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Thursday 4 February 2021
Amherst Man Charged with Threatening Members of Congress Will Be DetainedRead the Press Release
CONCORD – In a 22-page order issued today, United States Magistrate Judge Andrea K. Johnstone ordered that Ryder Winegar, 33, of Amherst be detained pending trial, United States Attorney Scott W. Murray announced today.
Winegar was arrested on January 11, 2021. He is charged in a complaint with threatening members of Congress. The United States moved to detain the defendant, arguing that he presented a risk of flight and a danger to the community. In the order issued today, Magistrate Judge Johnstone granted the government’s motion for detention.
The complaint filed in court alleges that on December 16 and 17, 2020, Winegar left voicemails at the offices of six members of the United States Congress in the District of Columbia. In some of the messages, Winegar identified himself by name or identified his telephone number. The voicemails threatened to hang the members of Congress if they did not “get behind Donald Trump.” For example, in one message, Winegar allegedly said, “I got some advice for you. Here’s the advice, Donald Trump is your president. If you don’t get behind him, we’re going to hang you until you die.”
The charges in the complaint 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 U.S. Capitol Police with assistance from the United States Marshals Service, U.S. Customs and Border Protection, Federal Bureau of Investigation and the Amherst Police Department.
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Wednesday 3 February 2021
Worden couple admit meth trafficking crimesRead the Press Release
BILLINGS —A Worden couple admitted methamphetamine trafficking charges after drug task force investigators found 10 pounds of meth in their vehicle, Acting U.S. Attorney Leif Johnson said.
Lisa Marie Fish, 39, pleaded guilty today to conspiracy to possess with intent to distribute meth. Fish’s husband, Bo Bryan Fish, 40, pleaded guilty on Jan. 27 to possession with intent to distribute meth. Each faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan P. Watters presided. Lisa Fish was released pending further proceedings. A sentencing date was set for June 16.
U.S. Magistrate Judge Timothy J. Cavan presided at the hearing for Bo Fish. Bo Fish was detained pending further proceedings. A sentencing date has not yet been set.
The prosecution said in court documents filed in the case that between January and March 2020, the Eastern Montana High Intensity Drug Task Force began investigating Bo and Lisa Fish for involvement in drug trafficking.
Cooperating witnesses told investigators that both defendants were involved in meth trafficking and that Bo Fish took trips to Colorado to acquire bulk quantities of meth, ranging from five to 20 pounds per trip.
The investigation led to a traffic stop in which a truck occupied by both defendants was pulled over near Worden. Lisa Fish refused to make a statement. Bo Fish told investigators there were about 10 pounds of meth in the back seat of the truck and admitted to acquiring the 10 pounds that day in Wyoming. He said he had been acquiring bulk meth from the source for about eight months. Investigators served a search warrant on the truck and the couple’s property and seized 10 pounds of meth from the vehicle and about seven ounces of meth from the property. Ten pounds of meth is the equivalent of about 36,240 doses.
While Lisa Fish did not handle the meth, she furthered the conspiracy by setting up drug deals by telephone and text message so Bo Fish could later deliver meth these people, travelling with Bo Fish to pickup meth from out of state and depositing proceeds from meth sales into bank accounts so that she and Bo Fish could access the funds.
Assistant U.S. Attorney Colin Rubich is prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI Western Transnational Organized Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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White Supremacist Leader Pleads Guilty in Racketeering CaseRead the Press Release
LITTLE ROCK-A Russellville man pleaded guilty today to his involvement in a racketeering and narcotics conspiracy based on his role as president of a white supremacist organization. Wesley Gullett, 31, was president of New Aryan Empire (NAE), a white supremacist group founded by inmates in the Arkansas Department of Corrections. Gullett entered a guilty plea today before United States District Judge Brian S. Miller.
Prosecutors alleged that from 2014 to 2016, Gullett and NAE associate Marcus Millsap repeatedly offered money to other NAE associates to kill Bruce Wayne Hurley, an individual who had purchased methamphetamine from Millsap. According to the charging document, NAE members believed Hurley had provided information about Millsap to law enforcement, and NAE members allegedly carried out other retaliatory acts against those who they believed had provided information to law enforcement.
In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as 69 firearms and more than $70,000 in drug proceeds.
Gullett was originally charged in October 2017, and a federal grand jury charged him along with 51 other defendants in a Second Superseding Indictment in September 2019. Gullett pleaded guilty today to two counts of the Second Superseding Indictment: conspiracy to commit racketeering and conspiracy to possess methamphetamine with intent to distribute.
After Gullett’s plea, six remaining defendants are awaiting trial, which is currently set for September 7, 2021. All other defendants have pleaded guilty. As part of Gullett’s plea, he and prosecutors agree to jointly request a sentence of 35 years in the Bureau of Prisons. Judge Miller will determine whether to accept the plea agreement and sentence Gullett at a later date. There is no parole in the federal system.
Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, together with Drug Enforcement Administration Acting Assistant Special Agent in Charge Thomas M. Fisher and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Resident Agent in Charge Clayton Merrell, announced today’s guilty plea.
The investigation was conducted by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Drug Enforcement Administration, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys in the Eastern District of Arkansas with assistance from the Department of Justice Criminal Division’s Organized Crime and Gang Section.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Wetzel County woman sentenced for heroin chargeRead the Press Release
WHEELING, WEST VIRGINIA – Tina Rose Yoho, of New Martinsville, West Virginia, was sentenced today to 46 months of incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Yoho, age 31, pled guilty to one count of “Distribution of Heroin” in October 2020. Yoho admitted to selling heroin in June 2019 in Wetzel County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Wetzel County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Nicholas D. Klem, of Proctor, West Virginia, was sentenced today to 70 months of incarceration for his role in a drug trafficking operation, U.S. Attorney Bill Powell announced.
Klem, age 29, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine” in October 2020. Klem admitted to working with others to distribute methamphetamine from August 2019 to August 2020 in Marshall County and elsewhere.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Upshur County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert James Tiffner, of French Creek, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Tiffner, 27, pleaded guilty today to one count of “Possession of Unregistered Firearm.” Tiffner admitted to having a 20 gauge shotgun that wasn’t registered to him in February 2019 in Upshur County.
Tiffner faces up to 10 years of incarceration and a fine of up to $10,000. 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Attorney Robert K. Hur to Leave Department of Justice After Serving as Chief Federal Law Enforcement Officer in Maryland Since 2018Read the Press Release
Baltimore, Maryland – United States Attorney Robert K. Hur announced today that he will resign his position as the chief federal law enforcement officer for the District of Maryland. The U.S. Attorney’s Office for the District of Maryland is one of the country’s largest and busiest, serving a population of more than six million. Mr. Hur will return to private law practice. Jonathan F. Lenzner, who has served as the First Assistant U.S. Attorney during Mr. Hur’s tenure, will become the Acting U.S. Attorney upon his departure.
Mr. Hur took office on April 9, 2018. He tendered his resignation to the President and the Acting Attorney General today, and will conclude his service as United States Attorney on February 15, 2021.
“I thank President Trump for appointing me as United States Attorney; Senators Cardin and Van Hollen for their support; Attorneys General Sessions and Barr and Deputy Attorney General Rosenstein for leading the Department of Justice during my service; and my law enforcement partners here in Maryland, including State’s Attorneys, police chiefs and sheriffs, and federal agency heads. I will always be grateful to have served as U.S. Attorney and helped further the Office’s proud legacy of pursuing justice with integrity, and without fear or favor,” said U.S. Attorney Hur.
“Credit for the Office’s accomplishments belongs to our talented team of dedicated professionals in the U.S. Attorney’s Office and our brave law enforcement partners. I’m humbled by the bravery, creativity, and resilience that my colleagues have shown every day during my three years as U.S. Attorney. Together, we’ve worked tirelessly to bring criminals to justice, protect and provide recourse to victims and witnesses, and defend our nation against adversaries both foreign and domestic. We protected our traditions of integrity and continued our commitment to justice in the face of daunting challenges, including the longest federal government shutdown ever, tragic acts of violent extremism, and a frightening pandemic. For an attorney—especially a first-generation American like myself—representing the United States is a weighty privilege and a dream job. I have been blessed to do so.”
Under Mr. Hur’s leadership, the United States Attorney’s Office (the “Office”) has brought sophisticated and impactful cases, hired dozens of attorneys from diverse backgrounds to bring the Office to its maximum staffing level, increased diversity within the Office’s supervisory ranks, enhanced its technology and physical space, improved internal processes, and strengthened relationships with critical law enforcement and regulatory partners at the local, state, and federal levels. A summary of the Office’s achievements during Mr. Hur’s tenure follows:
Public Corruption
U.S. Attorney Hur continued the Office’s focus on public corruption, which erodes the public’s trust in its elected officials and government. During the past three years, the Office has brought and resolved charges for corruption and/or fraud against dozens of elected officials, public office holders, and public employees. Examples include:
- Former Baltimore City Mayor Catherine Pugh,
- Former Baltimore City Police Commissioner Darryl DeSousa,
- Former Maryland Delegate Cheryl Glenn,
- Former Maryland Delegate Tawanna Gaines,
- Former Maryland State Senator Nathaniel Oaks,
- Members of the Baltimore City Police Department in connection with the Gun Trace Task Force investigation, and
- Correctional officers at numerous state correctional facilities, including Eastern Correctional Institution, Jessup Correctional Institution, Maryland Correctional Institute Jessup, and Chesapeake Detention Facility.
National Security and Cybercrime
On the national security front, under Mr. Hur’s leadership, the Office protected Marylanders from significant terrorist threats, both international and domestic. The Office successfully prosecuted Christopher Hasson, a former Coast Guard officer who amassed an arsenal of weapons in preparation for violence inspired by extremist, white-supremacist views. The Office also charged Rondell Henry with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), in connection with his plans to drive a motor vehicle into crowds and inflict mass civilian casualties at National Harbor. Prosecutors in the Office also charged members of The Base, a racially motivated violent extremist group, who attended military-style training camps and planned to engage in subversive and criminal activity. Importantly, these terrorist plots were disrupted, and the individuals arrested, before any inflicting any harm or loss of life on our communities.
The Office also helped safeguard sensitive, classified information through the successful prosecution of two of the most significant breach cases in history: Harold Martin, a former National Security Agency (“NSA”) contractor who stole and retained classified material over two decades and stored it in his home and car, and Nghia Hoang Pho, a former NSA employee who removed and kept at his home massive troves of highly classified national defense information.
In recognition of the seriousness and volume of national security threats in Maryland, including cyber intrusions such as malware and ransomware, Mr. Hur created the Office’s first National Security and Cybercrime Section; doubled the number of prosecutors assigned to national security and cybercrime matters; designated the Office’s first Cybercrime Counsel to deepen expertise in and lead efforts against all manner of cyber threats; and designated prosecutors throughout the Office to become experts in such sub-fields as narcotics trafficking on the dark web and cryptocurrency.
Violent Crime and Gangs
The Office continued its commitment to reduce violent crime throughout Maryland. Together with local, state, and federal partners, the Office pursued a comprehensive strategy of violence reduction that includes proactive investigations targeting the most violent groups and clearing multiple homicides using federal racketeering statutes; federal gun prosecutions targeting repeat violent offenders; and focused deterrence programs using outreach and prisoner re-entry programs to prevent violent crime and defuse conflict before it happens.
The Office continued to secure important convictions of gang members responsible for gun violence and shooting homicides in Baltimore. These included Montana Barronette, who was sentenced to life in federal prison for participating in at least six murders and his leadership of Trained To Go, one of Baltimore’s most violent gangs; and Terrell Plummer, a member of the violent Old York Money Gang who shot and killed three-year-old McKenzie Elliott as she stood on her front porch during a gang dispute.
Under U.S. Attorney Hur’s leadership, the Office launched several initiatives aimed at curbing the historically high levels of gun violence driven by drug-trafficking organizations in Baltimore City. The Office and local, state, and federal law enforcement partners launched the Baltimore OCDETF Strike Force, aimed at disrupting and dismantling the most violent gangs and their financial infrastructure in the Baltimore metropolitan area. All Strike Force investigators work in one shared location, which is a key part of the Strike Force concept that has proven successful in other cities.
U.S. Attorney Hur also partnered with Governor Larry Hogan, Attorney General Brian Frosh, and Baltimore City State’s Attorney Marilyn Mosby to apply state funds to hire state prosecutors, who were then detailed to the U.S. Attorney’s Office to investigate and prosecute federal firearms cases in federal court. In this way, stakeholders at all levels teamed with Baltimore Police Department officers and federal agents to ensure that armed felons with significant violent criminal histories are removed from our neighborhoods, then prosecuted and sentenced in federal court.
During Mr. Hur’s tenure, the Department of Justice directed millions of dollars in grant funds to the Baltimore Police Department and to violence-reduction efforts in Baltimore. The Justice Department selected Baltimore to participate in the National Public Safety Partnership (PSP) program, a three-year engagement that seeks to leverage department assets in support of a local jurisdiction’s commitment to drive down violent crime. Through this program, local, state, and federal officials in Baltimore work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology, and community engagement.
Under U.S. Attorney Hur’s leadership, the Office continued its decades-long focus on the fight against transnational gang La Mara Salvatrucha, also known as MS-13. Having developed nationally recognized expertise in prosecuting MS-13 members with federal racketeering statutes, Maryland AUSAs indicted dozens of defendants during the last three years from the Fultons, Parkview, Langley Park, Sailors, and Los Ghettos Criminales cliques for violence committed in Anne Arundel, Montgomery, Frederick, and Prince George’s counties in Maryland as well as in Virginia. The Office also strengthened its ties with investigators and prosecutors in El Salvador, in order to coordinate enforcement actions, share evidence and intelligence, and fight the gang on both sides of the Atlantic. U.S. Attorney Hur traveled to El Salvador to meet with counterparts and to build valuable relationships with Salvadoran law enforcement.
Fraud
The Office successfully prosecuted complex fraud matters during Mr. Hur’s tenure, obtaining justice on behalf of financial fraud victims and preventing others from being victimized. The Office strengthened its partnership with the Securities and Exchange Commission, together bringing to justice the perpetrators of two massive Ponzi schemes: Kevin Merrill and his co-conspirators were convicted of running a $550 million investment fraud scheme—one of the largest ever charged in Maryland—that defrauded investors of their life savings across the country; Merrill was sentenced to 22 years in federal prison. Former financial advisor and radio personality Dawn Bennett was sentenced to 20 years in federal prison for her conviction on 17 federal charges relating to her own $20 million Ponzi scheme.
The COVID-19 pandemic prompted fraudsters to take advantage of new opportunities to deceive members of the public, and the Office acted quickly to disrupt fraud schemes before losses mounted. In particular, the Office seized two domain names purporting to be websites of biotechnology companies developing treatments for COVID-19. These websites used similar names, trademarked logos, and graphics of actual companies to create fraudulent websites in order to obtain personal information of victims. Also, under U.S. Attorney Hur’s leadership, the Office entered into a Memorandum of Understanding (MOU) with Special Inspector General Brian D. Miller of the Office of the Special Inspector General for Pandemic Recovery (SIGPR), regarding the investigation and prosecution of fraud relating to CARES Act funding. The MOU allows the U.S. Attorney’s Office and SIGPR to enhance their cooperative efforts in investigating and prosecuting matters involving loans, loan guarantees and other investments made by the Secretary of the Treasury under the CARES Act.
U.S. Attorney Hur prioritized the development and strengthening of working relationships with Inspectors General throughout the Executive Branch, many of which investigate and refer fraud matters impacting Maryland. Mr. Hur also led the Office to join the Department of Justice Antitrust Division’s Procurement Collusion Strike Force (PCSF), which works nationwide to combat collusion, antitrust crimes and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
U.S. Attorney Hur and the Office also prioritized fraud schemes targeting elderly and vulnerable victims. The Office successfully prosecuted numerous defendants who used all manner of schemes to defraud the elderly, including obtaining and using fraudulent credit cards and falsely stating that a relative, typically a grandchild, needed money for bail, legal fees, or other expenses. During the COVID pandemic, Mr. Hur personally tried the first in-person federal jury trial in the Washington, D.C. area; the defendant was convicted of laundering the proceeds of a romance fraud scheme that used dating websites to target vulnerable and elderly victims and defraud them of millions of dollars.
Opioid Crisis
In response to Maryland’s crisis in opioid overdoses, U.S. Attorney Hur spearheaded the launch of the Office’s Synthetic Opioid Surge initiative (“S.O.S”). Pursuant to this initiative, every arrest in Baltimore City for fentanyl distribution is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the U.S. Drug Enforcement Administration and the U.S. Attorney’s Office for Maryland to determine whether the case will be prosecuted in the state or federal system. Thanks to this partnership, S.O.S. prosecutions have resulted in significant federal sentences for armed, repeat offenders responsible for the distribution of substantial quantities of deadly fentanyl. The Office has also worked with State’s Attorneys throughout Maryland to target for federal prosecution narcotics traffickers who sell drugs that result in fatal overdoses, securing stiff federal sentences that disrupt the supply of fentanyl.
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President Trump nominated Mr. Hur to be United States Attorney on November 1, 2017, and the Senate confirmed him unanimously on March 22, 2018. Mr. Hur took office on April 9, 2018.
As United States Attorney, he served as a member of the Attorney General’s Advisory Committee of United States Attorneys (“AGAC”), which provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the United States Attorneys.
Before serving as U.S. Attorney, Mr. Hur served as the Principal Associate Deputy Attorney General with the Department of Justice in Washington, D.C. In that position, Mr. Hur was a member of the Department’s senior leadership team and the top aide to Deputy Attorney General Rod J. Rosenstein, assisting him with oversight of all components of the Department.
Mr. Hur served as an Assistant U.S. Attorney in the District of Maryland from 2007 to 2014, where he prosecuted gang violence, firearms offenses, and narcotics trafficking, as well as white-collar offenses including financial institutions fraud, public corruption, mortgage fraud, tax offenses, computer network intrusions, and intellectual property theft. He received the Attorney General’s Distinguished Service Award for superior performance and excellence as a lawyer.
Before serving as an Assistant U.S. Attorney, Mr. Hur served as Special Assistant and later Counsel to Christopher Wray, then-Assistant Attorney General in charge of the Criminal Division, where he handled counterterrorism, corporate fraud, and appellate matters.
In addition to his service with the Department of Justice, Mr. Hur was a litigation partner with a law firm in Washington, D.C., where he represented companies and individuals facing criminal and regulatory enforcement actions before the Department of Justice, the Securities and Exchange Commission, and other federal agencies, as well as related civil litigation.
Mr. Hur began his legal career as a law clerk for William H. Rehnquist, Chief Justice of the United States, and Judge Alex Kozinski of the U.S. Court of Appeals for the Ninth Circuit. He received his A.B. degree, magna cum laude with highest honors, from Harvard College. He received his J.D. from Stanford Law School, where he served as Executive Editor of the Stanford Law Review.
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Upon United States Attorney Hur’s departure, First Assistant U.S. Attorney Jonathan F. Lenzner will serve as Acting U.S. Attorney under the Vacancies Reform Act until a replacement is named.
Mr. Lenzner first joined the United States Attorney’s Office as an Assistant U.S. Attorney in 2010. He previously served as an Assistant District Attorney in the Manhattan District Attorney’s Office from 2004 to 2010. He served as an Assistant United States Attorney in Maryland until 2013, departing for a position in the private sector. Upon returning to the Office as United States Attorney, Mr. Hur appointed Mr. Lenzner his First Assistant U.S. Attorney.
“Throughout my tenure, Jon has been my principal partner and advisor, and much of the Office’s recent innovation and success are attributable to him,” Hur said. “I have utmost confidence in him. The Office and its legacy are in supremely talented and experienced hands.”
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U.S. Attorney’s Office Collects More Than $9.9 Million in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin announced today that the Middle District of North Carolina collected $9,991,198.58 in criminal and civil actions in Fiscal Year 2020. Of this amount, $3,442,905.31 was collected in criminal actions and $6,548,293.27 was collected in civil actions.
The Justice Department collected more than $15.9 billion in civil and criminal actions in fiscal year (FY) 2020 ending Sept. 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
“The federal prosecutors and support staff in our office work hard to protect our citizens, to safeguard precious taxpayer resources, and to collect money owed to crime victims and to the government,” said U.S. Attorney Martin. “Their diligent efforts enable us to seek justice for crime victims every day and hold accountable those who seek to profit from illegal activity.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
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U.s. Attorney’s Office Collects $105,483,842.21 in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
U.S. Attorney Christina E. Nolan announced today that the District of Vermont collected $105,483,842.21 in criminal and civil actions in Fiscal Year 2020. Of this amount, $27,111,668.98 was collected in criminal actions and $78,372,173.23 was collected in civil actions. The collections include amounts recovered in matters handled by the District of Vermont together with its federal partners at the Department of Justice and other United States Attorneys’ offices.
“The District of Vermont’s federal prosecutors and Civil Division attorneys work tirelessly to protect our citizens, to recover financial losses they sustain from criminal conduct, and to safeguard precious taxpayer resources,” said United States Attorney Christina E. Nolan. “Their efforts enabled us to achieve justice and recoup a significant amount of taxpayer dollars in Fiscal Year 2020.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In addition to collections related to civil and criminal actions, the U.S. Attorney’s office in the District of Vermont, working with partner agencies and divisions, collected $905,520.00 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Two More People Charged in Connection with Multi-State Scheme to Defraud Financial Institutions of Millions of DollarsRead the Press Release
TRENTON, N.J. - Two men were arrested today for their alleged roles in a scheme to defraud multiple financial institutions of millions of dollars, Acting Attorney Rachael A. Honig announced.
Syed Abbas, 32, of Westerville, Ohio, and Muhammad Naveed, 35, of Jersey City, New Jersey, were arrested by federal law enforcement this morning and are each charged by criminal complaint with conspiracy to commit bank fraud. Naveed is scheduled to appear later today by videoconference before U.S. Magistrate Judge Lois H. Goodman. Abbas is scheduled to appear today in Ohio federal court and have his initial appearance by videoconference before Judge Goodman on Feb. 8, 2021.
The defendants are the eighth and ninth defendants charged in the same criminal complaint in the District of New Jersey in connection with the wide-ranging conspiracy to defraud federally insured banks and merchant processors of millions of dollars. In July 2020, seven other defendants were charged in connection with the scheme.
According to documents filed in the case and statements made in court:
From March 2018 through April 2020, Abbas and Naveed conspired with each other and others to defraud several financial institutions. Abbas and Naveed and their conspirators established bank accounts associated with sham entities that had no legitimate purpose, and thereafter issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. Abbas and Naveed also conducted numerous fraudulent credit card and debit card transactions between shell companies to fraudulently credit payee accounts and fraudulently overdraw payor accounts. Abbas and Naveed would use these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization.
Abbas and Naveed withdrew the “existing” funds (through ATMs or bank tellers) that banks had credited to the payee bank accounts at the time of the fraudulent transactions. Because Abbas and Naveed withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks were left with substantial losses.
Law enforcement identified approximately 200 bank accounts used to facilitate the fraudulent schemes. Abbas, Naveed, and other conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions. The loss attributable to Abbas and Naveed exceeded $1 million.
The bank fraud conspiracy count carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million.
Acting U.S. Attorney Honig credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, Newark Division; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; special agents of the Social Security Administration, under the direction of John F. Grasso; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Department of Homeland Security, Homeland Security Investigations – Ohio Division, with the investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney's Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Men Sentenced for Their Role in a Drug ConspiracyRead the Press Release
Two men were sentenced this morning after conspiring with others to distribute methamphetamine and heroin, announced U.S. Attorney Trent Shores.
Kendrick Johnson, 38, and Marcus Collay, 45, were sentenced before Chief U.S. District Judge John E. Dowdell. Johnson received a sentence of 120 months in prison followed by five years of supervised release. His possession of 11 firearms was considered in this sentence. Collay received a sentence of 51 months in prison followed by four years of supervised release.
“It seems like every week I am making a statement about the prosecution of a methamphetamine trafficking conspiracy. This drug continues to be the scourge of our state, wrecking lives and destroying families. Thank goodness the DEA and Tulsa Police are relentless in their efforts to combat methamphetamine,” said U.S. Attorney Trent Shores. “Defendants Collay and Johnson are part of the meth problem and now they’re dealing with the consequences for their actions.”
In a blind plea, Johnson stated that he voluntarily conspired with others in a drug conspiracy that involved methamphetamine. Collay, in his written plea agreement, admitted to intentionally possessing with intent to distribute methamphetamine and heroin. Specifically, Collay stated that he supplied distribution amounts of methamphetamine and heroin to Johnson and other third parties.
The Drug Enforcement Administration and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting the case. AUSA McCormick serves as the lead attorney for the United States Attorney’s Organized Crime Drug Enforcement Task Forces.
Tonawanda Man Arrested on Child Pornography Charge After Hidden Camera DiscoveredRead 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 Andrew Vallone, 44, of Tonawanda, NY, was arrested and charged by criminal complaint with attempting to produce child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the criminal complaint, an individual contacted the Town of Tonawanda Police Department after discovering a video depicting a child (Victim) wearing only a pair of underwear on a desktop computer belonging to the defendant. On January 23, 2021, the Tonawanda Police contacted the FBI and further investigation determined that Vallone had secreted a camera in a location which allowed him surreptitiously to film the Victim. The MicroSD card recovered from that hidden camera contained numerous images which depicted the Victim in various states of undress. Additionally, on January 29, 2021, the New York State Police contacted investigators regarding an email that Vallone sent to a mental health counselor. In the email, the defendant stated that he liked to look at younger girls and “I need help.”
The defendant will make an initial appearance before U.S. Magistrate Judge Michael J. Roemer at 2:00 p.m. this afternoon.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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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Texas hospice CEO sentenced for $150M health care fraud and money laundering schemeRead the Press Release
McALLEN, Texas – A 50-year-old executive is headed to prison for falsely telling patients they had mere months to live and increasing revenue by enrolling them in hospice programs for which they were not qualified nor needed.
A federal jury in Brownsville convicted Henry McInnis, 50, Harlingen, in November 2019 of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering, obstruction of justice as well as six counts of health care fraud.
Today, U.S. District Judge Rolanda Olvera ordered him to serve a total of 15 years in federal prison.
McInnis’s co-conspirator and owner of the hospice and home health entities, Rodney Mesquias, 50, San Antonio, was also convicted following the November 2019 trial. He was later sentenced to 240 months imprisonment. Two others have pleaded guilty and are awaiting sentencing.
“McInnis, as CEO of the company, directly oversaw a reprehensible criminal scheme that involved the submission of over $150 million in fraudulent bills, the falsification of patients’ medical records, and the payment of unlawful kickbacks,” said Acting Assistant Attorney General Nicholas L. McQuaid, of the Justice Department’s Criminal Division. “The defendant preyed upon some of the most vulnerable members of our society, including many who suffered from diminished mental capacity and who were falsely and cruelly told by co-conspirators that they had only months to live. Today’s significant sentence demonstrates the department’s continued commitment to pursuing individuals, at all levels of corporate management, who engage in criminal schemes that prioritize profits over patient care.”
“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”
From 2009 to 2018, McInnis, Mesquias and others orchestrated a scheme that involved the submission of over $150 million in false and fraudulent claims for hospice and other health care services. McInnis served as the top corporate officer and administrator and oversaw the day-to-day operations of the Merida Group, a large health care company that operated dozens of locations throughout Texas.
According to evidence presented at trial, McInnis, Mesquias and Merida Group adopted a strategy to market their hospice programs as providing medical benefits “you don’t have to die to use.” They aggressively enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, as well as patients with limited mental capacity who lived at group homes, nursing homes and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They even sent chaplains to the patients based on the false pretense they were near death. The chaplains would discuss last rites and other preparations for imminent death with the patients.
In order to receive reimbursement for hospice services, Medicare requires patients to be suffering from a terminal illness expected to result in death within six months. Not only were some of the patients not expected to die within that timeframe, they were walking, driving, working and, in some instances, even coaching athletic sporting events. However, McInnis and his co-conspirators kept patients on hospice services for multiple years in order to increase revenue from Medicare. Placing patients on such palliative hospice care meant the patients were unable to obtain medical coverage for curative medical services.
In addition to placing unqualified patients on hospice care, McInnis and his co-conspirators also endeavored to keep patients who did qualify for hospice care alive for as long as possible for their own monetary gain. At trial, a co-conspirator testified and explained “the way you make money is by keeping them alive as long as possible.” The jury heard that this included engaging in surgical and other medical interventions designed to extend life through the use of medical technologies, even when such interventions were not consistent with the goals of hospice care.
McInnis had no medical training and worked previously as an electrician. However, he acted as the de facto director of nursing for the Merida Group. Witnesses at trial testified McInnis directed employees to admit unqualified patients to hospice and home health, keep unqualified patients on services for long periods of time and fired and reprimanded employees who refused to participate in the scheme.
McInnis also oversaw and enforced a company-wide practice of falsifying medical records to conceal the scheme. Multiple witnesses testified McInnis ordered employees to alter medical records to make it appear patients were terminally ill. In reality, some were employed or even participating in sporting events. The jury also heard that McInnis explained the purpose of the falsified records was to allow the Merida Group to pass insurance company audits.
As CEO, McInnis also adopted a policy that paid illegal kickbacks. They directed bribes to physicians under the guise of medical director fees to certify unqualified patients for hospice and home health. In some cases, they improperly offered payoffs to marketers in exchange for recruitment of patients who could be placed on extremely expensive hospice services.
The evidence further established McInnis and Mesquias obstructed justice by causing the creation of false and fictitious medical records that allegedly showed patients needed the hospice services. McInnis and others tried to provide these to a federal grand jury in a failed attempt to avoid indictment. The records added false diagnostic information, making it appear patients were dying and eligible for hospice services when, in fact, they were not.
The Department of Health and Human Service – Office of Inspector General (DHHS-OIG); FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, DHHS Centers for Medicare & Medicaid Services, working in conjunction with the DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Texas Man, Self-Proclaimed Leader of Honolulu Proud Boys Now Indicted by a Federal Grand Jury for Conspiracy to Obstruct CongressRead the Press Release
WASHINGTON, D.C. –A federal grand jury in the District of Columbia has returned an indictment charging a Hawaii man who purports to have founded the Honolulu chapter of the Proud Boys and a Texas man with conspiring to obstruct the United States Congress’ certification of the results of the 2020 U.S. Presidential Election, as well as other crimes they committed to achieve that goal. Together, and with others, the two men planned and raised money for their effort, and then traveled to Washington, D.C., where they joined a crowd that stormed past barricades and law enforcement officers to halt a Joint Session of the U.S. Congress on January 6.
John C. Demers, the Assistant Attorney General for National Security; Michael R. Sherwin, the Acting United States Attorney for the District of Columbia; and Steven D’Antuono, the Assistant Director in Charge of the Washington Field Office announced the indictment.
Nicholas DeCarlo, 30, of Burleson, Texas, and Nicholas R. Ochs, 34, of Honolulu, Hawaii, were each indicted for conspiring to commit an offense against the United States, in violation of Title 18, United States Code Section 371, that is, to corruptly obstruct, influence, or impede an official proceeding, in violation of 18 U.S.C. § 1512(c)(2); one count of theft of federal government property, in violation of Title 18, United States Code, Section 641; one count of depredation against federal government property, in violation of Title 18, United States Code, Section 1361; and three counts of unlawful entry, disorderly conduct, or violent conduct in restricted buildings or grounds, in violation of Title 18, United States Code, Section 1752(a)(1), (2), and (4).
The indictment was unsealed this afternoon. DeCarlo and Ochs previously were taken into custody on January 26 and January 7, respectively. The defendants will be arraigned before a United States District Judge.
The indictment against DeCarlo and Ochs alleges that prior to January 6, DeCarlo and Ochs agreed to travel to Washington, D.C., in order to stop, delay, and hinder the certification of the results of the November 2020 Presidential Election. To advance and finance that effort, the indictment alleges, DeCarlo and Ochs, using the Internet, raised funds to support their travel and, on January 5, did travel from their respective locations in Texas and Hawaii to Washington, D.C.
The indictment further alleges that on January 6, DeCarlo, Ochs, and other individuals entered the Capitol building behind an initial wave of individuals who had stormed the Capitol building unlawfully. Thereafter, DeCarlo and Ochs traveled throughout and occupied the Capitol building, depicting their actions inside the building in real time through photographs and videos that they posted to social media. While on U.S. Capitol grounds unlawfully, DeCarlo and Ochs defaced the U.S. Capitol by scrawling onto its Memorial Door the words “MURDER THE MEDIA[.]”
Also, according to the indictment, DeCarlo and Ochs stole a pair of flexible handcuffs belonging to the United States Capitol Police.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the DOJ’s National Security Division. The indictment is the result of an ongoing investigation by the FBI’s Washington Field Office, Honolulu Field Office, and Dallas Field Office, as well as the United States Capitol Police, along with the Media Assault Strike Force of the United States Attorney’s Office for the District of Columbia, a specialized team staffed by senior prosecutors highly experienced in investigating and prosecuting cases involving victims of violent crime and focused on potential assaults, threats, and property damage directed at members of the media.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty. If convicted, DeCarlo and Ochs each face a maximum sentence of 20 years in prison, a fine of up to $250,000, and 3 years of supervised release.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
The FBI also urges anyone with information about or anyone who witnessed any unlawful action against any member of the media to contact the FBI’s Toll-Free Tipline at 1-800-CALL-FBI (1-800-225-5324) to report potential leads. In particular, the FBI seeks help in identifying persons depicted in photos taken during assaults on media members. The FBI has posted these photos on its website at https://www.fbi.gov/wanted/capitol-violence, which can be sorted by the label “Assault on Media”, and on Twitter at https://twitter.com/FBIWFO/status/1357062685461008385 and https://twitter.com/FBIWFO/status/1354991604663255045.
The United States Attorney’s Office strongly encourages members of the press to report any instances where a reporter, journalist, photographer, videographer, or other media personnel was assaulted or threatened, or where their property was damaged or destroyed by the rioters on January 6. Such information will help secure the First Amendment rights of all press personnel. Any information, including video and photographic evidence, can be emailed to [email protected].
Statement on the Deaths of FBI Special Agents Dan Alfin and Laura SchwartzenbergerRead the Press Release
ALBANY, NEW YORK – Acting U.S. Attorney Antoinette T. Bacon issued the following statement regarding the deaths of FBI Special Agents Dan Alfin and Laura Schwartzenberger on February 2, 2021, in Sunrise, Florida:
“Our deepest condolences to the family, friends, and colleagues of FBI Special Agents Dan Alfin and Laura Schwartzenberger, two selfless public servants who dedicated their careers to protecting children.
“We feel the loss especially in the Northern District of New York, as we were fortunate to work with SA Alfin while he was stationed at FBI Albany. Over those 5 years, SA Alfin worked tirelessly to protect our community from predators. Using creative investigative techniques, SA Alfin targeted the worst predators in our area and went on to lead a national investigation. We are grateful to have worked with him and will remember his intelligence, dedication, and sense of humor. He will be missed.
“The USAO will honor SA Alfin’s and SA Schwartzenberger’s legacies by redoubling our efforts to keep the community safe, especially for children and teens who are targeted by sexual predators and human trafficking organizations.”
Springfield Woman Indicted on Charges of Fraud Related to Small Business Administration COVID-19 Disaster Loan ProgramRead the Press Release
SPRINGFIELD, Ill. – A grand jury today returned an indictment that charges a Springfield, Ill., woman, Amber L. Bolen, 41, with fraud in connection with major disaster or emergency benefits available through the Small Business Administration.
The indictment alleges that in July 2020, Bolen, of the 1900 block of Gregory Ct., submitted an application for an Economic Injury Disaster Loan for a business, known as “amber bolen,” which did not exist. The indictment alleges that Bolen made false representations on the loan application including that she owned the business, listed at the same address as her residential address, since 2013; that it was engaged in the transportation industry; and, that the business employed 11 people and had gross revenues of more than $90,000 for the 12 months prior to Jan. 31, 2020. The SBA wired approximately $41,000 in loan proceeds into Bolen’s bank account.
If convicted, the maximum statutory penalty for fraud in connection with major disaster or emergency benefits is up to 30 years in prison; the maximum penalty for wire fraud is up to 20 years in prison.
The charges were investigated by the Internal Revenue Service, Criminal Investigation Division as part of a Central Illinois Task Force directed at combatting COVID-19 related fraud. Other participating agencies in the task force include the Small Business Administration, Office of Inspector General; U.S. Secret Service; Federal Deposit Insurance Corporation, Office of Inspector General; U.S. Postal Inspection Service; U.S. Department of Labor, Office of Inspector General; and, the Federal Bureau of Investigation. Assistant U.S. Attorney Sierra Senor-Moore is representing the government in the case prosecution.
Covid-19 disaster relief and enhanced unemployment benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Springfield Man Sentenced for Illegal Firearm, Airport ThreatRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for illegally possessing a firearm and for making a threatening phone call that caused disruption at the Springfield National Airport.
Dustin B. Gowens, 39, was sentenced by U.S. District Judge M. Douglas Harpool to four years in federal prison without parole.
On Feb. 22, 2020, Gowens pleaded guilty to one count of being a felon in possession of a firearm and one count of maliciously conveying false information.
Gowens admitted that on Sept. 25, 2018, he was in possession of a Jimenez Arms 9mm semi-automatic pistol. A clerk at the Kum & Go gas station called police officers when he saw Gowens pull the firearm from his pants pocket. When officers arrived, Gowens was standing outside with the gun in his hand. Gowens walked away, hiding the pistol in between a cage that contained propane tanks. The officer ordered him to lie on the ground, placed him in handcuffs, then found the firearm. Gowens, who was also in possession of four methadone pills, was arrested.
A few days later, on Sept. 28, 2018, Gowens called 911 to report that there was a group at the Springfield National Airport who had taken hostages and were in possession of a bomb. The duress alarm was sounded at the airport. When police officers responded to the airport alarm, the 911 dispatcher informed them that the phone call had originated from a pay phone at the airport. Surveillance cameras captured footage of Gowens, who was still seated on a bench nearby, making the phone call. Officers approached Gowens, who admitted making the call, and arrested him.
Gowens’s actions caused substantial disruption to the airport and caused delays of two departing flights.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gowens has prior felony convictions for aggravated burglary, tampering with a motor vehicle, and theft of merchandise. Gowens also has eight misdemeanor convictions and faces two active warrants and five pending cases in Missouri, Kansas, and Oklahoma. He has arrests or convictions in six different states.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield, Mo., Police Department, and the Springfield, Mo., Airport Police.
Somerset County Man Admits Defrauding Former Employer of More Than $1 MillionRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man today admitted defrauding his former employer by using the employer’s account to make unauthorized purchases of high-end electronic devices and selling those items on after-market websites, Acting U.S. Attorney Rachael A. Honig announced.
Ovais Mayet, 33, of Hillsborough, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Mayet was a biological engineer with a biopharmaceutical company located in Summit, New Jersey. He was permitted to use the employer’s business account to make authorized purchases of materials and equipment for work-related purposes. Instead, Mayet used the employer’s account to purchase substantial quantities of electronic devices, which he did not and would not use in the course of his employment. Between January 2019 and March 2020, Mayet executed online purchase orders and disguised these purchases as business expenses, when, in fact, they were for his own personal gain. Mayet resold the items on after-market websites and used the proceeds to pay for personal expenses. Mayet obtained nearly $1.1 million worth of electronic devices from the fraudulent scheme.
The wire fraud charge to which Mayet pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. Sentencing is scheduled for June 7, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office Criminal Division in Trenton.
Sioux City Man Sentenced to More Than Six Years in Federal Prison for Possessing a Loaded Gun After High Speed ChaseRead the Press Release
A convicted felon who unlawfully possessed a gun was sentenced January 20, 2021, to more than six years in federal prison.
Levi Bergenske, age 22, from Sioux City, Iowa, received the prison term after an August 26, 2020 guilty plea to one count of possession of a firearm by a felon. Bergenske was previously convicted of theft 2nd degree and interference with official acts while armed with a dangerous weapon, both in Woodbury County, Iowa.
Evidence at Bergenske’s, change of plea and sentencing hearings revealed on January 17, 2019, law enforcement attempted to execute a stop of a vehicle driven by Bergenske. At the time he had five outstanding warrants for his arrest in the state of Iowa and was, as subsequent tests confirmed, under the influence of marijuana and methamphetamine. Bergenske refused to stop his vehicle and a high-speed vehicle pursuit ensued, at times exceeding speeds of 80 miles per hour on Floyd Boulevard and Outer Drive in Sioux City, Iowa. He failed to stop at a red light, drove off the roadway, and at times, drove into oncoming lanesof traffic. The Pursuit Intervention Technique (PIT maneuver) was utilized by law enforcement on Hamilton Boulevard, which immobilized Bergenske’s vehicle against a concrete sign. After Bergenske continued to resist arrest, officers utilized a baton to break the driver’s window, and extricate a still-combative Bergenske. Inside the car two handguns, ammunition, and 9 grams of methamphetamine were located. A Subsequent search of Bergenske’s home revealed a third handgun, ammunition, and another 22 grams of methamphetamine.
Bergenske has a significant criminal history. Twice before the instant offense, Bergenske violently resisted store employees’ attempts to stop him from committing a theft. He had illegally possessed a loaded firearm in the past as well.
Bergenske was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bergenske was sentenced to 78 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bergenske 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: [list partners here]. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice – Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4026.
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Sioux City Man Sentenced to Federal Prison for MethRead the Press Release
A man who possessed with intent to distribute methamphetamine was sentenced on January 27, 2021, to 10 years in federal prison.
Aaron Louis Bryant, age 32, from Sioux City, Iowa, received the prison term after an October 7, 2020, guilty plea to one count of possession with intent to distribute a controlled substance within 1,000 feet of a protected location.
At the guilty plea, Bryant admitted that on November 15, 2019, during a traffic stop, he got into an altercation with law enforcement. After law enforcement took defendant into custody, Bryant tossed a baggie of methamphetamine out of his pocket and made the comment “look what they threw on me.”
The baggie contained 3 smaller bags, each with methamphetamine inside. The three bags contained approximately 62 grams of actual methamphetamine. The incident happened within 1000 feet of the protected location of Dinosaur Park in Sioux City.
Bryant was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bryant was sentenced to 120 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Bryant is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-4015.
Follow us on Twitter @USAO_NDIA.
Saratoga County Man Admits to Unlawfully Selling “Ghost Guns” and Methamphetamine DistributionRead the Press Release
ALBANY, NEW YORK – Christopher Montano, age 36, of Edinburg, New York, pled guilty today to unlawfully conspiring to deal, possess, transfer and make unregistered firearms, and to distributing methamphetamine.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Montano admitted that between August and October 2019, he, along with Michael Castelluccio, conspired to build and sell firearms from component parts ordered online. These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.
Montano admitted to conspiring to possess and transfer short-barreled rifles, which are rifles with barrels less than 16 inches long, and admitted to doing so without having filed an application with or received approval from the Secretary of the Department of the Treasury, or paying the tax required by federal law. He also admitted to selling more than 50 grams of methamphetamine.
Chief United States District Judge Glenn T. Suddaby scheduled sentencing for June 3, 2021.
Montano faces a minimum sentence of 10 years in prison, a maximum sentence of life, a fine of up to $10 million, and a term of supervised release of up to life. Montano also agreed to forfeit the proceeds he received from the sale of the methamphetamine.
Castelluccio pled guilty on November 5, 2020 to unlawfully transferring an unregistered short-barreled rifle that had machinegun capability, and is scheduled to be sentenced on April 1, 2021. Castelluccio faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Castelluccio also agreed to forfeit a pickup truck that he used to transport the firearms.
A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the ATF and HSI, as well as the Schenectady County and Montgomery County Sheriff’s Offices. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download
Receiving, distributing child pornography sends Great Falls man to prisonRead the Press Release
GREAT FALLS — A Great Falls man who admitted downloading and sharing child pornography with his cell phone was sentenced today to eight years and six months in prison and to five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Derek Wallace Johnson, 41, pleaded guilty on Sept. 23, 2020 to distribution of child pornography and receipt of child pornography.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris ordered Johnson to pay $12,000 restitution and continued Johnson’s detention.
The prosecution said in court documents that in October 2019, Homeland Security Investigations in Great Falls received information that a suspect had uploaded possible child pornography in April 2019. An investigation determined that the uploaded image depicted a child engaged in sexually explicit conduct and led to Johnson as the suspect. Investigators served a search warrant on Johnson's residence. Johnson, who was present for the search, told officers he had lost his cell phone a few days earlier, but an agent found it hidden between the box spring and mattress in Johnson's bedroom.
After initially being untruthful, Johnson admitted he had participated in online activity involving child pornography and admitted to hiding his phone. He also said he had about 1,000 videos and images of child pornography in an encrypted app on his phone. Johnson told officers he downloaded child pornography in Kik chat rooms and shared files with others seeking images in chat rooms.
Agents searched Johnson's phone and determined it contained almost 2,700 image files and more than 500 video files of child pornography. Johnson distributed child pornography in April 2019 and had downloaded or received child pornography from December 2016 to November 2019.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Montana Internet Crimes Against Children Task Force, Homeland Security Investigations and the Great Falls Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Raleigh County Woman Sentenced to a Total of 54 Months in Prison for Conspiracy to Obstruct Justice and Health Care FraudRead the Press Release
Defendant’s husband also pled guilty in January for his role in the conspiracy to fake her death at the New River Gorge
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Julie M. Wheeler received a sentence of 12 months and one day for her role in a federal conspiracy to obstruct justice. Wheeler’s sentence was ordered to be served consecutively to her 42 month sentence previously imposed for her federal health care fraud conviction. The consecutive sentence increases Julie Wheeler’s total sentence of incarceration to 54 months of federal incarceration. In a separate criminal hearing last month, Rodney Wheeler pled guilty to the federal felony offense of conspiracy to obstruct justice. Rodney Wheeler faces up to five years of incarceration, a $250,000 fine, and three years of supervised release when he is sentenced on April 5, 2021.
“Julie Wheeler faked a traumatic death to avoid her judgment day with the courts. While she was found hiding in a closet she was also hiding from justice. The scheme put many lives at risk and wasted valuable resources,” said United States Attorney Mike Stuart. “By conspiring to avoid her federal sentence for health care fraud, she, with the aid of her husband, only made matters worse. Julie added another year to her sentence and Rodney now has a federal felony conviction for which he will soon be sentenced.”
In a case that garnered national media attention, Rodney and Julie Wheeler conspired to fake her death at the New River Gorge to avoid her federal court sentencing for health care fraud. To fake her death, Rodney Wheeler and another family member placed a 911 call on May 31, 2020, claiming Julie Wheeler had fallen from the Grandview Overlook in the New River Gorge in West Virginia. The overlook is a steep cliff with a series of ledges leading down to the New River. This 911 call prompted a massive search and rescue operation with hundreds of volunteers, law enforcement, and professional search and rescue personnel looking for Julie Wheeler at the base of the overlook and the surrounding area. Helicopters, rescue dogs, and repelling experts also scoured the area looking for her. Additional false statements were given to state and federal investigators by Rodney Wheeler as part of the conspiracy, including statements to National Park Service officers and the United States Probation Office. The purpose of these statements was to continue the Wheelers’ ruse that she had fallen and was missing. In reality, she was hiding in her own home and planning to go into permanent hiding with her husband.
After two days of searching, the West Virginia State Police located Julie Wheeler hiding in a closet inside her home. Once removed from her closet, Rodney and Julie Wheeler were both taken into custody. In statements to state and federal investigators, Rodney Wheeler and Julie Wheeler admitted they conspired to fake her disappearance to avoid Julie Wheeler’s pending federal sentencing in a health care fraud case.
Instead of avoiding her federal sentencing hearing for health care fraud, Julie Wheeler was incarcerated and subsequently sentenced on June 30, 2020, to 42 months in prison and three years of supervised release for health care fraud relating to her overbilling a VA program for spina bifida care. She was also ordered to pay restitution in the amount of $289,055.07 for the overbilling scheme. The Federal Bureau of Investigation (FBI) and the Veterans Affairs - Office of Inspector General (VA-OIG), the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG) conducted the investigation of the underlying health care fraud.
The National Park Service and the West Virginia State Police conducted the criminal investigation concerning the conspiracy to obstruct justice. The United States Probation Office in the Southern District of West Virginia also conducted an independent investigation of Julie Wheeler’s disappearance and conduct related to the obstruction. The Raleigh County Prosecuting Attorney’s Office also assisted with the investigation and the Wheelers are both presently charged with numerous felony and misdemeanor offenses in Raleigh County Circuit and Magistrate Courts relating to the false reporting of an emergency.
Senior United States District Judge John T. Copenhaver, Jr. presided over the plea and sentencing hearings. Assistant United States Attorney Erik S. Goes is handling the prosecutions.
The investigation was also conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00145.
Follow us on Twitter: SDWVNews and USAttyStuart
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Puerto Rico U.S. Attorney’s Office and IRS-Criminal Investigation Warn Taxpayers About New Wave of Covid-19 Scams as Second Round of Economic Impact Payments Is DeliveredRead the Press Release
SAN JUAN, PUERTO RICO-- U.S. Attorney W. Stephen Muldrow and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement today in an effort to prevent taxpayers from falling victim to criminals.
In the last several months, IRS-CI has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes designed to steal money and personal information from taxpayers. Criminals are taking advantage of the second round of Economic Impact Payments – as well as the approaching filing season – to trick honest taxpayers out of their hard-earned money.
“As the second round of economic impact payments are delivered, we continue to provide guidance to taxpayers about tax and COVID-19 related scams. We remain vigilant with our law enforcement partners to investigate and bring to justice those who exploit the ongoing public health crisis in order to enrich themselves. I urge citizens to remain alert and to be skeptical of any telephone calls, e-mails, or websites that request personal information or banking information, while promising money or services that seem too good to be true,” said U.S. Attorney W. Stephen Muldrow.
Tyler R. Hatcher, Acting Special Agent in Charge of the IRS-CI Miami Field Office warned, “Economic relief efforts are meant to assist those in most need who have been affected by the COVID-19 pandemic. Criminals think these funds are an easy target to take advantage of innocent people. But we have other plans for those who try to prey on the public, and we are committed to hold them accountable for their criminal actions. Report any phone calls, emails, or text messages asking for your personal information or offering a deal that seems too good to be true.”
Some common COVID-19 scams include:
- Text messages asking taxpayers to disclose bank account information under the guise of receiving the $1,200 Economic Impact Payments.
- Phishing schemes using email, letters and social media messages with key words such as “Coronavirus,” “COVID-19,” and “stimulus” in varying ways. These communications are blasted to large numbers of people and aim to access personally identifying information and financial account information (including account numbers and passwords).
- The organized and unofficial sale of fake at-home COVID-19 test kits (as well as offers to sell fake cures, vaccines, pills, and professional medical advice regarding unproven COVID-19 treatments).
- Fake donation requests for individuals, groups and areas heavily affected by the disease.
- Bogus opportunities to invest in companies developing COVID-19 vaccines while promising that the “company” will dramatically increase in value as a result.
Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam is knowing how the IRS communicates with taxpayers. The IRS does not send unsolicited texts or emails. The IRS does not call people with threats of jail or lawsuits, nor does it demand tax payments on gift cards.
IRS-CI continues investigating hundreds of COVID-19-related cases with law enforcement agencies domestically and abroad and educating taxpayers about scams.
COVID-19 scams should be reported to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721 or submitted through the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation and prosecution of criminal conduct related to natural and man-made disasters and other emergencies.
Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Reports can be made online at TIPS.TIGTA.GOV.
Taxpayers who receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, should forward the message to [email protected]. Taxpayers are encouraged not to engage potential scammers online or on the phone.
To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
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Previously convicted felon from Albuquerque charged with firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Antonio Barraza, 31, of Albuquerque, appeared in federal court on Jan. 22 on a charge of being a felon in possession of a firearm. Barraza will remain detained pending trial.
According to a criminal complaint, on Aug. 10, 2020, a Bernalillo County Deputy Sheriff made a law enforcement stop on Barraza’s vehicle relating to an active arrest warrant. After the deputy identified and arrested Barraza, an inventory of items in his vehicle allegedly revealed a pistol underneath the driver’s seat.
Barraza has six previous felony convictions. As a previously convicted felon, Barraza cannot legally possess firearms or ammunition. If convicted, Barraza faces up to 10 years in prison.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bernalillo County Sheriff’s Department investigated this case. Assistant U.S. Attorney Jim Tierney is prosecuting the case.
Pittsburgh Felon Indicted on Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA. - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Evan Andrews, 27, as the sole defendant.
According to Indictment, Andrews is accused of possessing with the intent to distribute 28 grams or more of cocaine base, in the form commonly known as crack, and possessing a firearm while a convicted felon on September 23, 2020.
The law provides for a minimum sentence of five years in prison and a maximum total sentence of 50 years in prison, a fine of $5,250,000 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 Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) and the Allegheny County Sheriff’s Office 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.
Palmer Man Sentenced to 24 months for Wire FraudRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Palmer man was sentenced to serve 24 months in prison for Wire Fraud, in violation of 18 U.S.C. § 1343.
Faunus Michael Doney, fka Christopher Michael Wold, 37, of Palmer, was sentenced by United States District Court Judge Joshua M. Kindred to serve 24 months in prison, followed by 3 years of supervised release. He was also ordered to pay $377, 946.14 in restitution to the victims of his fraudulent scheme. Doney pleaded guilty to Wire Fraud on September 22, 2020.
According to a Felony Information filed in August of 2020, Doney devised and participated in a scheme that defrauded three victims beginning in August 2018 and continuing until at least June 2019. Additional court documents reveal that Doney, a licensed insurance broker in Alaska, worked for a life insurance and annuity company based in Iowa. Doney was responsible for marketing life insurance and annuities to new and existing clients in Alaska, many of whom were elderly and purchased those products to secure income in retirement or for estate planning. Doney travelled throughout Alaska and hosted seminars designed to encourage elderly Alaskans to invest in his products. Although Doney was aware that the three victims identified in the Information had limited retirement savings, he convinced them to invest much of their savings with him by promising significant guaranteed returns. In reality, there were no investments: Doney simply redirected the victims’ funds to his personal and business accounts, created fictitious balance sheets, account statements, and other doctored evidence and to allay his victims’ concerns.
In imposing prison time, Judge Kindred remarked that he hoped the sentence would send a message to Doney and others that fraudulent conduct on this scale will be met with serious consequences.
The IRS-Criminal Investigation (IRS-CI conducted the investigation leading to the successful prosecution in this case, with support from the Federal Bureau of Investigation (FBI), and the State of Alaska Division of Insurance. This case was prosecuted by Assistant U.S. Attorney James Klugman.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans. To learn more about the Elder Abuse Financial Exploitation Resources, visit the DOJ Elder Abuse Resource Roadmap.
Norwich Man Sentenced to 57 Months in Prison for Firearm Offense Stemming from New London ShootingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TREMAINE DOWDELL, 27, of Norwich, was sentenced today by U.S. District Judge Janet Bond Arterton to 57 months of imprisonment, followed by three years of supervised release, for a federal firearm offense stemming from an assault and shooting in New London in 2019.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, on September 14, 2019, Dowdell and three associates assaulted a man outside of the H&T Mart on Ocean Avenue in New London. The H&T Mart was open and had customers coming in and out of the store. Surveillance video captured Dowdell and three others physically attack the victim outside the storefront. Later, video footage showed Dowdell remove a gun from his pants and fire a single shot toward the victim of the assault, who was standing near the front door of the store. The bullet missed the victim. When police arrived a short time later, officers found a .40 caliber cartridge casing at the location where Dowdell fired the gun.
Dowdell’s criminal history includes state felony convictions for larceny, burglary and failure to appear offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On October 3, 2019, a federal grand jury in New Haven returned an indictment charging Dowdell with one count of possession of ammunition by a convicted felon. After actively evading law enforcement, Dowdell was found and arrested at a residence in Sprague on November 5, 2019. He possessed a loaded .25 caliber handgun with an obliterated serial number and approximately 33 grams of crack cocaine, which agents found floating in a toilet tank, at the time of his arrest.
Dowdell has been detained since his arrest. On July 2, 2020, Dowdell pleaded guilty to one count of possession of ammunition by a convicted felon.
This matter was investigated by the New London Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation, with the assistance of the Norwich Police Department and Connecticut State Parole. The case was prosecuted by Assistant U.S. Attorneys Nathaniel J. Gentile and Sarah P. Karwan, in coordination with the New London State’s Attorney’s Office.
Nine Muskegon Men Arrested on Federal Drug Trafficking ChargesRead the Press Release
One Defendant Remains at Large
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that, yesterday morning, law enforcement arrested nine residents of Muskegon, Michigan on multiple federal drug trafficking charges, including selling methamphetamine, heroin, fentanyl, and crack cocaine.
Approximately 35 federal, state, and local law enforcement officers executed the arrest warrants and multiple search warrants throughout Muskegon and Muskegon Heights. Investigators seized approximately 339 grams of suspected methamphetamine, 113 grams of fentanyl, 93 grams of heroin, and small quantities of cocaine and crack cocaine. Investigators also seized six handguns, jewelry worth approximately $20,000, and more than $20,000 in cash.
The men arrested and their charges include:
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Zachary John Kennedy, a/k/a “Zeus” (age 31) – one count of distribution of 50 grams or more of methamphetamine and one count of aiding and abetting in the distribution of 50 grams or more of methamphetamine;
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Brent Wilkerson, a/k/a “Pay” (age 28) – one count of distribution of 50 grams or more of methamphetamine and four counts of distribution of heroin;
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Delando Johnson, a/k/a “Fox” (age 28) – three counts of distribution of heroin;
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Carl Johnson, a/k/a “Orangebone,” a/k/a “Bones” (age 42) – three counts of distribution of cocaine base (crack) and one count of aiding and abetting in the distribution of cocaine base (crack);
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Courtney Harris, a/k/a “Money” (age 31) – one count of distribution of cocaine base (crack);
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Daris Jefferson, a/k/a “Smoove” (age 32) – one count of distribution of heroin;
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Alezay Coleman, a/k/a “Zay” (age 23) – one count of possession with the intent to distribute heroin, fentanyl, and 50 grams or more of methamphetamine; and
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Malik Jones-Smith, a/k/a “9” (age 25) – four counts of distribution of controlled substances, including heroin, fentanyl, and methamphetamine.
Distribution of controlled substances is generally punishable by up to 20 years in prison and a fine of up to $1,000,000. Distribution of 50 grams or more of methamphetamine, however, is punishable by a mandatory minimum sentence of 10 years and up to life in prison and a fine of up to $10,000,000.
Law enforcement also arrested Corey Andre Chandler (age 29), who, along with his co-defendant Darrell Jonathon Martin II (age 37), has been indicted by a Federal Grand Jury for conspiracy to distribute methamphetamine and for possession of methamphetamine with the intent to distribute it. Martin and Chandler stand accused of trafficking in large quantities of methamphetamine between April 2019 and July 2020. Both men face up to life in prison if convicted on the charged counts.
Yesterday’s arrests are part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and has been led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). Approximately 35 law enforcement agents from across state and federal agencies participated in the arrests, including the DEA, WEMET, other Michigan State Police officers and narcotics teams, Muskegon City Police, the Muskegon Heights Police Department, the United States Marshals Service, and the Michigan Department of Corrections, with assistance from the United States Attorney’s Office for the Western District of Michigan and the Muskegon County Prosecutor’s Office.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
With the exception of Chandler and Martin, the charges against the arrestees stem from criminal complaints. Under the United States Constitution, the government must present felony cases to a grand jury and obtain indictments to proceed with prosecution. The charges in the complaints and indictment are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
Law enforcement continues to search for Martin. Members of the public with information as to Martin’s whereabouts are encouraged to contact the United States Marshals Service at (616) 456-2438.
Darrell Jonathon Martin, 37, of Muskegon, Michigan, wanted on a federal arrest warrant.###
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New York Hedge Fund Founder Pleads Guilty to Bankruptcy Fraud in Connection with Neiman Marcus BankruptcyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York announced today that DANIEL KAMENSKY, the founder and manager of New York-based hedge fund Marble Ridge Capital (“Marble Ridge”), pled guilty to one count of bankruptcy fraud in connection with his scheme to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price. KAMENSKY pled guilty before United States District Judge Denise Cote.
U.S. Attorney Audrey Strauss said: “Daniel Kamensky abused his position as a committee member in the Neiman Marcus Bankruptcy to corrupt the process for distributing assets and take extra profits for himself and his hedge fund. Kamensky predicted in his own words to a colleague: ‘Do you understand…I can go to jail?’… ‘this is going to the U.S. Attorney’s Office.’ His fraud has indeed come to the U.S. Attorney’s Office and now has been revealed in open court.”
As alleged in the Complaint, the Information, and statements made in court:
DANIEL KAMENSKY was the principal of Marble Ridge, a hedge fund with assets under management of more than $1 billion that invested in securities in distressed situations, including bankruptcies. Prior to opening Marble Ridge, KAMENSKY worked for many years as a bankruptcy attorney at a well-known international law firm, and as a distressed debt investor at prominent financial institutions.
The Neiman Marcus Bankruptcy
Neiman Marcus, an American chain of luxury department stores with stores located across the United States, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) in May 2020. At the outset of the bankruptcy, Marble Ridge, through KAMENSKY, applied to be on the Official Committee of Unsecured Creditors (the “Committee”) and was thereafter appointed to be a member of the Committee. As a member of the Committee, KAMENSKY had a fiduciary duty to represent the interests of all unsecured creditors as a group.
During the bankruptcy process, the Committee had negotiated with the owners of Neiman Marcus to obtain certain securities, known as MyTheresa Series B Shares (the “MYT Securities”), and ultimately, the Committee was successful in coming to a settlement to obtain 140 million shares of MYT Securities for the benefit of certain unsecured creditors of the bankruptcy estate. In July 2020, KAMENSKY was negotiating with the Committee for Marble Ridge to offer twenty cents per share to purchase MYT Securities from any unsecured creditor who preferred to receive cash, rather than MYT Securities, as part of that settlement.
KAMENSKY’s Fraudulent Scheme
On July 31, 2020, KAMENSKY learned that a diversified financial services company headquartered in Manhattan, New York (the “Investment Bank”) had informed the Committee that it was interested in bidding a price between thirty and forty cents per share—substantially higher than KAMENSKY’s bid—to purchase the MYT Securities from any unsecured creditor who was interested in receiving cash.
That afternoon, KAMENSKY sent messages to a senior trader at the Investment Bank (“IB Employee-1”) telling him not to place a bid, and followed those messages up with a phone call with IB Employee-1 and a senior analyst of the Investment Bank (“IB Employee-2,” and collectively the “Employees”). During that call, KAMENSKY asserted that Marble Ridge should have the exclusive right to purchase MYT Securities, and threatened to use his official role as co-chair of the Committee to prevent the Investment Bank from acquiring the MYT Securities. KAMENSKY also stated that Marble Ridge had been a client of the Investment Bank in the past but that if the Investment Bank moved forward with its bid, then Marble Ridge would cease doing business with the Investment Bank.
The Investment Bank thereafter decided to not make a bid to purchase MYT Securities and informed the legal advisor to the Committee of its decision. The Investment Bank further told the legal advisor they made that decision because KAMENSKY—a client of the Investment Bank—had asked them not to.
Advisors to the Committee informed counsel for Marble Ridge of their call with the Employees, and after speaking with KAMENSKY, counsel for Marble Ridge falsely informed the advisors that KAMENSKY had not asked the Employees not to bid, but instead had told them to place a bid only if they were serious. Later that evening, KAMENSKY contacted IB Employee-1 and attempted to influence what IB Employee-1 would tell others, including the Committee and law enforcement, about KAMENSKY’s attempt to block the Investment Bank’s bid for the MYT Securities. KAMENSKY said at the outset of the call, in substance, “this conversation never happened.” During the call, KAMENSKY asked IB Employee-1 to falsely say that IB Employee-1 had been mistaken and KAMENSKY had actually suggested that the Investment Bank only bid if it was serious, and made comments including the following: “Do you understand…I can go to jail?” “I pray you tell them that it was a huge misunderstanding, okay, and I’m going to invite you to bid and be part of the process.” “But I’m telling you…this is going to the U.S. Attorney’s Office. This is going to go to the court.” “[I]f you’re going to continue to tell them what you just told me, I’m going to jail, okay? Because they’re going to say that I abused my position as a fiduciary, which I probably did, right? Maybe I should go to jail. But I'm asking you not to put me in jail.”
During a subsequent interview with the Office of the United States Trustee, which was conducted under oath and in the presence of counsel, KAMENSKY stated that his calls to IB Employee-1 were a “terrible mistake” and “profound errors in lapses of judgment.”
After this series of events, Marble Ridge resigned from the Committee and has advised its investors that it intended to begin winding down operations and returning investor capital.
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KAMENSKY, 48, of Roslyn, New York, pled guilty to one count of bankruptcy fraud, which carries a maximum sentence of five years in prison. Sentencing has been scheduled for May 7, 2021.
U.S. Attorney Strauss praised the work of the FBI. Ms. Strauss further thanked the Office of United States Trustee and the Securities and Exchange Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
Navajo man pleads guilty to sexually abusing a childRead the Press Release
ALBUQUERQUE, NM – Larry Nathaniel, 64, an enrolled member of the Navajo Nation, pleaded guilty in federal court in Albuquerque on Feb. 2 to a charge of Abusive Sexual Contact in Indian Country.
A grand jury previously returned an indictment against Nathaniel on Sept. 25, 2019. According to the indictment and other court records, Nathaniel committed the offense in San Juan County on the Navajo Nation on or about Feb. 24, 2019. Nathaniel held down the victim by the arm and touched her genitalia. At the time of the assault, the victim was ten years old.
Nathaniel is currently in custody pending sentencing. He faces five to 10 years in prison.
The FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Monroe Man Sentenced on Federal Firearms ChargesRead the Press Release
MONROE, La. – Acting United States Attorney Alexander C. Van Hook announced today that a Monroe, Louisiana man has been sentenced on federal firearms charges. United States District Judge Terry A. Doughty sentenced Jeremy Martin, 51, to 107 months and 15 days in prison, followed by 3 years of supervised release for possession of a firearm by a convicted felon.
On April 10, 2019, deputies from the Union Parish Sheriff’s Office searched a home in Downsville, Louisiana, where Martin lived and found a rifle in a case next to Martin’s bed. Martin has previous felony convictions in California for attempted murder (1998) and possession of narcotic controlled substance for sale (2007). In addition, Martin was convicted in Louisiana of possession of controlled substance and attempted illegal carrying of weapons while in possession of a controlled substance (2019). Martin knew that as a convicted felon, he was prohibited from possessing any type of firearm. He plead guilty in federal court to the instant offense of illegal possession of a firearm on October 15, 2020.
The ATF and Union Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moody 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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Minnesota Man sentenced to 22 years in Federal Prison for Large-scale Narcotics TraffickingRead the Press Release
Bismarck – United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Daniel Hovland has sentenced Terrell Armstrong, a/k/a Louis, a/k/a Looney, age 26 of Inver Grove Heights, MN, to 22 years in federal prison for Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substances. Judge Hovland also sentenced Armstrong to five years of supervised release, to follow his prison sentence.
This investigation began in June 2018, when the Bismarck Police Department received information identifying methamphetamine traffickers from the Twin Cities known as "Dre" and "Louis". The investigation revealed that "Dre" and "Louis" were responsible for distributing over 40 pounds of methamphetamine and 3 pounds of heroin into the Bismarck-Mandan area. "Louis" was later identified as Terrell Armstrong and "Dre" as Danae Mansell, age 25, also of Inver Grove Heights, MN. As part of their wide-ranging investigation, Bismarck Police executed residential search warrants in January and February 2019. Approximately three pounds of methamphetamine, over 150 grams of heroin, over $11,000 in US Currency, and two loaded firearms were seized by authorities during the execution of the January 2019 search warrant. Execution of the February 2019 search warrant led to the seizure of over three additional pounds of methamphetamine, approximately 30 grams of heroin,
approximately $16,000 in US Currency, and one loaded firearm. Additional investigation determined that Armstrong and Mansell headed the drug trafficking ring. Armstrong routinely provided firearms to his subordinate traffickers he sent to North Dakota from Minnesota.
"The drugs seized in this investigation had a total street value of approximately $400,000.00," said United States Attorney Drew Wrigley, "that’s a devastating amount of poison that law enforcement stopped from entering our communities."
Danae Mansell plead guilty to his role in the methamphetamine and heroin trafficking enterprise and was sentenced on February 24, 2020 to 15 years in federal prison. In September 2019, a jury found Armstrong guilty for his involvement in the methamphetamine and heroin trafficking conspiracy.
This case was investigated by the Bismarck Police Department, Drug Enforcement Admiration (DEA) and the North Dakota Bureau of Criminal Investigation Crime Laboratory, and was prosecuted by Assistant United States Attorney Dawn M. Deitz.
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Marshall County man sentenced to more than 10 years for drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Dustin L. White, of Moundsville, West Virginia, was sentenced today to 130 months of incarceration for drug and firearms charges, U.S. Attorney Bill Powell announced.
White, age 33, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of Firearms in Furtherance of Drug Trafficking” in October 2020. White admitted to distributing methamphetamine in March 2019 in Marshall County. White also admitted to possessing two pistols, a revolver, and a shotgun during drug trafficking crimes.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Man Sentenced for Advertising Videos and Images of Children Being Sexually AbusedRead the Press Release
A Washington, D.C., man was sentenced today to over 17 years in prison for advertising videos and images of children being sexually abused.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia and Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office made the announcement.
Simon Walker, 34, was sentenced by U.S. District Court Judge Carl J. Nichols of the U.S. District Court for the District of Columbia. Walker pleaded guilty on Oct. 8, 2019, to one count of advertising child pornography. In addition to his prison sentence, he was sentenced to 20 years of supervised release and ordered to pay $10,000 in restitution to the victims.
According to admissions made in connection with his plea agreement and other court filings, Walker was the creator and administrator of online chat groups devoted to the trading of child pornography. In addition to uploading images of children engaged in sexually explicit conduct, Walker encouraged other members of the groups to distribute child pornography, warning them that they would be removed from the groups if they did not contribute to the online community of offenders, and encouraged the ongoing sexual abuse of an infant by a co-administrator.
Forensic examination of his electronic devices, pursuant to a federal search warrant executed at his residence in May 2018, uncovered hundreds of videos and images of children engaged in sexually explicit conduct.
Walker was arrested by the FBI on July 12, 2018, was ordered detained by the U.S. District Court for the District of Columbia and has remained in custody since that time.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state and federal partners, investigated the case. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jodi Lazarus of the District of Columbia are prosecuting the case.
This investigation was a 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.
Man Pleads Guilty After He Assaulted a Woman with a Knife and Illegally Possessed a FirearmRead the Press Release
A Tulsa man was convicted today in federal court for cutting his girlfriend’s throat and for illegally possessing a firearm, announced U.S. Attorney Trent Shores.
Devin Charles Staller, 23, pleaded guilty to assault with a dangerous weapon in Indian Country and to being a felon in possession of a firearm.
“Devin Staller is a dangerous man, plain and simple. He kicked in his girlfriend’s front door and later during a domestic dispute cut her throat. Thankfully, she survived. When police later arrested Staller, he was in illegal possession of a shotgun, ” said U.S. Attorney Trent Shores. “I am grateful this victim called police and they acted quickly. Thanks to Iowa-based Assistant U.S. Attorney Kevin Fletcher and the joint investigative work of the Tulsa Police Department, ATF and FBI, this dangerous eight-time felon has been convicted.”
In his written plea agreement, Staller admitted that he had intent to do bodily harm when he assaulted the female victim with a knife by cutting her throat on June 24, 2020.
He further admitted to being a felon in possession of a Montgomery Ward Savage 16 gauge pump-action shotgun. Staller was previously convicted of eight felonies. Staller was found with the firearm when he was located by police in an apartment in Tulsa on July 17, 2020.
U.S. District John E. Dowdell set sentencing for May 5, 2021.
The maximum sentence per each count is ten years imprisonment and a fine per count of not more than $250,000.
The Tulsa Police Department, FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant U.S. Attorney Kevin Fletcher is prosecuting the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Man Admits Operating Lottery Scam that Defrauded Connecticut Victim of Nearly $1.2 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that STIEVE FERNANDEZ, 35, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a conspiracy charge stemming from a lottery scam that defrauded an elderly Connecticut victim of nearly $1.2 million.
In a lottery scam, a perpetrator fraudulently convinces a victim that the victim has won a lottery or sweepstakes, and needs to make certain payments before collecting the winnings.
According to court documents and statements made in court, between approximately 2015 to 2018, Fernandez and others, including Minique Morris and Horace Crooks, defrauded an elderly Mystic resident in a lottery scam. As part of their scheme, Fernandez spoke to the victim on the telephone and used various pseudonyms, including “Damian Jackson,” “Jesse Jackson,” and “Huckleberry Finn.” During the phone calls, Fernandez falsely claimed that the victim had won a lottery or sweepstakes and was required to pay fees purportedly to cover taxes, insurance, handling and other charges related to the winnings. Fernandez directed the victim to pay fees in various ways, including by mailing checks and money orders to Morris in Brampton, Ontario, and Crooks in Orlando, Florida; wiring funds to bank accounts controlled by Morris and Crooks; and purchasing and sending precious metals products to Morris and Crooks. Fernandez instructed his co-conspirators how to transfer or deliver the fraud proceeds to him in Argentina or Jamaica, where Fernandez resided.
Through this scheme, the victim was defrauded of $1,196,207.
On October 16, 2018, a grand jury in New Haven returned a 10-count indictment charging Fernandez, Morris and Crooks with conspiracy and fraud offenses. Fernandez was arrested in Jamaica on May 9, 2019, and was subsequently extradited to the United States. He has been detained since his arrest.
Fernandez pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for April 29, 2021.
Morris and Crooks previously pleaded guilty to the same charge and await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, with the assistance of the U.S. Marshals Service’s Jamaica Foreign Field Office, the Jamaica Lottery Scam Task Force, the Jamaica Constabulary Force, the U.S. Postal Inspection Service, and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Jonathan Francis.
U.S. Attorney Durham thanked the Justice Department’s Fraud Section for its assistance in this case, and the Justice Department’s Office of International Affairs and the Jamaican Ministry of Justice for coordinating the extradition proceedings in this matter.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Lenox Woman Sentenced to 46 Months for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - On February 3, 2021, United States District Court Judge Stephanie M. Rose sentenced Elizabeth Villanueva, age 36, of Lenox to 46 months in prison for possession with the intent to distribute methamphetamine announced Acting United States Attorney Richard D. Westphal. Villanueva was ordered to serve a period of supervised release of five years to follow her prison term and pay a $100 special assessment payable to the Crime Victims’ Fund. There is no parole in the federal system.
On January 8, 2020, law enforcement conducted a traffic stop on Villanueva as she drove into Taylor County, Iowa. During a search of her car, approximately a half-pound of methamphetamine was discovered and seized. Villanueva pleaded guilty on October 16, 2020, to the charge.
This case was investigated by the Taylor County Sheriff’s Office and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Leader of North Shore Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former Inca, or first-in-command, of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Israel Rodriguez, a/k/a “King Izzy,” a/k/a “King Imperial,” 39, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 15, 2021.
Rodriguez admitted to his role in an August 2018 conspiracy to terminate a leader of the Fitchburg Chapter of the Latin Kings who was suspected of cooperating with law enforcement. On intercepted phone calls, Rodriguez discussed an elaborate ruse to trick this leader into attending a meeting at which he would be ambushed and beaten by other Latin Kings members.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Israel Rodriguez is the 31st defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Reaches Settlement with Old Dominion University to Resolve Disability Discrimination ComplaintRead the Press Release
Today the Justice Department announced a settlement agreement with Old Dominion University (ODU) in Norfolk, Virginia, to resolve its investigation into a complaint that ODU discriminated and retaliated against a graduate student based on disability and her related request for reasonable modifications of policy. The Civil Rights Division conducted the investigation under Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973.
“Students should never have to choose between their right to request reasonable modifications of policy for their disabilities and their academic success,” said Gregory B. Friel, Deputy Assistant Attorney General of the Justice Department's Civil Rights Division. “This agreement reflects the critical role colleges and universities — and their faculty and staff — play in delivering on the promise of the ADA and Section 504. By working in good faith with students to provide reasonable modifications of policy, colleges and universities can ensure that students with disabilities have full and equal access to educational opportunities at the highest levels of academic achievement.”
The investigation found that the complainant requested acknowledgement of her right to reasonable modifications of policy and was penalized for doing so in violation of Title II and Section 504. The department concluded that after a dispute about the student’s request and based on her disability, ODU terminated the student’s working relationship with her professor-advisor, removed the student from the professor’s lab, separated her from ongoing research and withdrew her participation at a professional conference. The complainant was forced to change her graduate course of study and find a new advisor.
ODU cooperated throughout the investigation and committed to complying fully with its legal obligations under the ADA and Section 504. The settlement agreement requires ODU to develop and disseminate a retaliation policy that explains the ADA and Section 504 obligations applicable to all staff and faculty and clarifies that ODU will impose consequences, up to and including termination, on those who violate the policy. ODU will also provide comprehensive ADA training to administrators, faculty and staff. Finally, the agreement requires that ODU pay $40,000 in monetary damages to the complainant.
The enforcement of the ADA and Section 504 of the Rehabilitation Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Independence Business Owner Sentenced for Arson of Rival Business, Residence, and Illegally Possessing a FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, business owner has been sentenced in federal court for his role in a conspiracy to commit arson against a rival business as well as a residence, and for illegally possessing a firearm.
William “Bill” Joseph Reneau, 44, of Overland Park, Kansas, was sentenced by U.S. District Judge Roseann Ketchmark on Tuesday, Feb. 2, to six years and six months in federal prison without parole. The court also ordered Reneau to pay $167,085 in restitution to his victims.
On Aug. 5, 2020, Reneau pleaded guilty to one count of arson and one count of being a felon in possession of a firearm and ammunition. Reneau was the owner of Gold Rush Exchange, with locations on 40 Highway and 24 Highway in Independence.
Reneau admitted that he hired others to destroy an Independence residence and a business, Bobby Jackson’s Trading, a gold-buying business operated by a former employee of Reneau’s at 302 E. 23rd Street in Independence. Reneau hired others to damage Bobby Jackson’s Trading in July and August of 2017, then to burn the business as well as a residence owned by his wife’s ex-husband in August 2018.
Reneau also admitted that he kept a Mossberg 12-gauge shotgun underneath a computer at The Gold Rush Exchange. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Reneau has prior felony convictions for conspiracy to distribute methamphetamine, cocaine and marijuana, and for aiding and abetting money laundering.
Reneau paid co-defendant Randell Eugene Yeager Jr., 47, of Independence, $800 to damage the Bobby Jackson’s Trading building. On July 17, 2017, Yeager drove a stolen Jeep Grand Cherokee into the front of the business, backing into the building and colliding with the front door and the front business windows. The stolen Jeep Grand Cherokee was located later by the Independence Police Department, unoccupied and still running with evidence from the damaged building still attached to the vehicle. The damage was approximately $10,000.
On Aug. 4, 2017, Yeager set fire to Bobby Jackson’s Trading. During the investigation, investigators located what appeared to be containers that were used to bring gasoline to the business and set the fire near the front doors and windows. The fire caused approximately $5,000 dollars in damage to the exterior and interior of the business. Reneau paid Yeager $800 for setting the fire.
Yeager was sentenced on June 1, 2020, to five years and three months in federal prison without parole.
Reneau also paid $500 to another co-defendant to have an Independence residence, which was unoccupied, burned down on Aug. 13, 2018.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Independence, Mo., Police Department, and the Buchanan County, Mo., Sheriff’s Department.
Hyde Park Man Indicted on Charges of Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Hyde Park man was indicted today by a federal grand jury in connection with illegally possessing a loaded Smith & Wesson pistol.
King Belin, 35, was indicted on one count of being a felon in possession of a firearm and ammunition. Belin is currently detained in state custody and will be arraigned in federal court in Boston at a later date.
According to the indictment, on Dec. 20, 2020 in Stoughton, Belin possessed a Smith & Wesson, Model SD40VE .40 caliber pistol, loaded with 14 rounds of .40 caliber ammunition. Due to a previous conviction for a crime punishable by one than one year in prison, Belin is prohibited from possessing firearms and ammunition.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Stoughton Police Chief Donna M. McNamara made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Getaway Driver in Two Bank Robberies Sentenced to 4 YearsRead the Press Release
PITTSBURGH, PA - A former resident of Charleston, West Virginia, has been sentenced in federal court to four years imprisonment, followed by three years supervised release on his convictions related to two bank robberies, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on William Gregory, 41.
According to information presented to the court, on May 4, 2018, Gregory assisted co-defendant Daimeyon Smith in committing two bank robberies. Gregory served as the getaway driver for both robberies while Smith is alleged to have robbed each bank at gunpoint. In all, Gregory and Smith robbed the Key Bank in Coraopolis, Pennsylvania of $8,000, and the Key Bank in McMurray, Pennsylvania of $12,158.
Judge Fischer also ordered that Gregory is required to pay restitution to the banks in the joint and several amount of $20,158.00.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, Coraopolis Police Department, and Peters Township Police Department for the investigation leading to the successful prosecution of Gregory.
Georgia Man Arrested for Multi-Million Dollar Conspiracy to Launder Romance Scam ProceedsRead the Press Release
RALEIGH, N.C. – A Smyrna, Georgia man was arrested and had his first appearance in federal court in Atlanta today on charges of laundering the proceeds of romance scams that targeted victims in the Eastern District of North Carolina and throughout the United States.
According to court documents, Oluwadamilare Kolaogunbule, a/k/a “Dare,” opened, maintained, and controlled multiple bank accounts, referred to as “drop accounts,” that were used to receive, move, and obscure criminal proceeds, including funds derived from romance scams. A romance scam refers to a type of scheme in which scammers create fake profiles on Internet dating sites for the purpose of identifying victims, forming fraudulent romantic relationships with them, and then exploiting them for profit. According to the allegations in the indictment, co-defendant Samuel Ugberaese, a/k/a “Putsammy,” a Nigerian national, and his co-conspirators used romance scam techniques, including false stories and promises, as a means to defraud victims into transferring money on their behalf. It is alleged that Kolaogunbule conspired with Ugberaese to conduct financial transactions through his bank accounts, including accounts registered to purported Georgia export companies, in order to conceal and disguise the nature, location, source, ownership, and control of the criminal proceeds. The indictment seeks a forfeiture money judgment in the amount of at least $2,367,520 related to the schemes.
Kolaogunbule is charged with conspiracy to commit money laundering and faces a maximum penalty of 240 months in prison if convicted.
“Romance scams are among the most prolific and despicable crimes of the digital age. Con artists outside of our borders stalk Internet dating websites for the sole purpose of taking advantage of individuals looking for companionship,” stated United States Attorney Robert J. Higdon, Jr. “They make false promises of love, but the victims—many of whom are older Americans—find only emotional and financial devastation. The losses associated with these crimes is staggering; according to the FBI’s Internet Crime Complaint Center, romance scams produce greater reported financial losses when compared to other online crimes. In 2019 alone, romance scams generated reported losses in excess of $475 million. In order to move these criminal proceeds in and out of our financial system, the scammers often rely on domestic money launderers to help them avoid detection and maximize their profits. Disrupting these criminal networks and vindicating the rights of victims to see justice, with targeted investigations and prosecutions, will be continue to be a top priority for my office.”
"It takes a heartless person to prey on lonely, elderly people. Some of these victims were essentially robbed of their life savings so these conspirators could profit. The FBI and our law enforcement partners are focused on holding offenders accountable who rip off our senior citizens," said Robert R. Wells, Special Agent in Charge of FBI Charlotte.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, Charlotte Field Office, investigated this case. Assistant U.S. Attorney Adam F. Hulbig is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-27-BO.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former University of Florida Researcher Indicted for Scheme to Defraud National Institutes of Health and University of FloridaRead the Press Release
A former University of Florida (UF) professor and researcher and resident of China has been indicted for fraudulently obtaining $1.75 million in federal grant money from the National Institutes of Health (NIH) by concealing support he received from the Chinese government and a company that he founded in China to profit from that research.
Lin Yang, 43, who resided in Tampa, Florida, at the time of the offenses, is charged with six counts of wire fraud and four counts of making false statements to an agency of the United States. The indictment, returned by a federal grand jury on Dec. 15, 2020, was unsealed today.
“Transparency about foreign funding sources allows federal agencies to allocate finite resources fairly. Transparency about foreign government affiliations, like business affiliations, allows the research community and the American people to assess any impact on the integrity of the research,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “According to the indictment, the defendant intentionally deceived both his employer and the federal government in order to obtain more than a million dollars in research funding. Rather than being open about his ties to the People’s Republic of China, the defendant chose to conceal them, in the process advancing both the Chinese government’s strategic goals and his own financial interests. The department will continue to protect the foundations of America’s research enterprise—integrity and transparency.”
“The taxpayer dollars that funded Yang’s research were intended to benefit the health and well-being of U.S. citizens. But our indictment alleges that Yang engaged in acts of deliberate deception so that he could also further the research goals of the Chinese Communist government and advance his own business interests,” said U.S. Attorney Lawrence Keefe for the Northern District of Florida. “We are committed to working closely with the FBI, the Department of Health and Human Services, and our research institutions to identify, investigate and prosecute anyone who undermines the integrity of our nation’s research efforts by concealing potential conflicts of interest and commitment.”
“American taxpayers ought to know whether their money is being used to fund research and development for the benefit of foreign governments and foreign companies,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will always investigate those who break the law by taking federal money while hiding their foreign business and government ties. In doing so, we’re ensuring transparency and protecting the hard-earned dollars of the American public.”
“The United States can benefit greatly from hosting foreign researchers in our academic institutions, but this case illustrates how that collaborative environment can also be exploited,” said Special Agent in Charge Rachel L. Rojas of the FBI Jacksonville Division. “The Chinese Communist government simply does not play by the same rules of academic integrity that we do. The FBI is committed to holding its proxies accountable, and to helping educational institutions protect cutting-edge research and technologies from foreign adversaries who are determined to defeat the U.S. at any cost.”
“Taxpayers fund medical research in the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients. Such funding should be based on a transparent understanding of potential conflicts of interest and commitment,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will assiduously investigate rogue researchers who conceal their foreign support.”
According to the indictment, Yang obtained a $1.75 million grant from NIH to develop and disseminate an imaging informatics tool for muscles known as “MuscleMiner.” Between September 2014 and July 2019, Yang served as the principal investigator for the NIH grant at UF. As the principal investigator, Yang was responsible for conducting and administering the grant in compliance with applicable federal law and institutional policies. Among other things, Yang was required to disclose his foreign research support and financial conflicts of interest, including his ownership of, or interest in, a foreign company.
During that same period, in 2016, Yang established a business in China known as “Deep Informatics.” The indictment further alleges that Yang promoted his business in China by relating that its products were the result of years of research supported by millions of dollars of U.S. government funding. Simultaneously, Yang applied for and was accepted into the People’s Republic of China’s Thousand Talents Program (TTP) in connection with Northwestern Polytechnical University, located in Xi’an, China. The TTP was a talent plan established by the Chinese government to encourage the transfer of original ideas, technology, and intellectual property from foreign institutions, such as American universities.
In order to maintain his employment with UF and continue receiving NIH grant money, the indictment alleges that Yang intentionally concealed his conflicts of interest and other support in connection with his Chinese business and his participation in a Chinese government talent plan and affiliation with a Chinese research university. On multiple occasions, Yang submitted disclosures to NIH containing false statements and material omissions concerning his affiliations and research endeavors with a foreign government and company. Additionally, in January 2019, UF’s College of Engineering required all faculty to provide, in writing, updated disclosures concerning activities with foreign entities in China and two other countries. The indictment alleges that Yang provided UF with a written response that falsely stated he had no affiliation with any business, entity, or university in China.
Yang traveled to China in August of 2019 and has yet to return to the United States.
Each count of wire fraud carries a maximum sentence of 20 years’ imprisonment and a $250,000 fine. Each count of making false statements to an agency of the United States is punishable by a maximum sentence of five years’ imprisonment and a $250,000 fine.
The FBI Jacksonville Division and HHS-OIG investigated the case. Assistant U.S. Attorney Stephen M. Kunz for the Northern District of Florida is prosecuting the case with assistance from the National Security Division’s Counterintelligence & Export Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former University of Florida Researcher Indicted for Scheme to Defraud National Institutes of Health and University of FloridaRead the Press Release
GAINESVILLE, FLORIDA – A former University of Florida (UF) professor and researcher and resident of China has been indicted for fraudulently obtaining $1.75 million in federal grant money from the National Institutes of Health (NIH) by concealing support he received from the Chinese government and a company that he founded in China to profit from that research.
Lin Yang, 43, who resided in Tampa, Florida, at the time of the offenses, is charged with six counts of wire fraud and four counts of making false statements to an agency of the United States. The indictment, returned by a federal grand jury on Dec. 15, 2020, was unsealed today.
“Transparency about foreign funding sources allows federal agencies to allocate finite resources fairly. Transparency about foreign government affiliations, like business affiliations, allows the research community and the American people to assess any impact on the integrity of the research,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “According to the indictment, the defendant intentionally deceived both his employer and the federal government in order to obtain more than a million dollars in research funding. Rather than being open about his ties to the People’s Republic of China, the defendant chose to conceal them, in the process advancing both the Chinese government’s strategic goals and his own financial interests. The department will continue to protect the foundations of America’s research enterprise—integrity and transparency.”
“The taxpayer dollars that funded Yang’s research were intended to benefit the health and well-being of U.S. citizens. But our indictment alleges that Yang engaged in acts of deliberate deception so that he could also further the research goals of the Chinese Communist government and advance his own business interests,” said U.S. Attorney Lawrence Keefe for the Northern District of Florida. “We are committed to working closely with the FBI, the Department of Health and Human Services, and our research institutions to identify, investigate and prosecute anyone who undermines the integrity of our nation’s research efforts by concealing potential conflicts of interest and commitment.”
“American taxpayers ought to know whether their money is being used to fund research and development for the benefit of foreign governments and foreign companies,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “The FBI will always investigate those who break the law by taking federal money while hiding their foreign business and government ties. In doing so, we’re ensuring transparency and protecting the hard-earned dollars of the American public.”
“The United States can benefit greatly from hosting foreign researchers in our academic institutions, but this case illustrates how that collaborative environment can also be exploited,” said Special Agent in Charge Rachel L. Rojas of the FBI Jacksonville Division. “The Chinese Communist government simply does not play by the same rules of academic integrity that we do. The FBI is committed to holding its proxies accountable, and to helping educational institutions protect cutting-edge research and technologies from foreign adversaries who are determined to defeat the U.S. at any cost.”
“Taxpayers fund medical research in the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients. Such funding should be based on a transparent understanding of potential conflicts of interest and commitment,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will assiduously investigate rogue researchers who conceal their foreign support.”
According to the indictment, Yang obtained a $1.75 million grant from NIH to develop and disseminate an imaging informatics tool for muscles known as “MuscleMiner.” Between September 2014 and July 2019, Yang served as the principal investigator for the NIH grant at UF. As the principal investigator, Yang was responsible for conducting and administering the grant in compliance with applicable federal law and institutional policies. Among other things, Yang was required to disclose his foreign research support and financial conflicts of interest, including his ownership of, or interest in, a foreign company.
During that same period, in 2016, Yang established a business in China known as “Deep Informatics.” The indictment further alleges that Yang promoted his business in China by relating that its products were the result of years of research supported by millions of dollars of U.S. government funding. Simultaneously, Yang applied for and was accepted into the People’s Republic of China’s Thousand Talents Program (TTP) in connection with Northwestern Polytechnical University, located in Xi’an, China. The TTP was a talent plan established by the Chinese government to encourage the transfer of original ideas, technology, and intellectual property from foreign institutions, such as American universities.
In order to maintain his employment with UF and continue receiving NIH grant money, the indictment alleges that Yang intentionally concealed his conflicts of interest and other support in connection with his Chinese business and his participation in a Chinese government talent plan and affiliation with a Chinese research university. On multiple occasions, Yang submitted disclosures to NIH containing false statements and material omissions concerning his affiliations and research endeavors with a foreign government and company. Additionally, in January 2019, UF’s College of Engineering required all faculty to provide, in writing, updated disclosures concerning activities with foreign entities in China and two other countries. The indictment alleges that Yang provided UF with a written response that falsely stated he had no affiliation with any business, entity, or university in China.
Yang traveled to China in August of 2019 and has yet to return to the United States.
Each count of wire fraud carries a maximum sentence of 20 years’ imprisonment and a $250,000 fine. Each count of making false statements to an agency of the United States is punishable by a maximum sentence of five years’ imprisonment and a $250,000 fine.
The FBI Jacksonville Division and HHS-OIG investigated the case. Assistant U.S. Attorney Stephen M. Kunz for the Northern District of Florida is prosecuting the case with assistance from the National Security Division’s Counterintelligence & Export Section.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. Yang Yang Indictment (unsigned)Former Manager of Sioux Center Cooperative Sentenced to Prison in Grain Blending SchemeRead the Press Release
A former high-level manager of a Sioux Center grain cooperative who directed subordinate employees to blend oats into soybeans was sentenced February 2, 2021, to three months in federal prison.
Calvin Diehl, age 60, from Aberdeen, South Dakota, received the prison term after a June 9, 2020 guilty plea to one count of conspiracy to defraud the United States.
In a plea agreement, and at guilty plea and sentencing hearings, Diehl admitted he was the Assistant General Manager at a large, federally licensed grain warehouse that is headquartered in Sioux Center but has satellite locations in the Northern District of Iowa and elsewhere. In July 2015, Diehl agreed with others to defraud the United States. The fraud involved blending lower value oats into soybeans and then selling the mixture as soybeans. During the fraud, the individuals involved also made false statements and executed false certificates to USDA inspectors, layered soybeans on top of oats in both storage bins and trucks to deceive USDA inspectors and customers about the quality and quantity of the grain, and made false entries and adjustments in reports provided to the grain warehouse’s bank.
In March 2017, one of Diehl’s subordinates instructed a warehouse manager in Worthing, South Dakota, to blend more oats with soybeans. As a result, approximately 30 truckloads of what were supposed to be soybeans were “spiked” with oats. After the customer happened to discover the badly “slugged” or “spiked” loads, one of the customer’s managers called Diehl and told him to stop blending oats into soybeans. The manager warned Diehl that “someone can go to jail for this.” Diehl feigned surprise, apologized, and falsely promised that the practice would not happen in the future. However, Diehl continued to blend oats into soybeans (even directing subordinates to remix one of the “slugged” loads) and sell them to the same unwitting customer. Diehl also instructed the Boyden, Iowa location manager to dump other rejected loads in a bin and send the remainder to another customer who did not monitor its soybean receiving location.
In late March 2017, shortly after the “slugged” loads incident, the USDA conducted a pre-planned inspection of the cooperative. During the inspection, the cooperative’s Sanborn, Iowa location manager called Diehl and stated that he had oats visible because he was mixing oats with soybeans in open view. Diehl instructed the Sanborn location manager to cover up the oats by putting soybeans on top of the oats in order to hide the oats from the USDA inspectors.
After learning of the conspiracy, the USDA conducted a search of grain bins at the cooperative’s various locations in Iowa and South Dakota. Of the estimated 87,996 bushels of grain in the bins at these locations, the bins actually contained only 34,354 bushels of soybeans even though all of these bins had been certified as soybeans.
Diehl was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Diehl was sentenced to three months’ imprisonment and fined $7,500. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Diehl was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Timothy L. Vavricek and Matthew J. Cole and investigated by the United States Department of Agriculture - Office of Inspector General, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4093.
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Former Illinois State Senator, Gubernatorial Candidate Sam McCann Indicted for Alleged Fraudulent Use of Campaign Funds, Money Laundering, Tax EvasionRead the Press Release
SPRINGFIELD, Ill. – A grand jury today indicted former Illinois State Senator Sam McCann on charges of fraud, money laundering, and tax evasion related to his alleged misuse of campaign money for personal expenses. The indictment alleges that from May 2015 to June 2020, McCann engaged in a scheme to convert more than $200,000 in contributions and donations made to his campaign committees to pay himself and make personal purchases, and that he concealed his fraud from donors, the public, the Illinois State Board of Elections and law enforcement authorities.
The indictment was announced by Central District of Illinois U.S. Attorney John C. Milhiser; FBI Special Agent in Charge Sean M. Cox, Springfield Division; and, IRS Criminal Investigation Acting Special Agent in Charge David Talcott, St. Louis Field Office.
William Samuel McCann, Jr., 51, of Plainview, Ill., served as a state senator for the 49th District of Illinois from 2011 to 2013, and for the redrawn 50th District from 2013 to January 2019. McCann formed the Conservative Party of Illinois and in 2018, launched an unsuccessful bid for Illinois Governor. McCann previously lived in Carlinville, Ill., and owned and operated two construction related businesses.
McCann organized multiple political committees that were registered with the Illinois State Board of Elections: Sam McCann for Senate; Sam McCann for Senate Committee; McCann for Illinois; and, Conservative Party of Illinois. According to the indictment, from April 2011 to November 2018, McCann and his political committees received more than $5 million in campaign donations.
The indictment alleges multiple instances when McCann used campaign funds to purchase personal vehicles, pay personal debts, make mortgage payments, and pay himself, including the following:
- McCann allegedly used more than $60,000 in campaign funds to partially fund the purchases of a 2017 Ford Expedition in April 2017 and a 2018 Ford F-250 truck in July 2018, which he titled in his own name and used for his personal travel. McCann then used campaign funds for loan payments on the F-250 and for fuel and insurance expenses for both vehicles, while at the same time using campaign funds to reimburse mileage expense claims which he did not incur.
- In April 2018, McCann allegedly used $18,000 in campaign funds to purchase a 2018 recreational travel trailer, and in May 2018, used $25,000 in campaign funds to buy a 2006 recreational motor home, both of which McCann titled in his personal name.
McCann established an online account with a recreational vehicle rental business in Ohio and listed the vehicles for rent identifying Sam McCann as the owner. McCann then established a second account with the same rental business and identified himself as William McCann, a potential renter, with a different residential address and email than those he listed as the owner. From approximately May 2018 to June 2018, McCann, while representing himself as the renter, William, rented both the travel trailer and motor home from Sam, the owner, through the RV rental business. McCann caused a total of approximately $62,666 in campaign funds be used to pay the rental cost of the vehicles. The rental business retained approximately $9,838 for commission and paid McCann, as the owner, approximately $52,827 by direct deposit to McCann’s personal checking account. McCann reimbursed the campaign accounts $18,000, resulting in more than $77,000 in campaign funds used to buy and rent from himself. - On or about Oct. 4, 2016, McCann allegedly used a $20,000 cashier’s check funded by a campaign account and issued to himself to pay off a personal loan, including legal fees, that had originally been issued to him as an equipment loan in 2011 and was in collection by the bank due to non-payment.
- From May 2015 to August 2020, McCann allegedly used campaign funds to pay approximately $64,750 on two separate personal mortgage loans that were secured by his former residence in Carlinville and an adjoining property used as an office for his construction business.
- In November 2018, after an unsuccessful campaign for Governor of Illinois, when he was no longer a candidate for office and did not financially support any other candidate, and continuing to June 2020, McCann allegedly caused the Conservative Party of Illinois to issue approximately $187,000 in payments to himself personally and an additional $52,282 in payments for payroll taxes. Using a payroll service, McCann was allegedly able to conceal himself as the payee for the expenditures from the campaign account.
- The indictment also alleges that approximately $50,000 in campaign funds were used for personal expenses including Green Dot credit card payments related to a family vacation in Colorado and other personal expenses, charges from Apple iTunes, Amazon, a skeet and trap club, Cabela’s, Scheels, Best Buy, a gun store, and cash withdrawals.
In addition to wire fraud and money laundering, the indictment charges McCann with one count of tax evasion related to his joint return for calendar year 2018. McCann allegedly failed to report income from his 2018 rental payments to himself for the RV trailer and motor home. In addition, in March 2018, McCann used a $10,000 check issued by a campaign account to make a down payment to a Shipman, Ill., business for a motor home. When the purchase was not completed, the business issued a $10,000 refund check payable to William McCann, which he deposited to his personal checking account and failed to report as income received.
McCann is scheduled to appear via telephone conference on Feb. 16, 2021, at 2:00 p.m. before U.S. Magistrate Judge Tom Schanzle-Haskins for arraignment.
For the period of the alleged fraud scheme, from May 2015 to June 2020, the estimated loss is more than $200,000. If convicted, the statutory penalty for each count of wire fraud (seven counts) and one count of money laundering is up to 20 years in prison. For tax evasion, the statutory penalty is up to five years in prison.
The charges are the result of investigation by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Timothy A. Bass is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Franklin County Convention Facilities Authority member offers guilty plea to bribery offenseRead the Press Release
COLUMBUS, Ohio – A former Franklin County Convention Facilities Authority member offered his guilty plea in U.S. District Court today to honest services wire fraud related to a contract with the Greater Columbus Convention Center.
According to his plea, in 2014 and 2015, John P. Raphael, 65, of Columbus, received bribes and kickbacks from a food-service company in exchange for official acts.
Raphael was a member of the Franklin County Convention Facilities Authority board and also served as its treasurer. In those roles, he had a duty to provide honest services to the FCCFA, to Franklin County, and to the people of Franklin County. The FCCFA owned and operated the Greater Columbus Convention Center
In 2014, FCCFA engaged in a confidential bidding process to select a food vendor for the Greater Columbus Convention Center. Four companies submitted bids.
Without disclosing it to the FCCFA, Raphael became a consultant for one of the four companies. In the consulting agreement, the company agreed to pay Raphael a monthly retainer of $5,000 and a “success fee” of $40,000 if the company was able to secure the contract.
Raphael repeatedly took official acts to benefit the food-service company in exchange for money.
On July 8, 2014, Raphael received an email containing a draft of the request for proposal, or RFP, which in its final form would solicit bids from prospective food-service vendors for the Greater Columbus Convention Center. The email also contained a draft of a sample contract that prospective vendors would be expected to execute in the event they won the bid.
Thirty-six minutes after receiving these documents, Raphael sent them to an employee of the company he was assisting.
The draft RFP and draft sample contract were confidential documents and were not to be circulated beyond the FCCFA. Raphael did not share the documents with any other prospective bidder.
The company Raphael was assisting expressed two “items of concern” with the draft RFP and requested two changes. Each of the proposed changes was made part of the final contract that the FCCFA and the company Raphael was assisting signed.
Raphael sent other documents to the company that were useful to it and that he did not share with the other prospective bidders. Raphael also participated in FCCFA meetings related to the bidding process without disclosing that he was working for the company.
The company Raphael was assisting ultimately won the contract. Two days after the contract was signed, Raphael sent an invoice for the $40,000 “success fee.” The company paid the fee. In total, Raphael received $144,00 from the company through the consulting agreement.
Honest services wire fraud is a federal crime punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, who is Acting United States Attorney for the Southern District of Ohio for this case; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Ethics Commission Executive Director Paul M. Nick announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Florida woman sentenced for her role in telephone scamRead the Press Release
ATLANTA - Karla Suzanne Spiker has been sentenced for her role laundering money for an international telephone scam. Spiker began laundering money after having been a victim of a mortgage scam, which is believed to have originated in India.
“These scams are a nationwide problem, and they typically target the most vulnerable members of our society,” said Acting U.S. Attorney Kurt Erskine. “Most of these scams originate outside the United States, and their success depends on individuals, like Spiker, who agree to launder the money. Spiker made a choice to engage in this conduct and could have walked away at any time, but she chose not to.”
“Telephone scams that seek to prey on us are a seemingly unrelenting nuisance,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “Catching people who help to perpetrate these criminal schemes helps us all.”
“We are committed to working with our law enforcement partners to combat Social Security-related telephone scams by targeting their facilitators in the United States,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to aggressively pursue those who make these calls to profit by deceiving and harming American consumers. I want to thank the U.S. Secret Service and the U.S. Attorney’s Office for their unwavering support of our efforts.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Spiker worked as a money launderer for scammers, who are believed to be located in India. Typically, the scammers send out robocalls claiming to have an urgent message for the victim and, when the victim, mostly elderly or otherwise vulnerable, returns the call, the scammers threaten or cajole the victims into sending money.
The scammers that Spiker worked for operated two different scams. In the first, they told victims that their Social Security number (SSN) was used in a crime and they would be arrested, or their SSN canceled, unless they paid money. In the second, the scammers offered the victims a reduced mortgage payment if they first paid a fee. Once the victim agreed to make the payment, the scammers directed them to wire money or send money orders to individuals, like Spiker, in the United States who worked for the scammers.
Since at least June 2019 until July 2020, Spiker received money from victims all over the United States. She used various fake IDs to pick up money wired to an Orlando-area store. Victims also mailed money orders to her directly. Spiker was introduced to the scam when she was a victim of the mortgage scam.
After paying money to reduce her mortgage payment, and realizing that she had been scammed, she was recruited to receive money from other victims.
In July 2020, law enforcement executed a search warrant on Spiker's residence. Inside, they found 52 fake IDs each bearing her image with a different name. Spiker admitted that she had been working with the scammers since June 2019, that she picked up approximately five or six money transactions each week, and that she received a percentage from each cash pick up. Spiker communicated with the scammers by text message or email and had never met anyone in person. Spiker admitted that she picked up over $300,000 in scam funds.
Karla Suzanne Spiker, 47, of Orlando, Florida, was sentenced to one year, three months in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $114,265.80 Spiker has been convicted on these charges on October 30, 2020, after she pleaded guilty.
This case was investigated by the U.S. Secret Service and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.