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Monday 11 January 2021
St. Louis County man pleads guilty to possession of a firearm in furtherance of a drug trafficking crimeRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry accepted a plea, today, from Bernard Toler. The 33-year-old St. Louis County, Missouri resident pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to a plea agreement, on or about February 20, 2019, officers from the St. Louis County Police Department saw a vehicle with no visible license plates make a turn without signaling. Officers turned on the emergency lights to make a traffic stop, but Toler evaded police at a high rate of speed. Toler continued to flee police through a residential area while refusing to stop at multiple stop signs.
Officers eventually turned off their lights and sirens but maintained visual observation of Toler’s vehicle. Officers saw Toler park the vehicle in the parking lot of a business, at which time officers turned on their lights again and positioned their vehicles to prevent Toler from fleeing.
Officers approached Toler’s vehicle and noticed a revolver-style firearm in the middle compartment of the vehicle. Officers removed Toler from the vehicle and took him into custody. Officers seized the firearm, which was loaded with six live rounds, along with two digital scales, a marijuana grinder, a plastic bag containing 24 grams of marijuana and three cellular phones. The seized paraphernalia, drugs and phones are indicative of drug trafficking.
Toler admitted he intended to distribute some or all of the marijuana in his possession to one or more persons and he possessed the seized firearm in furtherance of his drug trafficking activity.
The charge of possession of a firearm in furtherance of a drug trafficking crime carries a penalty of not less than five years, and not more than life, in prison and/or a fine of not more than $250,000.
Judge Perry has set sentencing for April 12, 2021.
The St. Louis County Police Department investigated this case. Assistant United States Attorney Geoff Ogden is handling the case.
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San Diego’s First Woman Federal Prosecutor HonoredRead the Press Release
Assistant U. S. Attorney Rebecca Church (619) 546-7721
NEWS RELEASE SUMMARY – January 8, 2021
SAN DIEGO - The U.S. Attorney’s Office for the Southern District of California is proud to honor the courageous life of Betty Marshall Graydon, the first woman Assistant U.S. Attorney in San Diego, by dedicating a conference room to her memory.
Ms. Graydon joined the U.S. Attorney’s Office in Los Angeles in 1938. She became the sole Assistant U.S. Attorney in San Diego in 1944, prosecuting criminal cases and defending the United States in civil suits until she was elevated to U.S. Commissioner in 1952.
“It is an honor to participate in this important event celebrating the life of Betty Marshall Graydon, a person of great significance to the history of the Southern District of California,” said U.S. Attorney Robert Brewer. “She had a brilliant and trailblazing career, and she represents the important role that women have played in the development and success of this office.” Brewer commended Assistant U.S. Attorney Rebecca Church for leading the effort to honor Ms. Graydon.
Graydon was known as a tenacious advocate who devoted her career to the pursuit of justice. Although she had an impactful life, her story has not been celebrated by this office until now. To learn more about Ms. Graydon’s trailblazing life, please watch conference room dedication tribute video available at https://youtu.be/_dT2UaYg4Xc. With this memorial, we hope that Ms. Graydon’s career will continue to inspire the dedicated public servants in this office, and the larger San Diego community, in the future.
The U.S. Attorney’s Office for the Southern District of California extends gratitude to the Hon. Cynthia Bashant, Hon. Barbara Major, Hon. Nita Stormes, Hon. Karen Crawford, Hon. Jill Burkhardt, and Yahariah Aristy, President of Lawyers Club, for contributing to the video, Ray Christensen for preparing the tribute, Elaine Lawrence, Executive Director of Lawyers Club, and Betty Boone, co-chair of Lawyers Club's History and Archives committee, for generously providing access to Lawyers Club’s research and resources regarding Ms. Graydon’s life and career, and to Federal Women’s Program, Special Emphasis Program Managers, AUSAs Rebecca Church, Katie McGrath, and Meghan Heesch.
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HERESan Antonio-Based Coalition Fighting Human Trafficking Receives $1.5 Million GrantRead the Press Release
A recent award of federal funds will enhance the efforts of the South Texas Officers and Prosecutors (STOP) Human Trafficking Task Force, a coalition of prosecutors and law enforcement agencies in San Antonio committed to fighting the evils of human trafficking. This announcement from U.S. Attorney Gregg N. Sofer, San Antonio Mayor Ron Niremberg, San Antonio Police Chief William McManus and BCFS Health and Human Services Human Trafficking Interdiction Division (BCFS-HHS-HTI) Executive Director Chara McMichael appropriately coincides with National Human Trafficking Awareness Day.
The $1.5M federal grant from the Department of Justice – Office of Victims of Crime – Bureau of Justice Assistance will strengthen the efforts of law enforcement agencies in Bexar and adjacent counties in investigating and prosecuting individuals engaged in trafficking. The STOP Human Trafficking Task Force will use the funding to increase community identification of all forms of human trafficking, rescue victims and prosecute traffickers. Importantly, this program will enhance the existing resources of all area partners to effectively serve survivors of human trafficking. The San Antonio Police Department serves as the lead law enforcement agency and BCFS-HHS-HTI serves as the lead victim services agency.
“Today is National Human Trafficking Awareness Day. In the United States there are thousands of individuals held captive by malevolent traffickers who dehumanize, debase and harm their vulnerable victims. No human being of any age, nationality or background should be treated as a commodity to be bought, sold, traded or forced into labor of any kind,” said U.S. Attorney Sofer. “I am pleased that the STOP Human Trafficking Task Force has received this federal funding. Together, we will prosecute those that profit from this brutal and cruel behavior to the fullest extent of the law.”
Task Force members will provide specialized training and support for local law enforcement agencies and victim service providers to increase offender arrests, prosecutions and convictions. Task Force members will also provide training for educational and business establishments throughout our community. Presentations and audience-specific trainings within the community will increase awareness and identification of all forms of human trafficking – both adults and children who are exploited for the purposes of sex and labor – and will result in more victims rescued and exploitation prevented.
“According to the U.S. Department of Health and Human Services, 25% of human trafficking victims are found in Texas. With tens of thousands of human trafficking victims, San Antonio has proven to be a primary hub for sex trafficking in Texas in the last three years. It is clear, our community must focus on identifying the victims of human trafficking,” said Mayor Niremberg.
The STOP Human Trafficking Task Force, chaired by the U.S. Attorney’s Office, consists of experts dedicated to investigating and prosecuting incidents of human trafficking at both the state and federal levels. In addition to the San Antonio Police Department and BCFS-HHS-HTI, partners include the FBI, Homeland Security Investigations (HSI), Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, Bexar County Juvenile Probation, Texas Attorney General’s Office, Texas Department of Public Safety, Texas Alcohol and Beverage Commission, Texas RioGrande Legal Aid (TRLA), U.S. Marshals Service and U.S. Attorney’s Office.
“The concepts of human trafficking are often misunderstood. The need for increased public awareness, education, and training will increase the identification and reporting of suspected human trafficking. The STOP Task Force is committed to continually refining the methods used to identify victims of human trafficking, as well as working within the community to promote awareness,” said Chief McManus.
If you or someone you know is a victim of human trafficking and needs immediate assistance, call 911. For more information or to learn how you can help, please visit www.STOP-HumanTrafficking.com. If you suspect human trafficking activities, please call the toll-free local human trafficking regional hotline at 1-844-843-6348 or 1-844-UIENDHT (U&I can END Human Trafficking). Trained professionals are ready to provide information and assistance.
“The only way we will succeed is for everyone in our communities to become involved,” said BCFS-HHS-HTI Director McMichael. “Help us fight this horrific crime. Help us educate those around you as to what slavery really looks like in a modern world. With your help, we can identify and remove victims from their situations of abuse and help them to recover.”
Richlands Man Pleads Guilty to Possessing and Manufacturing an Unregistered Explosive DeviceRead the Press Release
ABINGDON, Va.- A Richlands man, who appeared at a health clinic in June 2020 with severe injuries to his hands and fingers, pleaded guilty today to possessing and manufacturing an unregistered explosive device. Acting United States Attorney Daniel Bubar, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police made the announcement today.
Cole Carini, 24, pleaded guilty today to one count of possessing and manufacturing an unregistered explosive device. A sentencing hearing has been scheduled for April 13, 2021. At sentencing, Carini faces up to ten years imprisonment and a $250,000 fine.
“The defendant put the safety of the community at risk when he built and then detonated an explosive device,” Acting United States Attorney Daniel P. Bubar said today. “Thanks to the prompt response and careful investigation of our federal and state law enforcement partners, Carini is being held accountable for his dangerous acts.”
According to court documents, on June 3, 2020, Carini went to a health clinic in Richlands suffering from suffering from extensive injuries to his hands, and shrapnel wounds to his neck and throat. After being interviewed at the hospital by officers, Carini reported that his injuries were caused by a lawn mower accident at his home.
During a search of Carini’s home, agents found the lawn was overgrown and found no other evidence indicating a lawn mower had recently been used. They did, however, find evidence of an explosion more consistent with the types of injuries Carini had suffered. Agents also discovered drawings of improvised explosive devices, significant quantities of what is believed to be Triacetone Triperoxide, an explosive substance used in the creation of improvised explosive devices, and a partially constructed pressure cooker explosive device similar to that used in the Boston Marathon bombing.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the Richlands Police Department and the Tazewell County Sheriff’s Office. Assistant United States Attorneys Zachary T. Lee and Whit Pierce are prosecuting the case for the United States.
Resignation Letter of United States Attorney Russell ColemanRead the Press Release
“Today I submitted my resignation to the President and Acting Attorney General, effective January 20. For a guy whose childhood dream job as an FBI Agent ended early due to a spinal injury, serving as the chief federal law enforcement officer in the place I love, and for the people I’ve known all my life, has been a humbling honor.
I leave this office with gratitude and awe.
Gratitude for the statesmanship and friendship of Senator McConnell who recommended me for this position, to Senator Paul who supported me, and to the White House for the opportunity.
Awe at the gravity of the mission of protecting the families of our West Kentucky district, and of the caliber of the committed public servants of YOUR United States Attorney’s Office. Cynicism abounds regarding government institutions, but we are so fortunate to have good and talented people staffing both this office and serving in federal law enforcement in our Commonwealth.
I traveled to each of the 53 counties in our district seeking ways to be a more responsive partner to business & community leaders, Commonwealth’s Attorneys, sheriffs, and police departments of all sizes. To better protect South Central Kentucky and collaborate with law enforcement partners in the region, we opened a Bowling Green Office for the first time ever. We also increased our staffing in the Paducah Office to more effectively serve our geographically immense district that stretches well beyond Jefferson County, running from Prospect to the Purchase. I’m proud of the outcomes of the challenging cases we worked, and I’m hopeful we delivered justice to victims.
I am forever grateful to Assistant U.S. Attorneys, agents, officers, deputies, and troopers who keep us safe, and are insufficiently lauded for their work. From combatting historic levels of bloody violence in Louisville to child predators in Paducah, and from fighting the torrent of Mexican-produced meth pouring up I-65, to our relentless pursuit of justice for Officer Jason Ellis and Crystal Rogers in Nelson County, West Kentucky lawmen/women are among the very best in the country.
I deeply regret we ran out of time to achieve justice for the families of Officer Ellis and Ms. Rogers during my tenure, and I urge the next Administration to prioritize these active and ongoing investigations. I am also plagued by the loss of life we grieved this year: violent crime took the lives of 173 Louisvillians in 2020 alone, with 572 wounded non-fatally. That’s hundreds of devastated families struggling with this trauma in the midst of a global pandemic. Louisville cannot be complacent about this spike in violence, or 2021 will bring more lost sons like Austin Fitzpatrick, and lost baby girls in Disney coffins like Trinity Randolph.
We must also continue to build relationships between law enforcement and communities that feel under-protected and over-enforced. While our new strategy of Group Violence Intervention (GVI) will not cure all that ails us in Louisville, it will help establish trust, which is the first step toward healing. This approach has worked for decades in cities large and small, and if we deploy GVI the right way, we can put a stop to the senseless deaths of young Black men and women.
Finally, I share in the sentiments of my fellow U.S. Attorneys around the country who were shocked, appalled, and saddened at the violent mob that stormed our Capitol on January 6th, resulting in deaths and multiple injuries, including fallen heroes from the United States Capitol Police. I hope each and every perpetrator is brought to justice, and our country can heal from this tragic chapter. Law enforcement is not a partisan calling, and to be clear, I stand at the ready to be helpful to my successor in any way.
Our Commonwealth has much to be proud of in the strong timber of Kentucky law enforcement, but we must never stop listening and striving to achieve a fairer and more effective justice system. It’s not “happy talk” to say that our men and women in blue, brown, or gray are the finest in the nation, and I am deeply grateful that God afforded me the privilege of being amongst them for a season.”
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Raytheon Technologies and Subsidiary Pay $515K to Settle False Claims Act AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RAYTHEON TECHONLOGIES CORPORATION (“RTC”) and its subsidiary, HAMILTON SUNDSTRAND CORPORATION (“HSC”), have entered into a civil settlement agreement with the government in which they will pay $515,6235 to resolve allegations that they violated the False Claims Act.
RTC, a Massachusetts-based corporation, and HSC, its wholly owned subsidiary, are military defense contractors that sell goods and services to the U.S. and to other defense contractors.
The Buy American Act of 1933 (the “BAA”) is domestic-preference legislation that attempts to protect U.S. businesses and labor by generally restricting the acquisition and use of end products or construction materials that are not categorized as “domestic.” The government alleges that UTC and HSC sold various goods to the government pursuant to contracts containing domestic-preference requirements and, in the course of those sales, improperly certified that the goods were of domestic origin pursuant to the BAA when the goods were actually manufactured in Romania. UTC and HSC also sold various goods to a third-party supplier for sale to the government and, in the course of those sales, improperly certified to the third-party supplier that the goods were of domestic origin pursuant to the BAA when the goods were actually manufactured in Romania.
The government contends that the certifications and invoices submitted to the government and to the third-party supplier were false claims for payment pursuant to the False Claims Act. To resolve the government’s allegations, RTC and HSC have paid $515,625 for conduct occurring between 2006 and 2015.
This investigation was conducted by Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Naval Criminal Investigative Service. This matter was handled by Assistant U.S. Attorney John Larson.
Pittsburgh Woman Sentenced for Role in Drug Trafficking Activity of South PittsburghRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 2 years’ probation on her conviction of narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Ronika Somerville, age 24, of Pittsburgh, Pennsylvania.
According to information presented to the court, Somerville pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. The defendant acknowledged her responsibility for the distribution of 6 grams of a mixture of heroin and fentanyl. Ms. Somerville was one of 40 defendants charged in the case.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Intercepted communications revealed that Ronika Somerville was involved in the distribution of heroin and fentanyl. Specifically, Ms. Somerville conducted narcotics transactions on behalf of her brother and codefendant, Ronald Williams, by obtaining the drugs from stash locations and physically distributing heroin and fentanyl to customers.
Prior to imposing sentence, Judge Stickman stated that given Somerville’s minimal participation in the drug trafficking conspiracy and her lack of any criminal history, a sentence of probation served as just punishment and sufficient deterrence.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States MarshalsFugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task ForceProgram (OCDETF). The OCDETF program supplies critical federal funding and coordination thatallows federal and state agencies to work togetherto successfully identify, investigate, and prosecutemajor interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Man Pleads Guilty to Producing Pornographic Photos of ChildrenRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jeffrey Porch, 34, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that over the course of approximately two years, Porch physically and sexually abused two minors. During this period, Porch produced pornographic photos of the children. Two photos of the older child were produced on May 9, 2017, when the child was 12 years old. Two photos of the younger child were produced on April 29, 2017, when the child was 11 years old. The photos were discovered on Porch’s Samsung smart phone.
Judge Ambrose scheduled sentencing for May 11, 2021 at 10:00 a.m. The law provides for a total sentence of at least 15 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Porch remained detained.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Western Pennsylvania Violent Crimes Against Children Task Force and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Porch.
Philadelphia Woman Sentenced to 35 Years for Enticing and Inducing a Child to Produce Child Pornography OnlineRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Linda Paolini, 45, of Philadelphia, Pennsylvania, was sentenced to 35 years in prison, a lifetime of supervised release, and ordered to pay more than $15,000 in fines by United States District Court Judge Nitza I. Quiñones Alejandro for child pornography and enticement offenses.
In October 2019, the defendant pleaded guilty to two counts of manufacturing child pornography and one count of online enticement of a minor. The defendant used social media to engage in sexually explicit communications with a 16-year-old Florida boy and coerce him to produce and send her videos of him masturbating. She did this by assuming the persona of a 16-year-old girl, sending the boy provocative images of her own daughter in order to manipulate him into thinking that an attractive, same-aged girl was in love with him. Ultimately, during an online video chat, Paolini faked a suicide attempt in order to induce the boy to attempt suicide himself in solidarity with her. Further, the defendant’s crimes were not limited to just this child; she also admitted to similar criminal communications with at least two other minor boys.
“This defendant’s criminal conduct was so heinous and cold-hearted that it almost defies description,” said First Assistant U.S. Attorney Williams. “She maliciously manipulated a child into making and sending her pornography of himself. But that was not enough for this defendant. She then manipulated the vulnerable child into attempting suicide. As a result of this prosecution and today’s sentencing, she will be behind bars for decades and will no longer pose a danger to other children.”
“Linda Paolini sexually exploited a boy the same age as her teen daughter. She even used pictures of her daughter to do it,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “These were predatory, premeditated acts, solely for her own gratification. Today’s sentence ensures she is held accountable for the considerable damage done, and keeps her from victimizing anyone else’s child.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi.
Pendleton County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Devin Cory Teter, of Franklin, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Teter, 33, pled guilty to one count of “Unlawful Possession of a Firearm.” Teter, a person prohibited from having a firearm because of a prior conviction, admitted to having a 12-gauge shotgun in December 2019 in Hardy County.
Teter faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Patient Recruiter Convicted in $2.8 Million Telemedicine Scheme Against MedicareRead the Press Release
The owner of an Orlando-area telemarketing call center was convicted for his role in a kickback scheme involving expensive genetic tests and fraudulent telemedicine services that resulted in the payment of approximately $2.8 million in false and fraudulent claims to Medicare.
Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Division, and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services – Office of Inspector General (HHS-OIG) for the Middle District of Florida, made the announcement.
Ivan Andre Scott, 34, of Kissimmee, Florida was convicted after a four-day trial of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and three counts of receiving kickbacks.
According to evidence presented at trial, Scott was the owner of Scott Global, a telemarketing call center located in Orlando. The evidence showed that Scott targeted Medicare beneficiaries with telemarketing phone calls falsely stating that Medicare covered expensive cancer screening genetic testing, or “CGx.” The tests could cost as much as $6,000 per test. After beneficiaries agreed to take the test, the evidence showed Scott paid bribes and kickbacks to telemedicine companies to obtain doctor’s orders authorizing the tests.
The evidence showed that the telemedicine doctors approved the expensive testing even though they were not treating the beneficiary for cancer or symptoms of cancer, and often without even speaking with the beneficiary. According to the evidence presented at trial, Scott then sold the genetic tests and doctor’s orders to laboratories in exchange for illegal kickbacks. To conceal the illegal kickbacks, Scott submitted invoices to the laboratories and other marketers making it appears as though he were being paid for hourly marketing services, rather than per referral.
Between November 2018 and May 2019, labs submitted more than $2.8 million in claims to Medicare for genetic tests Scott referred to them, of which Medicare paid over $880,000. In that timeframe, Scott personally received approximately $180,000 for his role in the scheme.
The case was investigated by the HHS-OIG and the FBI and was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged. Trial Attorneys Alejandro Salicrup and Jamie de Boer of the Criminal Division’s Fraud Section are prosecuting the case.
Mobile Man Sentenced to Forty Years in Prison in Child Sex Abuse CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Judge Jeffrey Beaverstock sentenced defendant Jerald Sells, 62, to 40 years imprisonment after a federal jury found him guilty at trial in September 2020 on charges in a child exploitation case. As part of his sentence, the judge ordered that the defendant receive mental health and sex offender treatment as directed by the U.S. Probation Office, register as a sex offender under the Sex Offender Registration and Notification Act, pay special assessments totaling $10,200, and have no contact with minors. The judge further ordered that Sells be supervised by federal probation officers for 25 years after finishing his prison term.
On June 24, 2020, a federal grand jury for the Southern District of Alabama indicted Sells on one count of transporting minors across state lines with intent to engage in criminal sexual activity and one count of aggravated sexual abuse for crossing of a state line with intent to engage in a sexual act with a child under the age of twelve.
The jury heard two days of evidence during the trial, which began on September 28, 2020. According to the evidence introduced at trial, a child victim was abused for years by the defendant. The victim testified at trial that Sells had sexually abused her many times over the course of several years, including during one of his trucking trips from Alabama to Ohio, and back again. The defendant was employed as a long-haul trucker.
In April 2019, the victim disclosed the abuse to a school counselor. The counselor immediately contacted police. The Mobile County Sheriff’s Office investigated the offense. During an interview with law enforcement, the defendant confessed to the abuse.
The jury also heard from a second child victim, who was abused by the defendant in Sells’s home in Mobile.The victim wrote to the Court before today’s sentencing hearing. She described how the defendant’s abuse had irreparably altered her life.
The Mobile County Sheriff’s Office and the FBI investigated the case. Assistant United States Attorney Kacey Chappelear prosecuted the case.
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.
Middlesex County Man Admits Unlawfully Possessing FirearmRead the Press Release
NEWARK, N.J. – A Middlesex County man today admitted illegally possessing a firearm, Acting U.S. Attorney Rachael Honig announced.
Sharome Neals, 27, of Carteret, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
On Dec. 30, 2019, Neals knowingly possessed a Glock 21 .45 caliber handgun loaded with 11 rounds of ammunition, and an additional 33 rounds of .45 caliber ammunition in his vehicle. Neals has two prior felony convictions, both involving firearms.
The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for May 25, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Secaucus Police Department, under the direction of Police Chief Dennis Miller, with the investigation leading to today’s guilty plea. She also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Cassye Cole of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Kentucky woman pleads guilty to aiding and abetting witness tampering in case involving murder of her ex-son-in-lawRead the Press Release
DAYTON – A Burlington, Ky. woman pleaded guilty in U.S. District Court in Dayton today to aiding and abetting her daughter in intimidating a witness after the murder of her ex-son-in-law.
Chandra Harmon, 57, admitted to aiding and abetting the intimidation of a witness after the August 2017 murder of Robert Caldwell. Harmon and her daughter, Tawnney Caldwell, attempted to prevent the witness from providing testimony to law enforcement about weapons provided to a co-defendant.
According to court documents, around 6pm on Aug. 15, 2017, Robert Caldwell and his three minor children left a counseling appointment in Riverside, Ohio. While crossing the parking lot, Robert Caldwell was shot multiple times by an assailant in front of his children and died at the scene. The assailant was later identified as co-defendant Sterling Roberts.
Tawnney Caldwell is the ex-wife of the murder victim and was the girlfriend of Sterling Roberts at the time of the incident. Chandra Harmon is Tawnney Caldwell’s mother and previous mother-in-law to Robert Caldwell.
Tawnney Caldwell and the murder victim had an ongoing dispute regarding the custody of their children and Tawnney Caldwell had talked to Sterling Roberts on at least two occasions (while Roberts was incarcerated in Montgomery County) about killing Robert Caldwell.
Sterling Roberts; his brothers, Chance Deakin and Christopher Roberts; Chandra Harmon (Tawnney’s mother); and James Harmon (Tawnney’s step-father) collaborated to plan, execute and cover-up the violent crime resulting in the death of Robert Caldwell.
Tawnney Caldwell pleaded guilty in October 2020 to interstate stalking resulting in death, and Roberts is scheduled for jury trial in U.S. District Court on March 15.
Harmon faces up to 20 years in prison for aiding and abetting the intimidation of a witness in this case. Her sentencing hearing is scheduled for 1:30pm on May 6.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Amy M. Smith and Assistant Deputy Criminal Chief Laura Clemmens are representing the United States in this case.
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Justice Department Concludes Its Investigation of D.C.-Area Private High Schools’ Decision to Stop Offering Advanced Placement CoursesRead the Press Release
The Department of Justice announced today that it has completed its investigation into whether Georgetown Day School, Holton-Arms School, Landon School, Maret School, National Cathedral School, The Potomac School, St. Albans School, and Sidwell Friends School (jointly, “the Schools”) collectively agreed to stop offering Advanced Placement (AP) courses by 2022 in violation of the Sherman Act. The Schools announced in June 2018 that they would eliminate AP courses from their curricula by 2022.
The Antitrust Division’s investigation revealed that the Schools likely did agree to eliminate AP courses by 2022. Each of the Schools has represented to the Antitrust Division, however, that they are not bound by, and will not enter in the future, any agreement with another non-affiliated school or schools relating to the elimination of AP courses. As a matter of prosecutorial discretion, and especially in light of the burden on the Schools associated with the ongoing pandemic, the division will not bring an enforcement action against the Schools.
“I am pleased that the Schools have disavowed any anticompetitive agreement to coordinate on their offerings to students,” said Assistant Attorney General Makan Delrahim. “The division will remain vigilant in enforcing the antitrust laws to ensure that educational institutions do not enter into agreements to restrain competition.”
Judge sentences former company Vice President/Chief Financial Officer for stealing nearly $800,000 in company fundsRead the Press Release
ST. LOUIS, MO – United States District Judge Audrey G. Fleissig sentenced Lynese Cargill to 21 months in prison and ordered Cargill to make restitution to the victim in the amount of $707,964.35today. The 51-year-old St. Louis County, Missouri resident pleaded guilty, in September, to three counts of wire fraud related to her former position as vice president and chief financial officer of Common Ground Public Relations, Inc.
Cargill was one of the two founders of Common Ground and served as the firm’s Vice President and Chief Financial Officer. Beginning in or about 2008 and continuing through in or about March 31, 2020, Cargill devised, and knowingly participated in a scheme to defraud and obtain money from Common Ground by means of materially false and fraudulent pretenses, representations, and promises in the total amount of $785,615.25.
Cargill issued 80 unauthorized bank checks to herself written on Common Ground’s bank account totaling $198,980.23. In order to conceal this aspect of her fraudulent scheme, Cargill made false and misleading entries in the internal financial and accounting records of Common Ground, purporting to make these unauthorized bank checks appear to be legitimate when, in fact, she knew they were not.
Cargill was issued both a Citibank MasterCard credit card and an American Express credit card by Common Ground to be used to pay for legitimate company expenses, such as necessary travel and other business expenses. Cargill used both of her company issued credit cards to make personal purchases, unrelated to the legitimate business and operations of Common Ground. Cargill's unauthorized credit card charges were for such personal expenses as airfare, hotels, automobiles, clothing, cosmetics, medi-spas, restaurants and miscellaneous retail purchases. These company issued credit card purchases were done by Cargill without the knowledge and authority of Common Ground. During the period of her fraudulent scheme, Cargill made approximately 2,841 unauthorized company issued MasterCard credit card purchases for personal use items and expenses, totaling approximately $351,748.42, and an additional approximately 1,166 unauthorized company issued American Express credit card purchases for personal use items and expenses, totaling approximately $190,200.66.
Cargill applied for and obtained two different $1,000,000 life insurance policies, but instead of naming Common Ground as the sole beneficiary, as required under the shareholder agreement, Cargill named her then husband, B.H., as the sole beneficiary on both policies. Cargill then made premium payments on both policies, totaling $5,244.00, with funds from Common Ground’s bank accounts.
Cargill also used Common Ground bank funds to pay for charges on three of her personal credit cards totaling approximately $38,516.94. None of these charges which was paid for with Common Ground funds was authorized by Common Ground, and was not for the legitimate business or operations of Common Ground.
In order to conceal her fraudulent scheme, Cargill moved funds between Common Ground bank accounts to falsely inflate the balance of the firm’s operating account when she provided financial updates to the president and chief executive officer of the firm. In furtherance of her scheme, Cargill caused unauthorized wire transfers to be made from Common Ground’s bank account to make payments on her personal credit card charges.
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
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Judge sentences St. Louis man for armed robbery at Church’s ChickenRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Daquan Marshall to 120 months in prison. The 26-year-old St. Louis resident pleaded guilty to one count of armed robbery and one count of brandishing a firearm in furtherance of an armed robbery on July 7, 2020.
On December 21, 2018, around 10:15 p.m., employees of the Church’s Chicken located in the 900 block of N. Grand Boulevard in St. Louis, Missouri, were cleaning the store after closing. While cleaning, the store manager heard knocking at the back door. The store manager went to the back door and asked who was knocking. Marshall identified himself by his nickname. The store manager knew Marshall because he was a former employee and had dated an employee. The manager told Marshall to go to the front door.
The store manager unlocked the front door and let Marshall inside the restaurant. Marshall pulled out a handgun and pointed it at the employees. Marshall ordered all the employees to put up their hands and threatened to shoot one employee when he resisted. Marshall pointed the gun at the store manager and ordered the store manager to open the safe. The store manager complied and triggered the silent alarm when opening the safe. The manager gave Marshall $300 from the safe and Marshall left restaurant.
The Federal Bureau of Investigation and St Louis Metropolitan Police Department investigated the case. Special Assistant United States Attorney Jennifer Szczucinski prosecuted the case for the United States Attorney’s Office as part of the Safer Streets Initiative. The initiative was launched by Attorney General Schmitt and former U.S. Attorney Jeff Jensen in January of 2019 as an unprecedented state and federal partnership to prosecute violent crime in St. Louis.
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Jeffrey Dworek Sentenced to Prison for Defrauding Metro Waste AuthorityRead the Press Release
DES MOINES, Iowa — On Friday, January 8, 2021, United States District Court Chief Judge John A. Jarvey sentenced Jeffrey Scott Dworek, age 55, formerly of the Des Moines area, to 57 months in prison for mail fraud, announced Acting United States Attorney Richard D. Westphal. Following his prison term, Dworek was ordered to serve three years of supervised release. He was also ordered to pay over $1.6 million in restitution to Metro Waste Authority (MWA).
Jeff Dworek served as the Director of Operations at MWA. Over the course of nearly five years, Dworek stole money from MWA. Dworek created a front company, Britad – incorporated by Dworek in South Dakota – and proceeded to fraudulently bill MWA for services Britad never provided. In addition to setting up one front company, Dworek was also aware that two other MWA “vendors,” Lamar Programming Company and International Telemetry Technologies, also submitted false invoices to MWA and Dworek approved those invoices, knowing they were not legitimate. In addition to approving the fake invoices, Dworek also received payment from these companies, presumably as a kickback for Dworek’s role in the scheme.
This matter was investigated by the Federal Bureau of Investigation and the Iowa State Auditor’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
January 11, 2021 is National Day of Human Trafficking AwarenessRead the Press Release
Mention “human trafficking” in the same sentence with “Vermont,” and the reaction may be one of surprise and disbelief. Although Vermont may seem insulated from such a horrendous and insidious crime, even in the Green Mountain State human trafficking is hidden in plain sight. As with most public health issues, awareness is key to the prevention of human trafficking.
In 2007, the U.S. Senate designated January 11th as National Day of Human Trafficking Awareness. Human Trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion can be subtle, and traffickers use manipulation and threats of physical, psychological, or emotional harm. Traffickers target those who are most vulnerable to exploitation: for example, children, runaways, the mentally or physically disabled, or those suffering from poverty, substance abuse disorder, neglect, or abuse. Victims are lured, manipulated, and controlled by the trafficker via false promises concerning relationships, employment, lifestyle, or drug availability. They are treated as commodities.
One of the challenges is to debunk the many myths surrounding sex and labor trafficking. Human trafficking is often confused with smuggling, evoking ideas of an international slave trade that has little to do with Vermont’s small towns and cities. Victims of trafficking in Vermont, however, include our own neighbors.“We must confront the reality that human trafficking happens all over the world, including right here in our beautiful state,” said United States Attorney Christina Nolan, “We must combat this horrible form of abuse through education and outreach, providing victims the full slate of recovery and support services they need, and prosecuting their vicious perpetrators. To meet this challenge, the Human Trafficking Task Force convenes stakeholders from across the spectrum, from service providers to law enforcement. We are grateful to all who work together to advance the Task Force mission.”
“Make no mistake that human trafficking happens in Vermont,” said Attorney General T.J. Donovan. “We can begin to prevent this crime by understanding that there is no single profile for offenders or for those who are victimized. The Vermont Human Trafficking Task Force seeks to coordinate systemic responses to crimes of trafficking and to also identify trauma-informed, person-centered resources and interventions for victims, and I am grateful for their service.”
The Vermont Human Trafficking Task Force was formed in 2013 to forge a collaboration to pursue prosecution of perpetrators - and to protect, rehabilitate, and empower survivors of human trafficking through comprehensive social, medical, and legal services. Led by the United States Attorney’s Office for the District of Vermont and the Vermont Attorney General’s Office, the Vermont Human Trafficking Task Force comprises dozens of stakeholders and embraces a mission “to prevent trafficking of persons within the State of Vermont by implementing a multidisciplinary response to human trafficking.”
Buoyed in 2019 by a federal cooperative agreement between the Department of Justice’s Office of Victims of Crime and two Vermont Task Force leaders - the Vermont State Police and the Vermont Center for Crime Victims Services - the Task Force has been expanding its scope and reach. This powerful collaboration, with representation from victim service providers, healthcare providers, prosecutors, and law enforcement, is recognizing the month with the release of two key resources.
The Vermont Human Trafficking Resource Guide provides contacts, tips, tools, and referrals for professionals who may encounter a suspected trafficking situation; and the Labor Trafficking Fact Sheet provides essentials about a crime that can be easily overlooked or confused with other labor violations.
If you suspect an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call 2-1-1, or the National Human Trafficking Hotline at 1-888-373-7888, or Text: BeFree.
If you or someone you know suspects that a child is being exploited or trafficked, please make a report to the Vermont Child Abuse Hotline (1-800-649-5285). Help and resources are available that can be offered to protect children in Vermont.
Anyone interested in obtaining training or for more general inquiries about the Task Force and its work can contact the United States Attorney’s Office through their Civil Rights Specialist at [email protected].Jamaican Man Charged with Smuggling Cocaine into United States through Newark AirportRead the Press Release
NEWARK, N.J. – A Jamaican man made his initial appearance today on charges that he smuggled approximately one kilogram of cocaine into the United States, Acting U.S. Attorney Rachael A. Honig announced.
Perez Omar Gibbs, 37, of Jamaica, was arrested on Jan. 9, 2021, and is charged by complaint with one count of importation of controlled substances. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor and was remanded without bail.
According to documents filed in this case and statements made in court:
Gibbs arrived at Newark Liberty International Airport aboard a flight from Montego Bay, Jamaica. Law enforcement officers discovered that Gibbs possessed approximately one kilogram of cocaine concealed inside two bags of coffee and four picture frames.
The count with which Gibbs is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.
Acting U.S. Attorney Honig credited special agents of 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 officers of U.S. Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Houston man gets life for trafficking girls for sexRead the Press Release
HOUSTON – A 45-year-old Houston man has been sent to prison and ordered to pay nearly $1 million following his convictions on five separate counts of sex trafficking involving adults and minors, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury deliberated for less than three hours before convicting David Mearis Oct. 18, 2019, following three days of trial.
Today, U.S. District Judge Kenneth Hoyt sentenced Mearis to life in federal prison on each count to run concurrently. He was further ordered to pay $921,680 in restitution to the victims.
At the hearing, the court heard additional information including excerpts from victim impact statements two of the victims had prepared. “Many days I thought might be my last, being beat as if not human,” said one woman. “I ask that you ensure that no other human has to be subject to the threat of Mr. Mearis. He has created distress and trauma to one too many women and I how we are the last victims of his destructive mind.” Another victim called Mearis the “Devil. I was fearing for my life not knowing how to escape the humiliation that was going on. I have been mentally and physically abused,” she said.
“David Mearis was a career pimp who abused, controlled, and exploited his victims. He stooped to a new kind of low by taking advantage of one of the girls who had a learning disability and the mental capacity of a child,” said FBI Special Agent in Charge Perrye K. Turner. “Mearis wasn't the caretaker he wanted the court or his prey to believe. He was a dangerous predator who saw his victims not as girls or women, but a money-making commodity."
At trial, the jury heard evidence that spanned from approximately 2007 – 2016. Four victims testified about how they each met Mearis while still teenagers and how he won them over with gifts and kindness before using threats, sexual abuse and physical force to compel them into prostitution.
The jury heard Mearis knew what he was doing and that he lived off the backs of these young women and girls. The government described how Mearis exerted constant control over the female victims. At today’s hearing, the court heard Mearis trafficked one victim for eight years, during which she “endured his reign of terror.”
One girl began a relationship with Mearis, then 32, when she was 17 after
she had run away from her Oakland, California, home. Another victim was only 15 when she met Mearis, then 34. Both of these girls considered Mearis their boyfriend in the earlier stages of their relationships but were eventually forced to engage in commercial sex in north Houston. One testified that they had to engage in these acts daily and at all times of the day.
Another victim, 14, encountered Mearis, then 41, and eventually ran away to live with him after they met on MocoSpace. She testified he had sexually assaulted her twice while she was with him in 2016.
Testimony revealed Mearis had put at least two of the girls on a peanut butter diet in order to fatten them up for the purpose of working as his prostitute. Evidence also showed text messages between Mearis and several victims demonstrating his constant control over their activities, including during the sex dates themselves. He controlled where they went, what they wore, what they ate and with whom they engaged in commercial sex. The jury saw commercial sex advertisements Mearis created for two of the victims and heard evidence about numerous times Mearis had accessed Backpage, a site formerly used for the purpose of advertising people for sexual activity. He also had bonded one of the victims out of jail at least twice after she was arrested for engaging commercial sex.
Some victims testified Mearis perpetrated acts of violence upon them, from slapping them across the face to being bound and gagged. They reported multiple instances in which they feared physical retaliation if they did not comply with demands, did not do as instructed or perform sexual acts as required. One victim described violence she experienced at the hands of Mearis following her release from jail.
At one point, when the girls were not making enough money, Mearis made one of them participate in a bank robbery. When it did not go exactly as he had planned, he berated her, calling her stupid, among other things.
That victim also described how she had virtually no relationships with anyone outside Mearis’ circle. He had taken her ID, would not let her drive or even use the phone. She was brought to tears multiple times on the stand. In one instance, she described that when her grandfather passed away, Mearis would not let her go unless he went with her. In trying to find the right word to describe the experience, she testified she felt “kidnapped” at the time and called him in court a “threat to young women.” “I felt like I had met the devil,” she said.
When she had eventually made it back to family in California after seeking help from Houston authorities, Mearis contacted her and threatened to call the police about her actions and the bank robbery if she did not return.
Another victim described how Mearis had hog-tied her and that he made her find other women for him. The jury heard Mearis had put a sock in her mouth, a gun to her head and threatened to kill her.
Evidence and testimony further established Mearis caused Supplemental Security Income benefits, intended for one of the victims, be directed to him. That victim had been diagnosed with mental retardation at an early age. Mearis himself described her as having the “mental capacity of a child” and could not do the simplest of tasks without constant supervision and instruction.
The defense implied the victims only implicated Mearis to avoid prosecution for their actions. The defense attempted to portray Mearis as simply a loving boyfriend who provided protection while the girls voluntarily engaged in commercial sex. However, testimony revealed the victims had to turn over the monies they earned for sexual acts directly to Mearis.
The jury did not believe the defense claims and found him guilty as charged.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department, Texas Attorney General’s Office and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards prosecuted the case.
Hoover Criminal Gang Member Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—Jaelan Sarray Reid, 26, a known Hoover Criminal Gang member and resident of Portland, was sentenced today to 58 months in prison and three years’ supervised release for illegally possessing a firearm as a convicted felon, announced U.S. Attorney Billy J. Williams.
According to court documents, on June 18, 2020, a Morrow County sheriff’s deputy received a tip that several people with outstanding criminal arrest warrants were traveling west on Interstate-84 in a black Range Rover. The deputy located the vehicle with three occupants and conducted a traffic stop. Reid identified himself as “Charles Benton” and gave the deputy a false date of birth. The deputy identified Reid using a DMV photo and detained him.
During the traffic stop, the deputy noted a strong smell of marijuana coming from the vehicle. Deputies searched the vehicle pursuant to a state warrant issued in June 2020 and located a backpack behind the driver’s seat. Inside the package was a prescription bottle in Reid’s name and a loaded 9mm semiautomatic pistol. Reid was arrested and held at the Umatilla County Jail on state charges. During record jail calls, Reid made several incriminating statements about possessing the firearm in his backpack.
This case was investigated by the FBI, Homeland Security Investigations, Portland Police Bureau, and Multnomah County Sheriff’s Office with assistance from the Morrow County Sheriff’s Office. It was prosecuted by Lewis Burkhart, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gary Man Sentenced to 60 Months Imprisonment for Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
HAMMOND- Varnell Dixon, 24, of Gary, Indiana, was sentenced by Judge James T. Moody to 60 months imprisonment following his guilty plea to possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Bell.
According to documents in the case, on December 28, 2019, Dixon was driving a rented vehicle speeding eastbound on Interstate 80/94. At the time, he possessed a fully loaded Glock nine millimeter firearm, four bags of marijuana, some of which he intended to distribute, and $323.00 in small bills. Upon being pursued by the Indiana State Police, Dixon attempted to elude the police at a high rate of speed and ultimately exited onto the Cline Avenue ramp. Dixon lost control of the vehicle, causing it to leave the roadway and roll over several times. Dixon was thrown from the vehicle and arrested by police.
This case was the result of the investigative efforts of the Federal Bureau of Investigation Gang Response Investigative Team and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney Maria N. Lerner and former Assistant U.S. Attorney Joseph A. Cooley.
Fort Walton Beach Man Sentenced to 15 Years in Federal Prison for Possession of Drugs and FirearmsRead the Press Release
PENSACOLA, FLORIDA – Guy Anthony Folta of Fort Walton Beach, Florida, was sentenced to serve 15 years in federal prison after pleading guilty to possession with intent to distribute over 50 grams of methamphetamine, heroin, and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm and ammunition by a convicted felon. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“Drugs and a weapon in the hands of a convicted felon is a menacing and potentially deadly combination, and the United States Attorney’s Office is committed to making sure such dangerous criminals are sentenced appropriately,” said U.S. Attorney Keefe. “Our law enforcement partners in Okaloosa County did an outstanding job in helping us bring Folta to justice.”
Folta, 49, was arrested on outstanding arrest warrants last June 29 by deputies from the Okaloosa County Sheriff’s Office. Following the arrest, deputies looked inside the vehicle Folta was driving and observed the grip of a pistol. After determining that Folta was a convicted felon, deputies obtained a search warrant authorizing the search of the vehicle, where they discovered a loaded stolen Glock 9 mm pistol with an obliterated serial number and 45 rounds of ammunition. Deputies also found 152 grams of methamphetamine packaged in five separate baggies, 10 grams of cocaine base, 21 grams of cocaine, 22 grams of heroin, and a digital scale.
“Our region should take notice of this case,” said Okaloosa County Sheriff Eric Aden. “This is a significant arrest and significant sentence for a man with a lengthy criminal record who was back out peddling poison to our citizens. But due to the ongoing joint efforts of our deputies and federal partners, Folta will now be off the streets for the next 15 years, making our region safer from the dangerous impacts of heroin, methamphetamine, and cocaine.”
The December 28 sentencing resulted from a joint investigation by the Okaloosa County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. FoltaFormer Sulphur Springs Office Administrator Sentenced to over Two and Half Years in Federal Prison for Theft of Government FundsRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that Codi Dannell Bates, age 34, of Gravette, Arkansas, was sentenced today to 32 months in federal prison without the possibility of parole followed by three years supervised release and ordered to pay $184,934.06 in restitution on one count of Theft from an Agency Receiving Federal Funds. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, from 2017 through 2019, while Bates was employed as the Office Administrator for the city of Sulphur Springs, she stole funds from the city in a variety of means. She obtained the signatures of city officials under false pretenses, then wrote those checks to herself and her husband. She also used cash funds paid to the city for water services to pay for her personal expenses. Bates’s criminal conduct was initially uncovered in detail by the Arkansas Bureau of Legislative Audit. Bates was arrested on state charges in May of 2019. The investigation was then referred to the Federal Bureau of Investigation. According to the investigation, Bates converted $184,934.06 from Sulphur Springs for her own personal use during her period of employment from August of 2017 through March of 2019. In 2018, the city of Sulphur Springs received over $180,000 from FEMA alone.
Bates waived formal Indictment and pled guilty to an Information filed by the U.S. Attorney’s Office on September 18, 2020.
This case was investigated by the Federal Bureau of Investigation, the Benton County Sheriff’s Department and the Arkansas Bureau of Legislative Audit. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Former Procurement Director at Broward Health Charged with Bribery, Extortion, and Money LaunderingRead the Press Release
Miami, Fl. – On Friday, the former Procurement Director for Broward Health appeared in Ft. Lauderdale federal court to face charges accusing him of awarding lucrative government contracts to vendors in exchange for bribes and of trying to conceal his crimes by directing the bribe money to various bank accounts.
For about 10 years, Brian Bravo, 46, of Pembroke Pines, Florida, worked as the Corporate Procurement Officer and Director of Materials Management for the North Broward Hospital District, known in the community as Broward Health. According to the five-count indictment, from 2008 to 2015, Bravo engaged in a kickback scheme with vendors that provided products and services to Broward Health, including health care products, linens, compression sleeves, and printer repairs. During that time, two of the vendors and a consultant for two other vendors made illegal kickback payments totaling hundreds of thousands of dollars to Bravo in order to secure tens of millions of dollars of business from Broward Health, says the indictment. In 2015, Bravo directed the vendors to pay the bribes to two companies that Bravo controlled in order to hide the unlawful nature of the scheme, according to the indictment.
Bravo had his initial appearance and arraignment hearings on Friday before Magistrate Judge Patrick M. Hunt, who sits in Ft. Lauderdale.
Southern District of Florida U.S. Attorney Ariana Fajardo Orshan and FBI Miami Special Agent in Charge George L. Piro made the announcement.
FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey N. Kaplan is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60125.
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Former Orange County Social Worker Pleads Guilty to Federal Charge that He Distributed Child Pornography Videos on the InternetRead the Press Release
SANTA ANA, California – A former Orange County social worker pleaded guilty today to a federal criminal charge that he distributed computer video files that contained sexually explicit videos depicting children, including infants and toddlers.
Carlos Castillo, 62, of Santa Ana, pleaded guilty via videoconference to a single-count information charging him with distribution of child pornography.
According to his plea agreement, Castillo worked at Orange County’s Social Services Agency from May 2002 to January 2020. Beginning in August 2007, Castillo was a placement senior social worker whose responsibilities included assessing applicants’ suitability to provide care of children who are in protective custody, completing a home and grounds environment assessment, and placing children into homes.
In November 2019, Castillo knowingly distributed child pornography consisting of three video files, the plea agreement states. Castillo admitted that he, using the screen name “Ratster12” as a member of a child pornography group that used the LiveMe application, posted a link to another webpage containing three videos depicting prepubescent children, including infants and toddlers, who were being sexually assaulted by adults and other children.
Castillo also admitted that in January 2020 he possessed a Dell computer, two flash drives and an Apple iPhone that contained at least 1,027 videos and 914 images of child pornography. Castillo further admitted that he possessed videos of minors undressing that Castillo had recorded from LiveMe. In addition, he admitted to possession of pictures of minors in public without the authorization or knowledge of the minors or their parents.
United States District Judge Cormac J. Carney has scheduled an April 19 sentencing hearing, at which time Castillo will face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office is prosecuting this case.
Former New Haven Resident Admits Possessing Child Sex Abuse ImagesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHELLE LYNN GSCHLECHT, formerly known as RICHARD GSCHLECHT, 51, last residing in New Haven, pleaded guilty today before U.S. District Judge Kari A. Dooley to one count of possession of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in August 1996, Gschlecht was convicted in state court of sexual assault in the first degree related to the aggravated sexual abuse of a minor. In July 2015, Gschlecht was convicted in state court of possession of child pornography.
In March 2019, Gschlecht began serving a 10-year term of state probation. In July 2019, Gschlecht’s probation officer received information that Gschlecht was in possession of a cellphone that contained images depicting the sexual abuse of minors. State probation officers arrested Gschlecht on July 31, 2019, after a review of her phone revealed images of child pornography. Subsequent forensic analysis of the phone revealed approximately 174 images of child pornography, including images depicting the sexual abuse of prepubescent children and infants.
Judge Dooley scheduled sentencing for April 8, 2021, at which time Gschlecht faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Gschlecht’s criminal history.
Gschlecht has been detained since her arrest.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the New Haven Police Department, with the assistance of the Connecticut’s Office of Adult Probation. The case is being prosecuted by Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Longtime Employee of Orange Unified School District Sentenced to 6 Years in Prison for Distributing Child PornographyRead the Press Release
LOS ANGELES – A former employee of the Orange Unified School District was sentenced today to 72 months in federal prison for distributing child pornography, specifically sending image and video files of explicit sexual conduct involving young children via the Kik instant messaging application.
Mike Barry Brior, 43, of Riverside, who was an 18-year employee of the school district, where he worked for a time directly with children as a teacher’s assistant, was sentenced by United States District Judge George H. Wu. Once he completes the six-year prison term, Brior will be under supervised release for 20 years, and he will be required to register as a sex offender. Judge Wu also ordered Brior to pay $12,000 in restitution and special assessments that will go to victims in this case.
Brior pleaded guilty in November to one count of distribution of child pornography. According to court documents, Brior sent at least 10 video files to two message groups in less than three weeks in 2018, and prosecutors believe at least some of these uploads occurred while he was at school during work hours.
The sentencing memorandum filed by prosecutors summarizes the content of the videos and notes that the victims were both boy and girls, some of them appearing to be as young as 3.
Citing a U.S. Senate report in the sentencing memorandum, prosecutors wrote that Brior “was actively expanding the marketplace for child pornography by regularly putting it in the hands of others. The marketplace for child pornography incentivizes other individuals to produce such content and harms some of the most vulnerable members of society: children.”
This matter was investigated by Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office.
Disgraced soccer star and indoor soccer team owner pleads guilty to massive tax fraudRead the Press Release
Seattle - A former Seattle college soccer star, currently serving time for sexual assault in Arizona and on a second sexual assault case in King County, Washington, pleaded guilty today in U.S. District Court in Seattle to making false statements on a tax return, announced U.S. Attorney Brian T. Moran. During a massive tax fraud scheme, 48-year-old DION L. EARL purchased the Seattle Impact FC franchise, a professional indoor soccer club. According to the plea agreement between 2008 and 2014, EARL used false documents to lie about his income, the amount of tax dollars withheld by employers, and his mortgage deductions so that he could attempt to claim tax refunds of more than $1.6 million. Under the terms of the plea agreement, prosecutors will recommend EARL serve a one-year consecutive federal sentence following his 12-year sentence in Arizona and 33-month consecutive sentence in Washington State, for a total sentence of nearly 16 years in prison.
The actual sentence is up to U.S. District Judge Robert S. Lasnik who has scheduled sentencing for April 9, 2021.
In the 1990’s EARL was a soccer star at Seattle Pacific University. Between 2008 and 2014, EARL also worked in car sales in Washington State and Arizona and owned Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures, and the Seattle Impact, FC. In today’s plea agreement, EARL admitted that he used his association with car dealers, Dion Earl’s Total Soccer & Tennis Camps, and the Seattle Impact to commit tax fraud.
EARL specifically acknowledged that, on his 2012 Form 1040 tax return, he claimed that (1) he made $1,600,000 working for eight different car dealers, which withheld more than $660,000 of his wages for taxes, and (2) his wife was employed by Dion Earl’s Total Soccer & Tennis Camps, which paid her $240,000 and withheld $51,000 in taxes, and (3) he made $520,000 in mortgage interest payments on four different properties. EARL admitted that, in fact, all these claims were false. That is, EARL admitted that during 2012, EARL made less than $45,000, from which he did not have any taxes withheld, and he paid limited mortgage interest. Pursuant to these false claims, EARL obtained a federal tax refund of $414,160.
EARL also admitted that even after the IRS began a civil audit of EARL’s taxes in 2013, he continued to make false claims and provide false information to the IRS. For example, Earl admitted that, as late as 2015, he falsely claimed he and his wife made $765,000 from Dion Earl’s Total Soccer & Tennis Camps, LLC, and the Seattle Impact FC, from which the businesses withheld $180,000 in taxes. In making these false claims, EARL sought a tax refund of $137,554. That refund was not paid, however.
In total, EARL sought $1.6 million in fraudulent tax refunds and was paid $1,093,534 by the IRS.
In the plea agreement, EARL also agreed to pay $600,000 in restitution to the State of Arizona, as a result of fraudulent tax returns he filed with that state. And, while EARL did not admit to submitting false income information to Key Bank in 2008, in order to qualify for a home equity line of credit—as was alleged in the Indictment—in the plea agreement, EARL agreed to make approximately $95,000 in restitution payments to Key Bank.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorney Arlen Storm.
Cleveland man admits to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Michael Anthony Toler, of Cleveland, Ohio, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Toler, age 34, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Toler admitted to having cocaine case, also known as “crack,” in Ohio County in February 2020.
Toler faces up to 20 years of incarceration and a fine of up to $1,000,000. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Chicopee Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was indicted by a federal grand jury on Wednesday, January 6, 2021 on child pornography offenses.
Michael Geoffroy, 35, was indicted on three counts of sexual exploitation of a child, three counts of distribution of child pornography and one count possession of child pornography.
The indictment alleges that in December 2020, Geoffroy distributed and possessed child pornography, and that he used a child to create child pornography.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation in Boston; and Chicopee Police Chief William R. Jebb made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Unit is prosecuting the case.
This 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chairman of Venture Capital Funds Sentenced to Six Years for Securities and Wire Fraud in Manhattan Federal CourtRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that DAVID WAGNER was sentenced in Manhattan federal court to 72 months in prison for securities fraud and wire fraud in connection with his operation of a number of corporate entities (collectively referred to as “Downing”) as a Ponzi-like scheme. WAGNER solicited almost $10 million from approximately 40 Downing investors through materially false and misleading statements and misappropriated a significant portion of those funds, using them for, among other things, the payment of management fees, the repayment of prior investors, and personal expenses. WAGNER previously pled guilty to these charges, and was sentenced today before U.S. District Judge Alvin K. Hellerstein.
Acting Manhattan U.S. Attorney Audrey Strauss said: “The employee-investors of the Downing entities entrusted David Wagner, Chairman and CEO, to provide various means of support to their ‘portfolio companies,’ designed to bring those companies to market and ultimately result in a return on their investments. Not only did Wagner not provide the financial support and expertise implicit in his sales pitch, he misspent those funds – which were largely from the investors themselves – for personal expenses, such a Porsche for himself and a BMW for his daughter. Wagner’s web of lies has finally caught up to him, and he has now been sentenced to six years in federal prison for bilking almost $10 million from investors.”
According to the Indictment filed in Manhattan federal court:
From at least in or about December 2013 through at least in or about 2017, WAGNER, the chief executive officer of Downing, and co-defendant Marc Lawrence, the president of several Downing entities, solicited investments in Downing, a purported venture capital firm that would invest in healthcare start-ups referred to as “portfolio companies” and provide sales, operations, and management expertise to the portfolio companies in order to bring their products to market and generate returns for Downing investors, who also worked for Downing (the “employee-investors”). WAGNER and Lawrence, and others acting at their direction, solicited almost $10 million in investments in Downing from employee-investors located across the United States, including in the Southern District of New York, as a requirement of employment with Downing.
After making the required investment of between $150,000 and $250,000 in Downing and starting their employment at Downing, employee-investors soon learned, among other things, that contrary to representations made by WAGNER and Lawrence, and others acting at their direction, Downing did not have access to millions of dollars in funding, often could not make payroll, had virtually no products to sell, and that employee-investments were the overwhelming source of funding. Employee-investors also learned that WAGNER and Lawrence had misrepresented the companies in Downing’s portfolio, their product readiness, and ability to generate revenue. While the particular formulation of these misrepresentations shifted over time, WAGNER and Lawrence systematically sought and obtained employee-investor money through materially false and misleading statements. WAGNER also misappropriated a significant portion of investor funds by using them for, among other things, personal expenses, including the purchase of a Porsche.
Beginning in or about May 2016, after several employee-investors had brought lawsuits against WAGNER and Lawrence, and several Downing entities, alleging claims based on, among other things, fraud, WAGNER and Lawrence continued the scheme by recruiting employee-investors into a new company called Cliniflow Technologies, LLC (“Cliniflow”), through materially false and misleading statements about Cliniflow’s cash reserves, portfolio companies, and exposure to litigation. In fact, Cliniflow purportedly held majority ownership in the same primary portfolio company as other Downing entities and was simply a new name used by WAGNER and Lawrence to solicit investments from new employee-investors that was not tainted by the lawsuits filed against Downing entities. A majority of the over $1.5 million raised by WAGNER and Lawrence through Cliniflow was transferred to other Downing entities and used to pay for, among other things, WAGNER’s personal expenses and the repayment of prior investors.
Finally, in or about January 2017, WAGNER obtained a $400,000 loan and $100,000 grant from the Connecticut Department of Economic and Community Development (“CTDECD”) for Cliniflow on the basis of materially false statements made by WAGNER to the CTDECD. WAGNER transferred a majority of the funds obtained from the State of Connecticut, which were required to be used for Cliniflow’s purported relocation from New York to Connecticut, to other Downing entities and also used a portion of the funds to purchase a BMW for his daughter.
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WAGNER, 54, of East Greenwich, Rhode Island, pled guilty to two counts of securities fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison. In addition to the prison term, Judge Hellerstein ordered WAGNER to serve three years of supervised release, and to pay forfeiture in the amount of $549,000 and restitution in the amount of at least $7,850,000 to victims of his criminal conduct. WAGNER’s co-defendant, Marc Lawrence, is scheduled to be sentenced before Judge Hellerstein on February 1, 2021 at 2:30 p.m.
Ms. Strauss praised the work of the FBI, and thanked the United States Securities and Exchange Commission and the Enforcement Section of the Massachusetts Securities Division for their assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Sagar K. Ravi are in charge of the prosecution.
California Man Sentenced for Possession with the Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Carlos G. Diaz, 19, of Victorville, California, was sentenced on January 13, 2021 in federal court in Omaha, Nebraska, after having pleaded guilty to Possession with Intent to Distribute Methamphetamine. United States District Judge Brian C. Buescher sentenced Diaz to 63 months’ imprisonment. After completing his term of imprisonment, Diaz will be required to serve a 5-year term of supervised release as there is no parole in the federal system.
On May 28, 2020, law enforcement officers were conducting routine surveillance at the bus station located in downtown Omaha when they made consensual contact with Diaz while on a bus waiting to depart. While questioning Diaz about his travel, an officer became suspicious that he was involved in criminal activity and requested permission to search his carry-on bag. Diaz gave permission and the consensual search revealed over 1,000 grams of methamphetamine.
This case was investigated by the Task Force Officers of the DEA and Nebraska State Patrol.
Cabell County Man Sentenced to 20 Years in Federal Prison for Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. -- United States Attorney Mike Stuart announced today Steven McCallister, 47, of Barboursville, was sentenced to 20 years in prison for distribution of fentanyl, possession with intent to distribute 400 grams or more of fentanyl, possession of a firearm in furtherance of drug trafficking, and being a felon in possession of a firearm. McCallister received an enhanced penalty because he had a previous federal drug trafficking conviction.
“This dangerous drug dealer received a sentencing enhancement and will serve 20 years in federal prison,” said United States Attorney Mike Stuart. “McCallister was still on supervised release from a previous federal drug conviction when he was caught peddling poisons in 2019. He won’t be causing any more trouble in Cabell County.”
McCallister was convicted of the charges in August 2020 after a jury trial. The evidence at trial revealed that on June 12, 2019, agents with the Metropolitan Drug Enforcement Network Team (MDENT) arranged a controlled buy of 50 grams of heroin from McCallister through a confidential informant (CI). The controlled buy was conducted at McCallister’s residence at 224 Carper Lane in Barboursville. Following the controlled buy, MDENT agents, along with members of the Huntington Violent Crime and Drug Task Force West, executed a search warrant at the residence and discovered over a kilogram of fentanyl/heroin mix. They also discovered a loaded .357 handgun in McCallister’s bedroom where part of the fentanyl was located along with a large amount of cash. McCallister was on supervised release at the time from his previous federal drug trafficking conviction.
United States District Judge Robert C. Chambers imposed the sentence. In addition to MDENT and the Huntington Violent Crime and Drug Task Force West, the U.S. Department of Homeland Security – Homeland Security Investigations (HSI) and the West Virginia State Police also assisted in the investigation. Assistant U. S. Attorneys Greg McVey and Joseph Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00153.
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Burlington County Man Arrested on Child Pornography ChargeRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was charged today with allegedly distributing videos and images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Al-Fahim Medina, 22, of Willingboro, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
In January 2020, an undercover law enforcement agent saw an individual advertising, in coded language, the sale of child pornography on Twitter. The Twitter profile directed interested parties to an encrypted social media messaging application. During multiple sessions in January and February 2020, the undercover agent communicated with the individual online, and the individual agreed to sell multiple links to cloud storage websites that contained videos of child sexual abuse to the undercover agent. After the undercover agent sent $20.00 to a PayPal account registered to Medina, the individual sent the links to the websites that contained child sexual abuse.
On June 12, 2020, law enforcement lawfully obtained multiple devices from Medina’s residence that contained over 22,000 files of content constituting child sexual abuse, including images of prepubescent children being sexually abused.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.
Acting U.S. Attorney Honig credited special agents of Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the Camden Office.
Bradbury Man Sentenced to 10 Years in Prison for Leading Role in $147 Million Mining and Digital Currency FraudRead the Press Release
LOS ANGELES – A San Gabriel Valley man was sentenced today to 120 months in federal prison for fraudulently obtaining $147 million from tens of thousands of investors around the world in a massive investment scam where a multinational company issued a phony digital currency purportedly backed by billions of dollars’ worth of amber and other gemstones.
Steve Chen, 63, a.k.a. “Li Chen” and “Boss,” of Bradbury, was sentenced by United States District Judge John F. Walter, who found that Chen’s “litany of lies” promoted a scam of “epic proportions.” Chen pleaded guilty in June 2020 to one count of conspiracy to commit wire fraud and one count of tax evasion.
Chen was the owner and chief executive officer of U.S. Fine Investment Arts, Inc. (USFIA), and six other companies that used the same Arcadia address. From July 2013 until September 2015, Chen fraudulently promoted and solicited USFIA investments, and he ultimately obtained approximately $147 million from 72,000 victims, in one of the largest pyramid schemes ever prosecuted in this district.
He falsely promoted USFIA as a successful multi-level marketing company that extracted amber and other gemstones from non-existent mines it “owned” in the United States, the Dominican Republic, Argentina and Mexico.
Chen “promoted his Pyramid/Ponzi scam using a multi-level marketing program in which compensation for recruiting other investors primarily came from new USFIA investors’ payments,” prosecutors wrote in their sentencing memorandum. “Because the primary focus was on recruiting other investors, rather than selling USFIA products to retail customers, the vast majority of investors were destined to lose money – while making [Chen] very wealthy.”
Investors were duped into buying USFIA investments in amounts ranging between $1,000 and $30,000 each. These “packages” purportedly comprised amber and other gemstones, as well USFIA “points,” which could be converted to USFIA shares when the company had its IPO. But Chen never intended for USFIA to go public.
USFIA offered other bonuses – including cash, travel, luxury cars, homes in the Los Angeles area, and EB-5 visas for immigrant investors – to investors who recruited other people to purchase these “packages.”
Beginning in September 2014, Chen and others altered the promotion by substituting quantities of “Gem Coins” instead of points. They falsely promoted these “coins” as a legitimate digital currency backed by the company’s gemstone holdings. Chen also falsely represented that these “coins” already were in wide circulation in the jewelry and finance industries.
The company did not generate any significant revenue from its business operations, apart from sales of investment packages to victim-investors. The amber and other gemstones provided in the investment packages – including those displayed at USFIA’s Arcadia headquarters – were obtained from domestic and foreign commercial suppliers, assigned grossly inflated prices, and worth much less than what investors paid USFIA for them. “Gem Coins” had no circulation in any industry, were not accepted by any merchants, and had no economic value.
Chen also committed tax evasion when he reported that his gross income for 2014 was $138,015, when in fact his income for that year was approximately $4,816,193, upon which Chen owed $1,885,094 – before interest and penalties.
Judge Walter ordered Chen to pay restitution of $1,885,094 to the IRS on the tax evasion count and scheduled a July 16 restitution hearing for USFIA victim investors.
Leonard Stacy Johnson, 54, of Huntington Beach, who worked at Chen’s direction in promoting USFIA and Gem Coins, pleaded guilty in July 2019 to one count of tax evasion and one count of making a false statement on an immigration document. Johnson is scheduled to be sentenced on May 24.
The Securities and Exchange Commission successfully brought an enforcement action against Chen, USFIA, and 12 other Chen-controlled entities. A receiver has been appointed by a court in that matter, and maintains a website for victims at: http://usfiareceiver.com/.
This matter was investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorneys Richard E. Robinson of the Major Frauds Section and Katherine A. Rykken of the U.S. Attorney’s Office for the District of Oregon.
Berne Man Fined for Killing A Bald EagleRead the Press Release
FORT WAYNE – Samuel G. Graber, age 24, of Berne, Indiana, was sentenced before U.S. Magistrate Court Judge Susan Collins following his plea of guilty to unlawfully killing a migratory bird, announced Acting U.S. Attorney Bell.
Graber’s sentence was suspended, he was ordered to complete 6 months probation, and to pay a fine of $5,000 for the incident.
According to documents presented in this case, on or about November 2, 2019, Graber unlawfully killed a bald eagle, a migratory bird as defined by 50 CFR10.13, in violation of Title 16 U.S.C. §703. Under the Migratory Bird Treaty Act, the $5,000 fine will be paid to the North American Wetlands Conservation Fund.
The case was investigated by the United States Department of Fish and Wildlife. The case was handled by Assistant United States Attorney Stacey R Speith.
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Beavercreek Man Arrested, Charged After Firing Handgun into the Hatfield Federal CourthouseRead the Press Release
PORTLAND, Ore.—A Beavercreek, Oregon man has been arrested and charged for discharging a firearm into the Hatfield Federal Courthouse on January 8, 2021, announced U.S. Attorney Billy J. Williams.
Cody Melby, 39, has been charged by criminal complaint with destruction of government property.
According to the complaint, at approximately 7:35pm on January 8, Melby allegedly jumped over a security fence at the Hatfield Courthouse and, using a 9mm handgun, fired several rounds into the building’s exterior. Two courthouse security officers exited the building and approached Melby after observing him on a closed-circuit security camera. Melby told the officers he had a gun and the officers placed him in handcuffs without further incident.
Federal Protective Service officers dispatched to the scene located five spent 9mm bullet casings, three spent bullets, three bullet holes in plywood affixed to the building’s stone columns, and damage to the metal soffit above the building’s main entrance.
Melby will make his first appearance in federal court today before a U.S. Magistrate Judge in Portland.
This case is being investigated by the Federal Protective Service and FBI. It is being prosecuted by Paul Maloney, Assistant U.S. Attorney for the District of Oregon.
Criminal complaints are only accusations of a crime, and a defendant is presumed innocent unless and until proven guilty.
Items seized from Melby after arrest. Bullet hole in plywood sheathing affixed to U.S. Courthouse. Melby walking inside U.S. Courthouse security fencing. Melby discharging firearm in front of U.S. Courthouse.AutoGenomics, Inc. Agrees to Pay over $2.5 Million for Allegedly Paying KickbacksRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that AutoGenomics, Inc. has agreed to pay the United States $2,538,000 to resolve allegations that it violated the False Claims Act and Anti-Kickback Statute by engaging in a scheme to bill Medicare for molecular genetic testing performed for nursing home patients that were induced by the payment of remuneration (which includes money or anything of value), or a “kickback,” for the referral of those genetic tests.
AutoGenomics, located in Carlsbad, California, formerly owned and operated a laboratory doing business as PersonalizeDx Labs (collectively “AutoGenomics”). In April 2013 and March 2015, AutoGenomics entered into agreements with a California-based health care marketing company to utilize AutoGenomic’s laboratory services for tests ordered by the health care marketing company’s clients. Pursuant to these agreements, AutoGenomics paid the health care marketing company a specified monetary kickback for each test that was reimbursed by Medicare, but only if Medicare paid the claim. Under these agreements, the amount of the kickback was based either on a percentage or fixed amount of Medicare’s reimbursement for each test. As explained below, such agreements violate federal law.
Prestige Administrative Services, LLC, doing business as Prestige Healthcare (“Prestige”), owned and operated residential nursing homes in Wisconsin and other states. In 2014 and 2015, Prestige provided the health care marketing company information to identify its Medicare patients, and authorized access to its patients to obtain buccal cell samples and submitted the samples to AutoGenomics for the molecular genetic testing to be performed and claims submitted to Medicare for payment. Prestige, while not admitting liability, previously settled its alleged role in the conduct for nearly $1 million for causing the submission of medically unnecessary tests.
According to this settlement, the United States alleged that AutoGenomics’s submission of genetic testing claims to Medicare that were predicated by the payment of kickbacks negotiated in the agreements violated the Anti-Kickback Statue and the False Claims Act because a claim for reimbursement that is the result of a kickback is a false claim. The United States further alleged that the false claims resolved by the settlement were for the payment of kickbacks for the submission of laboratory genetic testing performed for patients residing at 76 nursing homes, at both Prestige and non-Prestige owned and operated facilities.
“The purpose of the Anti-Kickback Statute is to protect federal health beneficiaries and Medicare from the influence of money or other things of value for the referral of unnecessary testing, and it guards against waste, fraud, and abuse of our federal health care programs,” said United States Attorney Blader. “The state surveyors provided crucial assistance in identifying the facts that led to our federal investigation and this settlement. This settlement is a perfect example of our state and federal partners working cooperatively to uncover Medicare fraud and preying upon the elderly for financial gain.”
“The payment of kickbacks is a corrupt practice that inappropriately influences an individual or entity’s capacity to make unbiased decisions which is of particular concern in the health care environment” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General - Chicago Region (“HHS OIG”). “Kickbacks can result in overuse of diagnostic testing and other services that ultimately lead to increase program costs and waste valuable taxpayer dollars.”
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The settlement was the result of a joint investigation conducted by HHS OIG and the U.S. Attorney’s Office for the Western District of Wisconsin. The alleged factual basis for the investigation was discovered during survey work performed by professionals at the Wisconsin Department of Health Services Division of Quality Assurance. The prosecution of this case was handled by Assistant U.S. Attorney Leslie K. Herje.
Sunday 10 January 2021
Two Men Charged in Connection with Events at U.S. CapitolRead the Press Release
WASHINGTON, D.C. – Two men were charged today in federal court in the District of Columbia in connection with the riots at the U.S. Capitol on Wednesday, Jan. 6, 2021.
Larry Rendell Brock, of Texas, was charged with one count of knowingly entering or remaining in any restricted building or grounds without lawful authority and one count of violent entry and disorderly conduct on Capitol grounds. Brock was arrested today in Texas.
It is alleged that Brock was identified as one of the individuals who unlawfully entered the U.S. Capitol wearing a green helmet, green tactical vest with patches, black and camo jacket, and beige pants holding a white flex cuff, which is used by law enforcement to restrain and/or detain subjects.
Eric Gavelek Munchel, of Tennessee, was charged with one count of knowingly entering or remaining in any restricted building or grounds without lawful authority and one count of violent entry and disorderly conduct on Capitol grounds. Munchel was arrested today in Tennessee.
It is alleged that Munchel was inside of the U.S. Capitol on Jan. 6, 2021. Photos depicting his presence show a person who appears to be Munchel carrying plastic restraints, an item in a holster on his right hip, and a cell phone mounted on his chest with the camera facing outward, ostensibly to record events that day.
These cases are being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the DOJ’s National Security Division, with assistance from the U.S. Attorney’s Office for the Northern District of Texas and the U.S. Attorney’s Office for the Middle District of Tennessee. The cases are being investigated by the FBI’s Washington Field Office, the FBI’s Dallas Field Office, the FBI’s Memphis Field Office and the United States Capitol Police.
The information contained in the charging documents are merely allegations. The defendants are presumed innocent until proven guilty.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
Saturday 9 January 2021
U.S. Attorney Halsey Frank's Message to Maine Law Enforcement on Law Enforcement Appreciation Day 2021Read the Press Release
"Dear Maine Law Enforcement Partners:
I write in honor of Law Enforcement Appreciation Day. Now more than ever, it is important to acknowledge those who wear a uniform, preserve the peace, and maintain law and order. Your doing so enables us to enjoy the liberties we cherish, and that the rest of the world envies. All too often, rather than thanks for providing these services, law enforcement is met with suspicion and distrust, and subjected to second-guessing and criticism.
Every day, Maine police officers, sheriff's deputies, state troopers and other law enforcement officers leave their homes and their loved ones to protect the rest of us. They don't know what dangers they may encounter. There is no guarantee that they will return home safely. These days, we ask even more. In addition to your law enforcement duties, you and your colleagues are required to perform the roles of drug treatment provider, paramedic, mental health professional, crisis interventionist, and domestic violence counselor.
So, thank you and your brothers and sisters in uniform, for all you do.
Sincerely,
Halsey B. Frank
U.S. Attorney"
Three Men Charged in Connection with Events at U.S. CapitolRead the Press Release
WASHINGTON - Three men were charged today in federal court in the District of Columbia in connection with the riots at the U.S. Capitol on Wednesday, Jan. 6, 2021.
Jacob Anthony Chansley, a.k.a. Jake Angeli, of Arizona, was charged with knowingly entering or remaining in any restricted building or grounds without lawful authority, and with violent entry and disorderly conduct on Capitol grounds. Chansley was taken into custody today.
It is alleged that Chansley was identified as the man seen in media coverage who entered the Capitol building dressed in horns, a bearskin headdress, red, white and blue face paint, shirtless, and tan pants. This individual carried a spear, approximately 6 feet in length, with an American flag tied just below the blade.
Adam Johnson, 36, of Florida, was charged with one count of knowingly entering or remaining in any restricted building or grounds without lawful authority; one count of theft of government property; and one count of violent entry and disorderly conduct on Capitol grounds. Johnson was arrested yesterday and is currently in custody.
It is alleged that on Jan. 6, 2021, Johnson illegally entered the United States Capitol and removed the Speaker of the House’s lectern from where it had been stored on the House side of the Capitol building. A search of open sources led law enforcement to Johnson, who is allegedly seen in a widely circulated photo inside the Capitol carrying the lectern.
Derrick Evans, 35, of West Virginia, was charged with one count of knowingly entering or remaining in any restricted building or grounds without lawful authority; and one count of violent entry and disorderly conduct on Capitol Grounds. Evans was taken into custody Friday.
It is alleged that on Jan. 6, 2021, Evans, a recently elected member of the West Virginia House of Delegates, streamed live to his Facebook page a video of himself joining and encouraging a crowd unlawfully entering the U.S. Capitol. In the video, Evans is allegedly seen crossing the threshold of the doorway into the U.S. Capitol and shouting, “We’re in, we’re in! Derrick Evans is in the Capitol!”
These cases are being prosecuted by the U.S. Attorney’s Office for the District of Columbia and investigated by the FBI’s Washington Field Office and the United States Capitol Police.
The information contained in the charging documents are merely allegations. The defendants are presumed innocent until proven guilty.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
Statement on Misinformation on Social Media Regarding the Office of the Pardon AttorneyRead the Press Release
A spokesperson for the Department of Justice issued the following statement:
“Please be advised that the information circulating on social media claiming to be from Acting Pardon Attorney Rosalind Sargent-Burns is inauthentic and should not be taken seriously.
"The Justice Department’s Office of the Pardon Attorney does not have a social media presence and is not involved in any efforts to pardon individuals or groups involved with the heinous acts that took place this week in and around the U.S. Capitol."
Statement of United States Attorney Bart M. Davis in Recognition of Law Enforcement Appreciation DayRead the Press Release
Today, I ask all Idahoans to join me in saluting law enforcement officers throughout Idaho.
It is an honor for me to express deep gratitude for another year of extraordinary achievements by the women and men in Idaho law enforcement; to thank them for their bravery; and to pay tribute to those who have given their lives in order that their fellow citizens might be safer, their neighborhoods more secure, and their communities and country not only stronger, but more just.
On January 9th of each year, our Nation observes Law Enforcement Appreciation Day.
Our law enforcement officers, everyday heroes, are military veterans who returned home to serve their state, cities, towns, and tribal communities. They are young adults who aspired from an early age to stand on the front lines of our neighborhoods to fight for security and justice. They include, too, federal agents who stood shoulder-to-shoulder with their local partners and faced down some of the most dangerous criminals in the world. They are decorated, lifelong officers who, after decades of service on the force, still put on their badges with pride every morning. And each of them represent the very finest this country has to offer to lead, to serve, and to give.
Across this great state and throughout our history, Idaho’s law enforcement officers have come to stand for all that every citizen should aspire to be. That is why every year on January 9th, we honor these brave men and women for their service. These officers are trained and sworn to save the lives of their colleagues, protect innocent bystanders from harm, subdue and apprehend bad actors, and pursue desperate criminals attempting to flee justice. As a community, we know them not just as cops or deputies, but loving parents and caring spouses; as loyal, compassionate, and faithful friends; and as youth sports coaches and church leaders. They are the community they serve. They give much and ask for little in return.
January 9th is just one day – I ask that we always remember what they do – and what they give – to enforce our laws and keep our people safe. But we, too, must do everything we can to forge a safer and more just society. As United States Attorney for the District of Idaho, I am humbled to stand before you and encourage you to strengthen our support for law enforcement officers and their families – to thank them for their service. I am determined to keep doing everything I can to honor those who wear the badge and strengthen the bonds between law enforcement and the communities it serves. I am grateful for their professionalism, dedication, and quiet courage under demanding and often dangerous circumstances, and I look forward to continuing our work together to promote justice and public safety in 2021 and the many years to come.
Statement of U.S. Attorney David C. WeissRead the Press Release
WILMINGTON, Del. – As this week’s events in D.C. once again demonstrate, we are a nation of laws. And it falls to our law enforcement officers to fairly discharge their responsibilities and enforce our laws. In Delaware, we are fortunate to have an extraordinary group of federal, state and local officers who are dedicated to protecting and serving our community. As recently shown by Senior Corporal Timothy "TJ" Webb of Milford PD, they run toward the danger to keep us safe. In recognition of Law Enforcement Appreciation Day, and on behalf of the United States Attorney’s Office for the District of Delaware, it has been and continues to be a privilege to work with our law enforcement partners throughout Delaware. Thank you for your service.
Friday 8 January 2021
Waverly Man Convicted for Receipt of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Colin C. Gierke, 25, of Waverly, Nebraska was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for receipt of child pornography. Gierke was sentenced to 5 years and 8 months in prison and 5 years of supervised release. There is no parole in the federal system. Additionally, Gierke was ordered to pay $1,500 in special assessments which will contribute to funds established for victims of these types of crimes.
This case began with a November 21, 2019, National Center for Missing and Exploited Children (NCMEC) cyber tip report indicating that a Dropbox account, later identified as being owned and operated by Gierke, contained suspected child pornography. A search warrant was executed on February 12, 2020. During the execution of the search warrant, Gierke admitted to viewing and downloading files containing child pornography and that it would be found on his devices. Forensic examination of Gierke’s devices revealed several file folders containing child pornography, including at least 55 images and 4 videos. An examination was also completed of Gierke’s Dropbox account, which revealed that he uploaded 433 images and 220 videos containing child pornography onto the account.
This 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 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.
This case was investigated by the Nebraska State Patrol.
Waldron, Arkansas Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Megan Marie Rogers, age 34, of Waldron, Arkansas entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Superseding Indictment alleged that beginning in November 2019, and continuing until February 2020, within the Eastern District of Oklahoma and elsewhere, Rogers willfully and knowingly agreed with Kyle Lee Hamby, Marty Ray Campbell, Chelsea Lynne Cox, and others to acquire large amounts of methamphetamine and distribute it for money, and that specifically, on February 21, 2020, Rogers was arrested in Waldron, Arkansas in possession of methamphetamine and firearms.
The charges arose from a joint investigation led by Homeland Security Investigations (“HSI”), the Drug Enforcement Administration (“DEA”), and the Sequoyah County Sheriff’s Office. Numerous other agencies played important roles, including HSI task force members from the Oklahoma Attorney General’s Office, the Tulsa County Sheriff’s Office, the Wagoner County Sheriff’s Office, and the Tulsa Police Department, and DEA McAlester HIDTA Task Force members, Bureau of Indian Affairs and the DA District 18 Drug Task Force. The Oklahoma Bureau of Narcotics, Poteau Police Department, DA District 16 Drug Task Force, Arkoma Police Department, LeFlore County Sheriff’s Office, and Choctaw Nation Tribal Police also assisted.
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Christopher Schroeder represented the United States.
United States Brings Voting Rights Lawsuit Against IBEW Local 98 Alleging Interference and Intimidation in 2020 Union ElectionRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that the U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a civil lawsuit on behalf of the U.S. Secretary of Labor (the “Secretary”) against the International Brotherhood of Electrical Workers Local 98 union (“Local 98”) for violating Title IV of the Labor-Management Reporting and Disclosure Act of 1959, 29 U.S.C. §§ 481–483 (“LMRDA”).
The United States alleges that Local 98, through its incumbent officers and their supporting members, intimidated and threatened other members who sought to challenge incumbent union leadership in the union’s June 2020 officer elections, causing these members to withdraw from nominations. As a result, incumbent union leadership ran unopposed and all officers – including the president and five executive board members – were declared reelected without opposition. The United States alleges that Local 98’s interference, threats, and retaliation against the intended challengers violated its members’ rights under the LMRDA to nominate, be nominated, and vote for candidates of their choice without improper interference or threat of reprisal.
The United States alleges that the Local 98 officers and members who subjected the intended challengers and their supporters to intimidation, harassment, and retaliation include Business Manager John Dougherty, Business Representative Robert Bark, and Business Representative Rodney Walker, among others. Based on the allegations outlined in the Complaint, the United States asks the Court to declare the results of Local 98’s June 2020 officer election void, and order Local 98 to conduct a new election with new nominations under the Secretary’s supervision as provided by the LMRDA.
“As alleged in the Complaint, entrenched union leadership engaged in a pattern of illegal interference, including threats and intimidation, to ensure it faced no opposition in Local 98’s June 2020 election,” said First Assistant U.S. Attorney Williams. “Not only were members in good standing allegedly intimidated out of exercising their right to seek union office, but the entire Local 98 membership was allegedly denied its right to nominate and vote for candidates of its choosing.”
According to the Complaint, on the evening of June 9, 2020, when nominations for the election were to be held, at least 150 people, primarily supporters of Dougherty and his longstanding slate of incumbents, gathered as a crowd on the grounds of the union hall. They refused to speak to one intended challenger or his supporters. Further, to get inside the union hall for the meeting, nominees and nominators allegedly had to walk through the crowd of Dougherty’s supporters gathered in the parking lot and down the steps to the basement, which one intended candidate and other witnesses described as like “walking the gauntlet.” The Complaint states that the intended candidate and his supporters found the atmosphere imposing and felt intimidated.
The Complaint further alleges that Local 98, controlled by a slate of officers that has not changed in years, has had a pattern of interfering with the efforts of rank-and-file members to run for local union office since at least 2014.
“Every union member has a federally-protected right to have his or her voice heard in a free and fair union election. It is protected by law. If union leadership interferes with anyone’s right to vote or seek office within the union, the United States will hold them accountable,” Williams said.
“Ensuring fairness and integrity in labor organizations is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will continue to work with our investigative partners to ensure that those who are affiliated with labor organizations adhere to the highest standards of conduct to protect the civil rights of union members,” said OLMS Northeastern Regional Director Andriana Vamvakas.
Separate from and unrelated to this civil litigation against Local 98, the U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting a 116-count criminal Indictment that charges Dougherty and several other union employees with federal crimes, including embezzlement of union funds, wire fraud, and public corruption offenses. (Cr. No. 19-64 EDPA). The criminal matter is being prosecuted by Assistant United States Attorneys Richard Barrett, Bea Witzleben, Frank Costello, and Paul Gray. The trial date in the criminal matter is currently set for March 1, 2021.
The civil complaint contains allegations only, and not findings of liability.
The civil investigation was conducted by the U.S. Department of Labor’s Office of Labor-Management Standards. The civil litigation is being handled by Assistant United States Attorney Lauren DeBruicker.
United States Attorney Scott W. Murray Condemns Violence at the United States CapitolRead the Press Release
CONCORD: The events of January 6, 2021, in Washington, D.C. were deeply disturbing for all Americans. The attack on the U.S. Capitol struck at the very foundation of our Democracy.
While the Constitution safeguards the right to demonstrate peacefully, it does not protect or justify mob violence, attacks on government institutions or efforts to damage federal property. Neither does any Constitutional provision justify assaults or threats made against our elected representatives, federal administrative officials or police officers. Those who engage in these behaviors commit serious crimes and will be held fully accountable before our courts.
In the event that individuals from New Hampshire were involved in criminal activity in Washington, we will work closely with our federal, state, and local law enforcement partners to ensure that they are brought to justice. If we determine that federal charges can be brought in this District, we will proceed with our law enforcement partners to ensure that prosecutions are initiated.
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