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13 April 2021
Mandeville Man Is Charged with Health Care Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS, LA - U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, announced that BRET BERRY (“BERRY”), age 60, of Mandeville, LA was charged March 9, 2021 with seven counts of health care fraud, in violation of Title 18, United States Code, Section 1347 and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to the indictment, BERRY defrauded Blue Cross and Blue Shield of Louisiana, Medicare and Medicaid, other health care benefit programs relating to billing for cardiac rehabilitation services. BERRY attempted to provide services that required a doctor’s order when he did not have said order, and he attempted to provide services that required a doctor’s presence, when no doctor was present.
According to the indictment, BERRY and his companies billed health care insurance companies for fraudulent services totaling approximately $11,290,000. BERRY and his companies were reimbursed approximately $859,000 in relation to those fraudulent claims.
The maximum penalty for each health care fraud charge is up to 10 years in prison, a $250,000 fine, 3 years of supervised release and a $100.00 special assessment fee for each count.
Aggravated identity theft has a mandatory minimum of two years imprisonment per count to be served consecutively. The maximum penalty per count is up to 20 years imprisonment, a $250,000 fine, and up to 3 years supervised release.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services – Office of Inspector General. The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.
Manchester Man Charged with Unlawful Possession of a FirearmRead the Press Release
CONCORD – Jafet Centeno, 23, of Manchester, was indicted by a federal grand jury on Monday and charged with unlawful possession of a firearm and ammunition, Acting United States Attorney John J. Farley announced today.
Centeno initially was charged by complaint and brought into custody last week. He is detained pending trial.
The original complaint filed in court alleges that on April 1, 2021 officers executed a state search warrant at Centeno’s residence. During the search, officers seized a loaded firearm and ammunition. The complaint alleged that Centeno is prohibited from possessing a firearm due to previous felony convictions in 2017.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manchester Police Department.
The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Man from Shiprock sentenced to 15 years in federal prison for second-degree murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Tavor Tom, 20, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was sentenced in federal court on April 7 to 15 years in prison for second-degree murder in Indian Country.
Tom pleaded guilty to this offense on Nov. 24, 2020. According to the plea agreement and other documents, on July 1, 2019, Tom drove to his aunt’s house and stabbed her to death in in San Juan County, New Mexico, on the Navajo Nation. Tom stole the victim’s vehicle and drove to a nearby Walmart to steal dextromethorphan, a cough suppressant. Tom was later arrested by law enforcement after crashing into a fence outside a church while under the influence of dextromethorphan.
Upon his release from prison, Tom will be subject to three years of supervised release.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office and the Navajo Nation Police Department investigated this case. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Man Charged with Threatening Violence Against Federal Judge in ChicagoRead the Press Release
CHICAGO — A man has been indicted on criminal charges for allegedly threatening to assault and murder a federal judge in Chicago.
JOSHUA FARNER, 35, of Marion, Ill., is charged with two counts of mailing threatening communications, and one count of threatening to assault and murder a United States judge. The indictment was returned Monday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Misty N. Wright, Kartik K. Raman, and Vincenza Tomlinson.
According to the indictment, Farner on April 18, 2016, mailed a letter to the judge in Chicago threatening to assault and murder the judge. The indictment accuses Farner of sending the threatening letter to retaliate against the judge and impede, intimidate, and interfere with the judge’s official duties.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A man has been charged in federal court with conducting an illegal sports gambling business in Chicago and the suburbs.
JOHN AMABILE, 33, of Melrose Park, Ill., is charged with one count of conducting an illegal gambling business, according to a criminal information filed today in U.S. District Court in Chicago. According to the charge, Amabile conducted an illegal sports bookmaking business in 2018 and 2019 in Chicago, Elmwood Park, and Melrose Park. The information seeks forfeiture from Amabile of $100,000 in alleged criminally derived proceeds.
Arraignment in federal court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The gambling charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
MSC Gayane Crew Member Sentenced to 5+ Years for Conspiracy to Smuggle $1 Billion Worth of Cocaine into the United StatesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Vladimir Penda, 27, of Montenegro, was sentenced to five years and ten months in prison, and two years of supervised release by United States District Court Judge Harvey Bartle III, on charges of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
For the first half of 2019 until mid-June of that year, Penda, a crew member who worked on board the shipping vessel MSC Gayane as the ship’s fourth engineer, conspired with others to engage in a bulk cocaine smuggling scheme. On multiple occasions during the MSC Gayane’s voyage and while at sea, crew members including Penda helped load bulk packages of cocaine onto the vessel from speedboats that approached the vessel in the middle of the night under cover of darkness. Crew members used the vessel’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the cocaine in the vessel’s shipping containers. Crew members bent railings on the ship and pulled back doors on the shipping containers so they could fit the huge quantities of cocaine into the containers. After hiding the drugs among legitimate cargo, crew members used fake seals to reseal the shipping containers in which they had stashed the cocaine in order to disguise their clandestine activities and contraband.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized about 20 tons of cocaine worth over $1 billion U.S. dollars from its shipping containers in one of the largest drug seizures in U.S. history.
Seven other crew members from the MSC Gayane involved in this smuggling scheme were arrested and pleaded guilty to conspiracy to possess with intent to distribute cocaine based on their participation in the scheme. These crew members include Bosko Markovic, 39, of Montenegro, the ship’s chief officer; Ivan Durasevic, 31, of Montenegro, the second officer; Nenad Ilic, 41, of Montenegro, the engineer cadet; Aleksandar Kavaja, 27, of Montenegro, the electrician; Stefan Bojevic, 29, of Serbia, the assistant reeferman; Fonofaavae Tiasaga, 29, of Samoa, an able seaman; and Laauli Pulu, 34, of Samoa, an ordinary seaman.
“It has been nearly two years since federal agents conducted one of the largest drug seizures in U.S. history,” said Acting U.S. Attorney Williams. “The follow-up investigation uncovered dark-of-night, clandestine drug trafficking conduct which read like a movie plot, and prosecutors in our Office have been working non-stop since then to pursue justice in this case. With Mr. Penda’s just sentence being handed down today, this chapter of the MSC Gayane saga is now coming to a close.”
“Let today’s sentencing serve as a reminder that 2 years ago this June, Mr. Penda and his coconspirators attempted to smuggle close to 20 tons of cocaine, with an estimated street value of $1 billion dollars through the port of Philadelphia. This sends a clear message to criminals around the world that our critical infrastructure is not a safe harbor for drug trafficking,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Protecting the Homeland against transnational crime is a top priority of Homeland Security Investigations, and together with our federal, state, and local law enforcement partners, we are committed to detecting and disrupting transnational drug smuggling.”
“The many successful prosecutions following CBP’s record-setting cocaine seizure of June 2019 should serve as a reminder to those willing to help drug trafficking organizations that narcotics smuggling has very serious consequences,” said Keith Fleming, Acting Director of Field Operations for CBP’s Baltimore Field Office. “Customs and Border Protection and our law enforcement partners remain steadfast in our commitment to intercept shipments of dangerous drugs before they can be smuggled through our nation’s borders.”
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
MS-13 Member Sentenced to More Than 16 Years in Federal Prison for Participating in a Kidnapping and an Attempted MurderRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced MS-13 gang member David Ernesto Nolasco Soriano age 29, to 200 months in federal prison, followed by three years of supervised release, for a federal racketeering conspiracy charge related to his participation in a violent racketeering enterprise, specifically MS-13, including a kidnapping and an attempted murder.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Chief Jason Lando of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Acting Chief Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Nolasco Soriano was a member and associate of the Fulton Locotes Salvatrucha (FLS) clique of MS-13.
According to Nolasco Soriano’s plea agreement, from at least January 2015 through August 28, 2015, while Nolasco Soriano was a member and associate of the FLS clique of MS-13, members of the Fulton clique engaged in the distribution of marijuana on behalf of MS-13 in the District of Maryland. Members of the Fulton clique also extorted money from legitimate and illegitimate businesses that operated in the gang’s perceived “territory.”
As detailed in his plea agreement, in or around May 2015, members of the FLS clique began demanding extortion payments from “Victim 2.” When Victim 2 stopped making the required extortion payments to the FLS clique, Nolasco Soriano and other MS-13 members kidnapped Victim 2 on May 10, 2015. Nolasco Soriano and several other members of the FLS clique transported Victim 2 against his will to a remote wooded area in Frederick, Maryland. While Nolasco Soriano was present, a member of the FLS clique brandished a handgun and put the barrel of the gun in Victim 2’s mouth. Nolasco Soriano and the other members of the FLS clique released Victim 2 once Victim 2 agreed to resume making extortion payments to the FLS clique. Nolasco Soriano and the other FLS clique members who participated in the kidnapping of Victim 2 did so for the purpose of maintaining and increasing their position in MS-13.
In August 2015, Nolasco Soriano and other MS-13 members and associates, to maintain and increase their position in the gang, planned and conspired to murder Victim 3, whom they believed to be a rival gang member. On August 28, 2015, after previously conducting surveillance of the residence where Victim 3 lived with his girlfriend, Victim 4, the MS-13 members and associates entered the apartment and waited there for the victims to return. After the victims returned to the apartment, Nolasco Soriano and two other gang members attacked Victim 3 and Victim 4 with machetes and knives. Although both victims survived, the attack on Victim 3 left him with both hands nearly severed, and severe wounds to his face and torso. Victim 3 has no use of one hand and limited use of the other.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019. A total of 21 defendants, including Nolasco Soriano, have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to call the FBI’s nationwide tipline, 1-866-STP-MS13 (1-866-787-6713). The FBI tipline allows individuals to provide information about MS-13’s criminal activities to a central location and the FBI will then disseminate the information to the appropriate law enforcement authorities for investigation. Your identity will be protected.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this case.
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Logan County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to a federal drug charge. Terrindez Xsidrick Bryant, 36, pled guilty to distribution of methamphetamine.
On June 24, 2019, law enforcement officers coordinated a controlled buy at a residence in Verdunville. Bryant came to the residence where he sold approximately 25.5 grams of methamphetamine.
Bryant faces a minimum of five years in prison when sentenced on July 26, 2021.
Acting United States Attorney Lisa G. Johnston commended the investigative efforts of the West Virginia State Police and the Violent Crime and Drug Task Force West.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan A. Keefe 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. 2:19-cr-00244.
Follow us on Twitter: SDWVNews
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Laredo men receive significant sentences for trafficking $4 million of marijuanaRead the Press Release
LAREDO, Texas – A 35-year-old Laredo resident has been ordered to federal prison after conspiring to possess with the intent to distribute 1,261.5 kilograms of marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Luis Villalba, pleaded guilty in October 2020 as did Hector Gonzalez, 35, also of Laredo.
Today, U.S. District Judge Nelva Gonzalez Ramos ordered Villalba to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional information including evidence detailing his role in the offense as a manager and supervisor for the drug-trafficking organization.
Gonzalez received his sentence April 7. U.S. District Judge Marina Garcia Marmolejo ordered him to 132 total months in prison to be immediately followed by five years of supervised release.
On July 9, 2016, Villalba and Gonzalez coordinated the transportation of a large load of marijuana inside a tractor-trailer past the Border Patrol checkpoint north of Laredo. Law enforcement intervened and recovered approximately 2,775 pounds of marijuana.
The marijuana had an approximate street value of $4 million.
Villalba was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future, while Gonzalez is in custody.
The Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Justice Department announces court-authorized effort to disrupt exploitation of Microsoft Exchange Server vulnerabilitiesRead the Press Release
HOUSTON – Authorities have executed a court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers in the United States. They were running on-premises versions of Microsoft Exchange Server software used to provide enterprise-level email service.
Through January and February 2021, certain hacking groups exploited zero-day vulnerabilities in Microsoft Exchange Server software to access email accounts and place web shells for continued access. Web shells are pieces of code or scripts that enable remote administration. Other hacking groups followed suit starting in early March after the vulnerability and patch were publicized.
Many infected system owners successfully removed the web shells from thousands of computers. Others appeared unable to do so, and hundreds of such web shells persisted unmitigated. This operation removed one early hacking group’s remaining web shells which could have been used to maintain and escalate persistent, unauthorized access to U.S. networks. The FBI conducted the removal by issuing a command through the web shell to the server, which was designed to cause the server to delete only the web shell (identified by its unique file path).
“Today’s court-authorized removal of the malicious web shells demonstrates the Department’s commitment to disrupt hacking activity using all of our legal tools, not just prosecutions,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Combined with the private sector’s and other government agencies’ efforts to date, including the release of detection tools and patches, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. There’s no doubt that more work remains to be done, but let there also be no doubt that the Department is committed to playing its integral and necessary role in such efforts.”
“Combatting cyber threats requires partnerships with private sector and government colleagues,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “This court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers shows our commitment to use any viable resource to fight cyber criminals. We will continue to do so in coordination with our partners and with the court to combat the threat until it is alleviated, and we can further protect our citizens from these malicious cyber breaches.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our enduring federal and private sector partnerships,” said Acting Assistant Director Tonya Ugoretz of the FBI’s Cyber Division. “Our successful action should serve as a reminder to malicious cyber actors that we will impose risk and consequences for cyber intrusions that threaten the national security and public safety of the American people and our international partners. The FBI will continue to use all tools available to us as the lead domestic law enforcement and intelligence agency to hold malicious cyber actors accountable for their actions.”
On March 2, Microsoft announced that a hacking group used multiple zero-day vulnerabilities to target computers running Microsoft Exchange Server software. Various other hacking groups also have used these vulnerabilities to install web shells on thousands of victim computers, including those located the United States. Because the web shells the FBI removed each had a unique file path and name, they may have been more challenging for individual server owners to detect and eliminate than other web shells.
Throughout March, Microsoft and other industry partners released detection tools, patches and other information to assist victim entities in identifying and mitigating this cyber incident. Additionally, the FBI and the Cybersecurity and Infrastructure Security Agency released a Joint Advisory on Compromise of Microsoft Exchange Server on March 10. Despite these efforts, by the end of March, hundreds of web shells remained on certain United States-based computers running Microsoft Exchange Server software.
This operation was successful in copying and removing those web shells. However, it did not patch any Microsoft Exchange Server zero-day vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks by exploiting the web shells. The Department strongly encourages network defenders to review Microsoft’s remediation guidance and the March 10 Joint Advisory for further guidance on detection and patching.
The FBI is attempting to provide notice of the court-authorized operation to all owners or operators of the computers from which it removed the hacking group’s web shells. For those victims with publicly available contact information, the FBI will send an e-mail message from an official FBI e-mail account (@FBI.gov) notifying the victim of the search. For those victims whose contact information is not publicly available, the FBI will send an e-mail message from the same FBI e-mail account to providers (such as a victim’s ISP) who are believed to have that contact information and ask them to provide notice to the victim.
If you believe you have a compromised computer running Microsoft Exchange Server, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Justice Department Files Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in PennsylvaniaRead the Press Release
WASHINGTON –The Justice Department announced today that it has filed a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.
"People should never have to endure sexual harassment in their home, where they should feel safe and secure," said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. "The Justice Department will vigorously enforce the Fair Housing Act against landlords who engage in this kind of abusive and illegal behavior."
"Combatting sexual harassment in housing is a high priority at the Department of Housing and Urban Development (HUD)," said Acting Assistant Secretary for Fair Housing Jeanine Worden. "This is an example of how HUD and Justice Department work together to enforce the Fair Housing Act."
"Sexual harassment in housing is illegal," said Acting United States Attorney Stephen R. Kaufman for the Western District of Pennsylvania. "Landlords, property managers or anyone else with control over housing should recognize by the filing of this lawsuit that we take action to combat such despicable conduct."
The lawsuit arose from a complaint that the former tenant filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 21 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Allen and Heidi Woodcock, or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.
Justice Department Announces Court-Authorized Effort to Disrupt Exploitation of Microsoft Exchange Server VulnerabilitiesRead the Press Release
Note: A full copy of the unsealed court documents can be viewed here.
WASHINGTON – The Justice Department today announced a court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers in the United States running on-premises versions of Microsoft Exchange Server software used to provide enterprise-level e-mail service.
Through January and February 2021, certain hacking groups exploited zero-day vulnerabilities in Microsoft Exchange Server software to access e-mail accounts and place web shells (which are pieces of code or scripts that enable remote administration) for continued access. Other hacking groups followed suit starting in early March after the vulnerability and patch were publicized. Although many infected system owners successfully removed the web shells from thousands of computers, others appeared unable to do so, and hundreds of such web shells persisted unmitigated. Today’s operation removed one early hacking group’s remaining web shells, which could have been used to maintain and escalate persistent, unauthorized access to U.S. networks. The FBI conducted the removal by issuing a command through the web shell to the server, which was designed to cause the server to delete only the web shell (identified by its unique file path). This is unrelated to Microsoft’s 13 April announcement.
“Today’s court-authorized removal of the malicious web shells demonstrates the Department’s commitment to disrupt hacking activity using all of our legal tools, not just prosecutions,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Combined with the private sector’s and other government agencies’ efforts to date, including the release of detection tools and patches, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. There’s no doubt that more work remains to be done, but let there also be no doubt that the Department is committed to playing its integral and necessary role in such efforts.”
“Combatting cyber threats requires partnerships with private sector and government colleagues,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “This court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers shows our commitment to use any viable resource to fight cyber criminals. We will continue to do so in coordination with our partners and with the court to combat the threat until it is alleviated, and we can further protect our citizens from these malicious cyber breaches.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our enduring federal and private sector partnerships,” said Acting Assistant Director Tonya Ugoretz of the FBI’s Cyber Division. “Our successful action should serve as a reminder to malicious cyber actors that we will impose risk and consequences for cyber intrusions that threaten the national security and public safety of the American people and our international partners. The FBI will continue to use all tools available to us as the lead domestic law enforcement and intelligence agency to hold malicious cyber actors accountable for their actions.”
On March 2, 2021, Microsoft announced that a hacking group used multiple zero-day vulnerabilities to target computers running Microsoft Exchange Server software. Various other hacking groups also have used these vulnerabilities to install web shells on thousands of victim computers, including those located the United States. Because the web shells the FBI removed today each had a unique file path and name, they may have been more challenging for individual server owners to detect and eliminate than other web shells.
Throughout March 2021, Microsoft and other industry partners released detection tools, patches, and other information to assist victim entities in identifying and mitigating this cyber incident. Additionally, the FBI and the Cybersecurity and Infrastructure Security Agency released a Joint Advisory on Compromise of Microsoft Exchange Server on March 10, 2021. Despite these efforts, by the end of March, hundreds of web shells remained on certain U.S.-based computers running Microsoft Exchange Server software.
Although today’s operation was successful in copying and removing those web shells, it did not patch any Microsoft Exchange Server zero-day vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks by exploiting the web shells. The Department strongly encourages network defenders to review Microsoft’s remediation guidance and the March 10, 2021 Joint Advisory for further guidance on detection and patching.
The FBI is attempting to provide notice of the court-authorized operation to all owners or operators of the computers from which it removed the hacking group’s web shells. For those victims with publicly available contact information, the FBI will send an e-mail message from an official FBI e-mail account (@FBI.gov) notifying the victim of the search. For those victims whose contact information is not publicly available, the FBI will send an e-mail message from the same FBI e-mail account to providers (such as a victim’s ISP) who are believed to have that contact information and ask them to provide notice to the victim.
If you believe you have a compromised computer running Microsoft Exchange Server, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Justice Department Announces $2.2 Million Settlement of Sex Discrimination Lawsuit Against the Commonwealth of Pennsylvania and the Pennsylvania State PoliceRead the Press Release
The Justice Department announced today that it has reached a settlement, through a court-supervised settlement agreement, with the Commonwealth of Pennsylvania and the Pennsylvania State Police (PSP) resolving the United States’ claims that PSP’s use of physical tests as part of the entry-level hiring process for state troopers resulted in a pattern or practice of employment discrimination against women, in violation of Title VII of the Civil Rights Act of 1964.
Title VII is a federal law that prohibits discrimination in employment on the basis of race, color, religion, sex, and national origin. The suit alleged that PSP violated Title VII beginning as early as May 14, 2003, by administering physical tests that assessed physical skills not required to perform the job and that disproportionately excluded female applicants.
“Employers cannot impose selection criteria that unfairly screen out qualified female applicants,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “When the Pennsylvania State Police use a physical fitness test as part of the process for choosing state troopers, they must ensure that the test complies with federal law. This settlement agreement reflects the Civil Rights Division’s continued commitment to removing artificial barriers that prevent women from becoming law enforcement officers.”
Under the terms of the settlement agreement, subject to court approval, PSP will pay $2,200,000 million into a settlement fund that will be used to compensate those women who were harmed by the employment practices challenged by the United States. The agreement also requires PSP to offer priority hiring relief, with retroactive seniority, for up to 65 women for entry-level state trooper jobs. All priority hiring candidates must meet the employer’s lawful selection criteria, including the successful passing of any physical fitness test that meets the requirements of Title VII.
In a joint filing today in the U.S. District Court for the Middle District of Pennsylvania, the parties moved for a court order provisionally approving the terms of the settlement agreement. The motion also asks the court to schedule a fairness hearing to provide an opportunity for individuals potentially affected by the proposed agreement to provide comments on the terms of the settlement. The proposed settlement, once approved by the District Court, will resolve the United States’ complaint filed on July 29, 2014.
The case was brought by the Civil Rights Division’s Employment Litigation Section, which makes the full and fair enforcement of Title VII a top priority. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Johnstown Man Facing Federal Drug ChargeRead the Press Release
Johnstown, PA - One resident of Johnstown, PA, has been indicted by a federal grand jury in Johnstown on a charge of possession with the intent to distribute quantities of a substance containing fentanyl, heroin, and methamphetamine, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Keith Pope 32, as the sole defendant.
According to the Indictment presented to the court, on or about October 7, 2020, Pope was found to possess with the intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and heroin, and a mixture and substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, 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, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Jamestown Man Charged with Sex Trafficking CrimesRead 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 Anthony Burris, 30, of Jamestown, NY, was arrested and charged by criminal complaint with sex trafficking and enticing travel to engage in sexual activity. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the criminal complaint, on January 21, 2021, a mother contacted the Chautauqua County Sheriff’s Office and reported the possible sex trafficking of her daughter (Victim 1). The mother reported that her daughter was involved in drug use and prostitution and had to perform sexual acts with others in exchange for drugs and other items from the defendant. In addition, the mother stated Burris was physically abusing her daughter. The mother provided Victim 1’s Facebook profile, which an investigator reviewed and recognized Victim 1 from ads he previously saw on a website used to post advertisements for commercial sex acts or other illicit business like the sale of controlled substances.
On February 28, 2021, Victim’s 1’s mother told investigators that she learned her daughter was assaulted by the defendant and was at a medical clinic in Erie, Pennsylvania seeking medical treatment for her injuries, which included significant bruising and swelling to her left eye and a laceration above her left eye. Victim 1’s mother stated that Victim 1 was assaulted because she was going to try and leave Burris. A law enforcement officer in Pennsylvania went to the medical clinic to speak with Victim 1 who was uncooperative, stating that she sustained her injuries from falling and refused any help. While in the parking lot of the medical clinic, the officer observed the defendant in a vehicle.
On March 3, 2021, an undercover law enforcement officer contacted Victim 1 and set up a “car date.” Investigators set up surveillance in the vicinity of the agreed upon meeting location and observed Burris driving a vehicle in the area. Investigators approached the vehicle and the defendant was identified as the driver and Victim 1 was identified as the front passenger. During a search of the vehicle, a bag full of condoms and lubricants, suspected controlled substances including a mixture of heroin and fentanyl, and marijuana, three cellphones, and $2,216 in cash were seized. After the search was completed, Burris was released and given an appearance ticket for Permitting Prostitution.
Subsequent investigation identified a second victim (Victim 2), who also suffered from drug addiction. On March 11, 2021, an undercover officer set up an appointment with Victim 2 using a contact number from an online ad. Once again investigators set up surveillance in the vicinity of the agreed upon meeting location, and once again Burris was observed in a vehicle in the area with a female passenger. Investigators approached the vehicle and arrested the defendant. Observed in plain view on the floor near the driver’s seat was a clear plastic baggie containing a white powdery substance suspected to be heroin. Additionally, two cellular phones were seized from the vehicle.
According to the complaint, Burris rarely gave Victim 1 and Victim 2 any of the money obtained through sex trafficking activities. The defendant would provide the victims with heroin. However, he would withhold drugs until they did what he wanted them to do, calling it “starving.”
A preliminary review of cell phones recovered from Victim 2 contained voluminous daily contact with sex buyers discussing details of sex acts, pricing, meeting locations, and times. Both phones also contained photographs of Victim 1 and Victim 2.
“This defendant is a violent predator who preyed upon the vulnerabilities of these victims, leaving them powerless to fight back” stated U.S. Attorney Kennedy. “Our Office, together with our law enforcement partners at the federal, state, and local levels, will continue aggressively to pursue any individual who engages in sex trafficking, or any kind of human trafficking. Those who attempt to take away the freedom of victims through sex trafficking should expect that this Office will use every resource available in order to ensure that they, by way of criminal prosecution, will also lose their liberty.”
“The egregious acts identified as part of this joint investigation with Chautauqua County and the Amherst Police Department demonstrates our continued efforts to rid our communities of those who lack regard for human life,” said Kevin Kelly, HSI Special Agent-in-Charge. “Homeland Security Investigations will continue our commitment to investigating these abhorrent crimes and apprehending those who prey on the most vulnerable in our communities.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was detained.
The complaint is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Amherst Police Department; and the Millcreek, PA, Police Department, under the direction of Chief Scott Heidt.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Honduran immigrant convicted of alien smugglingRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi federal jury has convicted a 42-year-old legal permanent resident of Houston for transporting an illegal alien, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for one hour before convicting Ivis Orestes Irias-Romero following a two-day trial.
On Nov. 14, 2020, at approximately 11:00 p.m., Irias-Romero drove a truck into the primary inspection area at the Border Patrol (BP) checkpoint near Sarita. He had a female riding as passenger.
Irias-Romero said he was from Honduras and produced his immigration card. However, the female did not respond when asked about her status. Instead, Irias-Romero claimed she was his wife and produced a copy of a marriage license certificate.
Authorities then asked the woman again, this time in Spanish. She admitted she was a Honduran citizen unlawfully living in Houston. She testified at trial and said she met Irias-Romero four years prior while on Facebook. She added that she had unsuccessfully tried several times to enter the United States, but finally made it in November 2020. She then contacted Irias-Romero who agreed to travel to Brownsville to pick her up and bring her to Houston.
After his arrest, Irias-Romero admitted the woman was not his wife and that he knew she was in the United States illegally. However, at trial, he contended that he was saving her from a hostage situation. The jury was not convinced and convicted him as charged.
U.S. District Judge David Morales presided over trial and set sentencing for July 14. At that time, Irias-Romero faces up to five years of imprisonment and a possible $250,000 maximum fine.
Irias-Romero was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorneys Michael Hess and Patrick Overman prosecuted the case.
Honduran Man Sentenced to 21 Months in Federal Prison for Illegal ReentryRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jose Luiz Suarez, age 30, a Honduran citizen residing in Germantown, Maryland, to 21 months in prison for illegal reentry after being removed from the United States as a result of a previous felony conviction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner Field Office Director Francisco Madrigal of Enforcement and Removal Operations (ERO) Baltimore; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, Suarez unlawfully entered the United States on July 5, 1999. On September 27, 2012, Suarez was sentenced to five years of imprisonment with all but three years suspended after being convicted of accessory after the fact. On March 14, 2014, the United States Department of Homeland Security (DHS) issued a removal order. Suarez was removed to Honduras from the United States on April 4, 2014. On June 25, 2019, Suarez was found in Montgomery County, Maryland while being treated for an arm injury resulting from an altercation in a restaurant. Suarez provided a false name and false information about the events leading up to his injuries to police. Soon after, he was arrested on several state charges, including providing a false statement to an officer.
Acting United States Attorney Jonathan F. Lenzner commended ERO and the Montgomery Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Craig Fansler and Assistant U.S. Attorney Michael Morgan, who prosecuted the case.
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Gloucester County Man Sentenced to 25 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 300 months in prison for producing and distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Nicholas, 24, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of sexually exploiting children and one count of distributing child pornography. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images and videos of child sexual abuse involving a prepubescent minor. Nicholas admitted to producing those images and videos of child sexual abuse and sending them to the officer.
In addition to the prison term, Judge Kugler sentenced Nicholas to a lifetime term of supervised release, ordered him to pay restitution of $45,000 to the victims, and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Steven D’Antuono; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations – Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, and detectives with the Gloucester County Prosecutor’s Office, under the direction of Acting County Prosecutor Christine Hoffman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Martha Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
Georgia Man Sentenced to 40 Months in Prison for Participation in Multimillion-Dollar Business Email Compromise SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that IFEANYI EKE, a/k/a “Luther Mulbah Doley,” pled guilty today and was sentenced in Manhattan federal court by U.S. District Judge Jesse M. Furman to 40 months in prison for conspiring to commit wire fraud as part of a wide-ranging international business email compromise (“BEC”) syndicate.
U.S. Attorney Audrey Strauss said: “As he admitted today, Ifeanyi Eke played a key role in an international conspiracy that deceived and defrauded dozens of victims of nearly $3 million. Fittingly, Eke has been sentenced to prison and ordered to make restitution to the victims of the conspiracy.”
According to the allegations in the Indictment, other court filings, and statements made during court proceedings:
Between in or about 2016 and July 2018, EKE and his co-conspirators, including codefendants Cyril Ashu, Joshua Ikejimba, and Chinedu Ironuah, perpetrated a fraudulent BEC scheme through which they deceived dozens of victims, both foreign and domestic, into wiring millions of dollars to bank accounts controlled by the syndicate. The fraud was perpetrated by sending victims “spoofed” emails, which purported to be from counterparties whom the victims knew and trusted, and which contained wiring instructions fraudulently directing the victims to send funds to accounts that were in fact controlled by the defendants and others involved in the scheme.
EKE played a broad role in the fraud. As part of the scheme, EKE personally received wire transfers of fraud proceeds from several different victims in bank accounts that he opened and controlled. One of the victims, an intergovernmental organization headquartered in New York, was defrauded into sending $188,815 into EKE’s bank account. After receiving the fraud proceeds, EKE withdrew and transferred them both for his own use and for dissemination to his co-conspirators. In addition to receiving and dissipating victim funds directly, EKE managed and supervised other members of the conspiracy, including by arranging for co-conspirators’ accounts to receive fraud proceeds, receiving and communicating wire transfer information contained in victim emails, and coordinating the acquisition and deposit of checks representing fraud proceeds. In total, EKE is responsible for actual losses to 35 victims totaling approximately $2.7 million.
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EKE, 34, of Sandy Springs, Georgia, pled guilty to, and was sentenced on, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. In addition to the prison term, EKE was sentenced to three years of supervised release. EKE was further ordered to forfeit $365,205, and to pay restitution to his victims in the amount of $2,691,908.30.
Ms. Strauss praised the outstanding investigative work of the FBI. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Olga I. Zverovich and Jarrod L. Schaeffer are in charge of the prosecution.
Former Lunenburg Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A former Lunenburg woman pleaded guilty yesterday in federal court in Worcester to stealing Social Security benefits.
Sue E. Delaney, 68, pleaded guilty to one count of conspiracy and one count of theft of public funds. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 10, 2021.
In 1999, Delaney’s mother-in-law, who was receiving monthly benefits from Social Security, passed away. Delaney failed to inform the Social Security Administration (SSA) of the death, and SSA continued to deposit monthly benefits into a bank account held by Delaney’s mother-in-law. From November 1999 through March 2017, Delaney stole approximately $221,656 in Social Security benefits from her late mother-in-law’s account.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Flagler County Man Sentenced to 30 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Sean Patrick Farrelly (49, Palm Coast) to 30 years in federal prison for sex trafficking a minor. Farrelly was also ordered to serve a 10-year term of supervised release and to register as a sex offender. He has been in custody since his arrest on March 21, 2019.
Farrelly had pleaded guilty on June 19, 2019.
According to court documents, between March 2018 and February 2019, Farrelly recruited, enticed, and solicited a 16-year-old child to engage in commercial sex acts, by texting the victim, sending her pictures of money, and providing her with alcohol or marijuana. Farrelly paid the child victim $30 to $40 each time that they engaged in sexual intercourse. During several recorded phone calls between Farrelly and the victim, Farrelly admitted to having sexual intercourse with the victim and stated that he was worried the calls were being recorded and he was going to go to jail.
This case was investigated by Flagler County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Felon Pleads Guilty to Illegal Gun Possession after Hahira, Georgia, Traffic StopRead the Press Release
ALBANY, Ga. – A convicted felon caught carrying a firearm during a traffic stop in Lowndes County, Georgia, has pleaded guilty to his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
James Richard Shivers, 32, of Valdosta, pleaded guilty to one count possession of a firearm by a convicted felon before U.S District Judge Louis Sands in Albany federal court. Shivers faces a maximum sentence of ten years in prison to be followed by three years of supervised release and a $250,000 fine. There is no parole in the federal system.
“Convicted felons are prohibited from possessing guns, and those who do will face the possibility of federal prosecution,” said Acting U.S. Attorney Leary. “I want to thank the Hahira Police Department for their partnership investigating federal gun cases.”
“It was great working with the U.S. Attorney’s Office on this case. The Project Safe Neighborhood program has been a great gateway to prosecute local offenders on the federal level and in the end keeping our neighborhoods safe just as the program is named. We look forward to working with the United States Attorney’s Office for the Middle District of Georgia in the future and would like to thank all those involved,” said Hahira Police Department Cpl. Todd Pitchford.
At midnight on April 13, 2020, a Hahira Police Department officer was on patrol when he saw a pickup truck driven by the defendant that did not have a license plate or any type of temporary tag attached to it and conducted a routine traffic stop. Shivers did not have car insurance and the vehicle registration had been cancelled in 2017. The officer observed an open bottle of Jack Daniels whiskey in plain view. When the officer asked if anything illegal was in the truck, Shivers admitted that he had a firearm in the passenger side door. Shivers had previously been convicted in the Superior Court of Cook County, Georgia, of five counts of forgery and one count of theft by taking. It is illegal for a convicted felon to possess a firearm.
The case was investigated by the Hahira Police Department and is being prosecuted by Assistant U.S. Attorney Alex Kalim. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Fayetteville Woman Arrested for Multi-Million Dollar Fraud SchemesRead the Press Release
RALEIGH, N.C. – A Fayetteville woman was arrested and was detained pending her trial in federal court today on charges of wire fraud and laundering the proceeds of government contract fraud scams that targeted the United States Department of Defense (DoD) and businesses in the Eastern District of North Carolina.
According to court documents, from 2011 to 2020, Stephanie Dianna Elliott, aka “Stephanie Wilson,” aka “Stephanie Moore,” aka “Stephanie Russell,” aka “Stephanie Hanchett,” aka “Vicki Marsh,” aka “Monica Allen,” aka “Melissa Standford,” aka “Jennifer Taylor,” aka “Heidi Litchford,” aka “Sandy Morehead,” aka “Randy Morehead” aka “Katie Jones,” aka “Sharon Mitchell,” aka “Sharon Miller,” aka “Sarah James,” and aka “Janet Harrington,” 45, used aliases and more than a dozen business entities to obtain more than 1,000 federal defense contracts valued at more than $2.2 million. According to the allegations in the indictment, Elliott defrauded the Department of Defense by obtaining contract payments after falsely certifying that she had shipped supplies to the U.S. military, when, in fact, the goods were not shipped. It is alleged that Elliott and/or businesses under her control were debarred from federal contracting on four occasions. Elliott allegedly circumvented the terms of her debarments by using aliases and various business names to continue bidding on federal contracts.
The indictment also alleges that Elliott executed fraud schemes in connection with contracts with the State of North Carolina and other state governments. It is alleged that Elliott bid on contracts to supply food products and other goods. The indictment alleges that, after winning the contracts, Elliott defrauded third party vendors by inducing them to deliver the goods to the state in satisfaction of Elliott’s contractual obligations. It is alleged that, in so doing, Elliott obtained payment for these contracts but failed to pay the victim vendors.
Elliott is charged with twenty-six counts of Wire Fraud and five counts of Money Laundering and faces a maximum penalty of 20 years in prison on each count if convicted.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Defense Criminal Investigative Service and the General Services Administration, Office of Inspector General are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Fayetteville Man Sentenced to over 7 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that William Lee Murray, age 49, of Fayetteville, Arkansas, was sentenced today to 87 months in federal prison followed by 15 years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in April 2019 the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force received a cyber tip from the National Center for Missing and Exploited Children (NCMEC) in reference to suspected child pornography being uploaded to a Google account. Further investigation revealed that the IP address associated with the Google account was assigned to Murray’s residence and that the account containing the child pornography belonged to Murray.
Murray was indicted in January of 2020 and plead guilty to an Information in October of 2020.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorneys Carly Marshall and Amy Driver prosecuted the case for the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Fall River Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Fall River man was charged in federal court in Boston yesterday in connection with travelling to New Hampshire to attempt to have sex with a teenage girl.
Charles Eugene Schnitzlein III, 34, was charged by criminal complaint with traveling with intent to engage in illicit sexual conduct with a person under 18 years of age.
According to the charging documents, Schnitzlein used a messaging application to communicate with an undercover officer posing as a 13-year-old girl and devised a plan to meet the purported child to have sex. On April 9, 2021, Schnitzlein allegedly drove from Fall River to a mall in Nashua, N.H., to meet with the undercover officer posing as a teenage girl. On his way to the meetup location, Schnitzlein allegedly stopped to purchase condoms, flowers, soda and candy for encounter. Officers arrested Schnitzlein when he arrived.
As described in court documents, Schnitzlein admitted during an interview with law enforcement that he had traveled from Fall River to meet the purported 13-year-old girl. He further admitted that he had booked a hotel room in Nashua, N.H. to have sex with the 13-year-old girl.
The charge of traveling with intent to engage in illicit sexual conduct with a minor provides for a sentence of up to 30 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Nashua Police Commissioner James Tollner made the announcement. Assistance was provided by Massachusetts State Police and the Arlington, Revere and Boston Police Departments. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eagle Grove Man Sentenced to 10 Years in Federal Prison for MethRead the Press Release
A man who conspired to distribute methamphetamine was sentenced April 12, 2021, in federal court in Sioux City.
Cory Schultz, 38, from Eagle Grove, Iowa, pled guilty on November 23, 2020, to one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine.
At the plea and sentencing hearings, evidence showed that Schultz and others conspired to distribute more than 20 pounds of mixed methamphetamine from November 2018 through March 2020 in the Wright and Webster County areas. On a number of occasions, Schultz was observed on home security recordings distributing ounces to ¼ pounds of methamphetamine to other co-conspirators. The residence Schultz used as a hub for his methamphetamine trafficking was located within 1,000 feet of a protected location, namely Greenwood Park, in Eagle Grove, Iowa. Schultz distributed methamphetamine several times to individuals actively cooperating with law enforcement and agents seized more than ¼ pound of methamphetamine from searches of his garage and vehicle. Schultz possessed a handgun during some of his drug trafficking activities.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Schultz remains in custody of the United States Marshal until he can be transported to a federal prison. Schultz was sentenced to 120 months’ imprisonment and must serve a 6-year term of supervised release following imprisonment. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Humboldt County Sheriff’s Office, Wright County Sheriff’s Office, Eagle Grove Police Department, and the Iowa Division of Criminal Investigation’s Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3012.
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Eagle Butte Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on April 12, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Neil Blue Coat, age 35, was sentenced to 14 months in federal prison, followed by two years of supervised release, a special assessment to the Federal Crime Victims fund in the amount of $100, and forfeiture of three handguns and ammunition.
Blue Coat was indicted by a federal grand jury on August 11, 2020. He pled guilty on January 11, 2021.
On July 14, 2017, in Eagle Butte, Blue Coat knowingly possessed a handgun while being a user of methamphetamine and marijuana. Blue Coat was also arrested on September 26, 2019, with two more handguns, marijuana, and several items of drug paraphernalia in Eagle Butte. The manufacturer’s serial number had been obliterated from one of the handguns.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Blue Coat was immediately remanded to the custody of the U.S. Marshals Service.
Doctor Sentenced to 9 Years in Prison in Widespread Scheme to Defraud Medicare and Other Health Insurance Providers of Millions of DollarsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JAMES SPINA was sentenced to 108 months in prison for his participation in a widespread health care fraud scheme through the fraudulent operation of Dolson Avenue Medical (“DAM” or the “Practice”), a multi-disciplinary medical clinic located in Middletown, New York. SPINA previously pled guilty before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “James Spina led a sophisticated, widespread, and callous scheme that put greed and profits ahead of patients and their well-being. In doing so, he betrayed his professional obligations and bilked insurance companies and Medicare out of millions of dollars. Thanks to the coordinated efforts of federal and state investigative agencies, Spina will now serve a lengthy sentence in federal prison.”
According to the Indictment, other court filings, and statements made during court proceedings:
From 2011 through September 2017, DAM was a registered medical service corporation in New York State that purported to provide a variety of pain management and rehabilitation services, including physical medicine and rehabilitation, chiropractic services, physical therapy, diagnostic testing, and acupuncture. DAM primarily provided treatment services from its clinic located at 201 Dolson Avenue, Middletown, New York.
In addition to DAM, at least eight other corporations, including four other medical corporations, billed Medicare and other health insurance providers (the “Insurance Providers”) from 201 Dolson Avenue (the “Associated Businesses”). On paper, DAM and the Associated Businesses appeared to be separate entities owned by multiple different qualified individuals. But in reality, JAMES SPINA, who is a doctor of chiropractic – not a medical doctor – along with his co-defendant, were the true owners and operators of the different medical service corporations.
JAMES SPINA and his co-conspirators made all corporate decisions for DAM and the Associated Businesses. In particular, JAMES SPINA ran the day-to-day operations of the businesses. JAMES SPINA and his co-conspirators controlled payroll, the hiring and firing of employees, corporate expenses such as employee compensation and rent, and billing to Insurance Providers. Further, JAMES SPINA and one of his co-conspirators were the financial beneficiaries of DAM and its Associated Businesses.
JAMES SPINA also went to great lengths to conceal his control and ownership of DAM and the Associated Businesses. In particular, JAMES SPINA and one of his co-conspirators recruited medical doctors and other professionals to serve as the nominee owners of DAM and the Associated Businesses. JAMES SPINA further concealed his ownership of DAM and the Associated Businesses by transferring revenues of these companies into other companies that he and a codefendant owned. To further disguise these transfers, JAMES SPINA drafted fake lease and marketing agreements between DAM and the Associated Businesses and purported real estate and marketing companies he owned, and referred to the payments as “rent” or “marketing fees.” JAMES SPINA and his co-conspirators also used phony and non-existent addresses for the corporations so that it would appear that DAM and the Associated Businesses were operating out of separate locations.
In operating the multiple fraudulent businesses, JAMES SPINA and his co-conspirators routinely showed little, if any, regard for which medical services or treatments were medically necessary, or even whether the services were actually provided to patients, and instead operated DAM and billed Insurance Providers to maximize DAM’s reimbursements and, ultimately, their own profits. In particular, JAMES SPINA and his co-conspirators: (a) submitted and caused to be submitted claims to Insurance Providers for medically unnecessary services and procedures; (b) submitted and caused to be submitted claims to Insurance Providers for medical services that were not rendered; (c) double billed, i.e., submitted and caused to be submitted multiple claims for the same service to two different Insurance Providers; (d) altered and fabricated medical records; and (e) obstructed and impeded audits by Medicare and other Insurance Providers to conceal their fraud.
As part of the fraudulent scheme, one of the doctors who worked at DAM and the Associated Businesses introduced a lucrative procedure called a facet injection. Because the facet joints to which the injections are applied are near the spinal cord, such procedures are high-risk, with a small margin for error. The doctor had no formal training in the procedure, and taught himself by shadowing other doctors and watching YouTube videos. JAMES SPINA was intimately involved with all billing-related aspects of the facet injections, and continued to encourage their use even after several patients suffered serious, adverse events, and one patient died of complications following a facet injection.
As a consequence of the above-described scheme, a substantial number of claims submitted by DAM and the Associated Businesses to Medicare and other Insurance Providers were false and fraudulent.
In addition to the prison term, JAMES SPINA, 63, of Middletown, New York, was sentenced to three years of supervised release. The Court also ordered JAMES SPINA to pay $9,760,555.20 in restitution, and to forfeit $9,105,741.61. On May 2, 2019, JAMES SPINA pled guilty to one count of conspiracy to commit healthcare fraud, in violation of Title 18, United States Code, Section 1349.
Ms. Strauss praised the outstanding investigative work of the FBI, the U.S. Department of Health and Human Services-Office of the Inspector General, the New York State Office of the State Comptroller, and the Orange County Sheriff’s Office.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Nicholas S. Bradley is in charge of the prosecution. The prosecution was previously led by former Assistant U.S. Attorney Kathryn Martin.
Deer Isle Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BANGOR, Maine: A Deer Isle man pleaded guilty today in federal court to possessing child pornography, acting U.S. Attorney Donald E. Clark announced.
According to court records, Nicholas Pettis, 38, possessed electronic devices containing child exploitation material. Investigators seized the devices, including cell phones and a computer, from Pettis’s home on June 25, 2020. Some of the material he possessed on the devices depicted children under the age of 12.
Pettis faces up to 20 years in prison and a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Decatur Man Sentenced to 45 Years in Prison for "Sextorting" Minors in Eight StatesRead the Press Release
URBANA, Ill. – A Decatur, Ill., man, Cornell D.A. Johnson, 24, of the 1100 block of East Division St., was sentenced today to 45 years in prison for producing child pornography involving multiple minors. Upon imposing sentence, Senior U.S. District Judge Michael M. Mihm described Johnson as a “ringmaster,” who engaged in an “exercise of power,” to prey on victims of a vulnerable age for his pleasure and satisfaction.
According to admissions made in connection with his guilty pleas, entered on Feb. 19, 2020, Johnson controlled multiple female-presenting profiles on Facebook, which he used to contact female Facebook users. He then enticed the minors to send him photographs that progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once Johnson obtained compromising images, he threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with his demands for additional images. Among his demands, Johnson specifically directed the minor teenagers to sexually abuse younger children in their household to produce images.
At the time of his arrest, in February 2019, Johnson was identified in more than 80 Cybertips Facebook reported from across the U.S. and Canada to the National Center for Missing and Exploited Children. Internet Crimes Against Children Task Force affiliate agencies identified 17 minor victims located in nine judicial districts across eight states. The victims ranged in age from 4 to 17 years old.
Johnson has remained in the custody of the U.S. Marshals Service since his arrest. He was ordered to remain on supervised release for life upon completion of his prison sentence.
The charges are the result of an investigation by the Decatur Police Department; the Illinois Attorney General’s Office Internet Crimes Against Children Task Force; and, U.S. Immigration and Customs Enforcement Homeland Security Investigations. Vital assistance was provided by the U.S. Attorneys’ offices for the Eastern District of Oklahoma, the Western District of Pennsylvania, the District of Arizona, the Middle District of Pennsylvania, and the Western District of Wisconsin. Assistant U.S. Attorney Elly M. Peirson prosecuted the case on behalf of the government.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
DA investigator indicted on drug and money laundering chargesRead the Press Release
HOUSTON – An investigator with the Waller County District Attorney’s Office has been charged with attempting to possess with the intent to distribute heroin as well as attempting to launder drug proceeds, announced Acting U.S. Attorney Jennifer Lowery.
Authorities took Mohamed Ahmed “Alex” Kassem, 46, Houston, into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.
A Houston grand jury returned the three-count indictment April 7. It alleges Kassem was involved in laundering of what he believed was $200,000 in drug proceeds in August 2019.
If convicted of attempting to possess with the intent to distribute heroin, Kassem faces up to life in prison as well as a possible $10 million maximum fine. Upon conviction of either of the two counts of money laundering, he also faces up to 20 years of federal imprisonment. The money laundering charges also carry up to a $500,000 fine or twice the value of the property involved in the transaction.
The FBI conducted the investigation with the assistance of the Drug Enforcement Administration and Waller County District Attorney’s Office. Assistant U.S. Attorneys Alamdar Hamdani and Carolyn Ferko are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Council Bluffs Man Sentenced to Prison for Gun ChargeRead the Press Release
COUNCIL BLUFFS, Iowa - On April 12, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced David Robert Blake Vanderpool, age 35, of Council Bluffs, to 50 months in prison for the knowing possession of a short barrel shotgun that was not registered to him, announced Acting United States Attorney Richard D. Westphal. Vanderpool was ordered to serve three years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. There is no parole in the federal system.
On June 23, 2020, the Iowa State Patrol conducted a traffic stop on Vanderpool for speeding on Interstate 29. During the stop, troopers observed a sawed-off shotgun, found to be loaded, on the backseat of Vanderpool’s car. A check of the National Firearms Registration and Transfer Record by law enforcement found the firearm was not registered to him. Vanderpool pleaded guilty on November 20, 2020, to the firearm charge.
This matter was investigated by the Iowa State Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Corry, PA Woman Charged with Straw Purchasing FirearmsRead the Press Release
ERIE, Pa. - A resident of Corry, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Katelyn Marie Hall, 26, as the sole defendant.
According to the Indictment presented to the court, on March 31, 2018, Hall violated federal straw purchase laws and acquired firearms for another individual who was prohibited from possessing firearms.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives 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.
Connecticut Army National Guard Soldier and Rikers Correction Officer Charged with Defrauding the United States Department of Veterans Affairs and the New York City Department of CorrectionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael J. Missal, the Inspector General of the United States Department of Veterans Affairs, Office of the Inspector General (“VA-OIG”), announced that SHAWN PIERRE HOBBS, a soldier for the Connecticut Army National Guard (“Army National Guard”) and a Rikers Island correction officer employed by the New York City Department of Correction (“NYC DOC”), was arrested yesterday in El Paso, Texas, on wire fraud and aggravated identity theft charges. HOBBS is alleged to have defrauded the Department of Veterans Affairs (“VA”) and NYC DOC in order to receive financial and other benefits to which he was not entitled. HOBBS is expected to be presented in federal court in El Paso this afternoon.
U.S. Attorney Audrey Strauss said: “Shawn Pierre Hobbs, a National Guard soldier and correction officer at Rikers Island, allegedly submitted false certifications to receive veterans benefits for hundreds of hours of work he did not perform. Moreover, Hobbs allegedly forged the signatures of his colleagues to make the fraudulent paperwork appear to be authentic. Hobbs’s alleged conduct certainly does not befit that of a sworn officer of two government agencies, and thanks to the assistance of Veterans Affairs, he is now charged criminally for fraud and identity theft.”
VA-OIG Inspector General Michael J. Missal said: “The charges unsealed today are the result of the hard work and dedication of the VA Office of Inspector General’s special agents working with our law enforcement partners. The VA OIG will seek to hold accountable those who perpetrate fraud and steal benefits that are intended for deserving veterans.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From at least in or about April 2015, up to and including at least on or about April 8, 2021, SHAWN PIERRE HOBBS served as a soldier in the Army National Guard. Army National Guard soldiers hold civilian jobs or attend school while maintaining their military training part-time. The VA provides certain benefits to United States veterans, including Army National Guard soldiers, who work in approved on-the-job training programs (“VA Benefits”). From at least in or about January 2019, up to and including at least on or about April 8, 2021, HOBBS was employed by NYC DOC as a correction officer at Rikers Island, a VA-approved on-the-job training program. NYC DOC employees who are members of the military are entitled to paid leave, with certain limitations, while they are engaged in the performance of ordered military duty.
From at least in or about January 2019, up to and including at least in or about March 2021, HOBBS defrauded the VA and NYC DOC in order to obtain VA Benefits and paid military leave from NYC DOC, among other things. Specifically, HOBBS submitted eight fraudulent military memoranda purportedly from the Army National Guard to NYC DOC in order to obtain paid leave. The fraudulent military memoranda each bore the seal of the United States Department of Defense and the letterhead of the Army National Guard, and falsely represented that HOBBS had served military duty on hundreds of days on which he, in fact, had not served. At the same time, HOBBS transmitted by fax 16 fraudulent employment certifications to the VA that were purportedly from NYC DOC and falsely represented that he had worked for NYC DOC for hundreds of hours, which he had not worked. To effectuate this scheme, HOBBS used the names, identities, and signatures of an Army National Guard Platoon Leader, an Army National Guard Readiness Noncommissioned Officer, and a NYC DOC employee without their knowledge or authorization on the fraudulent military memoranda and employment certifications.
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SHAWN PIERRE HOBBS, 34, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison. The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of VA-OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
The charges contained in the Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint as set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
Clearfield County Felon Charged with Illegally Possessing a FirearmRead the Press Release
JOHNSTOWN, Pa. -- A resident of Shawville, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Russell Glen Hurley, 35, as the sole defendant.
According to the Indictment presented to the court, on or about April 7, 2019, Hurley knowingly, intentionally, and unlawfully, possessed a firearm, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The law provides for a maximum total sentence of 10 years in prison, a fine of $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, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms and Lawrence Township Police Department 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.
Charleston Woman Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Several local businesses defrauded of over $500,000
CHARLESTON, W.Va. – Misty Brotherton-Tanner, 41, of Charleston entered a guilty plea in federal court to two felony counts of wire fraud and one felony count of money laundering. She faces up to 50 years in prison, a $750,000 fine and three years of supervised release when she is sentenced on July 15, 2021. Brotherton-Tanner has also agreed to pay restitution in the amount of $537,173.
According to court documents and statements made in court, Misty Brotherton-Tanner provided bookkeeping and accounting services for several local businesses in the Charleston area. From at least 2014 until 2020, Misty Brotherton-Tanner devised a scheme to defraud these businesses. Brotherton-Tanner would electronically transfer money and move the electronic transactions between accounts in such a way so as to hide her fraud under the guise of legitimate transactions Brotherton-Tanner was not permitted to pay herself from these business accounts. Brotherton-Tanner’s fraud included listing herself as an employee for the various businesses, setting up fraudulent accounts in the name of fictional workers that Brotherton-Tanner would then add to the business accounting software, and even misrepresenting that she had paid state and federal taxes for the business when she had not done so. All throughout the scheme, Brotherton-Tanner moved the transferred money into her personal checking accounts. In total, Misty Brotherton-Tanner defrauded various businesses of $537,173.
Misty Brotherton-Tanner also stole money on behalf of and at the request of her mother, Lois Brotherton, who also has entered a guilty plea in federal court for her role in the scheme. Lois Brotherton will be sentenced April 28, 2021.
Acting United States Attorney Lisa G. Johnston thanked the Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations (IRS-CI), the United States Postal Inspection Service (USPIS) and the West Virginia State Tax Department-Criminal Investigation Division for their excellent work in this case.
Senior United States District Judge John T. Copenhaver, Jr. presided over the guilty plea hearing. Assistant United States Attorneys Erik S. Goes and Kathleen Robeson are 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. 2:20-cr-00146.
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Charleston Man Sentenced to 17 Years in Federal Prison for Possession of Child PornographyRead the Press Release
CHARLESTON, W.Va. – Christopher Ryan Christian Counts, 29, of Charleston, was sentenced to 204 months in prison to be followed by lifetime supervised release for possession of child pornography. Counts pleaded guilty to the charge in December 2020.
According to the plea agreement and statements made in court, Counts possessed 259 images and 14 videos of child pornography, many of which depicted prepubescent minors engaged in sexually explicit conduct. Some of the images and videos contained scenes depicting minors and infants engaged in sadistic or masochistic conduct. Counts has two prior sex offense convictions in Kanawha County Circuit Court involving young children.
Acting Lisa G. Johnston applauded the investigative work of the West Virginia State Police Internet Crimes Against Children (ICAC) Task Force and Homeland Security Investigations (HSI). Task Force Officer Michelle Shaffer coordinated the investigation and Counts’ arrest. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Julie M. White handled the prosecution.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 2:20-cr-00130.
Follow us on Twitter: SDWVNews
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Centerville Man Sentenced to 27 Years in Prison for Child Pornography OffensesRead the Press Release
DES MOINES, IA – On April 12, 2021, United States District Court Judge Stephanie M. Rose sentenced Ryan Don Andrew Ford, age 49, of Centerville, to 324 months in prison for Production of Child Pornography and 240 months in prison for Receipt of Child Pornography announced Acting United States Attorney Richard D. Westphal. The prison sentences are to be served concurrently. Ford was ordered to serve ten years of supervised release to follow his prison term and comply with sex offender registry requirements upon release.
In 2018 and 2019, Ford sexually exploited children. In 2018, Ford secretly recorded three minors using hidden cameras Ford placed in his Centerville residence, including in the shower. Ford knowingly captured images of the minors that constituted child pornography, saved the images, and distributed some of the images to others. In addition, in 2018 and 2019, Ford downloaded images and videos of child pornography from the internet. Law enforcement executed a search warrant in June 2019 at Ford’s residence and located over 1,800 images and 27 videos of child pornography on his cell phone.
After the sentencing, FBI Omaha’s Special Agent in Charge Eugene Kowel said, “Identifying, investigating, and arresting those who sexually exploit children will always be a priority for the FBI. We work with our state and federal partners to hold these criminals accountable. Ryan Ford’s 27-year sentence today sends a clear message – preying on innocent children will not be tolerated.”
“The sentence imposed today is the result of law enforcement cooperation at the local, state, and federal levels,” stated Acting United States Attorney Westphal. “If you victimize children you will be pursued and brought to justice.”
This case was investigated by the Wayne County Sheriff’s Office, Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, FBI Child Exploitation Task Force, and the Centerville Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Cedar Rapids Man to Federal Prison for Selling Pounds of Methamphetamine and Possessing GunsRead the Press Release
A man who distributed pounds of methamphetamine was sentenced on April 12, 2021, to more than 26 years in federal prison.
Tony Rhen Brown, age 60, from Cedar Rapids, Iowa, received the prison term after an October 13, 2020 guilty plea to conspiracy to distribute methamphetamine.
In a plea agreement, Brown admitted that he received at least a pound of methamphetamine a month over a three-month period in 2019 that he planned to resell. Brown also admitted that, on February 1, 2019, Cedar Rapids police officers responded to a burglary in progress and located Brown in a car outside the residence that was the subject of the call. Brown’s DNA was on two firearms law enforcement officers found in the car. Brown possessed these guns as part of his meth selling operation.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 320 months and 14 days’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorneys Emily Nydle and Kyndra Lundquist and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Linn County Sheriff’s Office, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-30.
Follow us on Twitter @USAO_NDIA.
California Man Pleads Guilty to Receipt of Child PornographyRead 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 Jorge Alvarez, 27, of Los Angeles, CA, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango, Douglas A. C. Penrose, and Caitlin M. Higgins, who are handling the case, stated that between June 18 and July 23, 2018, the defendant engaged in sexually explicit conversations via Instagram and text message with a 14 year-old female (Minor Victim) who told Alvarez that she was 14 years-old. During those conversations, the defendant sent the Minor Victim naked pictures of himself and discussed having sexual contact with the Minor Victim. The Minor Victim sent Alvarez nude photographs of herself at his request.
The plea is the result of an investigation by the Depew Police Department, under the direction of Chief Jerome Miller; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for August 8, 2021, at 10:00 a.m. before Judge Sinatra.
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California Man Indicted on Cocaine ChargeRead the Press Release
PITTSBURGH, PA - A resident of Covina, California, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Kenneth Kim Parks, age 58, as the sole defendant.
According to the Indictment, on or about March 19, 2021, Parks attempted to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
The law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of $5,000,000 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, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The United States Postal Inspection Service 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.
Boonesboro Man Pleads Guilty to Coercion and Enticement of a Minor to Produce Child PornographyRead the Press Release
Greenbelt, Maryland - James Maynard, Jr., age 53, of Boonesboro, Maryland, pleaded guilty today to a federal charge for coercion and enticement of a minor in order to produce and distribute child pornography.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Jason Lando of the Frederick Police Department.
According to Maynard’s guilty plea, on November 27, 2019, Maynard used a social media account to meet a 14-year-old female, Victim 1, During his initial conversation with the victim over social media, the victim informed Maynard that she was 14 years old and he identified himself as a 52-year-old man. While they did not begin that way, Maynard’s conversations with the victim became increasingly sexual. On the second day of their online communications, November 28, 2019, Maynard asked Victim 1 to send him nude photographs of herself. Victim 1 subsequently took the photos that Maynard requested, using her tablet computer to take the photo while she was in her bedroom. Victim 1 sent the photos to Maynard via her social media account. Maynard made numerous sexually explicit comments about Victim 1’s genitals, and what he wanted to do to her. Maynard persuaded Victim 1 to take and send him more photos. Maynard also sent images of his penis to Victim 1.
After Victim 1 sent Maynard the photographs, she began to feel upset about the social media communications with Maynard. She tried to delete the images of herself, and she asked a trusted adult for help. Around this same time, Frederick County detectives and the Federal Bureau of Investigation initiated an investigation and forensically analyzed the tablet computer and social media records. Investigators discovered additional evidence that Maynard was using the internet to exploit Victim 1.
On December 5, 2019, a search warrant was executed at Maynard’s residence and his cell phone was seized. A forensic analysis of the phone revealed several images relevant to the investigation, including an image of Victim 1. Forensic analysis of another computer located in Maynard’s residence revealed that Maynard used the internet to search topics involving minors and sex, such as: “daddy and daughter sex;” “kids having sex;” and “little girl nude.”
Investigators interviewed Maynard. Maynard initially claimed that he thought Victim 1 was 19-years-old. However, when investigators showed Maynard the content of his online messages with Victim 1, Maynard admitted that he knew the victim was 14-years-old at the time that he communicated with her on social media.
As part of his plea agreement, upon his release from prison, Maynard will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Maynard faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for coercion and enticement of a minor. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing date for Maynard.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Frederick Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Birmingham Man Sentenced to 65 Years in Prison on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a man on child pornography charges, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Abdul K. Kallon sentenced Guillermo Martin Lopez, 31, to 65 years in prison followed by 10 years of supervised release. Lopez pleaded guilty in December 2020 to two counts of production of child pornography and one count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, in November 2019, the Internet Crimes Against Children Task Force (ICAC) received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) that included information received by Omegle – a free online chat website that allows users to socialize with others without the need to register. In September 2019, Omegle reported that a live streaming video containing child pornography was uploaded to an online Omegle account. Upon further investigation, a state search warrant was obtained for the residence of Lopez and electronic devices were seized by law enforcement. A forensic review of Lopez’s Apple MacBook laptop revealed at least 13 images and 6 videos of child pornography produced by Lopez.
“There is no more worthy cause than protecting children from predators seeking to exploit them,” said U.S. Attorney Escalona. “The success of cases like this come from the strong partnerships with our federal, state, and local law enforcement. We have one common goal – to pursue justice for child victims.”
“Lopez deserves every day of this sentence and I'm proud of the work of my agents and our partners to bring him to justice,” said FBI SAC Sharp.
“This sentence cannot restore the innocence that this predator stole, but it will ensure that he is not able to continue to produce and distribute this filth,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this show our unyielding resolve to identify, arrest and prosecute those involved in this despicable crime.”
Federal Bureau of Investigation, Special Victims Unit/ ICAC Task Force investigated the case, along with U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Alabama Law Enforcement Agency, and Birmingham Police Department. Assistant U.S. Attorneys R. Leann White and Lloyd C. Peeples, III prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit Project Safe Childhood
Berkeley County man admits to drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Curtis Davis, of Martinsburg, West Virginia, has admitted to drug distribution, Acting United States Attorney Randolph J. Bernard announced.
Davis, age 30, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Davis admitted to having 28 grams or more of cocaine base, also known as “crack,” in June 2019 in Berkeley County.Davis faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Arizona Man Indicted on Meth and Gun Charges following January Arrest in Butler CountyRead the Press Release
PITTSBURGH - A resident of Phoenix, Arizona has been indicted by a federal grand jury in Pittsburgh with charges of attempting to violate federal narcotics laws and being a felon in possession of a firearm, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Juan Paredes, 26, as the sole defendant.
According to the Indictment, on January 28, 2021, Paredes attempted to possess with the intent to distribute 500 grams or more of methamphetamine. Additionally, from January 23 to 29, 2021, Paredes, a convicted felon, was also alleged to be in possession of a firearm and ammunition in violation of federal law.
Prior federal and state court filings allege that a package containing approximately one kilogram (2.2 pounds) of crystal methamphetamine was mailed to a residence in Cranberry Township, Pennsylvania. Law enforcement seized the methamphetamine, replaced it with a non-controlled substance of similar appearance, sprayed fluorescent powder inside the package that is visible only with ultraviolet light, and delivered it to the residence. Paredes allegedly took the package into the residence, was found inside of the residence near the opened package and had the fluorescent powder on his hands and face when inspected with ultraviolet light. The package was submitted for testing and found to have a net weight of over 890 grams of which approximately 96% is methamphetamine hydrochloride.
The law provides for a minimum total sentence of 10 years in prison and a maximum of life in prison, a fine of $10,000,000 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, if any, of the defendant.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, Pennsylvania Office of the Attorney General’s Drug Task Force, Cranberry Township Police Department, and Pennsylvania State 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.
Ambridge Felon Indicted on Drug and Firearms ChargesRead the Press Release
PITTSBURGH, PA - A resident of Ambridge, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on April 6, 2021 and unsealed today, named Michael Gamble, age 35, as the sole defendant.
According to the Indictment, on or about December 10, 2020, Gamble possessed with the intent to distribute 40 grams or more of fentanyl, possessed a firearm in furtherance of drug trafficking, and possessed a firearm and ammunition as a convicted felon.
The law provides for a maximum total sentence of life in prison, a fine of $8,000,000 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, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Office of the Pennsylvania Attorney General and the Drug Enforcement Administration 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.
Albuquerque woman pleads guilty, sentenced to probation for violating Migratory Bird Treaty ActRead the Press Release
ALBQUERQUE, N.M. – Ruth Grande Olguin, 55, of Albuquerque, pleaded guilty in federal court on April 6 to three counts of violating the Migratory Bird Treaty Act. Grande Olguin was sentenced to one year of probation.
In the plea agreement, Grande Olguin admitted that on April 27, 2019, she unlawfully possessed feathers and other parts of the crested caracara. She also admitted that on May 22, 2019, she unlawfully possessed sharp-shinned hawk feathers as well as feathers and other parts of the crested caracara. Finally, Grande Olguin admitted that on November 12, 2019, she unlawfully possessed feathers and other parts of the crested caracara. Both birds are protected under the Migratory Bird Treaty Act. On each occasion, Grande Olguin was in possession of the feathers and other parts in Bernalillo County, New Mexico. These laws prohibit the possession, use, and sale of the feathers or other parts of federally-protected birds, as well as the unauthorized killing of these birds, to help ensure that the caracara, hawk, and other bird populations remain healthy and sustainable.
As part of her plea agreement, Grande Olguin agrees to pay a fine of $2,000 payable to the North American Wetlands Conservation Fund Account. Grand Olguin forfeits any interest in feathers, parts, and products thereof, of bald eagles, golden eagles, sharp-shinned hawks, American kestrels, greater roadrunners, red-tailed hawks, northern flickers, white-winged doves, crested caracaras, Cooper’s hawks, barred owls, turkey vultures, and a falcon seized during the course of the investigation of this case.
The case was investigated by the U.S. Fish and Wildlife Service with assistance from the New Mexico Department of Game and Fish. The case is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The U.S. Fish and Wildlife Service is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges as well as thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The agency enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands, and helps foreign and Native American tribal governments with their conservation efforts.
Acting U.S. Attorney statement regarding request to dismiss murder case against Taylor Leigh Plain BullRead the Press Release
BILLNGS — Acting U.S. Attorney Leif Johnson today issued the following statement in seeking the dismissal of the murder case against Taylor Leigh Plain Bull:
“The U.S. Attorney’s Office is seeking to dismiss the case against Taylor Lee Plain Bull, 27, a transient, after receiving notification today that he had died while in custody in Big Horn County, Wyoming. Mr. Plain Bull was awaiting sentencing on July 27 for conviction of second degree murder. Mr. Plain Bull had pleaded guilty on March 3 to second degree murder and to use of a firearm during a crime of violence in the Oct. 24, 2020 fatal shooting of a woman and injury of a passenger in her vehicle along Blue Creek Road on the Crow Indian Reservation.”
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12 April 2021
York County Man Sentenced to 33 Years’ Imprisonment for Sex TraffickingRead the Press Release
HARRISBURG, PA - The United States Attorney’s Office for the Middle District of Pennsylvania announced Robert Lee Johnson a/k/a Stone, age 54, of York, Pennsylvania, was sentenced on April 8, 2021, to 396 months’ imprisonment by U.S. District Court Judge Jennifer Wilson on sex trafficking charges.
According to Acting United States Attorney Bruce D. Brandler, Johnson knowingly recruited and enticed multiple victims to engage in commercial sex acts at local hotels between November 2015 and August 2016, in York County. Most of the victims worked on an “all in” basis, meaning they would give all of the money they earned to Johnson in exchange for having basic living expenses supplied. They relied on Johnson for food and clothing and, most significantly, heroin to support their addictions. Johnson was often violent, threatened the victims and physically assaulted them if they tried to keep any money or if they were “disrespectful.” Johnson would force the victims to watch him beat someone to serve as a warning on what would happen to them if they crossed Johnson. As another method of threatening and forcing the victims was to withholding heroin from them until they reached a quota of tricks.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Scott Ford and retired Assistant U.S. Attorney James Clancy 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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations 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 this offense is life 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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Wisconsin Man Pleads Guilty to COVID-Relief FraudRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that on April 12, 2021, a Wisconsin man pleaded guilty for his role in fraudulently obtaining over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Stephen Smith, 42, of Milwaukee, admitted that he fraudulently sought over $600,000 in PPP loans through applications to an insured financial institution on behalf of three different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
Smith pleaded guilty to bank fraud. He is scheduled to be sentenced on Wednesday, July 14, 2021 and faces a maximum penalty of 30 years in prison. United States District Judge Brett Ludwig will determine Smith’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The SBA-OIG, FBI, FDIC-OIG, and IRS-CI are investigating the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
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. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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For further information contact:
Public Information Officer Kenneth Gales
[email protected], (414) 297-1700
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