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Tuesday 19 January 2021
Texas Tax Preparer Pleads Guilty to Defrauding the Internal Revenue Service:Read the Press Release
LITTLE ROCK-A Dallas area tax preparer pleaded guilty to conspiracy to defraud the Internal Revenue Service (IRS) after his participation in a scheme that rerouted more than $11.5 million that was intended to benefit farmers who had been discriminated against. Jerry Green, 40, pleaded guilty today before Chief United States District Judge D. Price Marshall, who will sentence Green at a later date.
Green admitted preparing at least 82 false tax returns as part of a scheme to defraud the United States Department of Agriculture (USDA). In 1997, a group of Black farmers filed a class action lawsuit alleging they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. A similar lawsuit alleged that Hispanic and women farmers also experienced discrimination in USDA farm benefit programs. Both lawsuits were settled and resulted in a claims process where farmers could make a claim for financial relief by showing they had applied for participation in a USDA benefit program and had been denied. Successful claims resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the IRS as a tax withholding.
Green worked for First Choice Taxes, a tax preparation service. At today’s hearing, Green admitted that he was hired by co-defendant Rosie Bryant to assist with filing false tax returns for Black Farmers Discrimination Litigation claimants. In November 2013, Green opened his own tax preparation business, Jiffy Tax, and met with Rosie Bryant and her sisters, Lynda Charles, Delois Bryant, and Brenda Sherpell, all of whom are now co-defendants in the case. According to statements made at the plea hearing, Green and the four sisters reached an agreement in which Jiffy Tax would prepare fraudulent tax returns for Hispanic Women’s Farmers and Ranchers claimants in exchange for a payment of $550 per fraudulent return. The false returns Green filed totaled $4,615,009.
Green and his co-defendants were indicted by a federal grand jury in December 2019. In addition to the charges against Green and the four Bryant sisters, the indictment alleges that Little Rock attorney Everett Martindale also worked for the sisters by depositing claim checks into his law firm trust account, issuing a check from that trust account to the claimant, and withholding his attorney fee—which he would then split with the sisters. The sisters and Martindale are awaiting trial, which is scheduled for February 7, 2022.
“Today’s guilty plea is the first step towards resolving this complex fraud investigation,” stated Acting United States Attorney Jonathan D. Ross. “We appreciate the work of IRS Criminal Investigation in their efforts to bring this matter to justice.”
“Today, Mr. Green admitted to using his tax return business, Jiffy Tax, to make a fast buck with a scheme where he conspired with others to prepare false client tax returns,” said IRS-Criminal Investigation Dallas Field Office Acting Special Agent in Charge Mark Pearson. “Let this be a reminder to others seeking to enrich themselves illegally - IRS-CI will continue to work diligently to identify, investigate and recommend prosecution of abusive return preparers to protect the American tax system.”
In October 2019, the United States government filed a civil case to forfeit several properties that were purchased using money traceable to the crimes charged in the indictment. The USDA – Office of Inspector General and the IRS, with assistance from the United States Marshals Service and the United States Postal Inspection Service, conducted the investigation. Assistant United States Attorneys Cameron McCree, Amanda Fields, and Bart Dickinson are prosecuting the case.
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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
Suspect in Nashville Homicide Facing Federal Firearms and Drug Trafficking ChargesRead the Press Release
NASHVILLE, Tenn. – January 19, 2021 – A criminal complaint obtained today, charged James Edward Cowan, aka James Edward Lillard, 28, of Nashville, with federal firearms and drug offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Cowan was charged with being a convicted felon in possession of a firearm; possessing a firearm in furtherance of a drug trafficking crime; and possession with intent to distribute a controlled substance.
According to the complaint, on January 12, 2021, Metropolitan Nashville Police Department (MNPD) detectives were conducting surveillance in the area of the La Quinta Inn on Sidco Drive, in an attempt to locate and arrest Cowan, who was wanted for a homicide which occurred on December 3, 2020, on I-440 in Nashville. Detectives observed a car enter the parking lot and park and then observed an individual matching the description of Cowan, exit the hotel and enter the car on the passenger side. The car then exited the lot and detectives maintained visual surveillance of the car as it travelled about the Nashville area before parking in the area of 300 Hickory Hollow Place. Once parked, detectives determined the passenger was in fact Cowan and arrested him without incident.
Upon searching Cowan, detectives found a substantial quantity of Xanax pills and fentanyl and more than $2,100 cash in his pockets. A search of the car produced more pills and other controlled substances. Detectives also found a Glock pistol with an extended magazine and a .45 caliber handgun. The driver of the car told detectives that the drugs and guns belonged to Cowan and acknowledged knowing that Cowan was wanted for homicide. The driver was subsequently charged by the MNPD for aiding Cowan in eluding law enforcement.
Cowan was previously convicted for robbery in Davidson County, Tennessee in 2011 and was sentenced to six years’ incarceration. If convicted of the instant federal offenses, he faces a mandatory minimum of five years and up to life in prison.
This case is being investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Robert E. McGuire is prosecuting the case.
The defendant is presumed innocent until proven guilty in a court of law.
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Surry County Man Sentenced to 20 Years in Prison for Transportation of Child PornographyRead the Press Release
GREENSBORO, N.C. – A Mount Airy, N.C., man who sent a child pornography video to an individual he believed to be a 13-year-old girl was sentenced to 20 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
WALTER CLIFTON WOOD, 44, pleaded guilty on May 12, 2020, to transportation of child pornography. He was sentenced today by United States District Judge Catherine C. Eagles to 240 months of imprisonment followed by 15 years of supervised release.
Beginning in May 2018, WOOD chatted online with an individual purporting to be a 13-year-old girl, but who was actually an undercover detective with the Alamance County Sheriff’s Office. WOOD repeatedly directed the conversation to topics of a sexual nature and encouraged the purported 13-year-old to engage in sex acts. Twice during the communication, once in May and again in July 2018, WOOD sent a video depicting an adult engaging in a sex act with a twelve-year-old girl. WOOD was arrested on July 27, 2018 in Surry County and has been in custody since.
When investigators with Homeland Security Investigations reviewed WOOD’s phones they discovered over 75 child pornography images and videos. They also learned that WOOD had engaged in an extended and sexually inappropriate online relationship with an actual minor from approximately May 2014 to June 2015.
This case was investigated by the Alamance County Sheriff’s Office with support from Homeland Security Investigations (HSI) and the Surry County Sheriff’s Office. All are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
The referenced Alamance County Sheriff’s Office undercover operation resulted in eighteen arrests and, to date, thirteen convictions in state and federal courts. Former Alamance County Sheriff’s Office ICAC investigator Zachary M. Neefe developed and executed the operation. During its course, he was assisted by HSI Special Agent Cory E. Brant, Special Agent Jessie G. Foster, and Computer Forensic Analyst Mark Vincenc.
Three other cases resulting from the operation were prosecuted in the Middle District of North Carolina:
JOSEPH DANIEL ORAN - https://www.justice.gov/usao-mdnc/pr/garner-man-sentenced-30-years-prison-attempted-enticement-minor-and-possession-child
I. JEFFREY BRANDEIS - https://www.justice.gov/usao-mdnc/pr/durham-man-caught-alamance-county-child-exploitation-operation-sentenced-10-years
ADRIAN RODRIGUEZ - https://www.justice.gov/usao-mdnc/pr/two-men-sentenced-separate-incidents-attempting-sexually-exploit-minors-online
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse and prosecuted by Assistant United States Attorney Eric L. Iverson. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Statement of Acting Attorney General Jeffrey A. Rosen Regarding Nationwide Safety and Security for Inauguration DayRead the Press Release
Click to view video.
Tomorrow, the Nation and the world will witness an orderly and peaceful transfer of power in the United States, as the Chief Justice of the Supreme Court swears in President-Elect Biden. Throughout our Nation’s proud history, this ceremony has served as a beacon of democracy and a testament to the enduring strength of our Constitution.
By contrast, the violence we witnessed at the Capitol two weeks ago was an intolerable travesty, which is why the Justice Department has now brought charges against more than one-hundred individuals and has investigations of many others underway.
The Department of Justice is committed, together with our federal, state, and local law enforcement partners, to ensuring a safe and peaceful Inauguration – one that reflects our Nation’s enduring highest values.
As I have repeatedly said over the last two weeks, the Justice Department will have no tolerance for anyone who attempts to mar the day with violence or other criminal conduct. Anyone who does that will be caught, and they will be prosecuted.
Indeed, over the past two weeks, we have seen friends, family members, co-workers, and others reporting information to us about those who were involved in the breach of the Capitol on January 6th. The FBI has received nearly 200,000 digital tips from the public. The American people have demonstrated that they will not allow mob violence to go unanswered. Violence and senseless criminal conduct are not the right way to resolve differences or promote change in our country.
So, rest assured that every level of law enforcement and the National Guard are working around the clock here in Washington, D.C., to provide safety and security for Inauguration Day, and that federal, state, and local law enforcement all around the country are doing the same in our state capitols and government buildings across all fifty states.
As Americans, we all should seek to have a safe and peaceful Inauguration Day, and if we hold fast to our country’s Constitution and traditions, we will.
Statement from Acting U.S. Attorney Bridget M. Brennan on the fatal shooting of Toledo Police Officer Brandon StalkerRead the Press Release
Today is a sad and devastating day for the city of Toledo and the entire law enforcement community as we mourn the loss of Toledo Police Officer Brandon Stalker. This is an unimaginable loss to the Toledo community, the Toledo Police Department and all who knew him. Words cannot describe the heartache and pain felt by the family and friends of Officer Stalker. I send my heartfelt condolences to his children, fiancée and family.
Officer Stalker had only just begun his career as a public servant when he was tragically killed. Few professions demand not only the best of people, but that they go to work every day willing to sacrifice their own lives for the greater good. Law enforcement is certainly one of those professions. Yesterday, Officer Stalker made the ultimate sacrifice.
The Department of Justice stands with the Toledo Police Department and offers our support during this difficult time. Tragically, this marks the second time in less than seven months that a member of the Toledo Police Department was killed in the line of duty as a result of firearms violence. Now, more than ever, and for the memory of Officer Stalker, let us show our support for the brave men and women in law enforcement who have chosen a profession that asks so much of them, their colleagues and their families.
Toledo is a safer community because of Officer Stalker and the nation mourns his loss.
Springfield Man Sentenced to Prison for Defrauding Companies in Flexible Spending Account SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON WHITEHEAD, 42, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment, followed by three years of supervised release, for defrauding multiple companies through a flexible spending account scheme.
According to court documents and statements made in court, Whitehead worked at PayFlex, a company that administered health care and dependent care spending accounts for corporate employees. PayFlex was acquired by Aetna Inc. in 2011. Whitehead worked at the PayFlex division until approximately August 2017, when he transferred to another division at Aetna. However, he retained his employee access to PayFlex’s computer systems via his login credentials.
From September 2016 through July 2019, Whitehead defrauded multiple corporate victims of monies intended to be paid to the victims’ employees for dependent care reimbursements. Using access he had to PayFlex’s systems, Whitehead created multiple fictitious employees at three different victim companies. He then submitted to PayFlex dozens of fraudulent reimbursement claims for dependent care expenses by the fictitious employees. Through this scheme, PayFlex made $176,200 in payments to Whitehead and to third parties that Whitehead designated.
Judge Thompson ordered Whitehead to make full restitution to PayFlex.
On October 27, 2020, Whitehead pleaded guilty to one count of mail fraud.
Whitehead, who is released on bond, is required to report to prison on July 19, 2021.
This investigation was led by a Hartford Police Department detective in his capacity as a member of the Federal Bureau of Investigation’s Connecticut Cyber Task Force (CCTF). The FBI’s CCTF is staffed with detectives from the Connecticut State Police’s Cyber Crimes Investigation Unit and the Bristol, Hartford, New Canaan, Orange, Stamford, Torrington, Watertown and UConn Police Departments. To contact the CCTF, please call the FBI’s New Haven Field Office at 203-777-6311.
This case was prosecuted by Assistant U.S. Attorney David T. Huang.
Somerset Man Sentenced to 206 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Somerset, Ky., man, Jimmy Siegfried Grider, 56, was sentenced to 206 months in federal prison on Tuesday, before U.S. District Court Judge Claria Horn Boom, for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to his plea agreement, between January 2015 and September 2018, Grider admitted to conspiring with others to distribute 500 grams or more of methamphetamine, and on March 28, 2018, law enforcement seized 187 grams of methamphetamine from his residence. Grider admitted to developing an arrangement with a methamphetamine dealer, through whom he regularly obtained large quantities of methamphetamine, and then sold the methamphetamine in the Pulaski County area.
Grider was previously convicted for manufacturing methamphetamine in Pulaski Circuit Court in March 2005. Grider pleaded guilty to the federal charge in July 2020.
Under federal law, Grider must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Chief William Hunt, Somerset Police Department; Chief Wayne Bird, Williamsburg Police Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA, Somerset Police Department, Williamsburg Police Department, and the Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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.
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Rock Hill Man Sentenced to Twelve Years in Federal Prison for Involvement in Fentanyl Pill CaseRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that Fate Thomas McClurkin, Jr., 30, of Rock Hill, was sentenced to twelve years in federal prison for conspiracy to possess with the intent to distribute fentanyl and cocaine, as well as conspiracy to commit money laundering.
Evidence presented in court established that, through an investigation into Darryl Hemphill and Hemphill’s drug trafficking organization, federal agents learned that McClurkin was responsible for selling drugs obtained from Hemphill, including cocaine and clandestinely made pills that contained fentanyl. It was further known that McClurkin had a close relationship with Hemphill related to trafficking voluminous amounts of drugs in the Rock Hill and Charlotte regions. As a co-conspirator in Hemphill’s drug trafficking organization, McClurkin was fully aware the pills purchased and sold by him were fake Roxicodone pills that were made with fentanyl.
On May 25, 2018, agents determined that Hemphill coordinated a drug deal with McClurkin for 13,000 fentanyl pills. Evidence in the case also showed that, after completing this transaction, McClurkin purchased 25,000 more fentanyl-based pills from Hemphill during this conspiracy.
United States District Judge Mary Geiger Lewis sentenced McClurkin to 144 months in federal prison, to be followed by an eight-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys William K. Witherspoon, T. DeWayne Pearson, and Elliot Daniels, all of the Columbia office, prosecuted the case.
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Ridgeland Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
Jackson, Miss. - Steven Daniel Tutor, 42, of Ridgeland, was sentenced Thursday, January 14, 2021, by Senior United States District Judge Tom S. Lee to 10 years in federal prison, followed by 10 years of supervised release, for attempted enticement and coercion of a minor, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. Tutor must also register as a sex offender.
On July 27, 2019, Tutor attempted to entice an individual he believed to be a 14-year old boy to engage in sexual explicit conduct with him. Through online chat with the minor, Tutor made plans to drive to the Extended Studio Hotel in Jackson, Mississippi, to pick up the minor and take him to an isolated parking area to engage in sexual activities. The FBI arrested Tutor at the hotel in his vehicle as described in the online chats.
Tutor was indicted on May 27, 2020 and he pled guilty before Judge Lee on October 8, 2020.
The case was investigated by the FBI Jackson Field Office's Child Exploitation Task Force and the Hinds County Sheriff’s Office. The Mississippi Attorney General’s Office also assisted with the investigation. Assistant United States Attorney Glenda R. Haynes prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Richard Gilbert Pleads Guilty to Murder-for-Hire Plot against Assistant United States AttorneyRead the Press Release
Columbia, South Carolina----United States Attorney Peter M. McCoy, Jr., announced today that a federal judge has accepted a guilty plea by Federal Bureau of Prisons (BOP) inmate Richard Robert Gilbert for a murder-for-hire and retaliation plot against an Assistant United States Attorney and a confidential informant. The plea calls for Gilbert to serve 262 months, consecutive to the 130-month sentence for which he was already in federal prison.
“The U.S. Attorney’s Office will continue to hold accountable those who seek violent retribution against law enforcement officers and those who assist the government,” said U.S. Attorney McCoy. “We stand united with our law enforcement partners. We are undeterred by bad actors and will ensure the rule of law is upheld.”
Evidence presented in the court showed that Gilbert was serving time at a federal prison in Edgefield for trafficking methamphetamine in Bowling Green, Kentucky, when he sought to hire a hitman to kill the federal prosecutor and a key witness from his Kentucky case. Using a contraband cell phone in prison, Gilbert communicated with an undercover task force officer with the Federal Bureau of Investigation (FBI) who was posing as a hitman. Following multiple recorded phone calls, Gilbert sent the undercover officer a $2,000 check from his prison canteen account as a down payment for the retaliatory murder-for-hire. Masking the true purpose of this payment, Gilbert attempted to mislead BOP officials by misrepresenting the payment as being for an “investment firm.”
Evidence presented also showed that Gilbert drew maps of where he believed the witness from Kentucky lived and provided directions to the undercover officer, posing as the hitman, on how to avoid detection by nearby surveillance cameras. The evidence also showed how Gilbert planned to use income from two of his rental properties to facilitate the attempted murder-for-hire and retaliation plot. He also planned to use the value of his ownership stake in other land to pay for the murder of the federal prosecutor from Kentucky.
The case was investigated by the FBI and the BOP Special Investigative Services Team and prosecuted by Assistant United States Attorneys Jim May, Justin Holloway, and Will Jordan.
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Queens Man Arrested for Threatening to Murder Members of CongressRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Brendan Hunt, also known as “X-Ray Ultra,” with threatening to murder United States officials. Hunt was arrested this morning in Queens and made his initial appearance this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., who ordered the defendant detained pending trial.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charge.
“Our democracy depends on the legislators who shoulder the responsibility of government. By allegedly threatening to murder and intimidate elected officials, Hunt is striking at the core of our government,” stated Acting United States Attorney DuCharme. “This Office will aggressively disrupt such conduct and prosecute offenders like the defendant to the fullest extent of the law.”
“Before the assault on the Capitol building, and again after, Hunt’s alleged online commentary directly called for the assassination of members of Congress. This is not a hard message to understand –threats of violence against our public officials won’t be tolerated. Mr. Hunt was arrested this morning by the FBI’s New York Joint Terrorism Task Force. To others from this area who still don’t get it – if you are considering a similar path to ‘take up arms’ like Mr. Hunt did, that road leads nowhere except a reservation at our building downtown,” stated FBI Assistant Director-in-Charge Sweeney.
Mr. DuCharme and Mr. Sweeney praised the outstanding work of the FBI’s New York Joint Terrorism Task Force on the case.
As alleged in the complaint, on January 8, 2021, two days after the riot in the U.S. Capitol in Washington, D.C., Hunt posted a video to an Internet-based video sharing site in which he exhorted his viewers to violence, urging them that “[w]e need to go back to the U.S. Capitol when all of the Senators and a lot of the Representatives are back there, and this time we have to show up with our guns. And we need to slaughter these m-----f------.” The video was one in a series of statements by Hunt posted on social media since at least December 6, 2020, in which he called for violence and “public execution” against members of Congress.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hunt faces a maximum sentence of 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler, Ian C. Richardson and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
BRENDAN HUNT (also known as “X-Ray Ultra”)
Age: 37
Ridgewood, QueensE.D.N.Y. Docket No. 21-MJ-57
Political Scientist Author Charged with Acting as an Unregistered Agent of the Iranian GovernmentRead the Press Release
BROOKLYN, NY – A criminal complaint was unsealed today in federal court in Brooklyn charging Kaveh Lotfolah Afrasiabi, also known as “Lotfolah Kaveh Afrasiabi,” with acting and conspiring to act as an unregistered agent of the Government of the Islamic Republic of Iran, in violation of the Foreign Agents Registration Act (FARA). Afrasiabi was arrested yesterday at his home in Watertown, Massachusetts, and will make his initial appearance this morning in federal court in Boston, Massachusetts, before United States Magistrate Judge Jennifer C. Boal.
Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Joseph Bonavolonta, Special Agent-in-Charge, FBI, Boston Field Office announced the arrest and charges.
“Afrasiabi allegedly sought to influence the American public and American policymakers for the benefit of his employer, the Iranian government, by disguising propaganda as objective policy analysis and expertise,” stated Acting U.S. Attorney DuCharme. “This Office is committed to the robust enforcement of the Foreign Agents Registration Act, which provides the American people the tools they need to evaluate opinions and arguments in the marketplace of ideas by requiring foreign agents to declare their paymasters. Those, like the defendant, who conceal the full extent of their work for a foreign government when the law requires disclosure will face consequences for their actions.”
“For over a decade, Kaveh Afrasiabi pitched himself to Congress, journalists, and the American public as a neutral and objective expert on Iran," stated Assistant Attorney General Demers. “However, all the while, Afrasiabi was actually a secret employee of the Government of Iran and the Permanent Mission of the Islamic Republic of Iran to the United Nations (IMUN) who was being paid to spread their propaganda. In doing so, he intentionally avoided registering with Department of Justice as the Foreign Agents Registration Act required. He likewise evaded his obligation to disclose who was sponsoring his views. We now begin to hold him responsible for those deeds.”
“Anyone working to advance the agenda of a foreign government within the United States is required by law to register as an agent of that country,” stated FBI Assistant Director-in-Charge Sweeney. “Mr. Afrasiabi never disclosed to a Congressman, journalists or others who hold roles of influence in our country that he was being paid by the Iranian government to paint an untruthfully positive picture of the nation. Our laws are designed to create transparency in foreign relations, and they are not arbitrary or malleable. As today's action demonstrates, we will fully enforce them to protect our national security.”
“Our arrest of Kaveh Afrasiabi makes it clear that the United States is not going to allow undeclared agents of Iran to operate in our country unchecked. For more than a decade, Mr. Afrasiabi was allegedly paid, directed, and controlled by the Government of Iran to lobby U.S. government officials, including a Congressman; and to create and disseminate information favorable to the Iranian government,” stated FBI Special Agent-in-Charge Bonavolonta. “The FBI will continue to do everything it can to uncover these hidden efforts and hold accountable those who work for our adversaries to the detriment of our national security.”
According to the complaint, Afrasiabi is a citizen of the Islamic Republic of Iran and a lawful permanent resident of the United States. Afrasiabi holds a PhD, and frequently publishes books and articles, and appears on English-language television programs discussing foreign relations matters, particularly Iran’s relations with the United States. Afrasiabi has identified or portrayed himself as a political scientist, a former political science professor or as an expert on foreign affairs.
Since at least 2007 to the present, Afrasiabi has also been secretly employed by the Iranian government and paid by Iranian diplomats assigned to the Permanent Mission of the Islamic Republic of Iran to the United Nations in New York City (IMUN). Afrasiabi has been paid approximately $265,000 in checks drawn on the IMUN’s official bank accounts since 2007 and has received health insurance through the IMUN’s employee health benefit plans since at least 2011.
In the course of his employment by the Iranian government, Afrasiabi has lobbied a U.S. Congressman and the U.S. Department of State to advocate for policies favorable to Iran, counseled Iranian diplomats concerning U.S. foreign policy, made television appearances to advocate for the Iranian government’s views on world events, and authored articles and opinion pieces espousing the Iranian government’s position on various matters of foreign policy. Afrasiabi has long known that FARA requires agents of foreign principals to register with the U.S. Department of Justice and has discussed information obtained from FARA disclosures with others. Nevertheless, Afrasiabi did not register as an agent of the Government of Iran.
For example, in January 2020, Afrasiabi emailed Iran’s Foreign Minister and Permanent Representative to the United Nations with advice for “retaliation” for the U.S. military airstrike that killed Major General Qasem Soleimani, the head of the Quds Force, the external operations arm of the Iranian government’s Islamic Revolutionary Guard Corps, proposing that the Iranian government “end all inspections and end all information on Iran’s nuclear activities pending a [United Nations Security Council] condemnation of [the United States’] illegal crime.” Afrasiabi claimed that such a move would, among other things, “strike fear in the heart of [the] enemy.”
Afrasiabi has admitted in his own communications that his extensive body of published works and television appearances, in which he has consistently advocated perspectives and policy positions favored by the Iranian government, has been attributable to the funding he receives from the Iranian government. For example, in a July 28, 2020 email to Iran’s Foreign Minister, Afrasiabi included “links for many of [his] works, including books, hundreds of articles in international newspapers and academic journals,” telling Iran’s Foreign Minister “Without support none of this would have been possible! This has been a very productive relationship spanning decades that ought not to be interrupted.”
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of both charged offenses, Afrasiabi faces a maximum sentence of 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Michael T. Keilty are in charge of the prosecution, with assistance from Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
KAVEH LOTFOLAH AFRASIABI (also known as “Lotfolah Kaveh Afrasiabi”)
Age: 63
Watertown, MassachusettsE.D.N.Y. Docket No. 21-MJ-50
Political Scientist Author Charged with Acting as an Unregistered Agent of the Iranian GovernmentRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Kaveh Lotfolah Afrasiabi, also known as Lotfolah Kaveh Afrasiabi, with acting and conspiring to act as an unregistered agent of the Government of the Islamic Republic of Iran, in violation of the Foreign Agents Registration Act (FARA). Afrasiabi was arrested yesterday at his home in Watertown, Massachusetts, and will make his initial appearance this morning in federal court in Boston, Massachusetts, before U.S. Magistrate Judge Jennifer C. Boal.
John C. Demers, Assistant Attorney General for National Security; Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Joseph Bonavolonta, Special Agent in Charge, FBI, Boston Field Office, announced the arrest and charges.
“For over a decade, Kaveh Afrasiabi pitched himself to Congress, journalists, and the American public as a neutral and objective expert on Iran,” said John C. Demers, Assistant Attorney General for National Security. “However, all the while, Afrasiabi was actually a secret employee of the Government of Iran and the Permanent Mission of the Islamic Republic of Iran to the United Nations (IMUN) who was being paid to spread their propaganda. In doing so, he intentionally avoided registering with the Department of Justice as the Foreign Agents Registration Act required. He likewise evaded his obligation to disclose who was sponsoring his views. We now begin to hold him responsible for those deeds.”
“Afrasiabi allegedly sought to influence the American public and American policymakers for the benefit of his employer, the Iranian government, by disguising propaganda as objective policy analysis and expertise,” said Acting U.S. Attorney DuCharme. “This Office is committed to the robust enforcement of the Foreign Agents Registration Act, which provides the American people the tools they need to evaluate opinions and arguments in the marketplace of ideas by requiring foreign agents to declare their paymasters. Those, like the defendant, who conceal the full extent of their work for a foreign government when the law requires disclosure will face consequences for their actions.”
“Anyone working to advance the agenda of a foreign government within the United States is required by law to register as an agent of that country,” said FBI Assistant Director in Charge Sweeney. “Mr. Afrasiabi never disclosed to a congressman, journalists or others who hold roles of influence in our country that he was being paid by the Iranian government to paint an untruthfully positive picture of the nation. Our laws are designed to create transparency in foreign relations, and they are not arbitrary or malleable. As today's action demonstrates, we will fully enforce them to protect our national security.”
“Our arrest of Kaveh Afrasiabi makes it clear that the United States is not going to allow undeclared agents of Iran to operate in our country unchecked. For more than a decade, Mr. Afrasiabi was allegedly paid, directed, and controlled by the Government of Iran to lobby U.S. government officials, including a congressman; and to create and disseminate information favorable to the Iranian government,” said FBI Special Agent in Charge Bonavolonta. “The FBI will continue to do everything it can to uncover these hidden efforts and hold accountable those who work for our adversaries to the detriment of our national security.”
According to the complaint, Afrasiabi is a citizen of the Islamic Republic of Iran and a lawful permanent resident of the United States. Afrasiabi holds a PhD, and frequently publishes books and articles, and appears on English-language television programs discussing foreign relations matters, particularly Iran’s relations with the United States. Afrasiabi has identified or portrayed himself as a political scientist, a former political science professor or as an expert on foreign affairs.
Since at least 2007 to the present, Afrasiabi has also been secretly employed by the Iranian government and paid by Iranian diplomats assigned to the Permanent Mission of the IMUN. Afrasiabi has been paid approximately $265,000 in checks drawn on the IMUN’s official bank accounts since 2007, and has received health insurance through the IMUN’s employee health benefit plans since at least 2011.
In the course of his employment by the Iranian government, Afrasiabi has lobbied a U.S. congressman and the U.S. Department of State to advocate for policies favorable to Iran, counseled Iranian diplomats concerning U.S. foreign policy, made television appearances to advocate for the Iranian government’s views on world events, and authored articles and opinion pieces espousing the Iranian government’s position on various matters of foreign policy. Afrasiabi has long known that FARA requires agents of foreign principals to register with the U.S. Department of Justice and has discussed information obtained from FARA disclosures with others. Nevertheless, Afrasiabi did not register as an agent of the Government of Iran.
For example, in January 2020, Afrasiabi emailed Iran’s Foreign Minister and Permanent Representative to the United Nations with advice for “retaliation” for the U.S. military airstrike that killed Major General Qasem Soleimani, the head of the Quds Force, the external operations arm of the Iranian government’s Islamic Revolutionary Guard Corps, proposing that the Iranian government “end all inspections and end all information on Iran’s nuclear activities pending a [United Nations Security Council] condemnation of [the United States’] illegal crime.” Afrasiabi claimed that such a move would, among other things, “strike fear in the heart of [the] enemy.”
Afrasiabi has admitted in his own communications that his extensive body of published works and television appearances, in which he has consistently advocated perspectives and policy positions favored by the Iranian government, has been attributable to the funding he receives from the Iranian government. For example, in a July 28, 2020, email to Iran’s Foreign Minister, Afrasiabi included “links for many of [his] works, including books, hundreds of articles in international newspapers and academic journals,” telling Iran’s Foreign Minister, “Without support none of this would have been possible! This has been a very productive relationship spanning decades that ought not to be interrupted.”
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of both charged offenses, Afrasiabi faces a maximum sentence of 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Ian C. Richardson and Michael T. Keilty are in charge of the prosecution, with assistance from Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
Owner of Online Payday Loan Company Pleads Guilty to Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – A Mission Hills, Kansas, man pleaded guilty in federal court today to a bankruptcy fraud scheme related to his online payday loan company.
Del H. Kimball, 53, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of bankruptcy fraud.
By pleading guilty today, Kimball admitted that he engaged in a scheme to defraud the Bankruptcy Court by concealing assets, bank accounts, and claims against third parties, and by making false statements and material omissions regarding his assets and financial transfers to and from third parties.
Three of Kimball’s creditors filed an involuntary bankruptcy petition against Kimball, his partner, and their company, LTS, an online payday loan company, on Aug. 5, 2015. The claims of the three creditors totaled more than $15 million.
The U.S. Bankruptcy Trustee filed a complaint to deny Kimball’s discharge on March 10, 2017, and the Bankruptcy Court conducted a trial on Jan. 11, 2018. After the trial, U.S. Bankruptcy Judge Cynthia Norton ruled that Kimball had transferred property with the intent to hinder, delay, or defraud creditors, made numerous false oaths in connection with this bankruptcy case, and concealed property from the bankruptcy estate. The court found that the evidence was “overwhelming” that Kimball made false statements under oath. The court denied Kimball’s discharge.
For example, Kimball failed to disclose at least $69,000 in transfers to relatives. He undervalued collectibles by $24,000. He omitted transfers to Claw Consulting, LLC, another company he owned (with no employees). Kimball established a bank account for Claw Consulting, and caused the bank statements to be mailed to an attorney at the attorney’s business address in order to stash income and proceeds of sales he wanted to conceal from creditors.
Under federal statutes, Kimball is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and the U.S. Bankruptcy Trustee.
Owatonna Man Charged with Possession of an Unregistered FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against DAYTON CHARLES SAUKE, 22, charging him with possessing an unregistered firearm. SAUKE was taken into federal custody on January 15, 2021, and will make his initial appearance today before Magistrate Judge David T. Schultz in U.S. District Court.
According to the allegations in the criminal complaint and law enforcement affidavit, on July 30, 2020, the Olmsted County Sheriff’s Office received information that SAUKE was selling narcotics and manufacturing and dealing firearms without a license. Beginning on December 6, 2020, law enforcement agents monitored SAUKE’s Snapchat account. SAUKE made numerous posts consistent with manufacturing and dealing firearms without a license, as well as using and dealing drugs. Between December 6, 2020, and January 12, 2021, SAUKE posted pictures of a short-barreled shotgun and made several threatening posts about killing law enforcement and politicians. On January 15, 2021, two undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) met with SAUKE and purchased from him a privately made firearm for $1,500. SAUKE discussed with the undercover agents the cost for manufacturing additional firearms. During the conversation, SAUKE showed the undercover agents photos of firearms they could purchase and said he had a “sawed-off shotgun” in his car. The undercover agents agreed to purchase two additional firearms from SAUKE and paid him $900 toward the purchases. Once the purchase was complete, SAUKE was taken into custody. Agents recovered from SAUKE’s vehicle a short-barreled shotgun, similar to the gun shown in SAUKE’s Snapchat posts, and a box of shotgun ammunition. Federal law requires shotguns with reduced barrels and overall lengths (often referred to as “sawed-off” or “short-barreled” shotguns) to be registered in the National Firearms Registration and Transfer Record. The shotgun was not registered to SAUKE.
This case is the result of an investigation conducted by the ATF, FBI, U.S. Postal Inspection Service, the Olmsted County Sheriff’s Office, the South Central Drug Investigations Unit, and the Cannon River Drug Task Force.
This case is being prosecuted by Assistant U.S. Attorney Justin A. Wesley.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
DAYTON CHARLES SAUKE, 22
Owatonna, Minn.
Charges:
- Possession of an unregistered firearm, 1 count
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Outagamie County Man Sentenced to Federal Prison for Unlawful Sale of Firearm SilencersRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, U.S. District Judge William C. Griesbach sentenced Jerry Lee Olson (age: 63) to six months’ imprisonment and three years’ supervised release after Olson pled guilty to unlawfully transferring a firearm silencer, in violation of Title 26, United States Code, Section 5861(e). The maximum penalties for the offense are ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.
Olson was a licensed federal firearms dealer, d/b/a Warrior Arms LLC, with a business address in Outagamie County. In addition to selling standard firearms, Olson was federally licensed to sell firearms regulated by the National Firearms Act, including firearm silencers. Before any firearm silencer is transferred, the licensed seller must obtain approval by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). ATF’s investigation determined that Olson had unlawfully transferred at least 17 firearm silencers in Wisconsin and Minnesota by failing to obtain ATF’s approval for the transfer. The silencers were subsequently recovered by ATF. There is no evidence that the silencers were used in criminal offenses or transferred to persons who were otherwise prohibited from possessing firearms. Olson surrendered his federal firearm licenses, and as a convicted felon, is now permanently prohibited from possessing firearms.
“In the wrong hands, firearms silencers can be used to lethal effect,” said United States Attorney Krueger. “That is why the Justice Department vigorously enforces the laws governing their sale and holds irresponsible firearms dealers accountable. I commend the ATF for its excellent investigative work to bring this case.”
“This defendant violated the law with repeated illegal firearms transfers,” said ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “It cost him his federal firearms license and time in federal prison. I commend licensees who follow the laws governing firearms as well as the Industry Operations Investigators of the St. Paul Field Division and the Special Agents of the Milwaukee Field Office of the Chicago Field Division for their diligence in investigating this case and the U.S. Attorney’s office for prosecuting it.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Timothy Funnel
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Oil Company Employee Indicted for Rendering Safety Systems Inaccurate, Negligent DischargeRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that on January 15, 2021 a grand jury indicted BRANDON WALL, age 42, of Ville Platte, Louisiana, for criminal conduct related to oil extraction in the Gulf of Mexico.
According to the Indictment, WALL engaged in criminal conduct on an oil platform known as Grand Isle 43AA (“GI-43AA”). WALL was an area foreman for the area that included GI-43AA. GI-43AA experienced sand buildup problems with its filtration systems. WALL instructed operators that worked on GI-43AA to keep the platform “flowing” instead of shutting it in to repair or replace the filtration systems. WALL also told the operators to bypass the platform’s safety systems, which would have automatically shut-in the platform. Operators on GI-43AA were aware that putting safety systems in bypass made the platform less safe and increased the risk of a pollution event.
The Indictment alleges that GI-43AA was one of most prosperous oil platforms for Company A, the company that employed WALL. In January 2018, GI-43AA discharged oil and other hazardous substances into the Gulf of Mexico. Eventually, WALL informed the appropriate federal agency about the discharge. When the regulators arrived at GI-43AA, they saw a sheen emanating from GI-43AA, indicating that the platform had discharged oil and other hazardous substances.
WALL is charged with 2 Counts. Count 1 of the Indictment, charges WALL with rendering safety systems inaccurate, in violation of Title 43, United States Code, Section 1350(c)(3) and Count 2 charges WALL with negligently discharging oil and other hazardous substances into the Gulf of Mexico, in violation of Title 33, United States Code, Section 1321(b)(3) and 1319(c)(1)(A). If convicted for Counts 1 and 2, WALL faces imprisonment from one to ten years, mandatory special assessment fees ranging from $25 to $100, supervised release ranging from one to three years and fines ranging from not more than $100,000 per violation (Count 1) and $2,500 to $25,000 per day of violation (Count 2) .
United States Attorney Strasser stated that an Indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
United States Attorney Strasser praised the work of the United States Environmental Protection Agency and the Department of the Interior Office of Inspector General, Energy Investigations Unit, in investigating this matter. Assistant United States Attorneys Spiro G. Latsis and J. Ryan McLaren are in charge of the prosecution.
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Oil Company Employee Indicted for Illegal Discharge, False StatementsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that on January 15, 2021 a grand jury indicted PATRICK HUSE, age 40, of Perkinston, Mississippi, for criminal conduct related to oil extraction in the Gulf of Mexico.
According to the eight-count Indictment, HUSE engaged in criminal conduct on an oil platform known as Main Pass 310A (“MP-310A”). In July 2015, workers on MP-310A noticed a sheen on the surface of the surface of the water surrounding the platform. The sheen meant that the platform was discharging oil or other hazardous substances into the Gulf of Mexico. The workers alerted HUSE, who was a Person-In-Charge (“PIC”) on MP-310A. The workers told HUSE that they believed the sheen was the result of sand buildup in filtration equipment on MP-310A. Rather than shutting-in the platform to repair or replace the filtration equipment, HUSE ordered certain wells closed but otherwise kept the platform operating. This caused further sheening. The sheening continued for another four days until a worker finally activated an emergency shutdown device to stop the sheening. HUSE then instructed the workers to lie to federal regulators about the reason for the emergency shutdown.
The Indictment further alleges that HUSE made false statements in an inspection log kept on MP-310A by Company A, the company that employed HUSE. Federal regulations and rules required Company A to travel to and inspect an unmanned platform in the same area as MP-310A every day, and to physically board the unmanned platform for inspection at least once a week. HUSE told operators to falsely state in the inspection log that they had inspected the unmanned platform when, in reality, no such inspections occurred. HUSE also made his own false entries in the inspection records. The misrepresentations in the inspection records gave the artificial impression that Company A and HUSE were complying with federal regulations.
HUSE is charged in Count 1 of the Indictment with negligently discharging oil and other hazardous substances from MP-310A into the Gulf of Mexico, in violation of Title 33, United States Code, Section 1321(b)(3) and 1319(c)(1)(A). Count 2 charges HUSE with knowingly discharging oil and other hazardous substances from MP-310A into the Gulf of Mexico, in violation of Title 33, United States Code, Section 1321(b)(3) and 1319(c)(2)(A). Count 3 charges HUSE with failure to immediately report the discharge to the appropriate federal agency, in violation of Title 33, United States Code, Section 1321(b)(5). Counts 4 through 8 charges HUSE with making false statements in inspection logs, in violation of Title 43, United States Code, Section 1350(c)(2). If convicted for Counts 1 through 8, HUSE faces a range of imprisonment from one to ten years. Additionally, HUSE faces fines ranging from $2,500 to $250,000 per day of violation, maximum terms of supervised release from one year to three years, and mandatory special assessment fees ranging from $25 to $100. The Indictment includes a Notice of Forfeiture against HUSE.
United States Attorney Strasser stated that an Indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
United States Attorney Strasser praised the work of the United States Environmental Protection Agency and the Department of the Interior Office of Inspector General, Energy Investigations Unit, in investigating this matter. Assistant United States Attorneys Spiro G. Latsis and J. Ryan McLaren are in charge of the prosecution.
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Ohio woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Amy S. Lambert-Shuster, of Caldwell, Ohio, was sentenced today to 12 months and one day of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Amy Lambert-Shuster, 41, pled guilty to one count of “Aiding and Abetting the Unlawful Transfer of a Machinegun” in September 2020. Lambert-Shuster admitted to transferring an AR15-type firearm in January 2019 in Ritchie County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
New Closer Law Enforcement Partnerships in Western Kentucky Result in Most Significant Drug Seizure in Owensboro History - Hundreds of Pounds of MethRead the Press Release
OWENSBORO, Ky. – An Owensboro Drug Trafficking Organization is behind bars and charged with multiple felonies after being caught with 151 pounds of methamphetamine, 3.5 pounds of counterfeit pills with suspected deadly fentanyl, and other drugs, announced United States Attorney Russell Coleman.
“Traffickers should take heed to keep their poison out of Daviess County and the Western District of Kentucky,” said U.S. Attorney Russell Coleman “They disregard at their own peril as federal, state, and local law enforcement here stand united to take their dope and send them to federal prison. Stay tuned; more to come.”
DEA Assistant Special Agent in Charge, Michael Gannon said, “Today was a big win for the fine citizens of Owensboro. The individuals arrested during this investigation were responsible for peddling poison into Owensboro and our surrounding communities. Anytime we can take this much methamphetamine, fentanyl and firearms off the streets it is huge! The methamphetamine seized had a street value of almost 7 million dollars and could have provided enough dosage units to fill a capacity crowd at a professional football stadium four times over! The DEA Evansville HIDTA Resident Office is committed to working with the Owensboro Police Department and our other federal, state, and local partners to keep our communities safe by investigating and arresting violent drug traffickers. The DEA appreciates the exceptional work by all our partners who brought these individuals to justice.”
“ATF is committed to protecting the public in Western Kentucky,” said ATF Special Agent in Charge Shawn Morrow. “This investigation highlights ATF’s work with our law enforcement partners to combat criminal organizations and to make Daviess County a safer place to live.”
“The Owensboro Police Department remains committed to getting narcotics and dangerous offenders off the streets of Owensboro.” Said Owensboro Police Chief Art Ealum. “This investigation is undoubtedly the most significant narcotics investigation in our department’s history, which speaks to the magnitude of the drug epidemic in the Owensboro Metropolitan Area. Our Street Crimes Unit, along with our federal and local partners, have worked tirelessly to take down this drug trafficking organization.”
Sheriff Keith Cain said, "This investigation is yet another example of the strong relationship
that exists between local law enforcement and our federal partners. Both are equally committed to ridding our community of the scourge of organized drug trafficking and keeping our citizens safe."According to the criminal complaints, from September 2020 to present, federal and local investigative agencies have conducted a long term investigation into the Willie Watkins Drug Trafficking Organization (DTO) believed to be trafficking in methamphetamine, counterfeit pharmaceutical pills believed to contain fentanyl, and marijuana.
According to the criminal complaints, between January 6, 2021, and January 11, 2021, Willie Watkins, age 30 of Owensboro, Kentucky coordinated the purchase of approximately 150 pounds of suspected methamphetamine with an unidentified male, located in the Los Angeles, California area, and counterfeit pills containing suspected fentanyl from a source in the Phoenix, Arizona area.
According to the complaints, on January 11, 2021, members of the DEA from multiple districts and local law enforcement conducted a traffic stop on a vehicle being operated by another suspected member of the Watkins DTO in Oklahoma City, Oklahoma, as the vehicle travelled from Arizona toward the Western District of Kentucky. During a search of the vehicle subsequent to a certified K-9 alert, law enforcement recovered: approximately one-hundred fifty-one (151) pounds of crystal methamphetamine, approximately three and one-half (3.5) pounds of counterfeit pharmaceutical pills suspected of containing fentanyl (contained in Ziploc bags), approximately twenty-one (21) pounds of marijuana, approximately nine (9) pounds of THC edibles, approximately fourteen (14) pounds of THC related vape products, and approximately one (1) gram of ecstasy.
After learning of the stop, as monitored by law enforcement over judicially authorized intercepts over Willie Watkins’ telephone, Watkins made several calls to multiple individuals discussing the seizure of the narcotics by law enforcement and the calculated amount of money he had lost as a result.
Following the seizure of the narcotics in Oklahoma City, Willie Watkins was charged in a criminal complaint with conspiring to possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
Additionally, according to the criminal complaints, on January 13, 2021, federal and local law enforcement executed multiple search warrants at locations associated with the Watkins DTO in Owensboro, Kentucky. As a result of those search warrants, law enforcement seized additional methamphetamine, counterfeit pills containing suspected fentanyl, marijuana, firearms, and over $325,000 in United States Currency.
Based on the evidence obtained from the long term investigation and the search warrants, additional members of the Watkins DTO, including Christopher McNary, age 31 of Owensboro, Kentucky, Richard Cason, age 29 of Owensboro, Kentucky, Keith Watkins, age 28 of Owensboro, Kentucky, and Samuel White, age 27 of Owensboro, Kentucky were also charged in a second criminal complaint with conspiring with each other and others to possess with the intent to distribute 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine and 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
All five men are charged by criminal complaint with Conspiracy to Possess with the Intent to Distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 400 grams of a mixture or substance containing a detectable amount of fentanyl pursuant to Title 21, United States Code, Sections 841 and 846. The potential penalty for the offense charged is a prison term of 10 years to life, a fine of not more than $10,000,000, and not less than 5 years of supervised release.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a U.S. Magistrate Judge. The charges set forth in a complaint are merely accusations and the defendant are presumed innocent until proven guilty beyond a reasonable doubt in a Court of law.
The case is being investigated by the Drug Enforcement Administration (DEA), Evansville, Indiana Resident Office, Albuquerque District Office, Phoenix Field Division, Orange County District County Office, Oklahoma City, Flagstaff Resident Office, Paducah POD, Springfield, Missouri, and SOD; The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Bowling Green, Kentucky; Homeland Security Investigations (HSI) Oklahoma City; Owensboro Police Department, Daviess Co. Sheriff’s Office; Criminal Interdiction Team of Central Oklahoma; Oklahoma County Sheriff’s Office; Oklahoma City Police Department; Arizona Highway Patrol; and the Daviess County Commonwealth Attorney’s Office.
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New Charges Filed Against Tennessee State Senator Katrina Robinson, Two Others in Fraud and Money Laundering CaseRead the Press Release
Memphis, TN – Tennessee State Senator Katrina Robinson, 40, has been federally charged in a new case, along with two other co-defendants, with conspiracy to commit wire fraud and money laundering. D. Michael Dunavant, U.S. Attorney announced the unsealing of the new federal criminal complaint today.
According to information presented in Court, the Healthcare Institute ("THI") is a post-secondary educational provider located in Memphis, Tennessee. It purports to provide training programs for jobs in the healthcare field, including certified nursing assistant, phlebotomist, and licensed practical nurse. It was founded in January 2015 as a Tennessee for-profit LLC, with Katrina Robinson as director. THI received more than $10,000 in federal funds each year between 2015 and 2019. During that period, Robinson is alleged to have stolen, converted, and intentionally misapplied property of THI for her own use. As a result, on July 30, 2020, she was indicted in Case No. 2:20-cr-20147-SHL, which is currently pending trial in the U.S. District Court for the Western District of Tennessee. https://www.justice.gov/usao-wdtn/pr/federal-grand-jury-returns-indictment-charging-tennessee-state-senator-katrina-robinson
The charges in this new federal complaint arise from a completely separate fraud scheme in which Robinson, Katie Ayers, 59, and Brooke Boudreaux, 32, are alleged to have conspired to use THI to defraud victim R.S. out of $14,470.00, in violation of 18 U.S.C. § 1349 and 18 U.S.C. § 1956(h).
As set forth in more detail in the complaint affidavit, while investigating the charges in the 2020 case, the FBI also uncovered a scheme in which the defendants convinced R.S. that Boudreaux, with whom he had an existing relationship, needed the money for tuition and expenses to attend THI. R.S. agreed and tendered $14,470.00 to THI for that purpose. In fact, the investigation revealed that Boudreaux was never a student at THI, and the conspirators split the money among themselves for their personal benefit and unjust enrichment.
If convicted, the defendants each face a possible sentence of up to 20 years in federal prison followed by three years supervised release. There is no parole in the federal system. The case will be presented to a federal grand jury at a later date to consider an indictment against the defendants.
This case was investigated by the Federal Bureau of Investigation (FBI).
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Chris E. Cotten is prosecuting this case on behalf of the government.
Robinson Complaint 21-20003
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New Bedford Member of the Latin Kings Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation was sentenced today for being a felon in possession of a firearm as a result of a federal investigation into a shooting on April 19, 2020, in New Bedford.
Alexander Pizarro, a/k/a “King Tego,” 28, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In September 2020, Pizarro pleaded guilty to one count of being a felon in possession of a firearm.
On April 19, 2020, police responded to a report of seven shots fired near a residence on Clark Street in New Bedford. During the response, police located a tan and black Taurus 9mm firearm in an alleyway near the residence. Based on information received from a 911 caller, police were directed to an apartment and located Pizarro. After searching his cell phone, investigators located a photograph of Pizarro in the apartment holding what appeared to be the same firearm that was recovered from Clark Street. This photograph was taken approximately two hours before the shots-fired incident. Through ballistics comparison, the seized firearm was matched to the recovered shell casings from the shooting that evening.
Due to multiple prior convictions, Pizarro is prohibited from possessing firearms. According to court documents, Pizarro was known to investigators to be a member of the New Bedford Chapter of the Latin Kings, and had recently posted multiple pictures holding firearms to his SnapChat account. At the time of the shooting incident, Pizarro was on probation for a 2017 firearms conviction in Rhode Island.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit 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. Former Attorney General Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Middle District of Florida U.S. Attorney’s Office Collects More Than $276 Million in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
Tampa – United States Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $276,324,126.35 in criminal and civil actions in the fiscal year ending September 30, 2020 (FY 2020). Of this amount, $99,349,069.35 represents collections from locally handled criminal and civil actions, including $65,223,665.55 in civil actions and $34,125,403.80 in criminal actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $222,965,488 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $157,741,823 in these jointly handled cases.
Additionally, the district’s Asset Recovery and Victims’ Rights Division, led by Chief Anita Cream, recovered $19,233,234 in asset forfeiture actions last fiscal year. 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. For instance, in FY 2019, nearly $21 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $4.5 million was shared with federal, state, and local law enforcement agencies.
“Through our collaborative work with our federal, state, and local law enforcement partners, our collection efforts have resulted in the recovery of millions of dollars from convicted criminals and others who have benefitted from fraud and other illegal activities,” said U.S. Attorney Chapa Lopez. “These collected funds will assist victims in their recovery and assist law enforcement as they continue to hold criminals accountable for their crimes.”
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 to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE ENFORCEMENT CASE SUMMARIES
United States ex rel. Gardner v. Universal Health Services, Inc., et al., case no. 3:12-civ-608 (M.D. Fla.)
A whistleblower filed a complaint under the qui tam provisions of the False Claims Act, alleging that a nationwide provider of behavioral health services, Universal Health Services, Inc., had defrauded federal health programs in a variety of ways, notably by submitting bills for behavioral health services provided to ineligible patients, failing to discharge patients when they no longer needed inpatient or residential treatment, and improper use of physical and chemical restraints and seclusion. While the investigation was underway, seventeen other qui tam cases were filed against the defendants that made overlapping allegations. These cases were transferred to the Eastern District of Pennsylvania where Universal Health maintains its corporate headquarters, and, on July 20, 2020, the cases were globally settled for $122,000,000. Of this amount, $88,124,761 was paid to the United States, with the balance paid to participating state Medicaid plans. In terms of total settlement amount, this is the fifth largest civil health care settlement in the history of the Middle District of Florida. Press release: www.justice.gov/opa/pr/universal-health-services-inc-and-related-entities-pay-122-million-settle-false-claims-act
United States ex rel. Cho v. Surgery Partners, Inc., et al., case no. 8:17-civ-918 (M.D. Fla.)
Within a span of only a few days, two separate whistleblowers filed two qui tam complaints (one in the Eastern District of Pennsylvania and one in the Middle District of Florida) that alleged a large Tampa pain management practice, Tampa Pain Relief Centers, conspired with a local laboratory, Logan Laboratories, and their corporate owner, Surgery Partners, Inc., to defraud federal health programs through claims for medically unnecessary urine drug testing services. The United States intervened in order to settle these claims, and recovered $41,000,000, of which $40,741,823 was paid to the federal government. The balance was paid to state Medicaid plans. Press release: www.justice.gov/opa/pr/reference-laboratory-pain-clinic-and-two-individuals-agree-pay-41-million-resolve-allegations
Opthalmic Consultants, P.A.
A civil investigation was opened into the practices of this Sarasota ophthalmology practice and its co-owners, Robert Snyder, M.D. and Paul Runge, M.D., based upon a referral from the local Medicare integrity contractor. The investigation concluded that from 2013 through 2017, the practice and the two physicians had submitted false claims to Medicare, Tricare, and federal employee health benefit plans arising from treatment of eye conditions. Specifically, the investigation concluded that they had improperly engaged in a practice known as “multi-dosing” (using a single vial of medication to provide doses to multiple patients) in order to receive reimbursement to which they were not entitled. On June 20, 2020, the practice and Dr. Snyder agreed to pay $4.8 million to resolve these civil claims. Press release: https://www.justice.gov/usao-mdfl/pr/sarasota-based-ophthalmic-consultants-agrees-pay-48-million-resolve-claims-multi-dosing
United States ex rel. Parker v. Florida Cancer Research Institute, et al., case no. 2:17-civ-428 (M.D. Fla.)
An employee of the Florida Cancer Research Institute filed a qui tam complaint after she contacted the VA Office of Inspector General’s hotline to report that the institute was being overpaid by the VA for physician-administered drugs. An agency audit following the hotline complaint determined that a mistake in the Fee Basis Claims System had led the Florida Claims Processing Centers to pay the full amount billed by the provider rather than the appropriate Medicare rate. Subsequently, the VA fixed the issue and the institute worked cooperatively with the United States to determine the amount of an overpayment, ultimately returning $2,341,508. Press release: https://www.justice.gov/usao-mdfl/pr/cancer-treatment-center-repays-more-234-million-resolve-civil-claims-pertaining
United States and State of Florida ex rel. Peters v. Hope Hospice and Community Services, et al., case no. 2:16-civ-6 (M.D. Fla.)
A former director of hospice care at a southwest Florida provider of hospice filed a qui tam lawsuit alleging that her former employer, Hope Hospice and Community Services, had defrauded Medicare through claims for reimbursement of medically unnecessary hospice care. The ensuing civil investigation concluded that from July 1, 2012 through June 30, 2016, the provider had submitted claims for services provided to hospice patients who were not terminally ill, in certain instances to patients for a period of over four years. On July 8, 2020, the United States announced a settlement of these civil claims in return for $3,200,000. Press release: https://www.justice.gov/usao-mdfl/pr/hope-hospice-agrees-pay-32-million-settle-false-claims-act-liability
United States ex rel. Silva et al. v. Vici Marketing, Inc., et al., case no. 8:15-civ-444 (M.D. Fla.)
In 2015, two former employees of Oldsmar Pharmacy filed a qui tam complaint alleging that the Tampa Bay area compounding pharmacy submitted claims for millions of dollars in reimbursement to the Tricare health program that were tainted by kickbacks. Among their allegations was that a marketing company owned by Scott Roix – Vici Marketing – was sending patient information to doctors, who certified the patients’ need for compounded pain creams. The compounding pharmacy defendants then billed Tricare for millions of dollars in reimbursement for these medically unnecessary creams. In August, 2018, the United States intervened in the qui tam lawsuit and filed its own complaint, alleging that Roix and his marketing companies fraudulently obtained insurance coverage information from consumers across the country, used that information to arrange for medically unnecessary prescriptions of pain creams, and sold the prescriptions to pharmacies under the guise of marketing services. The United States further alleged that the payments solicited from the pharmacies were based on the volume and value of the prescriptions. On August 1, 2019, the United States announced an ability to pay settlement with Mr. Roix and his marketing companies (HealthRight, LLC; Health Savings Solutions, LLC; Vici Marketing, LLC; and Vici Marketing Group, LLC) that resolved the allegations of the United States in its civil complaint for $2,500,000. The civil settlement also resolved claims that HealthRight, at the direction of Roix, received payments from Synergy Pharmacy that were based on the value and volume of prescriptions solicited by HealthRight on behalf of Synergy Pharmacy. These allegations were also the subject of a criminal case captioned United States v. Roix, et al., case No. 2:18-cr-133 (E.D. Tenn.), in which Roix and HealthRight pleaded guilty in September 2018. Press release: https://www.justice.gov/usao-mdfl/pr/telemarketer-and-his-companies-agree-pay-25-million-settle-allegations-they-operated
United States ex rel. Green et al. v. Tran, et al., case no. 5:15-civ-60 (M.D. Fla.)
In 2015, two relators filed a qui tam complaint alleging that a Villages dermatologist, Thi Thien Nguyen Tran, and his practice, Village Dermatology and Cosmetic Surgery, had defrauded Medicare through a variety of schemes. After a lengthy investigation, we substantiated that Dr. Tran had upcoded claims for complex wound repairs following Mohs surgery procedures, and billed them as adjacent tissue transfers in order to obtain Medicare reimbursement that he was not entitled to receive. On March 13, 2020, we intervened in order to settle these claims in return for $1,744,000. Press release: https://www.justice.gov/usao-mdfl/pr/villages-dermatologist-agrees-pay-more-17-million-settle-false-claims-act-liability
McLaughlin Man Indicted on Murder and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for First Degree Murder and Use of a Firearm During a Crime of Violence that Causes Death.
Casey Lynn Crow Ghost, age 42, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on January 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in prison, a $250,000 fine, five years of supervised release, $200 to the Federal Crime Victims Fund, and forfeiture of the firearm used in the offenses. Restitution may also be ordered.
The Indictment alleges that on December 12, 2020, Crow Ghost willfully, deliberately, maliciously, and with premeditation and malice aforethought, did unlawfully murder a female victim by shooting her with a handgun in McLaughlin.
The charges are merely accusations and Crow Ghost is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency, and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Crow Ghost was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Manhattan U.S. Attorney Announces the Appointment of Deputy U.S. Attorney and Chief Counsel to the U.S. AttorneyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, today announced the selection of Ilan Graff as Deputy U.S. Attorney and Russell Capone as Chief Counsel to the U.S. Attorney. Graff and Capone assumed their new roles on January 16, 2021, when the Court’s appointment of Ms. Strauss as U.S. Attorney took effect.
Mr. Graff most recently served as Chief Counsel to the Acting U.S. Attorney. He has been with the Office since 2012. As an Assistant United States Attorney in the Criminal Division, he worked principally in the Terrorism & International Narcotics Unit. He later served as Co-Chief of the General Crimes Unit and Co-Chief of the Terrorism & International Narcotics Unit. Mr. Graff graduated cum laude from Harvard College in 2005 and cum laude from Harvard Law School in 2009, where he served on the Harvard Law Review. Following graduation from law school, he was a law clerk to then-Chief Judge Sandra L. Lynch on the U.S. Court of Appeals for the First Circuit and Judge Allyson K. Duncan on the U.S. Court of Appeals for the Fourth Circuit, as well as a Dean’s Fellow at Duke Law School, before joining the Office through the Attorney General’s Honors Program.
Mr. Capone most recently served as Counsel to the Acting U.S. Attorney. He has been with the Office since 2011. As an Assistant United States Attorney in the Criminal Division, he worked principally in the Public Corruption Unit and the Violent & Organized Crime Unit. He later served as Deputy Chief and then Co-Chief of the Public Corruption Unit. Mr. Capone graduated summa cum laude from Tufts University in 2002 and cum laude from Harvard Law School in 2005, where he served as managing editor of the Harvard Law Review. Following graduation from law school, he worked in 2005 and from 2007 through 2010 as an associate at the law firm of Davis Polk & Wardwell LLP. In 2006, he was a law clerk to United States District Judge Sidney H. Stein of the Southern District of New York.
Local men sentenced to prison in pawn shop armed robbery caseRead the Press Release
COLUMBUS, Ohio – Two Columbus men were sentenced in U.S. District Court for their roles in the March 2020 armed robbery of a local pawn shop.
De’onte Peoples, 19, and Demetrius E. Braxton, 23, each previously pleaded guilty to one count each of robbery and brandishing a firearm in furtherance of a crime of violence.
Braxton was sentenced today to 74 months in prison and Peoples last week to 76 months in prison.
According to court documents, it was Peoples’ idea to commit a robbery at Lev’s Pawn Shop, a federal firearms licensee located on Morse Road. Peoples and Braxton drove to the pawn shop around 2pm on March 5, 2020 in Peoples’ vehicle.
Peoples and Braxton entered the store carrying firearms and wearing face masks and plastic bags over their shoes. Peoples also carried a black suitcase. The defendants brandished their firearms and demanded three pawn shop employees fill their suitcases with firearms and jewelry from the store’s display cases.
While the robbery was in progress, a customer walked into the pawn shop. Peoples took the man’s wallet, reviewed its contents and then threw the wallet into the victim’s face.
As the defendants left Lev’s Pawn Shop, one of them yelled he would kill anyone who called the police.
In total, the co-conspirators stole 27 firearms, more than 200 pieces of jewelry and approximately $2,700 in cash.
Congress sets the minimum and maximum statutory sentences. Sentencing of defendants is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed by U.S. District Judge Edmund A. Sargus, Jr. The Mifflin Township Police Department assisted in this case. Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney S. Courter Shimeall are representing the United States in this case.
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Justice Department Joins Computational Antitrust Project at Stanford Law SchoolRead the Press Release
WASHINGTON – The Department of Justice announced today that it will participate in the Computational Antitrust project, hosted by the Stanford University CodeX Center and created by Professor Thibault Schrepel. The project brings together academics from law, computer science, and economics as well as developers, policymakers, and antitrust agencies from around the world to discuss how technology and automation can improve antitrust enforcement.
“There are important debates happening today about how we should enforce the antitrust laws, but everyone agrees that enforcement agencies should make decisions using the best tools available,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “We look forward to being part of this valuable dialog about antitrust enforcement.”
As part of the Computational Antitrust project, representatives from the Antitrust Division will participate in regular workshops and dialogs about how to integrate cutting-edge computational developments into antitrust law and policy. The Antitrust Division’s initial representatives will be David Lawrence, Chief of the Competition Policy and Advocacy Section, and Eric Dunn, an attorney in that section. The project’s focus is described in further detail in a recent paper by Professor Schrepel.
The division’s participation in the Computational Antitrust project builds on several other initiatives announced last year to increase the division’s capabilities and engagement in emerging technologies relevant to antitrust enforcement. For example, the division has offered attorneys and staff the opportunity to take coursework focused on blockchain, artificial intelligence and Machine Learning at the Massachusetts Institute of Technology’s Sloan School of Management, and last year held a Public Workshop on Venture Capital and Antitrust, which was co-hosted with Stanford University’s Graduate School of Business and Stanford Law School. Together, these efforts reflect a commitment to ensuring that the division remains at the leading edge of antitrust enforcement.
To learn more about the Computational Antitrust project and other participating agencies, please visit the project’s website.
Johnstown Suboxone Clinic Operator Pleads Guilty to Federal FeloniesRead the Press Release
PITTSBURGH, PA - A resident of Bugler, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to using or maintaining a drug involved premises, and money laundering, United States Attorney Scott W. Brady announced today.
Stephen K. Shaner, 71, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that between May 2012 and April 2018, Shaner was using or maintaining a drug-involved premises, and money laundering in order to conceal the proceeds of a criminal offense. Shaner operated a suboxone clinic called SKS, located in Johnstown, Pennsylvania. Suboxone is a Schedule III drug, used to treat opioid dependence. Shaner employed four physicians at SKS, who prescribed suboxone without physically examining the patients or engaging in any type of medical practice. On numerous occasions, individuals employed by Shaner but who lacked any formal or licensed medical training, completed the pre-signed prescriptions. Shaner laundered proceeds from the clinic by withdrawing them from the clinic’s bank account and depositing them into his personal account.
Judge Bissoon scheduled sentencing for May 11, 2021, at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $500,000, or both. As part of the plea, the defendant agreed to a forfeiture of $1,750,000 in illegal proceeds. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing, conducted the investigation that led to the prosecution of Shaner.
Jeffrey Lowe and Tiger King LLC Ordered to Relinquish Big Cat Cubs to United States for Placement in Suitable FacilitiesRead the Press Release
On Jan. 15, 2021, a federal court issued a preliminary injunction in favor of the United States and against Jeffrey and Lauren Lowe, Greater Wynnewood Exotic Animal Park LLC, and Tiger King LLC based on claimed violations of the Endangered Species Act and the Animal Welfare Act.
U.S. District Court Judge John F. Heil III ordered the Lowes to immediately surrender all Big Cat cubs under the age of one year and their mothers to the government for the pendency of the injunction. The court also ordered the defendants to retain an attending veterinarian and to provide records accounting for all animals acquired and disposed of since June 2020. The court further ordered the defendants and anyone acting on their behalf, including Eric Yano and Stephens Lane LLC, to cease exhibiting animals without a valid U.S. Department of Agriculture (USDA) license.
“The Lowes have showed a shocking disregard for both the health and welfare of their animals, as well as the law,” said Acting Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “We are gratified the court agrees and ordered Mr. Lowe to stop ignoring his obligations under the Animal Welfare Act and the Endangered Species Act.”
“This decision sends a clear message to both licensed and unlicensed exhibitors of the Animal Welfare Act’s reach,” said USDA Acting General Counsel Tyler S. Clarkson. “USDA looks forward to continuing its close partnership with the Justice Department to litigate these cases and enforce the Animal Welfare Act.”
The court found that the Lowes’ failure to provide safe conditions, proper nutrition, and timely veterinary care resulted in harm to a number of animals, including the death of two tiger cubs less than a week apart. Such evidence indicated that the defendants’ remaining Endangered Species Act protected animals are at risk of harm and convinced the court to grant the government’s motion for temporary restraining order and motion for preliminary injunction. The court also found that the defendants’ pattern and practice of providing substandard care and their failure to employ a qualified attending veterinarian placed the health of the defendants’ animals in serious danger under the Animal Welfare Act, requiring injunctive relief. Although long authorized by statute, this case marks the first time that the government sought civil judicial injunctive relief under the Animal Welfare Act.
The court was not persuaded by the defendants’ argument that they were not “exhibitors” under the Animal Welfare Act because the zoo was still under construction. The court found that the Lowes’ prior licensure and exhibition of animals, promoting Tiger King Park’s grand opening, making their animals available to the public through online platforms for compensation, and allowing camera crews onto the property to film for a show to appear on Netflix constituted “exhibiting” as contemplated by the Animal Welfare Act.
Trial attorneys from the Environment and Natural Resources Division’s Wildlife and Marine Resources are handling the case. They are assisted by attorneys from the Civil Division of the U.S. Attorney’s Office for the Eastern District of Oklahoma. The case is being investigated by USDA’s Animal Plant and Health Inspection Service and the Department of the Interior’s Fish and Wildlife Service.
The case is United States v. Lowe, et al., No. 20-423 (E.D. Okla.).
Islam Said Pleads Guilty to Concealing ‘10 Most Wanted’ Suspect Yaser Said from ArrestRead the Press Release
A 32-year-old Irving man has pleaded guilty to helping a capital murder suspect evade capture for more than 12 years, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Islam Yaser-Abdel Said, the son of FBI “10 Most Wanted” suspect Yaser Said, pleaded guilty Tuesday morning to one count of conspiracy to conceal a person from arrest, one count of concealing a person from arrest, and one count of conspiracy to obstruct an official proceeding. Mr. Said pleaded open to the charges against him, with no assurances from the government as to the sentence prosecutors would recommend to the judge.
“Islam Said prioritized the whims of his father, an alleged killer, over justice for his own sisters. Thanks to the dogged work of the FBI and its law enforcement partners, however, Mr. Said’s efforts were ultimately in vain,” said U.S. Attorney Prerak Shah. “We are grateful to the many agents and officers who worked to apprehend Mr. Said, along with his father and uncle. Sarah and Amina deserve justice.”
“Islam Said made it possible for his father, Yaser Said, to evade justice for the brutal murder of his daughters for more than a decade,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Along with our partners, the FBI is thankful for the dedication and relentless pursuit that led to the capture of Amina and Sarah’s killer and those that provided him harbor.”
In plea papers, Mr. Said admitted to sheltering his father from arrest in an attempt to subvert the administration of justice.
The elder Mr. Said had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, he shot the girls to death inside his taxicab and abandoned their bodies inside the vehicle. He was captured by the FBI’s Violent Crimes Task Force in August 2020, and is currently in state custody.
By pleading guilty, Islam Said admitted that the evidence proved he committed the crimes charged in the superseding indictment.
Mr. Said harbored his father, Yaser, inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017. After the maintenance worker reported the sighting to the FBI, an agent was dispatched to interview Islam, but Islam refused to cooperate.
He later harbored his father inside a home in Justin, Texas that belonged to his cousin. On Aug. 25, 2020 FBI agents observed Mr. Said and his uncle deliver grocery bags to the residence, then followed the men to a shopping center 20 miles away, were they dumped trash retrieved from the home.
Islam Said now faces up to 30 years in federal prison. His is slated to be sentenced on April 30, 2021 at 9 a.m. by U.S. District Judge Reed O’Connor.
Islam’s uncle, Yassein Said, is set for trial on Feb. 1, 2021.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany H. Eggers and Errin Martin are prosecuting the case.
Hospice, home health agency and owners pay over $1.8M to resolve claims concerning physician paymentsRead the Press Release
McALLEN, Texas – The founders of an Edinburg hospice and related home health agency have paid to resolve allegations they submitted claims to Medicare that resulted from unlawful referrals, announced U.S. Attorney Ryan K. Patrick.
Onder Ari, 49, Edinburg, and Sedat Necipoglu, 48, McAllen, founded Allstate Hospice LLC and Verge Home Care LLC. They and their companies have now paid $1,847,279.36 following an investigation into improper payments to physicians for referrals.
The investigation began in 2016 and revealed Ari and Necipoglu offered compensation to physicians who were responsible for a significant majority of their patient referrals. Specifically, they provided physicians with monthly payments pursuant to medical directorship agreements with Allstate and Verge. Those payments were in excess of fair market value for the services the physicians actually provided.
Ari and Necipoglu also sold interests in Allstate to five different physicians which ultimately netted them substantial quarterly dividends. They also provided physicians other gifts and benefits, such as travel and tickets to sporting events.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits specified entities from billing Medicare for certain services referred by physicians with whom the entity has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services Medicare, Medicaid and other federally-funded programs cover. Both the Stark Law and the Anti-Kickback Statute are intended to ensure the best interests of the patient and that improper financial incentives do not compromise medical decision-making.
“The FBI is committed, along with its partners, to taking action to eliminate improper relationships and inducements that can corrupt the integrity of physician decision-making and increase health care costs,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “Along with criminal prosecution, the FBI will also pursue administrative and civil remedies with the U.S. Attorney’s Office (USAO) and our partner investigative agencies, to prevent, deter and recover government losses sustained by fraud, waste and abuse.”
“Paying physicians to steer patients to one provider over another unacceptably subverts patient choice,” said Special Agent in Charge Miranda Bennett of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG). “We will continue to work with our law enforcement partners to investigate improper payments to physicians to protect patients and the integrity of the programs from unscrupulous acts.”
The FBI and DHHS-OIG conducted the investigation along with the USAO. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Grant County woman admits to fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kelsey Morgan Ault, of Maysville, West Virginia has admitted to her role in a methamphetamine and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Ault, 26, pled guilty today to one count of “Possession with Intent to Distribute at Least Forty Grams of Fentanyl—Aiding and Abetting.” Ault admitted to having more than 40 grams of fentanyl in Hardy County in January 2020.
Ault is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Rapids Man Guilty of Distributing Fatal Dose of FentanylRead the Press Release
KALAMAZOO, MICHIGAN — On January 14, 2021, a jury found Javontae Quintez White, 28, of Grand Rapids, guilty of distributing a fatal dose of the deadly synthetic opioid fentanyl to a Grand Rapids woman, announced U.S. Attorney Andrew Birge. The victim, who died in July 2018, was 33 years old at the time of her death.
On the morning of July 8, 2018, the victim was discovered by her boyfriend in her apartment unconscious and unresponsive. The boyfriend and the victim had used the fentanyl late in the evening of July 7, 2018. The Grand Rapids Police Department (GRPD) and paramedics responded to the scene and found the victim dead. Police identified a suspected amount of fentanyl and other drugs on a living room side table steps away from the victim. An autopsy performed by the Kent County Medical Examiner later that day revealed that the victim had died of a fentanyl overdose.
The boyfriend had obtained the fentanyl through a heroin addict who middle-manned the deal between the boyfriend and Mr. White on the evening of July 7, 2018. Within hours of finding the victim on July 8, 2018, GRPD arranged an undercover purchase that resulted in the addict / middleman’s arrest. Further investigation by GRPD led to the identification of Mr. White as the source of the deadly fentanyl. Mr. White was arrested in the evening of July 8, 2018, less than ten hours after the victim was found dead. Upon his arrest, Mr. White was found in possession of additional fentanyl and cocaine and the marked currency that the undercover officer used to purchase fentanyl earlier that afternoon.
Mr. White was indicted for distribution of fentanyl resulting in death, distribution of fentanyl, and possession with intent to distribute fentanyl and cocaine. Because of his prior felony drug record, Mr. White faced a sentence of mandatory life in prison if convicted at trial of the distribution resulting in death charge. In September 2020, a jury convicted White for distributing fentanyl to the addict / middleman on July 8, 2018 and for possession with intent to distribute the fentanyl and cocaine found on him at his arrest. The jury did not return a verdict on the distribution resulting in death charge.
Mr. White elected to be retried on the distribution resulting in death charge after declining a plea agreement that would have enabled him to receive a sentence of less than mandatory life in prison. After four days of trial, the jury convicted him. Mr. White’s sentencing is scheduled for April 26, 2021 before U.S. District Judge Paul L. Maloney at which time he will face a mandatory sentence of life in prison.
“Fentanyl and its analogues are the deadliest of illegal street drugs. Individuals who order heroin are increasingly receiving fentanyl, a synthetic opioid that is much easier and cheaper to produce than heroin but offers a similar high. Addicts who take fentanyl frequently do so with deadly consequences,” said U.S. Attorney Birge. “Those involved in illegal opioid distribution in West Michigan beware: if you deal heroin and fentanyl, you are not only ruining lives, you are often taking them. The West Michigan law enforcement community is committed to ensuring that drug dealers who distribute drugs resulting in death are brought to justice and that lives are accounted for,” added U.S. Attorney Birge.
“Drug dealers, like Mr. White, are dealing poisons in our communities with total disregard for human life,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “We are proud to work with our state and local law enforcement partners to get drug dealers, like Mr. White, out of our neighborhoods and brought to justice.”
“The Grand Rapids Police Department recognizes the toll that the opioid crisis has taken on our community. We strive to hold opioid dealers accountable for the deaths they are continuing to cause in our city and across the country,” added Grand Rapids Police Department Lieutenant Jon Wu. “We thank the U.S. Attorney’s Office for their persistence in securing Mr. White’s conviction for selling fentanyl, which all too often results in death.”
The boyfriend and addict / middleman were criminally charged by the Kent County Prosecutor’s Office for their involvement in the offense. They pled guilty and are serving the remainder of their sentences.
Assistant U.S. Attorneys Joel S. Fauson and Austin J. Hakes are prosecuting the case.
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Government Contractor Sentenced for Fraudulently Billing Federal and State Construction ContractsRead the Press Release
BOSTON – VJ Associates, Inc. of Suffolk, based on Hicksville, N.Y., pleaded guilty and was sentenced today on criminal and civil charges relating to a long-running overbilling scheme involving numerous government-funded construction projects in Massachusetts and New York.
VJ Associates, Inc. of Suffolk pleaded guilty to conspiracy to commit wire fraud and was sentenced by U.S. District Court Judge Denise J. Casper to pay nearly $1.3 million in restitution and a fine of $530,000. Between this sentence and related civil settlements, VJ Associates, Inc. of Suffolk and its affiliated companies (collectively VJ Associates) will pay a total of $3.13 million in criminal and civil fines and restitution and be debarred permanently from participating in contracts funded by the U.S. Department of Transportation (DOT).
VJ Associates provided sub-contracted estimating and scheduling services for construction projects funded with state and federal money. Services included forecasting costs and resources to complete a project, and estimating the time necessary to complete milestones in a project. VJ Associates employees frequently billed government contracts hourly for their time. The DOT, the State of New York and the Commonwealth of Massachusetts funded many projects on which VJ Associates worked.
From at least January 2007 through August 2018, VJ Associates, Inc. of Suffolk—the largest and original VJ Associates entity—conspired with other VJ Associates entities and employees to pad bogus time charges on government construction contracts funded by the DOT, the State of New York and the Commonwealth of Massachusetts. As a result, the VJ Associates entities improperly received nearly $1.3 million in state and federal taxpayer money. The improper billing included, for example, hours employees spent working on unrelated projects, time spent on administrative tasks and time doing no work. Under pressure from management, employees openly discussed improper billing as “juicing” and “tagging” hours in order to “maximize” bills on government projects and not “leave money on the table.” One employee summed up his billing practices to his colleague as a “shell game” and explained that, when management “gave him a bit of trouble” about how he billed his time, he fraudulently maximized his hours billed because “what the hell,” management “pay[s] me every two weeks,” and he was “not the boss.”
The related civil settlement with the United States arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with settlement with the United States, the whistleblower will receive 22.5% of the recovery.
The government’s resolution of this matter illustrates the government’s emphasis on combating fraud related to government-funded transportation projects. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Transportation, at 1-800-424-9071.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Regional Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General; and Port Authority of New York and New Jersey Acting Inspector General Farbiarz made the announcement today. Assistant United States Attorneys Brian M. LaMacchia and Evan Gotlob of Lelling’s Office handled the matter.
Fresno Man Sentenced to over 3 years in Prison for Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Jesse Moses Escano, 22, of Fresno, was sentenced on Friday by U.S. District Judge Dale A. Drozd to three years and three months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 16, 2019, law enforcement officers conducted a parole-compliance check on Escano. During a pat down search, one of the officers discovered a loaded semi-automatic handgun on Escano’s person. The handgun was later determined to have been stolen out of Brentwood. Escano had been previously convicted of an assault with a deadly weapon, a felony, and was prohibited from possessing firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio 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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fourth New Jersey Man Charged in Connection with an Interstate Luxury Car Theft RingRead the Press Release
NEWARK, N.J. – A fourth man was arrested today for his role in a conspiracy to steal and transport across state lines luxury cars from towns in New York, Connecticut, and New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Bilal Cureton, 30, of Newark, is charged by amended complaint with conspiring to transport stolen vehicles in interstate commerce. Cureton was arrested today and is scheduled to appear by videoconference today before U.S. Magistrate Judge James B. Clark III.
Malik Baker, Hakeem Smith, and Nafique Goodwyn were previously charged by complaint with conspiring to transport stolen vehicles in interstate commerce. Baker and Smith were also previously charged with one count of conspiring to receive stolen vehicles and one count of receiving a stolen vehicle that had crossed state lines after being stolen, and Smith was also previously charged with one count of transporting a stolen vehicle across state lines.
According to documents filed in this case and statements made in court:
Since July 2019, the defendants and others stole and conspired to steal at least 10 luxury cars from towns in New York, Connecticut, and New Jersey, and hid those cars at a location in Irvington, New Jersey. The cars include a 2019 BMW X4 M40i, stolen from Greenwich, Connecticut on July 19, 2019; a 2016 Mercedes Maybach S600, stolen from Clifton, New Jersey, on Aug. 1, 2019; a 2019 Porsche Cayenne, stolen from New City, New York, on Aug. 6, 2019; a 2017 Mercedes S550 and a 2019 Rolls Royce, stolen from Hewlett Bay Park, New York, on Aug. 13, 2019; a 2019 Land Rover, stolen from Kensington, New York, on Aug. 22, 2019; a 2019 Mercedes Maybach, stolen from Quogue, New York, on Aug. 29, 2019; a 2014 Lexus GS, stolen from West Long Branch, New Jersey, on Aug. 29, 2019; a 2017 BMW M4, stolen from Marlton, New Jersey, on Sept. 7, 2019, and a 2017 Mercedes AMG S63, stolen from Orangeburg, New York, in September 2019.
The defendants often used the stolen cars to steal more cars, and, in one instance, they used a Maserati GranTurisimo they stole from Manalapan, New Jersey, to steal a Range Rover and a Porsche Cayenne in the early morning hours of Aug. 6, 2019 in New City, New York. When law enforcement attempted to conduct a stop of the Maserati, the Maserati accelerated and crashed head-on into a police vehicle before the suspects fled the scene in another stolen vehicle. Over the course of the investigation, law enforcement recovered one of the stolen cars in a shipping container at the port in Newark en route to Ghana, Africa.
The cars stolen by the defendants have an estimated total value of at least $1.5 million.
The charge of conspiracy to transport stolen vehicles is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offenses, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; as well as the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to today’s charges. She also thanked officers with the Irvington Township Police Department, under the direction of Director Tracy Bowers; the Clarkstown Police Department, under the direction of Chief Raymond McCullagh; the Wall Township Police Department, under the direction of Chief Kenneth Brown, Jr.; the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; the Tewksbury Township Police Department, under the direction of Chief Tim Barlow; the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Hunterdon County Prosecutor’s Office, under the direction of Acting Prosecutor Michael J. Williams, as well as officers and agents with the U.S. Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office; the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, and the Department of Commerce-Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York, for their assistance.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Christopher Amore and Olajide Araromi of the Office’s Government Fraud Unit.
The charges and allegations contained in the amended complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Owner of Stamp Farms Sentenced to Eight Years in Prison for Bank Fraud Scheme and Conspiracy to Defraud Farm Benefit ProgramsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Michael David Stamp, 46, of Decatur, Michigan, was sentenced to 96 months in federal prison for bank fraud and federal farm program fraud. U.S. District Judge Paul L. Maloney imposed the sentence. He also sentenced Stamp to five years of supervised release and ordered him to pay more than $17 million in restitution to Wells Fargo Bank, the U.S. Department of Agriculture’s Risk Management Agency, and U.S.D.A.’s Farm Service Agency.
Stamp, who at one point operated the largest agribusiness in the State of Michigan, pled guilty to engaging in a scheme to defraud his lender, Wells Fargo Bank, in order to obtain a $68 million line of credit for his business. He also pled guilty to engaging in a conspiracy to defraud the Federal Crop Insurance Corporation. Judge Maloney characterized Stamp’s fraud scheme as “rampant” and a “rip-off of the taxpayers of the United States” who fund federal farm benefits programs, “which are supposed to help farmers.”
“Mr. Stamp fraudulently obtained $68 million in bank loans and took advantage of government programs funded by U.S. taxpayers. Today’s sentence should serve as a reminder that defrauding public programs and providing false or misleading documents to financial institutions are serious crimes that undermine our financial system and will not be tolerated,” said Sarah Kull, Special Agent in Charge, IRS-Criminal Investigations.
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who attempt to defraud U.S. Department of Agriculture programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to all that fraud will be vigorously investigated and prosecuted by the USDA-OIG and the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs. The USDA-OIG applauds the steadfastness and resolution of the U.S. Attorney's Office to prosecute this matter and the agents of IRS-Criminal Investigations that assisted in this criminal investigation.”
The investigation was conducted by Internal Revenue Service-Criminal Investigations, U.S.D.A’s Office of Inspector General, and U.S.D.A.’s Risk Management Agency. Assistant U.S. Attorneys Clay Stiffler and Tim VerHey prosecuted the case.
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Former Eugene Elementary School Teacher Pleads Guilty for Sexually Abusing 15-Year-OldRead the Press Release
EUGENE, Ore.—A former Eugene elementary school teacher pleaded guilty today for sexually abusing a minor female, announced U.S. Attorney Billy J. Williams.
William Hamann, 38, pleaded guilty to one count of sex trafficking of a child.
According to court documents, on several occasions beginning in 2018 and continuing until July 2019, Hamann paid a minor female for oral sex and recorded the minor performing the sex acts. The minor female was 15 years old during the first encounter with Hamman. Eugene Police Department detectives and FBI agents arrested Hamann on July 26, 2019, when he came to meet the minor a fourth time. Agents searched his mobile phone and found a recording of one of the sex acts. Hamman used social media to arrange the meetings with the minor.
On August 21, 2019, a federal grand jury in Eugene returned a four-count indictment charging Hamann with sexual exploitation and trafficking of a child, possession of child pornography, and attempted sex trafficking of a child.
Hamann was also charged with multiple counts in Lane County Circuit Court, including sodomy and sex abuse.
Hamann will be sentenced on March 1, 2021 before U.S. District Court Judge Ann Aiken. The U.S. Attorney’s Office will recommend a sentence of 160 months in federal prison to be served consecutively to a 20-month prison sentence in Lane County.
As part of the plea agreement, Hamann has agreed to pay restitution in full to his victim.
This case was investigated by the FBI and the Eugene Police Department. It is being prosecuted by Jeff Sweet, Assistant U.S. Attorney for the District of Oregon, and Katherine Green, Lane County Deputy District Attorney.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Correctional Officer Pleads Guilty to Submitting False Report Related to a Federal Civil Rights InvestigationRead the Press Release
SACRAMENTO, Calif. — A former California Department of Corrections and Rehabilitations (CDCR) correctional officer pleaded guilty today to submitting a false report in connection with a federal civil rights investigation, U.S. Attorney McGregor W. Scott announced.
Ashley Marie Aurich, 32, of Sacramento, pleaded guilty to one count of falsification of records in a federal investigation.
According to court documents, Aurich was a correctional officer at California State Prison, Sacramento. On Sept. 15, 2016, Aurich and another former correctional officer, Arturo Pacheco, escorted an inmate whose hands were handcuffed behind the inmate’s back. During the escort, Aurich saw Pacheco bend down behind the inmate and pull the inmate’s legs out from under him. This caused the inmate immediately to fall forward violently striking his head and upper torso on the concrete. The inmate-victim was taken to the hospital where he died approximately two days later.
After the incident, Aurich prepared a false report regarding Pacheco’s assault on the victim in which Aurich inaccurately described the way Pacheco took the victim to the ground and failed to identify another witness to the assault. Aurich prepared the false report in order to deceive investigators, minimize Pacheco’s conduct, and obstruct the ensuing federal investigation.
This case is the product of an investigation by the Federal Bureau of Investigation and CDCR, Office of Internal Affairs. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Aurich is scheduled to be sentenced by U.S. District Judge William B. Shubb on April 12. Aurich faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Arturo Pacheco, 38, of Mather, is charged with two counts of deprivation of rights under color of law and two counts of falsification of records in a federal investigation in a related case. The charges against Pacheco are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. (2:20-cr-221-WBS)
Former Construction Executive Sentenced to 38 Months in PrisonRead the Press Release
A former senior New York construction official was sentenced to 38 months in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, for more than eight years, Anthony Guzzone attempted to evade his federal income taxes. Guzzone, the former Director of Global Construction at Bloomberg LP in New York, failed to report to the IRS over $1.45 million in bribes he received from subcontractors performing work at Bloomberg construction jobs. Guzzone, together with other Bloomberg managers and officials at Turner Construction, solicited a total of over $6 million in bribes, which was typically paid to them in cash. On other occasions, Guzzone received in-kind bribes in the form of free construction work performed on his home and tickets to expensive events like the Super Bowl.
One Bloomberg manager involved in the scheme, Michael Campana, had subcontractors pay for the catering hall at his wedding, as well as the wedding photographer. Campana was previously sentenced to 24 months in prison based on his failure to report the bribery income. Based on Guzzone’s failure to report the bribe income between 2010 and 2017, he caused a tax loss to the IRS of approximately $450,000. Two Turner Construction officials, Ronald Olson and Vito Nigro, are awaiting sentence.
In addition to a term of imprisonment, U.S. District Court Judge Lewis Liman sentenced Guzzone to three years of supervised release, and ordered him to pay $574,005 in restitution to the IRS, which comprised his outstanding taxes and interest.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-CI as well as Assistant U.S. Attorney David Lewis for the Southern District of New York and Senior Litigation Counsel Stanley Okula of the Tax Division who prosecuted the case.
Former Construction Executive Sentenced to 38 Months in Prison for Tax Evasion and Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that ANTHONY GUZZONE, a former Director of Global Construction at Bloomberg, LP (“Bloomberg”), was sentenced today in Manhattan federal court to 38 months in prison for evading taxes on more than $1.45 million in bribes he received from building sub-contractors. GUZZONE previously pled guilty to those charges, and was sentenced today before U.S. District Judge Lewis J. Liman.
In related proceedings, co-conspirator Michael Campana, a subordinate construction manager at Bloomberg, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in the same scheme. In addition, Ronald Olson and Vito Nigro, two managers of a construction contractor that performed projects for Bloomberg, have separately pled guilty to evading taxes on more than $1.4 million and $1.8 million in bribes that they respectively received in the same scheme. Olson is scheduled to be sentenced on February 3 before U.S. District Judge P. Kevin Castel, and Nigro is scheduled to be sentenced on March 8 before U.S. District Judge Analisa Torres.[1]
U.S. Attorney Audrey Strauss said: “Bribery and tax evasion impose hidden, unfair costs on the law-abiding public. The type of criminality uncovered in this case imposes that burden widely, on customers, on employers, and on fellow taxpayers. It is intolerable in a just society.”
According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:
Between 2010 and 2017, GUZZONE was the Director of Global Construction at Bloomberg, a global financial firm that was engaged in various building projects in New York City and elsewhere, while Olson and Nigro were executives Turner Construction, a construction contractor that performed projects for Bloomberg. For most of that time, beginning in 2013, Campana was also a construction manager at Bloomberg. Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg.
In all, the defendants have pled guilty to failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million. The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction projects on their individual homes and properties, and the direct payment of personal expenses. Such personal expenses included GUZZONE’s receipts of several sets of Super Bowl tickets, worth approximately $8000 per ticket, as well as Campana’s receipt of charges related to Campana’s 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with Campana’s honeymoon. Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.
* * *
GUZZONE, 51, of Middletown, New Jersey, pled guilty on September 29, 2020, to a single count of tax evasion for the tax years 2010 through 2017. In addition to the prison term, GUZZONE was sentenced today to three years of supervised release, and ordered to pay restitution of $574,005.33 in unpaid taxes.
Olson, 53, of Massapequa, New York, pled guilty on July 29, 2020, to a single count of tax evasion for the tax years 2011 through 2017.
Nigro, 59, of Middletown, New Jersey, pled guilty on October 28, 2020, to a single count of tax evasion for the tax years 2011 through 2017.
Campana, 34, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes (which he has repaid), and a fine of $10,000.
The charges against Olson and Nigro each carry a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of Olson or Nigro will be determined by the respective judges.
Ms. Strauss praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis, and Stanley J. Okula, Senior Litigation Counsel of the Tax Division of the Department of Justice, are in charge of the prosecution.
[1] In addition, all four defendants have pled guilty in New York State Supreme Court, Indictment No. 04038-2018, to participating in the underlying bribery scheme, and are awaiting sentencing.
Foreign-Language Training Companies Admit to Participating in Conspiracy to Defraud the United StatesRead the Press Release
Two providers of foreign-language services, Comprehensive Language Center Inc. (CLCI), based in the Washington, D.C., area, and Berlitz Languages Inc. (Berlitz), based in New Jersey, were charged with participating in a conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating competitive bidding for a multi-million dollar foreign-language training contract issued by the National Security Agency (NSA) in 2017, the Department of Justice announced today.
“These charges reaffirm the Antitrust Division’s commitment to combating anticompetitive conduct that victimizes government agencies,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The actions of these companies corrupted the competitive bidding process put into place by the NSA for vital language training services.”
“The result of today’s announcement demonstrates the FBI’s enduring commitment to vigorously address allegations of all types of corruption that may obstruct or hinder the right to fair competition in the marketplace,” said Special Agent in Charge George M. Crouch Jr. of the FBI Newark Field Office.
According to the one-count felony charges filed today in the U.S. District Court for the District of New Jersey, Berlitz and CLCI participated in a conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating competitive bidding for a contract to provide foreign-language training services to the NSA. According to court documents, as part of the conspiracy, Berlitz and CLCI facilitated the submission of false and misleading bid information to the NSA. As a result, competition was suppressed among legitimately qualified bidders for the contract, obstructing, by dishonest means, the government’s ability to benefit from a competitive bidding process. The charged conspiracy began as early as March 2017 and continued until as late as December 2017.
The Antitrust Division also announced deferred prosecution agreements resolving the charges against Berlitz and CLCI. Under the agreements, the companies admitted to participating in the charged conspiracy, agreed to cooperate fully with any related criminal investigation and prosecution, and agreed to maintain a compliance and ethics program designed to prevent and detect violations such as the one charged. Pursuant to the agreements, Berlitz also agreed to pay a $147,000 criminal penalty and CLCI agreed to pay a $140,000 criminal penalty, and both companies agreed that they were jointly and severally liable to pay $56,984 in victim compensation to the NSA.
Berlitz and CLCI are each charged with a violation of 18 U.S.C. § 371, which carries a maximum penalty of a $500,000 fine for companies.
The charges are the result of a federal antitrust investigation into fraud and anticompetitive conduct related to foreign-language training contracts being conducted by the Antitrust Division’s New York Office, with the assistance of the FBI’s Newark, New Jersey, Field Office and the NSA Office of the Inspector General. Anyone with information in connection with this investigation should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.
Flemingsburg Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky.- A Flemingsburg, Ky., man, Wesley A. Miles, 28, pleaded guilty on Tuesday, before Chief U.S. District Judge Danny Reeves, to illegal possession of a firearm by a convicted felon.
According to his plea agreement, on June 1, 2018, Miles was involved in an altercation at a restaurant in Paris, Ky. Miles admitted that, during the altercation, he exited the restaurant and retrieved a firearm from his vehicle. Prior to leaving the scene, Miles fired a single shot in the air., Miles then fled the scene and disposed of the firearm by throwing it out of his vehicle’s window. Miles admitted that, at the time, he had been convicted of a crime and was prohibited from possessing a firearm.
Miles was indicted in June 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Myron Thomas, Paris Police Department, jointly announced the guilty plea.
The investigation was conducted by ATF and the Paris Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
Miles is scheduled to be sentenced on April 26, 2021. He faces up to 10 years in prison. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian
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Environment and Natural Resources Division Distributes Memorandum Summarizing Enforcement Policies and PrioritiesRead the Press Release
On Friday, the Environment and Natural Resources Division publicly distributed a memorandum summarizing important principles and priorities for environmental enforcement. The memorandum, issued Jan. 14 by outgoing Assistant Attorney General Jeffrey Bossert Clark, emphasizes that robust enforcement of our nation's environmental laws remains one of the division’s highest priorities. It emphasizes that, when engaged in criminal and civil enforcement, it is important that the division continue to enhance the fair and impartial application of the law.
The memorandum collects and reflects recent policies and guidance within the division, from around the Department of Justice, and in orders from the President for the continued just implementation of these responsibilities and for ensuring due process to the citizens of the United States who must have fair notice of the laws they are expected to obey. It articulates several key enforcement priorities that the division has pursued in recent years, including a focus on clean air, clean water, and clean land; a commitment to fighting fraud and protecting taxpayer money; and an emphasis on protecting America’s workers and infrastructure.
The memorandum — along with three other new memoranda regarding (1) the proper scope of equitable mitigation, (2) new restrictions on the use of Supplemental Environmental Projects, and (3) a discussion of additional recommendations on the use of enforcement discretion — are available on the division’s webpage: https://www.justice.gov/enrd/selected-documents.
Elkhart, Indiana Man Sentenced to 41 Months in PrisonRead the Press Release
SOUTH BEND –Joshua Ray, 29, of Elkhart, Indiana was sentenced, late last week, by United States District Court Judge Jon E. DeGuilio upon his plea of guilty to possession of machineguns, announced Acting U.S. Attorney Bell.
Ray was sentenced to 41 months in prison and 2 years of supervised release.
According to documents filed in this case, Mr. Ray pleaded guilty to possessing machineguns, specifically auto switch (sear) devices that could convert a semi-automatic pistol into a fully automatic weapon. In May of 2019, law enforcement intercepted a package bound for Mr. Ray that contained 40 auto switch devices. Later that month, law enforcement found four auto switch devices at his home along with three rifles, a shotgun, and two handguns.
This case was investigated by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was handled by Assistant U.S. Attorney Kimberly Schultz.
East Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIONTE WILSON, 25, of East Hartford, pleaded guilty today to unlawful possession of a firearm by a convicted felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, after a review of videos on social media websites identified Wilson as being in possession of several different firearms, members of the FBI’s Northern Connecticut Gang Task Force conducted multiple controlled purchases of marijuana from Wilson. On August 10, 2020, Wilson was arrested after he displayed a Taurus .380 caliber handgun during a controlled marijuana purchase. A subsequent search of Wilson’s residence revealed a loaded .380 caliber Taurus gun magazine and approximately 100 rounds of .22 caliber long rifle hollow point bullets.
Wilson’s criminal history includes state convictions for narcotics and firearm 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.
Wilson has been detained since his federal arrest on September 9, 2020. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 14, 2021, at which time he faces a maximum term of imprisonment of 10 years.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant United States Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
EDVA and FBI Affirm Commitment to Ensuring Peaceful InaugurationRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI affirmed their commitment today to holding accountable anyone who, in connection with tomorrow’s presidential inauguration, commits acts of violence or otherwise violates federal law in the Eastern District of Virginia, including at the Virginia State Capitol in Richmond.
“While the First Amendment protects the right of individuals to assemble peaceably, it does not provide safe harbor to those who engage in repugnant and destructive behavior to violently attack our Nation’s democracy,” said Raj Parekh, Acting United States Attorney for the Eastern District of Virginia. “Our office—in partnership with federal, state, and local law enforcement—will thoroughly investigate and prosecute those who commit violence, destroy property, or threaten others in violation of federal law. For anyone who is contemplating traveling from EDVA to D.C. to engage in criminal acts during tomorrow’s inauguration events, know that we stand united and will assist our counterparts in the District of Columbia to ensure a peaceful inauguration. Likewise, for those considering traveling to the Virginia State Capitol to engage in criminal activity, EDVA, the FBI, and our law enforcement partners will act quickly to seek justice and hold you accountable.”
The FBI is the lead federal agency for intelligence analysis and dissemination to law enforcement partners, counterterrorism, and crisis management for the inauguration. “FBI agents, analysts, and professional staff are working around the clock with our partners to identify, investigate, and respond to any threats that might arise in the National Capital Region,” said Steven M. D’Antuono, Assistant Director in Charge of the Washington Field Office. “While the FBI respects the rights of individuals to peacefully exercise their First Amendment rights, those who wish to use this freedom to instigate violent and destructive behavior will not be tolerated and will be held to account for their unlawful actions.”
If you have any information, tips, or digital media depicting rioting or violence at the U.S. Capitol Building or its surrounding area, please visit fbi.gov/USCapitol or call 1-800-CALL-FBI. If you have any information about unlawful activity in or around Virginia’s State Capitol Building, please contact FBI’s Richmond Field Office at 804-261-1161.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
DuPont and former employee charged in 2014 fatal La Porte incidentRead the Press Release
HOUSTON – A Houston federal grand jury has indicted E. I. du Pont de Nemours and Company Inc. (DuPont) and a former employee for knowingly violating requirements of federal safety regulations and negligently releasing an extremely hazardous substance, U.S. Attorney Ryan Patrick announced today.
Kenneth Sandel, 49, Friendswood, along with representatives of DuPont are set to appear today before U.S. Magistrate Judge Frances Stacy at 10 a.m.
The indictment stems from the Nov. 15, 2014, incident at the LaPorte plant when 24,000 pounds of methyl mercaptan - a highly toxic, flammable gas - were released. The incident resulted in the deaths of four plant employees and injured others, according to the charges.
According to the charges, returned Jan. 7, DuPont is headquartered in Wilmington, Delaware, and owns chemical manufacturing plants around the world, including the La Porte facility. Sandel ran the Insecticide Business Unit (IBU) at that location and was responsible for ensuring IBU employees followed applicable federal safety regulations.
The IBU has since been demolished, but at the time, allegedly produced pesticides called Lannate and Vydate, among other products. The indictment alleges Lannate and Vydate generated annual net income for DuPont of approximately $123 million during 2014.
The safety regulations are part of the Environmental Protection Agency’s (EPA) Risk Management Plan, created following 1990 amendments to the Clean Air Act. Congress had directed the EPA to create reasonable regulations to prevent the release of certain hazardous chemicals after such events had resulted in the death or injury to many people in the United States and abroad.
The indictment alleges DuPont and Sandel knowingly failed to implement certain DuPont procedures federal regulations required. Specifically, Sandel and DuPont engineers allegedly devised a plan to divert a large volume of methyl mercaptan gas into a waste gas pipe system during the day before and night of the fatal incident. However, Sandel failed to implement necessary procedures to evaluate safety aspects of that plan and to prohibit workers from opening the pipe to the atmosphere, according to the charges.
If convicted of the federal safety regulations violations, Sandel faces up to five years in federal prison while the negligence charge could result in an additional one-year term. Both convictions also carry a potential fine of $250,000.
The company itself faces potential fines of the greater of $500,000 or twice the gross gain derived from the offense.
The EPA’s Criminal Investigation Division conducted the investigation with assistance from the Texas Environmental Enforcement Task Force. The indictment is part of an EPA initiative titled Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. Assistant U.S. Attorneys John R. Lewis and Belinda Beek and Special Assistant U.S. Attorney Kristina Gonzales are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Developer Agrees to Mitigate Impacts to Streams and WetlandsRead the Press Release
A developer and his companies have agreed to effectuate $900,000 in compensatory mitigation, preserve undisturbed riparian areas, conduct erosion-control work on streams, and be subject to a prohibitory injunction to resolve alleged violations of the Clean Water Act (CWA) on property north of Houston, Texas, the Justice Department announced today.
“Today’s substantial settlement involving the unpermitted filling of streams and wetlands, if approved by the court, will draw to a close this long-running Clean Water Act litigation,” said Eric Grant, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s agreement serves the public interest in enforcement of the Clean Water Act and provides long-overdue mitigation for these alleged violations.”
The case stems from activities Thomas Lipar conducted to create the Benders Landing Estates housing development on property containing streams and wetlands that feed into Spring Creek and the West Fork of the San Jacinto River, which, in turn, flow into Lake Houston.
Beginning in 2005, the defendants operated earthmoving machinery and filled substantial segments of streams and acres of abutting wetlands. Despite receiving information about the aquatic condition of the property, Lipar did not seek a CWA dredge-or-fill permit. The settlement agreement reached today secures significant mitigation for these alleged violations, while providing fairness for developers who comply with the applicable laws.
The case is styled United States v. Lipar, No. 4:10-cv-01904 (S.D. Tex.). The proposed consent decree, lodged in the U.S. District Court in Houston, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
Chief Financial Officer of Suburban IT Consulting Firm Charged with Embezzling More Than $1.3 Million in Company FundsRead the Press Release
CHICAGO — The former chief financial officer of a suburban IT consulting firm has been indicted on federal fraud charges for allegedly embezzling more than $1.3 million in company funds.
ANTHONY FREMAREK fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, according to an indictment unsealed Jan. 14, 2021, in U.S. District in Chicago. Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses, the indictment states. The alleged fraud scheme spanned from 2013 to 2019.
The indictment charges Fremarek, 49, of Plainfield, with four counts of wire fraud and two counts of making false statements to a financial institution. Fremarek has pleaded not guilty to the charges.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each false statement count carries a maximum sentence of 30 years in federal prison, while each count of wire fraud is punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.