funded healthcare systems.”
The case was investigated by HHS-OIG and the FBI and was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing and the use of telemedicine that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged.
Trial Attorneys Alejandro Salicrup and Jamie de Boer of the Fraud Section prosecuted the case.
Ooltewah Woman Sentenced to 20 Years Imprisonment for Creation of A Crush Video and Transportation of Child PornographyRead the Press Release
CHATTANOOGA, Tenn.– On April 14, 2021, Teela Moore Hendrix, 35, of Ooltewah, Tennessee, was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Hendrix agreed to plead guilty to a superseding indictment charging her with one count of transportation of child pornography, in violation of 18 U.S.C. §§ 2252A(a)(1) and (b)(l); and one count of creation of a crush video, which includes depictions of the sexual assault of an animal, in violation of 18 U.S.C. § 48.
Hendrix was sentenced to 235 months in prison, followed by 10 years of supervised release. Hendrix will be required to register with state sex offender registries and comply with special sex offender conditions during her supervised release.
The defendant sexually abused her 4-year-old son and the family dog and created digital videos of the abuse, which she traded with someone she met in an online room dedicated to sexually abusing animals.
“Mrs. Hendricks’ sentence reflects the seriousness of her crimes and the enduring harm caused when offenders record and preserve their abhorrent exploitation of minors in visual media. Thanks to a partnership between the Hamilton County Sheriff’s Office, Homeland Security Investigations, and the North Carolina State Bureau of Investigation, Mrs. Hendricks is now in prison, and her son is now safe,” said Acting United States Attorney Francis M. Hamilton III.
“The results of this investigation highlight the Hamilton County Sheriff’s Office commitment to protecting our children and the collaborative partnerships we share with our law enforcement partners specifically the United States Attorney’s Office, the Department of Homeland Security Investigations, and the North Carolina State Bureau of Investigation. Together, we will continue to aggressively pursue and prosecute those who prey upon our community’s most vulnerable, our children,” stated Chief Deputy Austin Garrett of the Hamilton County Sheriff’s Office (“HCSO”).
“HSI agents make it a top priority to work with all of our law enforcement partners to investigate predators involved with the production, distribution and possession of child sexual abuse material,” said Special Agent in Charge Jerry C. Templet, Jr, HSI Nashville. “Each year, millions of children fall prey to sexual predators, and it is imperative that we do our part to protect vulnerable children from victimization and ensure the perpetrators are punished for their heinous crimes.”
The criminal indictment was the result of an investigation by the Hamilton County Sheriff’s Office, Homeland Security Investigation, and the North Carolina State Bureau of Investigation (“NC SBI”). This investigation was led by Task Force Officer Ed Merritt and Special Agent Dave Nalley of HSI and Special Agent Chris Munden of the NC SBI.
Assistant United States Attorney James T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Ontario Company Sentenced for Dumping Waste Water into Lake Ontario Violating the Clean Water ActRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - The Algoma Central Corporation (Algoma) was fined $500,000 by U.S. Magistrate Judge H. Kenneth Schroeder, Jr. after pleading guilty to a negligent violation of the Clean Water Act. The company, which is headquartered in St. Catharines, Ontario, was also put on probation for a period of three years during which it must implement an environmental compliance plan.
Algoma operated a fleet of dry and liquid bulk carriers on the Great Lakes. One of the vessels in the defendant’s fleet was the M/V Algoma Strongfield (Strongfield). Built in China, the Strongfield was delivered to Canada on May 30, 2017, by a crew from Redwise Maritime Services, B.V. (Redwise), a vessel transport company based in the Netherlands.
“The Great Lakes are our nation’s largest source of fresh water, and this prosecution shows the Administration’s commitment to preserving a natural resource that will be crucial for generations to come,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD).
“The very purpose of the Clean Water Act is to protect our natural resources, including one of our nation’s greatest natural treasures, the Great Lakes, from harm,” stated U.S. Attorney James P. Kennedy, Jr. “This conviction and the fine imposed sends a strong message that those who violate the Clean Water Act will be held accountable for their actions. This penalty also ensures that this defendant will be monitored in the future and will be strictly obligated to comply with those environmental laws and regulations that protect our waters, our fisheries, our wildlife, and each of us.”
During the Strongfield’s delivery voyage, while manned by a Redwise crew, the oily water separator and oil content monitor malfunctioned or failed on multiple occasions, which resulted in an accumulation of unprocessed oily bilge water. On May 5, 2017, an Algoma employee directed Redwise to transfer and store the unprocessed oily bilge water in the Strongfield’s used wash water tank to avoid an overboard discharge of unprocessed bilge water into the Pacific Ocean. The wash water tank was intended to store deck and cargo hold wash water and is not listed on the Strongfield’s International Oil Pollution Prevention certificate. Between May 5, 2017, and the Strongfield’s arrival in Canada, the Redwise crew made several additional transfers of unprocessed oily bilge waste into the wash water tank to avoid overboard discharges of untreated bilge water.
On May 19, 2017, as the Strongfield was transiting the Panama Canal, an Algoma employee boarded the vessel and remained onboard until the vessel’s arrival in Canada, where he assumed the duties of Chief Engineer. On May 30, 2017, the Strongfield arrived in Sept-Iles, Quebec, Canada, where the Redwise crew handed over operation of the vessel to an Algoma crew. Although some of the Algoma crew were advised that the wash water tank contained unprocessed oily bilge water, Algoma acted negligently in failing to inform all onboarding Algoma crewmembers and the inspectors of the contents of the wash water tank.
On June 6, 2017, the Stongfield was transiting Lake Ontario. While in the waters of the United States within the Western District of New York, the 3rd officer on board the Strongfield requested permission to empty the contents of the wash water tank into Lake Ontario, and the captain approved the discharge. Because Algoma had negligently failed to inform the 3rd officer and the captain what the wash water tank contained, approximately 11,887 gallons of unprocessed oily bilge water were released into Lake Ontario. The discharge was stopped when another Algoma employee learned of the discharge and informed the 3rd officer and captain that the wash water tank contained unprocessed oily bilge water and instructed them to stop the discharge immediately. After the incident, Algoma contacted Canadian and U.S. authorities to report the discharge.
The sentencing is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Cindy C. Buckley, Buffalo, New York, and Resident Agent in Charge Edward L. Songer, Detroit, Michigan.
Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango of the Western District of New York are prosecuting the case.
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